Ground fire will return to invest in Brazil, after success in the USA

Although specializing in southern barbecue preparation techniques, Fogo de Chão sees in the American market its greatest success. There are more than 40 American units, against eight Brazilians. But the situation can begin to reverse: The network will expand again in the Brazilian market. "After 40 years of history, we have a relevant and sustainable brand spread throughout the world. We continue to grow in several countries and are happy to return to Brazil, "said Barry McGowan, executive director of Fogo de Chão, EXAM. A unit located in the Paulistano district of Jardins was recently reformed and reopened. The waiting room gave way to a bar, with special prices and drinks for the moment of happy hour. Between the bar and the tables there is a dry age cabinet, cooler for noble cuts exposed to customers. The menu counts salads and seafood table, to please the non-aficionados for red meat. The new restaurant model will be replicated in the other units of Fogo de Chão, with an initial investment of three to 5 million reais. The resources will come from the company's own cashier. This way, there are five restaurants in São Paulo and another three in Rio de Janeiro to be renewed until the end of 2020. The exit of the public markets ground fire, in February 2018, made it possible to return to Brazil. "We should have constant explanations of growth for our investors, who questioned betting on a country of economic and political turbulence," McGowan says. "But I understand that the Brazilian market is important and we are aligned with our strategy." The barbecue network plans to open two restaurants a year nationally from 2021 to 2000. The southern region is the main target of the Brazilian expansion, close to the arrival of the neighbours Argentina, Chile and Colombia. Panama is also on the list of upcoming openings. Ground fire, creation and numbers Fogo de Chão was created in 1979, with a restaurant in Porto Alegre (Rio Grande do Sul). The network arrived in the United States 18 years later, in 1997, with a restaurant in Dallas (Texas). The idea of the Gauchos found a cultural similarity in the state of Texas, according to McGowan. With the brand recognized in the state, Fogo de Chão managed to expand to culturally more distant states of the countryside and barbecue, such as California, Illinois, Kansas and new York. The brand has 53 restaurants today in countries such as Brazil, the United States, Mexico and the Middle East region. On 2017, ground fire billed more than 300 million dollars. The profit margin of each restaurant is around 30%. The network was sold for 560 million dollars for the Rhone Capital Private Equity fund in February 2018 and does not disclose updated billing numbers.