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Latin American Food Franchises Expected To Be The Next Big Thing

  • By Walter Baker
  • Jul-29-2018
  • Industry, News, Restaurant, Service, Tips
  • Comments Off on Latin American Food Franchises Expected To Be The Next Big Thing

With billions of dollars in profits, as well as massive sponsorships and promotions, it’s no surprise that the fast food industry sees a lot of companies looking to stake their claim. The extremely profitable industry, however is extremely competitive, with many of the major players staying on top while the small fry duke it out.

Experts like Leonardo Gonzalez Dellan, however, have weighed in on the industry, saying that a number of chains from Latin America might shake up the market within the next few years. Foods like peruvian sanguches, completos and plátano mixto have been earmarked as some of the Latin American foods that might shake up the fast food industry, alongside Hispanic iterations on classic foods like hot dogs and doughnuts.

The fast food sector has long since been the playground of Western franchises, with names like McDonald’s, Burger King and Subway, being the dominant franchises and biggest companies across the world. Another notable franchise, Krispy Kreme, is less than a century old, but already has its doughnuts available in garages and stores across the world, with over 400 sites in the US alone.

Recent research published in the International Business Review shows the signs of change in the global franchise structure, with the paper’s focus on Latin American franchises detailing how they might step up to the global market.

Expert entrepreneur Leonardo Gonzalez Dellan says that the fast food industry is very much ripe for expansion, saying that franchises in emerging markets are better at dealing with the less than ideal conditions in other emerging markets compared to franchises hailing from economically developed countries.

Dellan explains that these businesses don’t see the issues in lesser developed markets like high levels of corruption or inefficiencies in conducting business as unacceptable when it comes to opening. The evidence suggests that Brazilian and Latin American franchise chains don’t see such issues as problematic, and are better able to deal with them and their consequences, like problems with contracts, convoluted or contradictory regulations as well as political instability.

Emerging market multinationals (MNEs) are more prevalent in countries like the ones they emerged from, compared with traditional MNEs, as they use their experience with dealing with such conditions into an advantage. Latin American fast food chains are rapidly expanding across the region, and setting their sights on the global stage, which are the first sustained competition to the dominance of US franchises.

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