More and more Argentines move to Uruguay, an attraction for many brands nationals who find in this context an incentive to internationalize their operations with the format of Franchies.
With the largest number of Argentine residents on land in the country, increased by 50% the proportion of businesses that bet on Uruguay. The pandemic accelerated the trend that was already observed since before covid-19: in the last two years, stakeholder inquiries doubled, according to the Commercial Economic area of the Argentine Embassy in Uruguay. There are already 60 Argentine brands that settled in the country.
Apart from the Argentine companies that landed in Uruguay, there are companies from other nations that are also going strong. In fact, 80% of franchises are foreign brands and 85% remain openat least five years, according to the Uruguayan Chamber of Franchises.
The requirements to set up a business in Uruguay are lax and it can be started with an investment of between US$ 250,000 and US$ 60,000 in the case of small or medium-sized premises. In the case of the largest It is necessary to calculate approximately US$ 100 thousand.
The most profitable franchises in Uruguay
Next, the ranking of the five most profitable franchises to put in Uruguayaccording to him Svet Studio Director, partner Canudas Studio premises.
Shaman
It is the benchmark store for sanitization, cleaning, and disinfection in different market segments, such as gastronomy, which grew with the pandemic. It is developing a second commercial line, aimed at the consumption of its products in homes. It has an annual return of 18% and requires an initial investment of US$ 25,000 and a fee income of US$ 5 thousand.
The Donuts House
ANDs a new string, with the know-how American, dedicated almost exclusively to the sale of the main snack of that country. It offers American donuts adapted to the local palate and artisan products such as milkshake Y wraps with carefully selected ingredients. To set up a franchise of 20 square meters and obtain almost an 18% annual return, you need a fee of income of US$ 7 thousand and an initial investment of US$ 25 thousand (includes the investment, the machinery and the stock initial).
pixabay
donuts
Peppers
It is a women’s underwear brand, where its greatest inspiration is ‘real women’. It has its own plant and more than 20 years of experience in the manufacture of underwear, in line with the latest international fashion trends, with the aim of creating a high-quality product with variety. It has a return of 16% per year and the initial investment is US$ 40,000 (includes the fee income and construction works).
gastronomic sector
A separate paragraph takes gastronomy. In Uruguay, as in other parts of the world, it was one of the sectors hardest hit by the pandemic. However, disruptive concepts such as Be Shawarma and Wok Up are emerging, which combine the flavors of the East. They have an annual return of 16% and require an initial investment of US$45,000.
The Urban Haus
ANDIt is the fastest growing brand in Uruguay. It is shown as a different store, hand in hand with music, art and designer clothes. With this combo, he seeks to generate a faithful bond with his consumers. It has a target audience of 18 to 40 years old, where 80% of the garments are purchased by women and the remaining 20% by men. It has an annual return of around 15%. requires a fee of income of US$ 5 thousand and an initial investment of US$ 30 thousand for the development of the infrastructure and the acquisition of merchandise.
Vitrum Hotel
Gastronomy
Why open a franchise in Uruguay
Unlike other markets, Uruguay does not present difficulties to invest. “To undertake under the franchise modality, You only need to pay the entry fee and the initial amount demanded by the brand and establish a Uruguayan address. It is not necessary to process the residence, although most end up doing it. The most common thing is that the Argentine who wants to open a franchise also seeks to reside,” he maintains. Alexei Yaquimenko, director of Svet.
There are several reasons why foreign companies pay attention to Uruguay. Among the benefits offered by the small nation —with a population of 3 million inhabitants, but with multiple opportunities—, there is the possibility of investing in a market with a low perception of corruption, according to International Transparency; a control of corruptionaccording to the World Bank; a prosperous economy, according to Legatum Institute; and a State with a quality of lifeaccording to Mercer.
The Uruguayan franchise market grew 500% in the last two years. In that sense, the influx of visitors from countries in the region transforms it into a hub of consumers of almost 270 million people.
Uruguay has a GDP per capita of the highest in Latin America. “And, although consumption is not excessive, the sales effort makes the chain of sales per ticket move the needle,” says Yaquimenko.
In turn, according to the specialist, the State grants incentives to investments of both local and foreign capital, “which helps to minimize the future tax burden based on the investment made.”
The Chronicler – RIPE
