Limited-Service Restaurants in Mexico

PROSPECTS

Pricing strategies increase transactions

During 2018, a great deal of promotions and discounts were observed among competitors in limited-service restaurants, aimed to attract working people who eat away from home and young consumers looking for the most affordable options. Pizza limited-service restaurants is one of the most competitive categories, since Little Caesar’s Pizza has maintained the low price strategy by forcing other brands to offer at least one similar product in order to compete.

Arrival of new competitors

Mexico is considered attractive for international foodservice brands which are looking to expand into new markets using different strategies. For example, Pieology entered pizza limited-service restaurants in 2018 in a commercial agreement with Opfra SA de CV, an emerging company which owns the master franchise for the country and aims to reach 50 outlets in 10 years.

Online delivery service on the rise

In late 2017, online delivery service company, Postmates, was launched in Mexico to increase the delivery options for foodservice consumers. By the end of 2018, the company had 1,800 participants.

COMPETITIVE LANDSCAPE

OXXO leads

OXXO remains the leading brand within limited-service restaurants due to its constant expansion across the country and its multiple strategies to attract more consumers. Some of its main products are coffee with the Andatti brand and hot dogs known as Vikingos (Vikings); both received important investments in marketing campaigns and promotions during 2018.

Lines blur within consumer foodservice industries

The joint work of two successful brands from different industries is a strategy used more frequently within limited-service restaurants such as bakery products, ice cream and convenience stores. Instead of launching new regular flavours, in 2018, for example, Krispy Kreme doughnuts launched Sesame Street flavours, Moyo ice cream launched Hello Kitty Frutti and Distroller flavours, both toy brands, 7-Eleven launched a doughnut with Turin chocolate, and McDonald’s launched McFlurry Nestlé Crunch and McFlurry Chocorroles Marinela.

Technology enables unique restaurant experiences

Limited-service restaurants are more likely to offer innovative experiences to consumers using technology. For example, Domino’s Pizza has launched an online game app, appealing to young consumers or gamers, as well as the option to order through Alexa, Amazon’s voice service.

Files are delivered directly into your account within a few minutes of purchase.