The Argentine Burger Dean & Denny’s took the first step in its international expansion plan. During the second week of August opened its premises in Uruguaywhich, they point out, is part of a ambitious growth project for the company not only in the region but also in Europe.
It is a local flagship (or badge) located on Luis Alberto de Herrera avenue, Iturriaga corner, in Montevideo. It has 300 m2 and, in addition to the living room, has a production plant on the first floor. According to the company, this factory will be in charge of supplying all the premises of the Uruguayan market.
“We plan to open 5 more in the next two years”details Francisco Ribatto Crespo, co-founder and commercial director of Dean & Dennys. This place required an investment of US$ 750,000 and it is a teacher franchise that was granted to a local group with gastronomic experience to develop the expansion in Uruguay.
10 years after its debut, the firm projects even more international releases for the remainder of the year. “In the next six months we are closing the landing in Chile,” says the executive. In turn, by 2023 they plan to open stores in Paraguay, Colombia, Mexico and Spain.
Courtesy Dean & Denny’s
The investment in Uruguay required US$725,000
The story behind the chain
Dean & Denny’s was founded in 2012 by Joaquín Rozas, Hugo López, Martín Ribatto and Francisco Ribatto Crespo. They were searching combine the speed of fast food with the quality of gourmet proposals and with this idea they opened their first branch in Malabia and Honduras, in Palermo.
“That year went badly for us. We had a whole time of adaptation in which people did not understand the concept,” Ribatto Crespo recalled, in dialogue with Apertura last April. But the hamburger boom quickly arrived and they opened a second location. “There we already knew that we wanted to make this a chain,” he explained. And so opened their own production center.
Today this factory operates independently under the name Burger Crafters and produces around 500,000 medallions per month for breweries and other burger joints. “We supply 50 stores and as a supplier, but Dean & Dennys is the main customer,” she said.
The franchise as a growth tool
From the 11th local they chose to grow through franchises. In particular, they outlined an expansion strategy in shopping malls, one of the strong points of traditional fast food chains, such as McDonald’s and Burger King. “We no longer compete with the neighborhood burger joints but with the chains,” remarked Ribatto Crespo.
The investment to open a Dean & Dennys franchise goes from US$80,000 to US$220,000 since they have three types of premises: counter in mallsservice express for delivery and traditional.
Currently the chain has 23 stores in operation in the neighboring country with presence in the city of Buenos Aires, province of Buenos Aires and Salta. Meanwhile, it has 10 sites under construction by 2022 and next year it hopes to open another 15 restaurants.
RIPE- The Chronicler
