Location Analytics has changed the way marketing and commercial strategies are defined in the fast-food restaurant franchise business.
Understanding consumers’ behavior patterns is critical for all types of restaurants. Big Data tools play a very important role in this analysis, since they make possible to measure the foot traffic and mobility patterns of a specific area or location, among other variables.
Evaluating the commercial environment of each sales point of, for example, a bakery chain, is key to sizing the turnover potential of each location, a fundamental input for efficiently designing the expansion plan to compete in other micromarkets.
Using the Geomarketing solutions we have developed for our clients, CentralAmericaData's Trade Intelligence team analyzed the environment of some of the main locations of the bakery and pastry chains operating in Central America. Below is an extract of the study's findings.
Recruiting the best staff to operate the points of sale and reducing the costs of the initial investments to set up a franchise are some of the challenges faced by franchisers, who expect better sales in 2020.
Access to financing, containment of operating costs, and maintaining profitability levels are other issues of concern to franchisors in Guatemala.
In Costa Rica, at least 50 investors were interested in acquiring a franchise of the Dota Café coffee system, which in the first months of next year will begin with the opening of two stores in San José.
Despite having agreed to open two service points, representatives of the associative company Coopedota, reported that they still do not define details of the value of a franchise or the specific conditions for obtaining them.
Because of the slowdown in the economy and the entry into force of new taxes, in 2020 is expected a slight growth of 1% in the number of franchise brands in Costa Rica.
In the last year, the growth in the number of franchises reported a significant slowdown, since the figures of the guild specify that up to May this year the net number of brands reached 361, a value that exceeds by just 0.6% the 358 registered in the same month of 2018.
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.
During the first nine months of 2018, the country reported the arrival of three new foreign brand franchises, significantly below the 17 franchises registered in the same period last year.
In the last decade, 2017 was the year with the highest number of franchises, according to a report by the Costa Rican Chamber of Commerce and the National Franchise Center.
On July 17 and 18 representatives of international franchises from different sectors will be showcasing their business models and meeting with companies interested in acquiring their franchises.
EXPO FRANQUICIA 2018 is being organized by the Chamber of Commerce, Industries and Agriculture of Panama, and will bring together more than 100 companies showcasing 70 exhibition modules from a variety of chains including restaurants , desserts, pastry shops and bakeries, air conditioning technical services, pre-school education, photography and design, manicures and pedicures, business networks, automotive service, and footwear, among others.
Ink and toner refills with latest generation machinery exclusively for the franchisee in Central America, investment opportunity with fast return.
Ink and toner refills with latest generation machinery exclusively for the franchisee in Central America. At the same time, complementary services such as copies, printing are offered. Document lamination, document scanning, Internet Express and other office consumables.
As of November 2017, 349 franchises were registered in the country, of which 24% are national and 76% international.
Data from the VIII Study of the franchise market in Costa Rica reveals that the sector has accumulated growth of 133% in the last seven years, with highlights including growth of international franchises in the country and a greater presence of Costa Rican franchises operating beyond their borders.
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.
In a transaction whose amount was not disclosed, Costa Rica Grupo Inmobiliaria Genesis sold it's international franchise for the restaurant chain TGI Friday's .
The company that owns the franchise now is La 305 S.A., which has already started a process of remodeling the restaurant located in Escazú.
Elfinancierocr.com reports that "...The management of the franchise will be only at the national level because there are other franchisees in the region.However, new owners already see potential for growth. And, despite the fact that dates have not been formalized for expansions, the spokesman sees opportunities to grow in a period of three to five years in areas such as east of the capital, in addition to Alajuela and Heredia."
The chain Payless ShoeSource has filed for bankruptcy and announced a plan to restructure its operations, which will not affect those it has in Central America.
The chain International House of Pancakes IHOP is looking for partners to open at least ten locations in Costa Rica.
Representatives from the US restaurant chain will be visiting Costa Rica in the next few days to meet with potential investors interested in developing the franchise in the country.The objective of the brand, already present in Panama, is to open at least ten premises.