After a complex 2020, the gastronomic sector is recovering and franchises are undergoing a process of readjustment. Many of the traditional ones that survived the pandemic have expansion plans, while there are emerging brands —several of them from Paisa— that are showing the potential to have a greater impact on the market.
Although there is no exact figure that indicates how much these businesses bill annually, there is telling data shared by the Colombian Association of the Gastronomic Industry (Acodres): the 37 franchises grouped in that guild have sales in the order of $400,000 million a year and they generate some 39,200 direct jobs.
This is a line that, according to experts, can generate national economic growth. For this reason, the Corporation for the Development of Micro-enterprises (Propaís) took on the task of looking for the restaurateurs with the most projection in Antioquia with the purpose of turning them into franchisors so that they can leverage more entrepreneurs.
Luis Fernando Martínez, director of the entity’s microfranchising unit, explained that this tracking began in 2019 and 170 businesses were presented: “They went through a Shark Tank-type test in which they had to show the experts that they were already at the right time to franchise. Several things were taken into account there: number of points, formal operation and chances of success.”
Once this selection process was completed, he explained, 10 brands were chosen, of which six are dedicated to the sale of those foods in full swing: hamburgers, wings, pizza and ribs (see graph). According to the expert, due to the quality they exhibited, they can now operate as franchises, a model that has had good participation from paisas, said Luis Felipe Jaramillo, president of the Colombian Chamber of Franchises (Colfranquicias).
At this point, he mentioned success stories that already exist in the region, such as Los Verdes, created in 1995 and which already has a presence in Spain. Market data indicates that a store under the license of this brand guarantees an annual turnover of $250 million.
Similarly, Jaramillo said that Empanadas El Machetico, which was launched in 1985, already has franchisees in 55 cities in Colombia. And he did not leave out Dogger, which has been operating since 1996 and is recognized among Colombian consumers and has more than 100 points in the national territory.
Another country that asks for a clue
What began as a venture in 2017, today is a chain that has five service points and its own production center in Medellín, in addition, it already has 145 direct employees. This is Pigasus, the most recent winner of the Burger Master in the capital of Antioquia. This is a business that several connoisseurs of the subject consulted by this newspaper see as having good possibilities of having a national reach.
Oswaldo Natera, the founder, reported that the pandemic came to him following having made a high investment to open the headquarters in the Mayorca Shopping Center, located in Itagüí. However, in the midst of the confinements, he did not stand still, he attacked the market with addresses and began to fill the space that other brands were leaving.
“In a matter of three months —and although we were not prepared for homes— we realized that we were selling the same compared to physical points. We took advantage of that community that we had created on social networks: when the pandemic arrived, we had close to 40,000 followers,” said the businessman.
In dialogue with EL COLOMBIANO, he announced that there is the possibility of opening another two points this year and revealed that Bogotá is in the folder for future places. If everything goes as expected, Pigasus might enter the capital by 2023 and the creator’s idea is to have a presence throughout the country.
From his point of view, Antioquia is a demanding market: “Paisas like to be well cared for. I believe that when a company is successful in Medellin, it is prepared for any terrain”.
“We want to be the number one hamburger company in Colombia and for our logo to be identified anywhere,” said Natera, who had already had experience in the franchise area before starting his brand. And although it did not go badly for him, his desire was to position a company founded by himself.
The big ones recover
According to a survey recently prepared by Colfranquicias, 41% of the members said that sales had already improved compared to 2019, considered the last year of normality until the arrival of covid-19.
In this sense, Guillermo Gómez, president of Acodres, explained that food franchises did not fare as badly as table service restaurants, but profits have not yet recovered 100%.
The union leader confirmed that, following the definitive departure of some brands, a floating market remained that will be very attracted to the most prevalent brands: “That is what is encouraging expansion plans in many franchises.”
“To give an example —he added— the Alsea group (which brings together more than 20 brands) has had a successful growth plan, especially with Domino’s; a business that was greatly strengthened in the pandemic because it already had a very mature delivery service. Starbucks, despite the hit to profitability, has opened very successful outlets and so has Archies. On the other hand, Sandwich Qbano is one of the important franchises that Colombia has and has managed to recover in a very important way”.
From his perspective, the outlook is optimistic. However, he drew attention to the tax issue and pointed out that small entrepreneurs who buy franchises tend to charge high taxes, since they are associated with large foreign brands with greater financial muscle. “I had the experience of seeing affiliates who were franchise workers and they went bankrupt, many times the market does not see it”
$400
one thousand million annually total the sales of the franchises grouped by Acodres.
