Saudi Burger Chain Hamburgini Files for Bankruptcy After Food Poisoning Scandal
Hamburgini, a popular Saudi burger chain, has filed for bankruptcy following a devastating food poisoning outbreak that severely impacted its reputation and finances.
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Bankruptcy Proceedings
- The Commercial Court in Riyadh ordered the liquidation of Asasiyat Al Ghitha Trading Co., Hamburgini’s parent company, in August.
- Creditors have been given 90 days to submit claims.
Company Background
Founded in 2013 in Riyadh, Hamburgini quickly gained popularity through aggressive social media marketing and appeals to Saudi youth. By 2019, the chain had expanded to 57 outlets, including nearly 30 in Riyadh, and additional locations in Jeddah, the Eastern Province, Qassim, and Hail.
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In 2020, the company was at the peak of its success, with plans to float a 20% stake on the Nomu parallel market.
The Food Poisoning Outbreak
In 2024, Hamburgini’s trajectory changed dramatically when over 70 people fell ill and one person died after consuming food from a Riyadh branch.
- Investigations by the Ministry of Municipalities and Housing and the Saudi Food and Drug Authority traced the outbreak to contaminated mayonnaise branded as “Bon Tum”.
- Tests found Clostridium botulinum, the bacterium responsible for botulism.
As a result:
- Hamburgini’s Riyadh locations were closed.
- Distribution of the contaminated mayonnaise was halted nationwide.
- The supplier’s factory was shut down.
Aftermath
The outbreak led to a rapid decline in consumer trust, plummeting sales, and regulatory closures, exacerbating Hamburgini’s financial woes.
In subsequent months, the chain shut down various branches and scaled back operations, but could not recover revenues. Mounting debts and ongoing losses ultimately forced the company into liquidation.
This collapse marks the end of a brand once celebrated as a Saudi entrepreneurial success story in the fast-food market.
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