Peru Franchising Opportunities
U.S. companies may want to enter Peru’s home food delivery market.
Restaurant Franchises in Peru were one of the sectors most negatively impacted by the COVID pandemic. As a result, formerly solid business models and operations had to be transformed. According to Promperu, the Peruvian trade promotion agency, 75% of Peruvian franchises are linked to the restaurant industry and 25% went bankrupt or closed due to the COVID pandemic. It is estimated that the recovery of the franchise sector is going to be slow – taking at least three years.
Restaurant operators reduced physical operations to optimize costs, migrating online to operate as “dark kitchens”- a concept where kitchens produce food exclusively for home delivery. The success of this model is based on growth of the delivery services that increased over 200% in 2020. According to Gestión, the Dark Kitchen market will be consolidated in Peru in 2022 with the concept taking three forms:
- Virtual Restaurants: Can operate multiple brands from a single kitchen with a focus on quality.
- Traditional restaurants launching virtual brands: Both physical and virtually located, this type of restaurant does not necessarily apply to quality and brand development.
- Virtual restaurants that franchise brands: Aiming to be the most economical and high-volume option in each food category.
According to Grupo Nexo Franquicia Worldwide (GNF), a top global firm specializing in franchise consulting, as Peru recovers economically and socially, many restaurant spaces will remain empty. This presents an opportunity for U.S. companies that may want to enter a less saturated market. The restaurant sector always presents a great opportunity for American brands in Peru, a country that takes its food scene seriously.
Peru hosts the annual Franchise Summit, organized by the American Chamber of Commerce, Commercial Service Peru and GNF Worldwide. This event highlights the latest market trends and aims to introduce successful U.S. and global franchise business models to Peru, including how to capitalize on the “Dark Kitchen” concept.
For further information please contact Commercial Specialist Jorge Prado firstname.lastname@example.org.