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.
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.
Pizza Hut, KFC and Subway are some of the fast food chains that plan to invest in opening new restaurants during 2020.
The Pizza Hut chain plans to invest close to $1.8 million in the opening of six new stores this year. The points of sale could be located in the areas of Aserrí, Paraíso de Cartago and San Ramón de Alajuela.
In Costa Rica, fast food restaurant chains plan to open at least 14 new sales points in different areas of the country next year.
Some of the companies planning to expand their restaurant chain in 2019 include: Taco Bell, Pizza Hut, McDonald's, Subway, KFC and QSR International, and their key commitment to further expansion will be to move into smaller locations.
In the last three years nine fast food chains opened at least 67 points of sale, both in the Greater Metropolitan Area and in rural areas of the country.
The fast food market in Costa Rica is not showing signs, at least for now, of being saturated.The constant opening of new points of sale by different chains reflects the growth potential that this segment of the restaurant market still has.
Between 2010 until October 2013 at least 500 restaurants were built in the country.
The data was supplied by the Association of Engineers and Architects (CFIA). The increase occurred in all areas and all categories, which include restaurants and bars, plus six other categories, as defined by the Treasury Department.
Elfinancierocr.com reports that "if you encompass the eight in a single block, the data shows that the amount of legal persons who declared income grew by 11.6% between 2009 and 2012". Meanwhile, sales tax was up 16.5%.
While Chili's and Buffalo Wild Wings open their first branches in Costa Rica, the established Applebee's, Subway, Quizno's, McDonald's, KFC and Teriyaki have increased their investments.
Before the end of the year, Hooters will open its fourth restaurant on Paseo Metropolis, in Cartago, east of San José, with an investment of $1 million.
By 2014 the franchise hopes to double the number of stores nationwide.
The five locations opened in the first half of the year will be joined by nine more before year end.
By the end of the year the franchise which has been operating in the country for seventeen years will have fifty-five branches outperforming its competitor Mc Donalds which has forty-four.
Meanwhile Quizno's, its nearest competitor, has grown by 50% over the past five years.
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.
Meanwhile Subway, which has already opened three new outlets this year, plans to open three more by December.
In 2011 fast food chains plan to open 20 new restaurants.
The average investment ranges between $ 1 million and $ 1.5 million for opening of new stores. Also, remodeling of some stores was announced with values between $ 120 thousand and $ 400 thousand.
The new restaurants will generate about 425 jobs.
This was confirmed to La Nacion by the representative of McDonald's, Quizno's, KFC, Teriyaki, Subway, Wendy's, A's and Domino's.
On February 7th, the company inaugurated its 33rd location in Costa Rica.
The new restaurant, capable of serving 59 people, is the first one to feature drive in services.
“Natalia Castro, from Subway’s Marketing department, explained the company intends to open 5 additional stores in 2010, to reach a total 38 restaurants”.