Saudi Arabia's top local burger chain Hamburgini crashes into bankruptcy, shuts down operations

Twelve years after its founding, the Saudi fast-food chain Hamburgini is shutting down operations following a court-ordered liquidation of its parent company, Food Basics Trading . The decision, driven by severe reputational and financial damage from a 2024 food poisoning incident , marks the collapse of one of the Kingdom’s most prominent local restaurant success stories.

Liquidation proceedings officially begin
On August 27, 2025, a court ruling from the Ninth Circuit of the Riyadh Commercial Court ordered the opening of liquidation procedures for Food Basics Trading Company, the closed joint-stock firm that owns the Hamburgini restaurant chain. The order was issued in Case No. 471003464 for the year 1447 AH, dated 02/11/1447 AH, and announced publicly via the Saudi Ministry of Commerce's "Esar" platform.

Mubarak bin Eid Al-Anzi, appointed as the bankruptcy trustee, has called on all creditors to submit their claims using the designated Creditor Claim to Debtor form within 90 days from the announcement date.

The company, registered under commercial number 1010248348, is now undergoing full legal liquidation as part of Saudi Arabia’s Bankruptcy Law framework, which governs the process for distressed firms, aiming to safeguard creditor rights and ensure regulated exit or restructuring pathways.

From rapid growth to sudden collapse
Founded in 2013 in Riyadh, Hamburgini quickly became a standout local brand in the fast-food sector. It grew popular among young Saudis due to affordable pricing, daily-prepared meals, and offerings such as smashed burgers, sweet potato fries, real chicken tenderloin, and lettuce burgers, a novelty in the local market at the time. Hamburgini also emphasized fresh-baked goods and a made-to-order model.

By 2020, Hamburgini’s footprint had rapidly expanded across Saudi Arabia. The brand claimed to be the chain with the most branches in the Kingdom, with a presence in:

• Riyadh (29 branches)
  
• Jeddah
  
• Eastern Province
  
• Qassim
  
• Hail
  
• Additional urban and regional centers
  

In total, 57 branches were operational at the time of closure.

The brand owed much of its expansion to strong digital marketing, savvy social media campaigns, and ambitious leadership under CEO Nawaf Al-Fawzan. In a 2020 interview, Al-Fawzan had announced plans to list 20% of the company's capital on the Nomu Parallel Market and open 20 more branches, a sign of the company’s growth trajectory at the time.
The company’s registered capital stood at one million dirhams.

The 2024 poisoning incident that sparked the downfall
In 2024, Hamburgini’s upward momentum came to a halt following a mass food poisoning outbreak at one of its branches in Riyadh. The incident resulted in more than 70 injuries and one fatality, sparking national attention and concern.

Subsequent investigations traced the cause to Clostridium botulinum bacteria found in Bon Temps mayonnaise, an imported ingredient used in Hamburgini’s food preparation. Although the contamination was linked to an external supplier, Hamburgini bore the brunt of the fallout.

Authorities from the Ministry of Municipalities and Housing responded by:

• Shutting down all Hamburgini branches in Riyadh
  
• Withdrawing the contaminated mayonnaise product from the market
  
• Halting production at the implicated factory
  
  

Despite these measures, the chain suffered extensive reputational damage . The public's trust in the brand plummeted, directly impacting sales, revenues, and foot traffic across its branches.

Financial consequences and final closure
As operational losses mounted, Hamburgini faced rising debts and an increasingly unsustainable financial position. Branch closures followed, and the company struggled to meet its financial obligations.

By mid-2025, the signs of financial distress were clear: a prolonged inability to recover consumer trust, stagnating sales, and a shrinking footprint across the Kingdom.

With no viable path to recovery, Food Basics Trading Company filed for bankruptcy. The liquidation announcement in August 2025 marked the official end of Hamburgini’s journey, from a pioneering local burger chain to a case study in how a single crisis can unravel years of growth.