Mcdonalds, Starbcucks and Burger King to be closed down soon!

[earlyretirement]

This is a crazy rumor. Arcos Dorados (the McDonald's master franchisee for Latin America) is an expert in crazy markets and unstable governments. They have been prospering for decades and they are one of the top 10 employers in Latin America. Plus they import almost nothing. All the beef, french fries, bread, etc, is all locally sourced here in Argentina.

My sister-in-law worked at Fargo and their biggest contract was supplying bread to McDonald's here in Argentina. About the only thing McD has to import are the little ketchup packets, which they could easily source locally if they had to. This is a totally unfounded rumor.

Right. Exactly. And don't forget that ARCO is based right there in Buenos Aires. They actually are growing, not closing down stores as people correctly mentioned.

Starbucks as well is highly profitable. Look at the prices they charge. Mostly the same as anywhere else. And their operating costs are a fraction of what they are in other more expensive places.

The OP mentioned where there is "smoke there is fire". But what smoke do you see besides someone telling you something probably trying to scare you? I don't see any smoke. I see them growing like crazy in the Capital.

 

[PhilipDT]

. And their operating costs are a fraction of what they are in other more expensive places..

Its probably less over all, but I'm not convinced that its a small fraction. The coffee is all imported, milk costs more here than in the US. Those US18000 espresso machines have to be fixed with imported parts. They import (and pay taxes on) cups, lids, carrying trays, sleeves (some local ones mixed in lately), etc. And are labor costs really THAT much lower than those for minimum wage positions in the US.

 

[earlyretirement]

Its probably less over all, but I'm not convinced that its a small fraction. The coffee is all imported, milk costs more here than in the US. Those US18000 espresso machines have to be fixed with imported parts. They import (and pay taxes on) cups, lids, carrying trays, sleeves (some local ones mixed in lately), etc. And are labor costs really THAT much lower than those for minimum wage positions in the US.

I'm sure they do have hassles just like any other place that deals with imported goods. But the profit margins are still huge on things like coffee. And those $18,000 espresso machines I can't imagine would break down too often. From what I understand, most of the cups they are using now are all local now due to import restrictions.

Labor costs are lower and especially rental spaces are MUCH lower than places in the USA and Europe. I'd still imagine them highly profitable.

 

[PhilipDT]

I'm sure they do have hassles just like any other place that deals with imported goods. But the profit margins are still huge on things like coffee. And those $18,000 espresso machines I can't imagine would break down too often. From what I understand, most of the cups they are using now are all local now due to import restrictions.

Labor costs are lower and especially rental spaces are MUCH lower than places in the USA and Europe. I'd still imagine them highly profitable.

Actually you'd be surprised at the amount of maintenance those espresso machines need, they hardly ever break down but they're frequently serviced. (I was a barrista for a bit in highschool). I agree, they have a great business and great margins, I'm just doubtful that the costs are that much lower for BsAs than the US.

 

[earlyretirement]

Actually you'd be surprised at the amount of maintenance those espresso machines need, they hardly ever break down but they're frequently serviced. (I was a barrista for a bit in highschool). I agree, they have a great business and great margins, I'm just doubtful that the costs are that much lower for BsAs than the US.

Hmm... I have several friends that work at Starbucks. I've not heard them talk about how often those machines break down or get serviced but I'll ask them. Interesting...

How long has it been since you were a barrista in high school? Are we talking a few years ago or a few decades ago? LOL. I think that would make a difference since technology has come a long way.

I'm not sure about now as things are very crazy but I met with the owner of the first Starbucks in Argentina a few times (albeit several years ago) and they were making a killing. I'm sure with the crazy restrictions and controls it's probably fallen but if I had to own one business in Argentina it would be Starbucks!

 

[el_expatriado]

I met with the owner of the first Starbucks in Argentina a few times (albeit several years ago) and they were making a killing. I'm sure with the crazy restrictions and controls it's probably fallen but if I had to own one business in Argentina it would be Starbucks!

Starbucks Argentina is owned by Grupo Alsea, a publicly traded company based in Mexico. They operate Burger King and all Starbucks locations in Argentina. So I don't know who you met, but he wasn't the "owner" of a Starbucks location. Starbucks locations are not franchised out, except to huge corporations like Alsea.

 

[walkingtwig]

Not too sure how much big companies like those actualy import. only two months ago my school was sending children to bimbo factories to see how they make the bread rolls for burger king. I'd imagine they have a VERY strong supply chain.

 

[earlyretirement]

Starbucks Argentina is owned by Grupo Alsea, a publicly traded company based in Mexico. They operate Burger King and all Starbucks locations in Argentina. So I don't know who you met, but he wasn't the "owner" of a Starbucks location. Starbucks locations are not franchised out, except to huge corporations like Alsea.

It was one of the Torrado brothers. Starbucks has a joint venture partner in Argentina. So when I said "owner" I meant it in that aspect of being a joint venture partner which indeed "owns" in a sense Starbucks in Argentina.

 

[earlyretirement]

Many people/investors tried bringing Starbucks to Argentina for many many years. It finally happened through a joint venture. Starbucks Coffee Argentina SRL was part of that happening. Just an FYI.

 

[Conorworld]

I hate to use the analogy of something odious because I quite like my McDonald's, Burger King and Starbucks but these chains are like cockroaches. They can and have survived harsher environments than the one Cristina has unintentionally or not created .It will take a lot to snuff them out.

However, if it is the case, the Revolution will start from outside a McDonald's and not at the Casa Rosada. One can tolerate the restrictions on dollars for moderately wealthy people abroad but causing the removal of that universal thing as a McDonald's will cause riots