Fast Food Chain in Costa Rica Closes

Burger King Costa Rica has announced the closure of 29 restaurants operating in the country, after a decision was taken by shareholders and the franchisor BKC US.

Monday, October 5, 2015

Since February the franchise has closed four of its stores in the metropolitan area, citing a lack of financial viability. See: "More Fast Food Closures in Costa Rica".

In recent years the franchise has changed hands at least twice. As reported on Elfinancierocr.com , "... Public record information indicates that BK Centro America (Costa Rica) Sociedad de Responsabilidad Limitada, the company name under which the chain currently operates, is no longer represented in the country by the Venezuelan brothers Rafael and Leo and Belloso nor Carlos Borregales -also Venezuelan-, investors who acted as managers and owners. Now, BK Centro America appears to be under the management of lawyers Rodrigo Zelaya Rodriguez and Roger Guevara Vega and the official from Burger King Corporation Julio Luis Sanchez Capo, all of whom occupy the position of managers according to the Registry. "

The fast food market has seen the arrival of many competitors in recent years, and saturation in the sector was becoming apparent in the price war which was unleashed. If you add to that the slowdown of the Costa Rican economy, there have been clear effects on trade in this sector.

Post edition:
After the publication of this article, there may have been separate statements by franchisor and franchisee, which pointed out that the closure took place because of a "judicial order", and both parties refer to disagreements over management of the business. According to a report by Elfinancierocr.com, "... the parent company, said that Costa Rica has been and will always be an important market, therefore it expects to reestablish the business in the country."



More on this topic

Burger King Costa Rica: Assets Available

October 2015

The closure of the 29 restaurants has left, not only unmet demand in the fast food market in high consumption areas, but also well-qualified staff.

An article in Elfinancierocr.com is an accurate analysis of the wakeup call for the fast-food market of Costa Rica, represented by the closure of operations of a franchise which has been operating since 1990.

More Fast Food Closures in Costa Rica

March 2015

Representatives from the international franchise Burger King in the country have announced the closure of four outlets, due to "bad business results".

The outlets which will cease operations are located in the Paseo Metropoli shopping center, Plaza Real Cariari, Santo Domingo and Heredia .

Burger King to Expand in Costa Rica

June 2012

Under pressure from increased competition, the burger franchise plans to open 5 new stores in 2012 and 6 in 2013.

The burger chain has 31 locations in Costa Rica, but plans to open five new stores in 2012 which will also have a revamped exterior image, said Mario Jimenez, director of operations and logistics of Be Ca Costa Rica, the owner of the Burger King franchise in the country.

Costa Rica: Shaking Up the Fast Food Sector

November 2011

The opening and remodeling of restaurants, the closing of others and the entry into the market of new competitors is shaking up the market.

QSR International, which operates Quizno's in the country, has added fast-food chain Smashburger to its portfolio with three locations opening in 2012.

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