Fast Food in Latin America

Key Findings

Heavy investment in expansion and marketing drives growth for chained fast food

Chained brands, such as Subway and Burger King, have invested extensively in expanding the number of outlets at commercial spaces and places of high traffic, for instance shopping malls. They have also opened up takeaway counters and set up self-ordering kiosks to enhance convenience for customers. Pocket-friendly deals and advertisements highlighting key features of food options have been initiated to attract consumers.

Increasing demand for healthier fast food options compels players to modify their menus and packaging

Consumers’ preference for healthier fast food options has compelled operators to include healthier ingredients in their menu. The “open door” policy of McDonald’s, which allows customers to visit the outlet kitchen, has been appreciated by consumers. Brands have started to add nutritional labels on product packaging, thereby helping consumers to make informed food choices.

Operators outsource food delivery to widen their reach

Most foodservice operators outsource food delivery to third party delivery service providers, which has helped them to widen their reach to consumers who prefer eating in the comfort of their homes. This is also a cost-effective way for them to tap into the delivery segment with minimum investment.

Operations of chained brands are mostly concentrated in a few countries

Brazil continues to be a ripe market for chained brands, owing to its high population, coupled with rising consumer expenditure compared to other Latin American countries. As a result, key companies are concentrated in this country. Countries such as Chile and Colombia have a low presence of major brands owing to small consumer bases and difficult economic conditions. These markets are thus dominated by independent players.