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.
In the context of the tense diplomatic and commercial relationship between the two world powers, Central American countries could have the opportunity to attract new investments, as it is estimated that some American companies would need to migrate their operations to the American continent.
As a result of the tension between the two nations, Mauricio Claver-Carone, an advisor to President Trump, believes that U.S.
The Trump administration plan will be aimed at 30 countries of the continent and is called "America Crece", and consists mainly of the development of private investments, granting loans and sale of natural gas surpluses.
The U.S. government's objective is that, with the application of América Crece, job creation will be facilitated through the development of infrastructure in airports, ports, highways, digital networks and telecoms, but the big bet will be energy projects.
In a context in which the creation of digital records is increasing, investment in data analysis, technology and personnel becomes fundamental and essential to ensure the best possible performance in companies.
Advanced Analytics (AA), which can be executed from data from digital platforms, wireless sensors and millions of mobile phones, is transforming competition across multiple sectors by generating opportunities to capture value from improved decision making and comprehensive business transformation.
Nayib Bukele returned to the Legislative Assembly the reform to the law of Free Zones that granted tax benefits for an additional period of 10 years to companies in the country to increase their investment in 100% with respect to the initially made.
On August 29, 2019, the Assembly informed that the Legislative Plenum endorsed the reform to the Law of Industrial and Commercial Free Zones, establishing that the users of these zones would have a term of 10 additional years (before there were five) to continue enjoying total exemption from taxes, which would be applicable once the period established for the regular enjoyment of this benefit expired.
In El Salvador, it is proposed that the law discussed in the Assembly, considers the reduction of minimum requirements for investments made in special economic zones, to compensate for the disadvantages of lack of productive activity in the area.
In July 2018, the Executive Branch presented to the Legislative Assembly the draft Law on Special Economic Zones (LZEE), which is being analyzed by the Economy Commission.
The effect of crime and the tax reforms that have been implemented are part of the factors that have caused companies in El Salvador to decide not to make more investments.
The Business Competitiveness Survey, prepared by the Salvadoran Foundation for Economic and Social Development (FUSADES), details that between 2011 and 2017 the number of companies that have no interest in investing in the country registered a 11% increase.
Adverse court decisions against companies, social and political conflicts and fiscal issues are some of the factors that are impeding the development of productive projects in Central American countries.
One of the latest court decisions affecting companies with investments in the region was that of Minera Petaquilla, in Panama. The contract that this company had signed with the Panamanian State was declared unconstitutional last week.
One of the decisions taken by Guatemalan businessmen with interests in Nicaragua is to suspend new investments until the situation in the country is normalized.
Due to the social and political situation that the country has been experiencing for more than three months, Guatemalan investors that operate companies in Nicaragua have been analyzing the situation closely, and are already taking measures to minimize the impact of the crisis on businesses. One of the decisions that some companies have taken is to reduce the cost of the operation to the lowest possible level, in order to maintain or reduce product inventories.
A proposal has been made to create a special economic zone in 26 municipalities in the southeast of the country, which would provide tax incentives for activities related to clean energy and the prospecting of natural gas and oil.
The Executive presented to the Legislative Assembly a preliminary draft of the Law on the Special Economic Zone of the Southeast Region of El Salvador, which has the objective of developing 26 municipalities of Usulután, San Miguel and La Unión.
Businessmen recommend to take more advantage of the characteristics of the economy, such as dollarization, the growing and constant flow of remittances and the strength of the local financial system.
The Salvadoran Foundation for Economic and Social Studies (Fusades) presented a study highlighting the 12 most important factors which El Salvador has that can be leveraged to reactivate investments.
The private sector is proposing seven lines of action to address the challenges caused by the cancellation of the temporary work status of about 195,000 Salvadorans living in the United States.
The trade union of employers previously gave its view on the cancellation of temporary work status', and the opportunities that could be generated from theapplication of three strategic measures.
Creating a job and investment exchange for Salvadorans in the US with specific competences and skills, and facilitating a special line of financing for those who return to the country are some of the proposals put forward by the private sector.
In light of the expected economic impact in El Salvador, and also in the other countries in the Northern Triangle, from the cancellation of the temporary work status of approximately 195,000 Salvadorans who currently reside in the US, the business sector has suggested some alternatives to start solving the problems that will arise starting from September 2019.
The lack of a clear political course charted by the government of El Salvador is preventing the business sector from getting involved in large investment projects, affecting job creation, which in the first months of the year grew by only 1.1%.
The low levels of domestic and foreign investment in recent years in El Salvador is taking a toll on the economic level, given the limited possibilities for the business sector to create more and better jobs.
The chain Cinepolis plans to open four new theaters in 2015 in Guatemala, one in Honduras, two in Panama and 30 new screens at a shopping center in Costa Rica.
Parallel to this expansion plan in the region, representatives from the Mexican chain Cinepolis said they are evaluating whether to make new investments in El Salvador, where they already have a 43% share in the cinema market.