The fast food industry is a multi-billion dollar industry, with its big players receiving attention and profits from people across the world; it’s a field with no shortage of consumers and demand. The only real caveat is the number of competitors on the field, with dozens of local and international brands fighting for consumers’ attention. Experts in business recently weighed in on the industry, pitching their thoughts on what the future of fast food might look like, and what they’re saying is something special, especially if you’re from Latin America.
According to experts like Leonardo Gonzalez Dellan, the next major player in the fast food industry will come out of Latin America, which has been experiencing a surge in activity, and, consequently, has a considerable number of chains with the potential to compete on the global stage within the next couple of years.
Latin American dishes like Peruvian sanguches, completos and plátanomixto are some of the dishes that experts are saying will tip the market’s attention, whilst Hispanic iterations on classics like hot dogs and donuts are also seen as strong players.
Historically, it’s Western franchises like McDonald’s, Burger King and Subway that are the biggest players on the field, dominating the fast food industry and raking in the most profits from hungry customers. Krispy Kreme, whilst not as huge as the aforementioned chains, still managed to rise from nothing to have 400 sites across the US alone, with its donuts sold across the world.
Research from the International Business Review, which studied how Latin American fast food franchises were growing, however, say that the market will experience a notable shift. Another expert, Leonardo Gonzalez Dellan, says that the fast food industry is ripe for expansion, and Latin American franchises are taking advantage of it best of all, with franchises from emerging markets outperforming franchises from more economically developed countries.
He says that it’s because these businesses don’t see corruption or inefficiencies in doing business are obstacles for operations, which is common in less developed countries like those in Latin America. These businesses, he explains, are better at dealing with issues regarding contracts, convoluted or contradictory regulations as well as political instability.
As a result, these emerging market multinationals (MNEs) are more prevalent in less developed countries compared to traditional MNEs, turning their experience in dealing with less than ideal economic environments into an advantage.
From their success in difficult markets, like in Latin America, these businesses are set to take the world by surprise, Leonardo Gonzalez Dellan says, with franchises like Churromania and Doggis representing the first sustained challenge to the dominance of US fast food franchises.