Burger King is getting smaller in Mexico and these are the reasons

The arrival of new hamburger chains in Mexico, the emergence of small businesses and street trade have had an impact on Burger King's activities in the country, which in addition to the closure of branches He had to buy some of his products, which affected his profitability.

In the last nine months, the chain has closed 23 branches in Mexicoout of 452 he had at the end of 2017, he has only 429 left.

"When you enter a price war, you enter to have a lower price and this will take you to a hamburger that is not the best… When there are so many restaurant options, the customer starts to leave the category, "he commented. Forbes Mexico Renzo Casillo, CEO of Alsea.

According to this publication, the Mexican company reportedly closed branches, but In other Latin American countries, it has expanded its activities. In Argentina, for example, it opened eight institutions.In Chile, he inaugurated four and in Colombia, he added six.

"The closing of the units was part of the profitability process … now we are working hand in hand with Burger King to run programs that continue to contribute to the sale." Increased number of transactions and tickets, which is very good, "Casillo told journalist Fernando Celis.

According to the publication, improve the brand and return to profitabilitythe company has also focused on a communication and marketing strategy based on the experience gained with higher quality products that may contain additional ingredients.

"Even though he has improved, the brand is still below the level of investment In comparison with other brands, until we get there, we will re-evaluate the plan to add new units under Alsea, "added Renzo Casillo.

Among the new players in the hamburger market figure the American chain Shake Shack, which announced in October 2018 its plan to open branches in Mexico in badociation with the chain of restaurants Toks, a subsidiary of Grupo Gigante.

Even the informal trade has affected the sales of the franchise. In the country McDonald's disputes the market, which closed branches in 2017. Both chains had to make changes to adapt their offer to a healthier and natural diet.

In 2018, Alsea ceased to hold the rights to develop the Burger King brand in the Aztec territory. will continue to operate 181 restaurants (corporate units), which add to 248 other sub-franchises.