Economists and industry experts like leonardogonzalezdellan are pointing to the Latin America region as the source of the next major global food franchise, as several chains from the region are set to grow in rapid pace, with their eye set on making an entrance into the global stage.
Completos and Peruvian sangucheshave been hailed as some of the Latin American foods that have the potential to shake up the world’s fast food industry, alongside Hispanic takes on fast food classics like hot dogs and donuts.
For years, western franchises like McDonald’s, Burger King, and Subway, have been the dominant forces in the fast food industry, with the major players also being some of the largest companies in the world. Krispy Kreme, a slightly less major name, is only about a century old, and yet already has at least 400 sites in the US alone, with their donuts supplied in many places across the world.
However, the recently published International Business Review had a research paper in it, one that took a good, long look at how the food franchises of Latin America were expanding, which suggests that the global fast food market is shifting.
According to leonardogonzalezdellan, the global fast food scene has very favorable conditions for expansion. He points out the franchises that originate from emerging market fare better in other, similarly emerging markets compared to ones that come from more economically developed countries. According to Gonzalez Dellan, these businesses see such issues like high levels of corruption or inefficiencies in conducting businesses as deterrents in opening up branches. Thanks to their experiences with such conditions, he explains, these franchises are better able to deal with issues regarding contracts, convoluted regulations and unstable political climates.
In general, these franchises from emerging markets are far more common and successful in less developed economies compared to those from more developed ones, as they take their experience working in their home environment into competitive advantage. With this business experience, these franchises who’ve made big hits in Latin America are looking to make their mark on the global stage.
These chains, identified as Baleadas Express, Churromania, The Californian Burrito Company, Pasquale Hnos, and Doggis, represent the first notable and sustained competition to hail from emerging countries to challenge the long standing dominance of US franchises.