Best Products/ServicesReturn to topAlthough the food/restaurant sector in the franchise industry in Mexico has always beena very popular business model, the services sub-sector showed significant growth, evensurpassing the food industry. Services such as entertainment concepts for children,personal care services, home care services, among others have a great potential in theMexican market.OpportunitiesReturn to topMexico is a diverse country that <strong>of</strong>fers excellent business opportunities especially forU.S. franchise concepts due to the commercial ties between the countries and therecognition and acceptance <strong>of</strong> U.S. brands by the Mexican population. Low costinvestment franchise concepts will be in demand in the next few years, as investors willbe looking for innovative concepts to open in secondary markets.U.S. franchises must be aware that since the Mexican market is dominated by localconcepts, a requirement for a successful franchise business in Mexico is to adapt, andcustomize the concept and characteristics to Mexican tastes.The Mexican Franchise Association (AMF) has worked very closely with the Ministry <strong>of</strong>the Economy to develop the National Franchise Program (PNF). This program promotesthe development <strong>of</strong> franchise concepts in Mexico with the goal <strong>of</strong> increasing employmentand investment in the country. It provides opportunities to Mexican entrepreneurs tocreate or re-engineer a franchise concept, which not only supports growth andmodernization <strong>of</strong> existing franchises, but provides support to investors looking to acquireinternational franchise concepts. So far in 2009, the Mexican government, through thePNF, has distributed nearly 200 million pesos <strong>of</strong> the 350 million budgeted for 2009. Thisprogram is an extraordinary opportunity for U.S. brands looking to either enter or expandtheir presence in the Mexican market.ResourcesAsociación Mexicana de Franquicias:Feria <strong>In</strong>ternacional de Franquicias:Secretaria de Economia:Return to topwww.franquiciasdemexico.orgwww.fif.com.mxwww.franquicia.org.mxFor more information on the franchising sector in Mexico, please contact:Ms. Martha Sanchez, Commercial AssistantU.S. Commercial Service, U.S. Embassy Mexico CityMartha.Sanchez@mail.doc.govTel: (011-52-55) 5140-2621Fax: (011-52-55) 5566-1111
Hotel and Restaurant EquipmentOverviewReturn to top2008 2009 (estimated) 2010 (estimated)Total Market Size 1,799 750 765Total Local Production 905 773 788Total Exports 1,245 1,431 1,459Total Imports 2,138 1,408 1,436Imports from the U.S. 808 633 645Figures in USD Millions. (World Trade Atlas figures available in dollars – no exchange rate needed).Sources: ProMexico, Mexican Secretariat <strong>of</strong> Economy (SIEM System) and National Chamber <strong>of</strong> Restaurantsown estimates.The Mexican restaurant industry is always evolving and therefore there is a constantdemand for new technology. <strong>In</strong> 2009, the market size was an estimated US $1.4 billion,a decrease from 2008 due to the economic slowdown. The lack <strong>of</strong> technology (especiallyin cold-chain equipment) in Mexico and the increasing sophistication <strong>of</strong> the Mexicanconsumer, generate business opportunities for U.S. restaurant equipment exporters.The Mexican restaurant industry represents 2.2 percent <strong>of</strong> the national GDP, and 24percent <strong>of</strong> the tourism GDP. It further consists <strong>of</strong> approximately 35,000 restaurants inMexico City and 243,000 nationwide, <strong>of</strong> which 96 percent are micro and smallenterprises, and the remaining four percent consist <strong>of</strong> large restaurants. The industrygenerates more than 850,000 direct jobs and more than two million indirect jobsthroughout Mexico. Geographically, the industry is spread across the northeastern to thecentral part <strong>of</strong> the country, with almost 45 percent <strong>of</strong> the industry concentrated inMonterrey, Guadalajara and Mexico City.A limited number <strong>of</strong> ovens and refrigerators are manufactured in Mexico, but mostspecialized restaurant equipment is imported from the United States and other countries.Local production consists <strong>of</strong> meat grinders, slicers, refrigerators, freezers, c<strong>of</strong>feemakers, ovens, kitchen furniture and utensils, and generally lack the quality andtechnological level <strong>of</strong> U.S.-made equipment. The Mexican manufacturers are mainlysmall to medium-sized companies with less than 50 employees. More complex andlarge-scale machinery is not produced locally, which leaves a market for U.S. exporters.The global economic slowdown and the H1N1 flu affected the restaurant industry’sgrowth, which showed a decrease <strong>of</strong> 10 percent in 2009, according to estimatesprovided by the National Chamber <strong>of</strong> the Restaurant <strong>In</strong>dustry (CANIRAC). Therefore, theindustry has explored new ways to attract consumers through promotions and cuisinefestivals to generate more business. <strong>In</strong> 2008, the total market for this sector was nearlyUSD $1.8 billion. Imports from the United States during 2009 decreased 50% comparedto 2008 for the period January - September. Competition for this market exists primarilyfrom Chinese, Taiwanese, German, Italian, and Spanish manufacturers.The economic outlook for 2010 is conservative with 2 percent growth, which is less thanexperienced in the last few years. It is expected that the hotel and restaurant industrywill grow slowly during the first months <strong>of</strong> 2010, but will recover its dynamism during thelast quarters, based on the global economy and its effect in the Mexican market.
- Page 1: Doing Business in Mexico: 2010 Coun
- Page 4 and 5: Return to table of contentsChapter
- Page 6 and 7: Before signing an agent/distributor
- Page 8 and 9: In order to satisfy clients’ dema
- Page 10 and 11: egardless of their geographic proxi
- Page 12 and 13: The following companies organize tr
- Page 14 and 15: to create a solid contract that inc
- Page 17 and 18: Web ResourcesReturn to topU.S. Gove
- Page 19 and 20: AgribusinessOverviewReturn to top20
- Page 21 and 22: Automotive Parts and SuppliesOvervi
- Page 23 and 24: ResourcesState of Jalisco Auto-part
- Page 25 and 26: • Corporate training programs in
- Page 27 and 28: excluding large hydroelectric proje
- Page 29 and 30: Environmental SectorOverviewReturn
- Page 31: Franchising SectorOverviewReturn to
- Page 35 and 36: Housing and Construction ServicesOv
- Page 37 and 38: Internet and IT ServicesOverviewRet
- Page 39 and 40: Packaging EquipmentOverviewReturn t
- Page 41 and 42: With this boom in the packaging sec
- Page 43 and 44: • Integrated security solution(co
- Page 45 and 46: CATV: Today 30% of homes have pay-T
- Page 47 and 48: and expanding facilities and servic
- Page 49 and 50: destinations are typically not popu
- Page 51 and 52: The United States’ major agricult
- Page 53 and 54: 5.- Fresh Fruit (apples, pears, gra
- Page 55 and 56: ResourcesReturn to topThe USDA’s
- Page 57 and 58: order region and 16 percent for pro
- Page 59 and 60: U.S. Export ControlsReturn to topMe
- Page 61 and 62: and organs, almost all medical prod
- Page 63 and 64: Organizations that develop NMX - Me
- Page 65 and 66: Certification Bodies:EMA has accred
- Page 67 and 68: The LFMN and its Regulation establi
- Page 69 and 70: NOM-137-SSA1-2008 Regulatory inform
- Page 71 and 72: Mexico is the country with the larg
- Page 73 and 74: Return to table of contentsChapter
- Page 75 and 76: SECTION 2: SECTORS RESERVED FOR MEX
- Page 77 and 78: majority share (about 75 percent) o
- Page 79 and 80: Expropriation and CompensationRetur
- Page 81 and 82: contribution. The Mexican Bank for
- Page 83 and 84:
Government continues to work with i
- Page 85 and 86:
to banks and non-bank banks. Despit
- Page 87 and 88:
government sent the sent the Federa
- Page 89 and 90:
Business Transactions (OECD Antibri
- Page 91 and 92:
• Information about the OECD Anti
- Page 93 and 94:
Greece, Italy, Netherlands, Portuga
- Page 95 and 96:
Foreign Direct Investment Realized
- Page 97 and 98:
Return to table of contentsChapter
- Page 99 and 100:
individuals who are equally new to
- Page 101 and 102:
sector, which is expected to uncove
- Page 103 and 104:
Return to table of contentsChapter
- Page 105 and 106:
For further information please visi
- Page 107 and 108:
Local Time, Business Hours, and Hol
- Page 109 and 110:
Mr. Garth ThorburnDirector, U.S. Ag
- Page 111 and 112:
Asociación Nacional de Importadore