Restaurants, Clothing Will Dominate Argentina Franchise Future

Patrick Archer entrepreneurs, foreign investment, franchises

You can always count on the team at Cronista for a well-researched, in-depth analysis of macro trends shaping the future of specific sectors in Argentina.

With The Smart Money Looks to the Interior, we attempted to summarize the highlights of Lorena Obiol’s brilliant real estate piece. Now, Laura Andahazi has penned an equally impressive survey of franchising trends in Argentina including the sectors and markets with the greatest upside.

Franchises are growing at annual rate of 14% according to the Argentina Association of Brands & Franchises (AAMF), and the fastest-growing sectors are restaurants (34%) and clothing (21%). AAMF Director Lucas Secades believes franchising is poised to explode in Argentina once the Senate passes the Ley de Franquicias Comerciales, legislation that would force greater transparency and quality standards among the country’s 500 franchises operating 20,000 outlets nationwide.

Just as with real estate, Andahazi says the smart money is looking to the interior where cities like Cordoba, Mendoza and Rosario have tremendous untapped franchise potential. Such was the motivation for Hollywood Burger which officially opened in San Rafael on July 15, Cala Pizza which originated in Pinamar and Reina Batata with operates more stores in the interior than Buenos Aires.

Two of the new franchises Andahazi mentions prove local entrepreneurs are carving out niches that cater to changing lifestyle and workplace trends. Markus Day Spa for Men franchises offer male grooming and body toning services while Urban Station gives corporate types a fun, well-amenitized escape from the confines of the home office.

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