Crisis and competition have strong effect and hamburger stands change strategies

Sao Paulo-the fierce competitiveness in the food industry pressured the banks of hamburger stands. Before the crisis, some of them had to review the concepts, opening smaller stores and closing operations and laying off staff. The expectation of resumed in 2018 is also more cautious.
Founded in 1993, The Fifties, one of the leading companies in this segment, had 33 units across the country. After the crisis, however, the company has had to rethink the business model and today your representative to 24 decreased points in Brazil. With the closure of operations, 650 people lost their jobs on the net.
"Our growth cycle lasted until 2014. With the crisis in 2015, we had to rethink the business and reposition the brand. We closed nine units, and 650 employees were dismissed with this reduction. With the closure of the shops, had a decrease of 16% in our revenues a year against each other. Now, in 2017, with the introduction of new models and adjusting the menu, we're projecting a 5% growth in same store concept, "said the INN the CEO of The Fifties, Gustavo Costa.
With environment inspired by the U.S. climate of 50 years, the restaurants of The Fifties are traditionally large and served from a menu stuffed with several options of sandwiches, chips, ice cream and milkshakes, among others. In December 2016, the company decided to change that, betting on more dry units, which feature a reduced variety. Conceived as The Fifties Classics, the new format was designed as a more profitable to redraw the evolution of the brand in the country.
"It is a version of The Fifties to the food court, operating with a leaner channel, with only nine types of products. We have two stores of this type to date, in the Shopping Market and international Shopping SP Guarulhos. The response has been very promising. Customers understood the proposal. We can pass the savings on to the price of the items: a product in The Fifties Classics is 45% cheaper than in traditional stores, "says mira Costa, the opening of five new units in this format by the end of 2018.
The crisis also hindered the expansion plans of the Johnny Rockets hamburger stands American network joined Brazil in 2013. Despite the initial idea hit the market only with stores, the company swerved the focus recently to grow also through franchises; the expectation is to reach 50 establishments until 2020. Today, the Johnny Rockets holds 13 operations in Brazil; 3 of them are franchises.
"I think we had the misfortune of being born in the pre-crisis moment. We ended up suffering all her impacts even with our growth. If it wasn't for the crisis, we could have a growth above 50% in the number of stores in relation to what we have currently. This option to expand the model of franchises came due to the crisis, as a form of capillarization of the brand, "says the master franchisee of Johnny Rockets in Brazil, Antônio Augusto de Souza.
After Bill R $36 million in 2016, the idea is to raise this value for R $44 million this year. Different regions of Brazil, aiming at the company designs five openings by the end of 2017. To monetize this advance, in addition to expand by franchises, the network had to rethink the model of the units. "We are now working on a smaller, more casual concept. The investment for the franchisee in a store like this is in place of R $600,000. Let's open the first operation in October to test the market, "says the Manager.
Swimming against the tide
Created in 2006 as a spontaneous way of bringing the taste of veggie burger to the beaches of Rio de Janeiro, the Hareburger passed by the crisis, recently landed in São Paulo, with a 100% vegan menu, and now projects a aggressive growth of 150 stores over the next five years. After a decade, the healthy fast-food proposal already has 11 units and two food trucks between Rio de Janeiro and São Paulo, and seeks to earn R $11.5 million in 2017; advance of 70% with respect to the previous year. "The growth potential in São Paulo is huge. I believe that very soon the number of stores in São Paulo will get over the river. We're opening doors for Brazil and for the world. I believe that until 2021, we will internationalize the brand, "says the founder of Hareburger, Rafael Krás.