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.
The Ministry of Finance has announced that the aircraft maintenance firm Aeroman will be expanding its operations in the country, including investment in expansion of its installations.
According to comments made by Minister Tharsis Salomon Lopez in a meeting with journalists, they are in the final phase of negotiations with the firm Aeroman aircraft maintenance, which will be expanding its operations in El Salvador, where it has operated for more than five years.
The Development Bank of Latin America has provided a loan of $300 million to the Spanish Official Credit Institute for promoting business development between Spain and Latin America.
From a press release issued by the Development Bank of Latin America (CAF):
CAF (Development Bank of Latin America) and the Official Credit Institute (ICO) today signed the granting of a loan for $300 million for the financing and provision of guarantees for Spanish and Latin American companies.
The fuel company has announced a regional expansion process in El Salvador, Honduras and Panama.
Juan Salazar, manager of the company, explained that in 2013 they plan to open 75 stations in these countries, with a total investment of $48 million and an average cost of $500,000 per facility.
The company began in 2010 in Guatemala with one gas station, by the end of 2011 it had 16 and it now has 37 plus a further 21 planned in this country by the end of 2012, according to elperiodico.com.gt.
The Swiss oil company has completed the takeover of the assets of Exxon Mobil in Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
The Exxon Mobil assets to be transferred to Puma Energy include 300 service stations, two refineries, the addition of three terminals, two airports and a marine bunker fuel supply which supplies 20% of the regional market, all of which involves managing a 20 million barrels of oil per year.
Banmédica is the largest private health organization in Chile, with investments in Colombia and Argentina, and with subsidiaries in the insurance sector.
With an average investment of $70 million annually for the past 12 years, Banmédica provides a wide range of health-related services, including clinics, laboratories, medical centers and medical rescue units. It also provides health insurance services.
Company executives visited El Salvador to discuss malls and evaluate the possibility of investing in new stores.
The Spanish chain reported that its sales in Latin America have reported growth rates above 10%, which is encouraging them to explore the possibility of expanding in that market.
Isak Halfon, the Executive Vice President of International Expansion for the company, , said on a visit to El Salvador that "Latin America has got out of the financial crisis and is now growing," while José Gomez, the vice president of International Business Development, said "if things continue as they it will be a very prosperous decade for Latin America. "
The real estate developer is planning to invest in Colombia and Peru.
Alberto Poma, the General Manager of the Group referred to the rapid growth of these economies as the main attraction for investment.
" Grupo Roble already has an office building in Colombia, called the Bogotá Corporate Center, while in the hotel sector, our sister group, Grupo Real has invested in the construction of a JW Marriot, again, in the capital.
The company announced expansion plans for Central America and the Caribbean market.
From Panama, Denis Barbier, chief executive, said the company has strengthened its presence in Latin America with four assembly plants.
"Olivier Murguet, commercial director of Renault for America, stated that 2011 is the "year of the re-launching" of the European brand in Central America, the Caribbean and Ecuador" reported Elperiodico.com.gt.
With an estimated investment of $ 12 million this year, the Venezuelan chain opens its first store in El Salvador.
Located in the municipality of Soyapango (seven miles east of San Salvador), the hardware store will open next May, employing 190 people.
Ignacio Vieto, general manager of the chain in Costa Rica, also referred to the forthcoming opening of the fourth store of the chain in Costa Rica, located in Colima de Tibas.
“Grupo Seguridad Celar” (GSC) is looking to expand to Central America from its recently opened office in Panama.
Juan Carlos Girardo, president of the company, explained that from Panama they are participating in government acquisitions in Dominincan Republic, Costa Rica, Honduras and Guatemala.
“On Thursday, GSC commemorated 50 years of operating in Colombia.
The Salvadoran store chain will start hiring 335 people in Costa Rica this month.
They will start the process at the company's first Job Fair, organized for September 1st and 2nd in the Quality Hotel Real Santa Ana.
"Fátima de Palacio, hiring manager at Simán, said they are looking for enthusiastic people, highly oriented to customer service, with good assertive communication and leadership", reported Ana Cristina Camacho in El Financiero's web site.
Franchising is always an option for expanding a successful business model.
In theory, any business can become a franchise. However, not all activities are ideal to be developed under this model, so a good diagnostic is the first step, to check the viability of the model in each particular business activity.
In his article in Prensalibre.com, José Fernández points out 4 key aspects when analyzing the feasibility of a franchise:
The multinational apparel company has invested $20 million in the expansion of two factories and a new water treatment plant.
In the last three years, the casual and sport clothing company, Hanesbrands, has invested $200 million, making El Salvador one of the 5 biggest operations in the world.
The economic crisis forced the company to move its machinery from the United States to the Central American country where they are investing $20 million.
When viewing an opportunity to expand a business, it is necessary to analyze which of these options is best to get it accomplished.
One of the key aspects is financial. Franchises usually require a higher investment in the beginning, but once they are granted, they will have marginal costs that are lower each time.
Conversely, expanding operations by opening branches involves similar amounts of investment for each one, reason for which access to financing is key in this option.