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Consumer Foodservice in Mexico

Mexico consumer foodservice market: 5% growth witnessed during 2012

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2014-01-21 18:05:03 - Consumer Foodservice in Mexico - a new market research report on

2009 was disastrous for the Mexican economy; hence also for consumer foodservice. Sales saw a sharp constant value decline in this year, particularly in full-service restaurants. Whilst 2010 saw a further constant value decline in overall consumer foodservice, in 2011 sales began to recover. In 2012, consumer foodservice showed growth of 5% in value terms, indicating a stabilization of the industry after the crisis.

Construction companies recovered well from the financial crisis of 2009, and invested more and more in the construction of shopping malls with higher prices per square metre, making real estate a challenge for companies wanting to expand. According to research, an extra 850,000 sq m will be offered for rent across the country, making malls important



places to compete for position, but the competition will create higher prices per square metre.

The Mexican economy is seen as stable and growing. It is this perception across the world, along with the unstable and damaged economies in Europe and the good performance in the US economy, which is leading foreign companies´ interest in Mexico. This situation is well illustrated by leading consumer foodservice companies Corporación Mexicana de Restaurantes (CMR) and Alsea. CMR has formed alliances with foreign consumer foodservice groups to invest in Mexico, and Alsea was awarded "Franchise of the Year" by its business partner Brinker for Chili´s Grill & Bar; they are expected to rise to the challenge of achieving double-digit growth for the next five years.

Retail is still the largest location only after stand-alone, and saw the strongest growth, with 8% current value growth in 2012, driven mainly by increasing mall constructions across the country. Lodging locations are expected to benefit from a growing number of hotels offering all-inclusive deals, and have the biggest mark-ups in consumer foodservice; lodging is expected to see a 2% CAGR in terms of outlet numbers in the forecast period.

The performance of consumer foodservice is strongly linked to the country´s economic health and performance. Mexico´s economic expectations are positive in many industries, and consumer foodservice is no exception. It is expected to perform well, led by good investment budgets and growth plans amongst leading companies, with the construction industry putting extra square metres up for rent, and a decreasing forecast unemployment rate amongst the Mexican population.

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