Limited-Service Restaurants in Brazil

PROSPECTS

Demand for a plastic-free world encourages consumer push for changes

Sustainability is gaining increasing relevance amongst Brazilian consumers. To respond to this change in consumers’ attitudes, limited-service players are developing new initiatives such as launching biodegradable packaging or reducing the use of plastic including alternatives for plastic straws.

Increasing awareness of vegetarianism expands menu offerings

Once considered a niche until a decade ago, vegetarian food has gained in prominence in Brazil. Burger limited-service brands such as Burger King and McDonald’s have launched their own vegetarian burger options.

Chicken limited-service to benefit from acceptance of habits from other markets

Despite the relevance gained by vegetarianism, Brazilians continue to rely heavily on meat-based diets. One of the preferred kinds of meat in Brazil is chicken.

COMPETITIVE LANDSCAPE

New initiatives to appeal to environmentally-conscious consumers

Ragazzo launched a 90% biodegradable semi-artisanal cup made from certified paper and zero toxic elements over the review period. The concept was that this cup works as an alternative to regular disposable cups.

Lower cost of poultry compared to beef to continue benefiting chicken limited-service

Apart from being one of the most preferred types of meat amongst consumers in Brazil, chicken is also a less expensive protein option in the country when compared to beef. Therefore, this makes operational costs in chicken limited-service restaurants lower than those of burger limited-service players.

Independent bars/pubs offer outside competition to chicken limited-service

Both American-based limited-service chains face competition from independent bars/pubs in Brazil, as the latter traditionally offer deep-fried chicken options on their menus, similar to KFC and Popeyes. To effectively compete, chicken limited-service players are relying on the fact that consumption occasions linked to bars/pubs are usually related to alcohol consumption and happy hours, while chicken limited-service restaurants are typically located in the food courts of shopping centres, which are not the preferred environment for consumers who want to drink alcohol and spend time with colleagues and friends after work.

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