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.
At the end of November executives from the US Buffalo Wild Wings casual dining franchise will be visiting San Jose in search of business partners to enter the local market in 2018.
Elfinancierocr.com reports that "...Between November 29 and December 1, Stan Walker, director of international business development for the brand, will be visiting the country, as well as Jorge Lizan, CEO of Lizan Retail Advisors, to meet with potential franchise partners."
A representative of the American restaurant franchise Chuck E Cheese's is planning to open three stores in the country, and is currently looking for spaces in the West and East of San Jose.
The representative company plans to open the first restaurant in Plaza Bratsi, in Heredia.Around $3 million will be invested in this location, and the process of remodeling the premises, importing games and hiring staff is currently being completed.
The regional trade fair for franchises 'Expofranquicias 2016', will be held on 12th and 13th of May in Costa Rica.
From a statement issued by the Chamber of Commerce of Costa Rica:
Costa Rica, March 14, 2016. More than 100 exhibiting companies and 4,000 investors from the Caribbean, North, Central and South America and Europe, will participate in the seventh version of the only regional trade fair for franchises: Expofranquicia, which will be held on 12th and 13th of May in Costa Rica with the aim of promoting the opening of new franchises in the region.
Thirteen fast food franchises will be opening 40 new stores this year, after 2015 saw the arrival of some new players and the departure of others.
A survey carried out by Nacion.com on the franchising industry revealed that about 40 new stores will generate 360 jobs this year, compared to the 654 redundancies recorded in fast food restaurants segment in 2015.
The fast food franchise KFC Costa Rica has been acquired by the Mexican Group Inversor Intelectiva, which plans to open five new restaurants between 2015 and 2016.
One of the major changes made by the new owner is to implement, in all branches operating in the country, the model used worldwide by KFC, called In Store Prepared (ISP).
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 . These closures are due to the fact that these branches "... are not financially viable, they are located in areas which are not very strategic and have produced bad business results. "
The restaurant chain Bagelmen's has closed seven stores which had been operating in the country for fourteen years, in addition to the recent closure of Wendy's, which closed its doors in early January.
Bagelmen's is the second large fast food chain which has closed its operations in the country this year. The closure of seven premises located in San Pedro, Lindora, Rohrmoser, Sabanilla, Heredia, Escazú and Guinoes, was announced by the owners of the company on January 24, without providing further details.
According to the union of restaurants, the close of the chain Wendy's reflects the saturation of a market which between 2010 and 2014 saw the opening of 244 outlets.
The east and west zones of the greater metropolitan area of the country are reporting higher saturation levels, according to the Costa Rican Chamber of Restaurants, since the supply per person in this sector "... has the same levels as cities such as Paris and New York."
Citing unprofitability the investment group owner of the US franchise Wendy's has announced the closure of its operations in the country.
From a statement issued by Comidas Rápidas Wentica S.A. (Wendy's Costa Rica):
Comidas Rápidas Wentica S.A., operator of the restaurant chain Wendy's Costa Rica, under the principle of responsibly to shareholders, has decided to close its 10 stores in the country permanently, citing reduced the chain's profitability, due to the fact that Costa Rica is the third country in the world in terms of the number of restaurants per square kilometer.
Fast food chains have announced investments of $13 million in the opening of nine chicken restaurants and improvements in other infrastructure.
In order to meet the growing the demand for chicken meals, the chains KFC, Rostipollos, Popeyes Louisiana Kitchen and As will make investments in 2013 which together total $12.7 million.
According to Juan Carlos Rodriguez, manager of the KFC brand (represented by the firm QRS International), the chain has 30 stores in the country and opened its first restaurant in Limon. In addition it will have branches in Tibás, Desamparados and Juan Santamaria International Airport, for which it is designating $8 million.
There are at least 15 Costa Rican restaurant chains where burgers are the highlight dish on the menu.
International brands include Mc'Donald's with its 50 stores, Burger King with 31 and Wendy's with 13 restaurants. Other fast food franchises with burgers on the menu are "Carl's Jr., which debuted in 2011 and has six locations, and Smashburger, which opened its first store in Lincoln Square, earlier this month."
The U.S. hamburger chain Carl's Junior plans to invest $4.5 million during 2013, with the opening of five new restaurants.
The new stores are to be located in Curridabat, San Jose, San Francisco de Heredia and Tibás and Escazú. Three of them will be outside of malls.
"For this format, which ranges between 400 and 500 square meters, the company will have to spend approximately $ 1 million, while for one in a food court, with an area of between 60 and 80 square meters, the cost comes to $500,000.
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 restaurant chain Chili's will open its first store in the new food court at Multiplaza Escazú next week.
With an investment of $2 million, the first restaurant measuring 500 square meters, will seat about 230 people, said Andres Gomez, general manager of CRB restaurants, the owners of the franchise.
Company plans are to open five new outlets in the next three years and they could have seven restaurants within nine years.