How profitable is it really to own a franchise in d.r. I was considering starting up a francise or creating one thats not availiable there yet. anyone familiar with whats involved in the process. I have even thought about a drive in movie theatre or resturaunt, or a mid level sports arena, rent out to local teams for baseball or basket ball? or a caterinig hall reasonablly priced mid luxury priced. any comments????
- Thread starter kapitan13
- Start date
dominican franchise business
To own an American franchise can be tough, as you will have to charge American prices which are expensive for Dominicans. I've seen Wendy's in great locations go out of business.
I may be missing something...Most sucessful franchises are the result of a franchisor taking a sucessful business (restaurant for example), duplicating the sucessful concept and packaging it to a franchisee. What is your proven sucessful concept? Then more importantly, can it survive in the DR business and governmental minefields?donrael said:
Join The GROWING List of Failures!
Little Ceasers,Subway,Dunkin' Donuts,Wendy's,Churches'Fried Chicken,Miami Grill,as well as some McDonald's,and KFC sites!30% financing is tough to overcome!
As far as the sports Arena goes,they couldn't give away tickets to the Domincan League Baseball games last year! The "PanAm Games" only had "Shoeshine Boys" in the stands.They gave them free tickets and a T-Shirt to go!
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Little Ceasers,Subway,Dunkin' Donuts,Wendy's,Churches'Fried Chicken,Miami Grill,as well as some McDonald's,and KFC sites!30% financing is tough to overcome!
As far as the sports Arena goes,they couldn't give away tickets to the Domincan League Baseball games last year! The "PanAm Games" only had "Shoeshine Boys" in the stands.They gave them free tickets and a T-Shirt to go!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCc
I was talking to an exec. from Burger King a few weeks ago. He was wonedering why business was so flat. He couldn't seem to comprehend that for a sucessful business you need a willing seller, selling to a willing buyer. I explained that 365 pesos (around $12.00 US) for a Whopper combo. just can't be sucessful when the comperable meal in the US is $4.00. He explained the cost of importing product, taxes, etc. ,etc.. As a consumer I explained that his customers are limited to the one-time tourist needing a fix or the wealthy Dominicans who flaunt their money with no regard for value. I personally regret every time I pay Burger King prices. But, sometimes I am just weak and can't resist.
Chirimoya said:
Nobody ever has, not even kids.The junk food wont sell unless it is associate with a theme, an attractive selling ploy. Children got tired of Ronald McDonalds, junky trinquets with their 'happy meals', etc. What current US franchises in the DR need is a complete face-lift, a refurbishment of their marketing strategy. Where are the creative minds?
I don't care what marketing strategy you use, the success of the fast food chains in the US is the affinity of the masses. The poor, middle-income and wealthy all eat at McDonalds, Burger King, etc. Price and price alone is the limiting factor for US franchises in the DR. How many people can pay over 300 pesos for a combo meal on a regular basis? I am not blaming the fast food companies. Their costs are their costs. But price limits their customer base severely.Mirador said:
thoughts on replies
I never realized that the meals were so expensive. perhaps large corparations can ease up on the product prices. Im sure major companies can
start up manufactoring in D.R. or license an independents .Im sure drshould use its own beef, chicken and vegetables. Seems like politics play a role on things being expensive as well.
I never realized that the meals were so expensive. perhaps large corparations can ease up on the product prices. Im sure major companies can
start up manufactoring in D.R. or license an independents .Im sure drshould use its own beef, chicken and vegetables. Seems like politics play a role on things being expensive as well.
I guess that my grandparents should have sewn hamburgers into the lining of their clothes instead of diamonds when they fled the Nazis. Whether you are talking about diamonds, gold, silver or any item that has intrinsic value set by the market that is one thing. But a consumable has no intrinsic worth. It is only as valuable as a willing buyer will pay. If the supplier's cost of product is higher than the buyer will pay, he can't survive. If McDonalds could charge 20 pesos for a burger like the corner vendor, they would be jammed. But they can't.Mirador said:
Do you actually make any sense out of what you write? You injected the value of diamonds into a simple discussion of the price of a hamburger, My point is that no franchise chain can survive in the DR, when the cost of the product to the consumer is over 300 pesos/meal. You can market until you are blue in the face, if your target audience can't afford you, they won't buy.Mirador said:
Everyone in the DR wants a Lexus. Marketing them to the masses won't sell them.
You said:
The free market system, a willing seller to a willing buyer, sets the market. Only when the cost of business (overhead, taxes, payroll, etc.) causes the willing seller to exceed what a willing buyer will pay does the system fail. You end up with either sellers who can't afford to sell or buyers who can't afford to buy.
No but the point is that if they wanted it enough they would reshuffle their priorities and patronise these establishments. There is a segment of the population, to whom US-style fast food is marketed, that is not responding enough for them to be successful here.
Many of these same people have luxury vehicles that people of equivalent wealth in other places would not be able to afford because their priorities are different. The difference is that here a jeepeta is something everyone strives for, and will make whatever sacrifice necessary in order to have one, while US-style fast food is something they can take or leave.
Most Dominicans still value the local alternatives enough to be able to live without it. Go to Adrian Tropical which is not any cheaper, and the place is always heaving with people.
Many of these same people have luxury vehicles that people of equivalent wealth in other places would not be able to afford because their priorities are different. The difference is that here a jeepeta is something everyone strives for, and will make whatever sacrifice necessary in order to have one, while US-style fast food is something they can take or leave.
Most Dominicans still value the local alternatives enough to be able to live without it. Go to Adrian Tropical which is not any cheaper, and the place is always heaving with people.
You are just confirming my point..With the present price of American style fast food, the local would rather use his resources for other items. Since the franchise can't lower its price to meet the price point demanded by the consumer to increase business, the net result is the few successful establishments.Chirimoya said:
The original OP asked about opening a franchise in the DR. Everybody seems to agree that the cost of doing business is too high compounded by the fact that the general population has no interest in paying a premium price. BY comparing the intrinsic value of a diamond to the cost of hamburgers only clouded a very clear question.
HOWMAR, with the greatest respect, I don't think I'm confirming your point at all.
What about the fact that a Dominican fast food style chain like Adrian Tropical, which is not undercutting the foreign chains, is thriving while the others are struggling? The only variable is the type of food, so the fact remains that most Dominicans across the socio-economic spectrum prefer Mofongo and Mangu to Big Macs and Whoppers.
What about the fact that a Dominican fast food style chain like Adrian Tropical, which is not undercutting the foreign chains, is thriving while the others are struggling? The only variable is the type of food, so the fact remains that most Dominicans across the socio-economic spectrum prefer Mofongo and Mangu to Big Macs and Whoppers.