Fast Food in Argentina

PROSPECTS

Fast food witnesses a price war between leading chains

Fast food in Argentina witnessed a price war between leading chains in 2017. This price war encompassed both local and foreign chains, mainly burger fast food operators, with McDonald’s, Burger King, Wendy's, Mostaza, and KFC adopting particularly aggressive pricing strategies in an effort to attract consumers.

Informal outlets selling food by weight seen as unfair competition by fast food players

In recent years commercial areas of the Capital Federal district in Buenos Aires have seen the proliferation of informal foodservice outlets that offer different types of food by weight, as opposed to individual menu items with set prices. These outlets, most of which are owned by people of Asian origin, offer all kinds of vegetables and more elaborate meals, and in many cases only carry vegetarian options.

McDonald’s uses technology to improve efficiency and reduce costs

Fast food chains in Argentina are increasingly employing technology to reduce costs and improve customer experiences. Most notably, McDonald’s has developed a system that allows customers to place orders and pay for them with credit cards via touch-screen computers, without any assistance from staff members.

COMPETITIVE LANDSCAPE

Emergence of new formats boosts development of ice cream fast food

The emergence of two new formats mainly aimed at younger consumers bolstered the performance of ice cream fast food in Argentina over 2016-2017. Several brands began offering popsicles in high-traffic urban locations such as busy streets and shopping malls.

Cheaper fast food chains expand rapidly in 2017

As economic uncertainty made consumers more budget-conscious, chains with more competitive pricing strategies were among the most dynamic performers within fast food in terms of growth in outlet numbers in 2017. Among those that opened several new outlets during the year were Fabrica de Pizzas, Kiosco de Empanadas y Pizzas and Grido.

Success of Green Eat shows potential for health-orientated fast food chains

The owners of full-service restaurants brand Tea Connection also operate a health-orientated fast food chain called Green Eat in Argentina. As of 2017 this chain had 13 outlets in Buenos Aires, and was planning a gradual expansion into the interior of the country.

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