Skip to main content

Part of the book series: The AIB-LAT Book Series ((AIBLAT))

Abstract

The fast-food industry in Latin America grew at a compound annual growth rate of 15% between 2004 and 2009. Total sales estimates in 2010 were around US$ 35 billion, of which more than 60% came from the quick-service restaurant segment. Brazil is the largest Latin American market for fast-food, accounting for 55% of the region’s total sales, or $19.4 billion. There are 280 fast-food chains operating in the country, with over 8,600 units (ABIA, 2011). Some of these chains are international, while others are domestic. Several domestic chains expanded in the Brazilian market until they achieved national coverage, and a few of them started operations overseas, typically using franchising as their entry mode. Despite their incontestable success in Brazil, most of these chains failed in their attempts to internationalize.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 119.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Abdullah, F., Alwi, M. R., Lee, N. & Ho, V. B. (2008). Measuring and managing franchisee satisfaction: a study of academic franchising. Journal of Modelling in Management 3(2): 182–199.

    Article  Google Scholar 

  • ABIA (2011). Brasil Food 2011. SĂŁo Paulo: Associação Brasileira das IndĂşstrias de Alimentação.

    Google Scholar 

  • Alexander, N. & Rhodes, M. (2007). International market selection: measuring actions instead of intentions. Journal of Services Marketing, 21(6): 424–434.

    Article  Google Scholar 

  • Aliouche, E. H. & Schlentrich, U. A. (2011). Towards a strategic model of global franchise expansion. Journal of Retailing 87(3): 345–365.

    Article  Google Scholar 

  • Alon, I. (2006). Market conditions favoring master international franchising. Multinational Business Review 14(2): 67–82.

    Article  Google Scholar 

  • Altinay, L. (2007). The internationalization of hospitality firms: Factors influencing a franchise decision-making process. Journal of Services Marketing 21(6): 398–409.

    Article  Google Scholar 

  • Baena, V. & Cerviño, J. (2011). Identifying the factors driving market selection in Latin America: An insight from the Spanish franchise industry. Procedia Social and Behavioral Sciences 24: 340–350.

    Article  Google Scholar 

  • Bordonaba-Juste, V., Lucia-Palacios, L. & Polo-Redondo, Y. (2009). Franchise firm entry time influence on long-term survival. International Journal of Retail & Distribution Management 37(2): 106–125.

    Article  Google Scholar 

  • — (2011). An analysis of franchisor failure risk: evidence from Spain. Journal of Business & Industrial Marketing 26(6): 407–420.

    Article  Google Scholar 

  • Brookes, M. & Altinay, L. (2011). Franchise partner selection: perspectives of franchisors and franchisees. Journal of Services Marketing 25(5): 336–348.

    Article  Google Scholar 

  • Choo, S. (2005). Determinants of monitoring capabilities in international franchising: Foodservice firms within East Asia. Asia Pacific Journal of Management 22(3): 159–177.

    Article  Google Scholar 

  • Choo, S., Mazzarol, T. & Soutar, G. (2007). The selection of international retail franchisees in East Asia. Asia Pacific Journal of Marketing and Logistics 19(4): 380–397.

    Article  Google Scholar 

  • Clarkin, J. E. & Swavely, S. M. (2006). The importance of personal characteristics in franchisee selection. Journal of Retailing and Consumer Services 13(2): 133–142.

    Article  Google Scholar 

  • Dant, R. P., Perrigot, R. & Cliquet, G. (2008). A cross-cultural comparison of the plural forms in franchise networks: United States, France, and Brazil. Journal of Small Business Management 46(2): 286–311.

    Article  Google Scholar 

  • — (2007a). The internationalization of retailing: factors influencing the choice of franchising as a market entry strategy. International Journal of Service Industry Management 18(2): 184–205.

    Article  Google Scholar 

  • — (2007b). Support mechanisms in international retail franchise networks. International Journal of Retail & Distribution Management 35(10): 781–802.

    Article  Google Scholar 

  • — (2009). Market and partner selection processes in international retail franchising. Journal of Business Research, 62(5): 528–534.

    Article  Google Scholar 

  • Doherty, A. M. & Alexander, N. (2004). Relationship development in international retail franchising: Case study evidence from UK fashion sector. European Journal of Marketing 38(9/10): 1215–1235.

    Article  Google Scholar 

  • Eisenhardt, K. (1989). Building theories from case study research. The Academy of Management Review 14(4): 532–550.

    Google Scholar 

  • Eroglu, S. (1992). The internationalization process of franchise systems: A conceptual model. International Marketing Review 9(5): 19–30.

    Article  Google Scholar 

  • Falbe, C. M. & Welsh, D. H. (1998). Nafta and franchising: A comparison of franchisor perceptions of characteristics associated with franchisee success and failure in Canada, Mexico, and the United States. Journal of Business Venturing 13(2): 151–171.

    Article  Google Scholar 

  • Fladmoe-Lindquist, K. (1996). International franchising: capabilities and development. Journal of Business Venturing 11(5): 419–438.

    Article  Google Scholar 

  • Frazer, L. (2001). Causes of disruption to franchise operations. Journal of Business Research 54(3): 227–234.

    Article  Google Scholar 

  • Frazer, L. & Winzar, H. (2005). Exits and expectations: Why disappointed franchisees leave. Journal of Business Research 58(11): 1534–1542.

    Article  Google Scholar 

  • Gaston-Breton, C. & MartĂ­n, O. M. (2011). International market selection and segmentation: A two-stage model. International Marketing Review 28(3): 267–290.

    Article  Google Scholar 

  • Ghauri, P. (2004). Designing and conducting case studies in international business research. In: R. Marschan-Piekkari, C. Welch, R. Marschan-Piekkari & C. Welch (eds). Handbook of Qualitative Research Methods for International Business (pp. 109–124). Cheltenham, UK: Edward Elgar.

    Google Scholar 

  • Grewal, D., Iyer, G. R., Javalgi, R. G. & Radulovich, L. (2011). Franchise partnership and international expansion: A conceptual framework and research propositions. Entrepreneurship Theory and Practicea 35(3): 553–557.

    Google Scholar 

  • Kaufmann, P. & Kim, S. (1995). Master franchising and system growth rates. Journal of Marketing Channels 4(1/2): 49–64.

    Article  Google Scholar 

  • Kedia, B. L., Ackerman, D. J. & Justis, R. T. (1995). Changing barriers to the internationalization of franchising operations: Perceptions of domestic and international franchisors. The International Executive 37(4): 329–348.

    Article  Google Scholar 

  • Kedia, B. L., Ackerman, D. J., Bush, D. E. & Justis, R. T. (1994). Determinants of internationalization of franchise operations by US franchisors. International Marketing Review 11(4): 56–68.

    Article  Google Scholar 

  • Koh, Y., Lee, S. & Boo, S. (2009). Does franchising help restaurant firm value? International Journal of Hospitality Management, 28(2): 289–296.

    Article  Google Scholar 

  • Liu, F.-H., Liu, H.-Y., Lin, T.-L. & Chiu, S.-K. (2011). The role and capabilities of a local master weight management franchisee. International Business Research 4(3): 271–282.

    Article  Google Scholar 

  • Marques, D. S., Merlo, E. M. & Lucchesi, C. A. (2005). Os motivos envolvidos na internacionalização de franquias brasileiras. FACEF Pesquisa 8(2): 5–18.

    Google Scholar 

  • Pak, Y. S. (2002). The effect of strategic motives on the choice of entry modes: An empirical test of international franchisers. Multinational Business Review 10(1): 28–36.

    Google Scholar 

  • Petersen, B. & Welch, L. S. (2000). International retailing operations: Downstream entry and expansion via franchising. International Business Review 9(4): 479–496.

    Article  Google Scholar 

  • Picot-Coupey, K. & Cliquet, G. (2004). Internationalisation des distributeurs dans les pays en transition d’Europe de l’Est: Quelles perspectives pour le choix de la franchise comme mode d’entrĂ©e. Revue Française du Marketing 198(3/5): 19–35.

    Google Scholar 

  • Pitt, L., Napoli, J. & Van der Merwe, R. (2003). Managing the franchised brand: The franchisees’ perspective. Journal of Brand Management 10(6): 411–420.

    Article  Google Scholar 

  • Price, S. (1993). Performance of fast-food franchises in Britain. International Journal of Contemporary Hospitality Management 5(3): 10–15.

    Article  Google Scholar 

  • Quinn, B. & Alexander, N. (2002). International retail franchising: A conceptual framework. International Journal of Retail & Distribution Management 30(5): 264–276.

    Article  Google Scholar 

  • Shane, S. A. (1996). Why franchise companies expand overseas. Journal of Business Venturing 11(2): 73–88.

    Article  Google Scholar 

  • Vaishnav, T. & Altinay, L. (2009). The franchise partner selection process and implications for India. Worldwide Hospitality and Tourism Themes 1(1): 52–65.

    Article  Google Scholar 

  • Xiao, Q., O’Neill, J. W. & Wang, H. (2008). International hotel development: a study of potential franchisees in China. International Journal of Hospitality Management 27: 325–336.

    Article  Google Scholar 

  • Yin, R. (1989). Case study research: Design and methods. Newbury Park, CA.: Sage.

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2013 Gilberto Figueira da Silva, Angela da Rocha, and Henrique Pacheco

About this chapter

Cite this chapter

da Silva, G.F., da Rocha, A., Pacheco, H. (2013). The Internationalization of Brazilian Fast-Food Chains: A Marketing Failure?. In: Liberman, L., Newburry, W. (eds) Internationalization, Innovation and Sustainability of MNCs in Latin America. The AIB-LAT Book Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137024138_7

Download citation

Publish with us

Policies and ethics