Fast Food: Expansion Plans Redesigned

Relocating existing restaurants, strengthening the digital sales channel and identifying the areas where consumers are currently concentrated in order to choose the location of new stores are some of the strategies of the chains when executing their expansion plans.

Friday, February 26, 2021

As a result of the covid-19 outbreak, several expansion projects were affected, which must now reinvent themselves and adapt to the new commercial reality, in which consumers have different lifestyles.

See "Fast Food: Rises and Falls in Central America"

Before March 2020, the table area of fast food restaurants were essential for customer service; however, due to restrictions imposed by Central American governments, chains had to bet on other sales formats.

Pick up, a sales format in which consumers order in advance and pick them up at restaurants, became very popular in the context of the health crisis. Telephone sales with home delivery service, online and self-service shopping have also gained ground in recent months.

You may be interested in "Geomarketing and Expansion plans: Real Success Stories"

In this context of changing habits, the rise of other service formats and in which people are concentrating in locations that were not the usual ones before the pandemic, restaurant chains must adjust their expansion plans. reports that in the Costa Rican market "... Subway was aiming for four openings in high traffic locations such as shopping malls, offices, residential and student areas, but the change in the concentrations of people due to the pandemic led the chain on another path: they reinforced their online presence, designed an 'optimized delivery' process with sealed products, and are now working on the relocation of restaurants, in addition to launching in Tibás the worldwide pilot for the new self-service format."

Also see "Fast Food: Restaurants' Location Potential"

Jesus Rodríguez, director of Public Relations and Corporate Social Responsibility at Subway Latin America, detailed that "... 'this 2021 we are focusing on relocating restaurants that warrant it. This strategy includes both new and existing locations. We are currently carrying out four relocations'."

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