The Internationalization of Brazilian Fast-Food Chains: A Marketing Failure?

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.