The quickly emerging BRIC countries — Brazil, Russia, India and China — provide significant opportunities for restaurant chains looking to grow internationally, provided those companies tailor their menus to local tastes.
Chicago-based industry research firm Technomic Inc. said striking a balance between maintaining brand identity and building country-specific menu innovations can allow restaurant brands to gain a foothold in these growing markets. Menu items like chicken and coffee will be growth areas for BRIC countries.
“[U.S. restaurant chains] can take advantage of the worldwide recognition they’ve established, but in order to gain loyal customers in new markets, they need to innovate on the menu and introduce items specifically adapted for local consumer preferences,” Darren Tristano, Technomic executive vice president, said. “Chains are also leveraging their international experience and applying lessons learned to improve domestic operations and innovation.”
Some of the largest U.S. restaurant brands have already begun rolling out such products, sometimes by importing them from the United States or other foreign markets, Technomic said.
Brazil
McDonald’s recently launched a Chicken Bacon Onion sandwich in Brazil, which was originally developed for its European division. The sandwich combines a breaded chicken breast with bacon, bacon-spiked cheese and bacon-flavored sauce on a bun dotted with sesame seeds and bacon bits.
Restaurant securities analyst Mark Kalinowski of Janney Capital Markets noted this summer after meeting with McDonald’s chief financial officer Pete Bensen that market-to-market menu sharing would become more common for McDonald’s. Not only could popular items overseas show up in U.S. McDonald’s restaurants, but domestic sales drivers, like McCafé Real Fruit Smoothies, could soon appear on menus in Brazil and beyond.
Burger King has also announced growth plans in Brazil, Technomic said, with a master franchise agreement with an affiliate of private-equity firm Vinci Partners in a joint-venture deal. Burger King currently has 110 franchised locations in Brazil.
Additionally, Wendy’s said it’s renewing its international growth push, with Brazil and China as key targets. The quick-service chain currently has only a few hundred international units, but projects a potential 8,000 overseas restaurants.
