The most recent survey by the Brazilian Franchising Association (ABF) on the internationalization of Brazilian franchises showed that the three segments leading international expansion are Health, Beauty and Wellness, Fashion and Food. In addition, the number of operations increased by 26.3%, reaching 2,175 units, and the United States continues to be the main destination for brands.
We spoke with Dany Levkovits, CEO of Hot n’ Tender (HNT), a fried chicken franchise participating in Franchising Brasil — an internationalization program promoted by the Brazilian Trade and Investment Promotion Agency (ApexBrasil) in partnership with ABF — about the brand’s global growth and best practices for facing the challenges of the international market.
Hot n’ Tender began its journey in 1995, when fried chicken was not yet popular in Brazil. Dany recalls the initial difficulties in winning over Brazilians and points out that the turning point came in 2015, with the launch of the franchise model. He attributes the success to the adaptation of the product to the local culture and the focus on service, production time and standardization.
Regarding the challenges of expanding into international markets, Levkovits highlights issues such as local food hygiene regulations, franchising laws and taxation. To stand out in saturated international markets, he suggests: “The key is to create a product with a strong identity, rather than simply copying existing models.” According to him, an original and authentic product is essential to attract and retain customers.
Dany also comments on the particularities of food franchises: “Developing local suppliers is crucial, but it can be a challenge depending on the volume and complexity of the operation.” He highlights the importance of cultural adaptation, citing as an example the variety of McDonald’s menus around the world.
As for the segments with the greatest potential for international growth, Levkovits believes that fast food is one of the most promising due to its less complex operation. He sees good opportunities both in emerging markets with low competition and in consolidated markets, which offer a multi-franchisee culture and robust logistics systems.
Finally, he reflects on the lessons learned in international expansion: “Working with experienced partners in the local market is essential to minimize mistakes.” For the entrepreneur, having someone with in-depth knowledge of the local laws, culture and market is essential for success.
About Franchising Brasil
Franchising Brasil is a project that aims to support the internationalization strategy of Brazilian franchise networks and their commercial promotion in the main international markets. The initiative is a partnership between ABF and ApexBrasil, which works to promote Brazilian products and services abroad and attract foreign investment to strategic sectors of the Brazilian economy through trade promotion actions. To participate, simply download and fill out the membership form available on the website and send it to [email protected].
About ABF
Founded in 1987, the Brazilian Franchising Association (ABF) is a non-profit entity that officially represents the Brazilian franchise system. Its mission is to defend, promote and foster the sector, nationally and internationally, so that it remains prosperous, sustainable, innovative, inclusive and ethical. With more than 35 years of history, ABF enjoys great prestige and a consolidated image in the market, being also the headquarters of the Ibero-American Franchise Federation (FIAF), leader of the World Franchise Council (WFC) Task Force, member of the International Franchise Association (IFA) and responsible for the largest franchise fair in the world, the ABF Franchising Expo.
About ApexBrasil
The Brazilian Trade and Investment Promotion Agency (ApexBrasil) works to promote Brazilian products and services abroad and attract foreign investment to strategic sectors of the Brazilian economy. To achieve its objectives, ApexBrasil carries out diversified trade promotion actions aimed at promoting exports and valuing Brazilian products and services abroad, such as prospective and commercial missions, business rounds, support for the participation of Brazilian companies in major international fairs, visits of foreign buyers and opinion makers to learn about the Brazilian production structure among other business platforms that also aim to strengthen the Brazil brand. The Agency also works in a coordinated manner with public and private actors to attract foreign direct investment (FDI) to Brazil, focusing on strategic sectors for developing the competitiveness of Brazilian companies and the country.