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FranchiseBA: Chuck E. Cheese Eyes Expansion in Argentina, South America

On January 14, 2011, In franchises, us companies, by InvestBA
Chuck E. Cheese's

Chile was CEC's first South American market. Now Argentina, Brazil and Peru are on the mouse's radar.

Family, food and entertainment are the focus of Texas-based CEC Entertainment, the operator of Chuck E. Cheese’s restaurants in 48 states and 6 countries. Now the giant mouse from the Lone Star state is looking to Latin America, apparently lured by the same combination of population growth, economic strength and youthful demographics attracting the likes of Wendy’s and Pizza Hut.

Unlike the U.S., most neighborhoods in Buenos Aires and other major Argentine cities all have designated party and event planning centers, but these venues typically don’t offer a full-service restaurant, electronic games and rides all under one roof like Chuck E. Cheese’s. So they may have found an attractive niche.

According to Bloomberg, the company has been spending aggressively on overhauling existing stores in the U.S. during the recession to keep families coming back, a move that is paying dividends judging by the stock’s 18% rise in 2010.

News from Chile’s Diario Financiero suggests the Santiago-based owner of the Chuck E. Cheese’s franchise operator in Chile, Pie de Monte, is looking to Argentina, Brazil, Colombia and Peru as possible markets for expansion. A spokesman for the company says Chile will remain the hub and base of operations for Chuck E. Cheese’s in the region where they envision opening 155 stores over the coming decade. The company website says franchise partners are also being sought in Costa Rica, Mexico, Panama and Puerto Rico.

For more information about investment opportunities in Buenos Aires, download the new issue of InvestBA Privada.

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FranchiseBA: Mexicas Bar & Delivery Mexicano

On October 15, 2010, In franchises, by InvestBA
Having perfected their concept in Rosario, Mexicas is ready to take BA by Tex-Mex storm.

Having perfected their concept in Rosario, Mexicas is ready to take BA by Tex-Mex storm.

“An Innovative Product. A Unique Proposal. A Profitable Business.” That’s what the founders of Mexicas Bar & Delivery Mexicano offer to potential franchisees. The founders, Chefs Santiago and Matias Rayón, opened their first Mexicas in Rosario in 2005, and have kept MB&DM a Neuquén secret…until now. After five years perfecting their craft and concept, Matias tells ON24 that Mexicas is ready to take La Ciudad de la Furia and the rest of Argentina by storm. The concept is a three-tier “Tex Mex” bar, fast food and delivery service uniting high quality ingredients, efficient service and an attractive price:quality ratio. The company’s Franchise manual promises “More than Services…A Road Map to Success” including restaurant design, layout and supervision, training, software, branding and marketing materials. Franchise cost is approximately $25,000 for the first five years, and MB&D’s stated vision is “to become the largest Mexican food and delivery franchise in Argentina with outlets in all twenty-three provinces.” And while Mexicas Misiones may be pretty far down the road, MexicasBA is the here and now. “Our focus is firmly on Buenos Aires, beginning with Palermo,” says Matias, “but we still haven’t finalized anything.”

For more information about franchise opportunities in Buenos Aires and Argentina, visit our archives, download the new issue of InvestBA Privada or e-mail franchise@investba.com.

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FranchiseBA: Will Pizza Hut Finally Succeed?

On October 13, 2010, In foreign investment, franchises, us companies, by InvestBA
Pizza Piola

If Pizza Hut is successful next year in Buenos Aires, KFC franchises may soon follow. (Photo: Pizza Piola)

There was a time when every town in America had a funny-looking, raised red roof Pizza Hut like this on the main drag. They were the American pizza joint in the 1970′s and the go-to spot for birthday parties, high school hangouts and T-ball post game celebrations. Now most have either disappeared from the U.S. landscape or morphed into something entirely different and unsavory.

While Buenos Aires missed out on the PH craze in the 70′s, she finally got her first taste of The Hut in the 1980′s and again in the 1990′s, but both attempts ended in failure. Now BA-based Desarrollo y Gestion (D&G) is betting the third time will be the charm and planning to open Pizza Hut locations in Buenos Aires next year. (D&G has overseen the successful export of the Havanna brand throughout Latin America.) If Pizza Hut hace furor, D&G would then look at bringing down Colonel Sanders and KFC, another subsidiary of Kentucky-based Yum!, the world’s largest restaurant company.

While saluting their perseverance and wishing them well, La Nacion spins a cautionary tale of other U.S. franchises that failed to seduce BA palettes including Domino’s Pizza, Wendy’s, Dunkin Donuts, Schlotzsky’s and Blimpie. And when you look at the list of countries where Pizza Hut is growing at a phenomenal rate (e.g., China, India), they all have something in common: really bad pizza.

For more information about investment opportunities in Buenos Aires, download IncomeBA and the new issue of InvestBA Privada.

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FranchiseBA: Can Argentine Brands Find Success on Foreign Soil?

On September 27, 2010, In competitiveness, foreign investment, franchises, by InvestBA
Havanna Argentina

Argentina's Havanna found success abroad by staying upscale and focusing on leading Latin markets.

In the new issue of InvestBA Privada, branding expert Claudio Destefano tells our readers “Argentine consumers are very marquero (as we say here), because Argentines travel a great deal and want to enjoy the same brands here that they experienced abroad.”

That desire for quality and consistency helps explain the success of U.S. chains like McDonald’s, Howard Johnson’s and Starbucks, which just opened its 23rd store. But what about successful Argentina-based franchises? Do they have the name recognition, consistency and marketing savvy to be successful abroad?

La Nacion poses that question in “The Art of Exporting Franchises” and points to local coffee house/chocolatier Havanna as one of the few that has translated to foreign soil. Part of the challenge is that Argentina is associated with great generics like beef, leather, tango and the Patagonia, says local branding consultant, Marcelo Elizondo; however, he says there is tremendous potential for well-established Argentina franchises once they focus on a niche.

In the case of Havanna, that meant staying upscale and targeting high-end neighborhoods in leading Latin American markets like Costa Rica, Venezuela, Chile, Mexico and Brazil which accounts for half of the company’s foreign franchises. Clothiers Kevingston and Legacy are singled out as examples of Argentine franchises that have found success in Spain, while Pro Entertainment has successfully exported the Boca Juniors-branded futbol school to several foreign countries. (Full Story in Spanish)

For more information about franchise and other investment opportunities in Argentina, download the new issue of InvestBA Privada.

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FranchiseBA: Dabbawalla…Funny Name, Serious Logistics

On September 10, 2010, In competitiveness, franchises, by InvestBA
Dabbawalla Argentina

Companies like McDonald's are turning to Dabbawalla when they need a safe and reliable last mile solution.

This week’s Argentina franchise opportunity is a Rosario-based company focused on a the corporate delivery niche. While Dabbawalla originally launched in Rosario, the company recently commenced operations in Buenos Aires and across the border in Santiago, Chile.

Manager Eduardo Capelle said the move to BA was not without challenges considering the larger distances and heavier traffic patterns. “We know we have to adapt to each market so that the services we offer reach the high expectation levels of our local clients, the clients of our clients and our employees who complete the service cycle. Only when we feel we are capable of meeting all those demands will we move into a new market, which was the case in Buenos Aires,” said Capelle.

The greater traffic, logistic and security challenges BA presents mean greater opportunities for Team Dabbawalla whose motorcycle-riding cadets are already assisting corporate clients like McDonald’s, La Posta and California Burrito Company. Capelle says the company is on the verge of opening two strategic franchises in keeping with the business plan, while more franchises are definitely on the horizon.

Toward that end, the company offers additional, downloadable information for potential franchisees on the Dabbawalla website. In summary, the company offers a unique last-mile solution for foreign companies who don’t know the local terrain and need a trusted delivery solution in a competitive market like BA.

For more information on this and other franchise opportunities in Buenos Aires, visit our archives and download the new issue of InvestBA Privada.

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