Fast food Giants face competition

Gradual recovery of the economy, with increased consumption, combined with the entry of new competitors come fight for a slice intensify in the coveted Brazilian market. Fast food giants like McDonald's, Burger King and Subway sharpen their claws to not only maintain participation how to extend your presence throughout the Brazil.
The expansion of investments in big three reflects the appetite for this market, with modernization of the restaurants and the establishment of new partnerships to bring new foreign players for the national territory.
Arcos Dorados, master network of franchised McDonald's restaurants in Latin America, has just announced an increase of 25 percent on their investments in Brazil, jumping to R $1.25 billion until 2019. "We will modernize our restaurants with Wi-Fi, interactive tables so that our clients can add and remove ingredients as you want of your snacks," says the President of Arcos Dorados Division in Brazil, Paulo Calderon.
This modernization movement, which began in July 2017, also aims to transform the company's culture "through the inclusion of new items on the menu healthier – enjoying so far of hamburger stands ' chic '", says the Executive.
According to him, the formation of strategic alliances was also important in the performance of the year. "We launched the Mc Flurry Kopenhagen to promote greater accessibility of the low-income population to the brand," says Caldwell.
The operator closed the last quarter 2017 with 929 active units and recorded revenue of $ $403.2 million – growth of 6.6% as compared to the same period in 2016.
By the end of 2019, Arcos Dorados plans to open 200 new units in Latin America, of which 140 will be inaugurated on Brazilian soil. Currently, the network has about 100 restaurants-Midwest regions and Southeast of the country – adapted to the new concept.
For the managing partner Chairman of consulting firm specializing in food service ba} Stockler, Luis Henrique Stockler, coupled to the upturn, the fast food chains start offering "healthier options and sophisticated" to take advantage of the increased consumption levels in classes C and d.
In relation to new competitors gourmets, Stockler assesses that the big traditional networks felt an impact on audiences with greater purchasing power, as the classes A and b. "at the time of leisure, on the weekends, these customers end up preferring options more refined and can afford to pay a higher average ticket R or R $50 $60, "he says.
The expert, however, consider that in the days of the week, on grounds of practicality, and lowest price, fast food networks become the choice of the general public. Another major player in the segment that has adopted initiatives of expansion is the BK Brazil (BKB), responsible for Burger King in the country. Through an agreement with the private equity company Restaurant Brands International, the BKB announced in late March, the network's acquisition of Popeyes fried chicken and the opening of 300 units of the brand in Brazil over the next 10 years.
He states that, in principle, an operation like this has as aim to compete with the American network KFC, also specializing in fried chicken. However, the expert considers that, with a price range [fast food networks] alike in General, the Popeyes restaurant will end up vying for the decision to purchase the final consumer with McDonald's, for example.
Currently, the company operates quick power on 25 countries all over the world, such as United States and Canada.
The Subway network will also change your menu and modernize the visual identity. To that end, adopted a new concept of stores. The initiative aims to improve the efficiency of its internal operations by means of digitisation in the customer buying process. The menu of the brand will be adapted with the most popular ingredients in each region of the country. Today, the network has about 2000 units in operation in Brazil, considered as the fourth largest market for the company, behind countries like United States, Canada and England.
Franchises
In Brazil, the segment of food franchises have shown growth even with the troubled economic and political environment all the adverse situation, according to the Brazilian Franchise Association (ABF). A survey in 2017 by the points that, between 2015 and 2016, an increase in turnover in the food segment of 8.8%, moving some R $40.3 billion.
In addition to annual revenue, the balance sheet also indicates the concern of the industry with healthier diet. According to the study, 60.8% of the research networks provide on the menu options lights, 52.7% and 51.4% diets.
According to the Coordinator of the feeding of the ABF, John the Baptist, the expectation of growth in the segment for 2018 varies between 6% and 8%. "Despite the optimism, 2018 is still a year of adjustments due to the economic environment," said the expert.
He still recalls that, although the industry has potential for expansion, it's still a market dependent on the recovery of the purchasing power of the Brazilian. The preliminary figures of the segment in 2017 point increase of 6% over the period