Full-service restaurants in Latin America

Key Findings

Other full-service restaurants (FSR) gaining market share by providing variety in menus at affordable prices

Other FSR in Latin America overtook Latin American FSR in the region in 2016, as the poor economic condition over 2014-16 motivated consumers to dine out less and look for alternative affordable FSR. Improvements in regional economies still saw consumers sticking to other FSR, as these provide variety in their menus at affordable prices.

North American FSR driven by strong performances in major economies such as Brazil and Mexico

North American FSR saw strong growth over 2012-2017, which was mainly driven by the popularity of Outback Steakhouse and Madero in Brazil. The increasing popularity of this cuisine resulted in the rapid expansion of these brands’ outlets in Brazil. Outlets achieved growth in Mexico by offering large portions and providing customisation options, such as adding complements and spices to food.

Mexico is the most important market for the majority of the top 10 regional competitors

Mexico is a key market, being home to six out of the top 10 regional players in Latin America. Among these, four derive their sales only from Mexico. The development of commercial centres in the country has provided superior facilities to FSR and has attracted customers. Moreover, the development of third party online services has aided FSR’s popularity.

Retail FSR gains popularity by attracting consumers through shopping and leisure activities in malls

Within non-standalone channels, retail was the best performing over the review period, as it attracted both local consumers and tourists through shopping malls and other leisure activities, such as cinemas. Shopping malls saw a rise in footfall, which led to growth in FSR through retail, as many activities in malls include dining out.