According to the most recent ranking released by the Brazilian Franchising Association (ABF), Cacau Show took the lead for the first time in the list of the largest franchises in the country. In the last year, the chocolate chain founded by entrepreneur Alexandre Costa in 1988 grew by 33.10% compared to the previous year, ending 2022 with 3,763 operating franchises.
After conquering Brazil, the franchise which participates in Franchising Brasil — the result of a partnership between the Brazilian Trade and Investment Promotion Agency (ApexBrasil) and the Brazilian Franchising Association (ABF) — already has plans to open units in new countries, such as Colombia, the United States and Portugal.
We talked to Arlan Roque, Expansion Manager at Cacau Show, to find out what the company’s next steps are towards foreign markets. Check out the interview below.
FB: Cacau Show has become the largest franchising network in Brazil, with 3,763 stores in the country. What factors were key to this growth?
Arlan: There is still a very large potential market in Brazil. With this volume of almost 4 thousand operations, we occupy around 12% of the national chocolate market, which means there is still a lot to do. We have mapped a total of 5,500 possible business points and we are going to work to occupy these spaces.
FB: In 2022, Cacau Show received 38,000 applications for new franchises. Which of the brand’s characteristics have attracted these new investors?
Arlan: This year Cacau Show will complete 35 years since its foundation, our first store was opened 23 years ago. In addition to an excellent cost versus benefit rate for the consumer, a person interested in undertaking a Cacau Show franchise also realizes the brand’s strength. We have a lot of security and a solid backround to offer. There is trust in the business.
FB: After this achievement, are there any plans for international expansion? If so, which new markets should Cacau Show explore in the coming months?
Arlan: We currently have works being developed in Colombia, the United States and Portugal. We opened an office in Colombia and have a person in the process of negotiating a spot for opening stores there. We also very recently carried out the first export in the United States and, in Portugal, we studied the best format to enter the country.
FB: Do you believe that there are differences in the consumption of chocolate in Brazil and in the rest of the world? How can this impact international expansion?
Arlan: Chocolate is universally desired. What exists are differences in the volumes consumed. For example, in Europe, the annual per capita consumption exceeds 10 kg, in Brazil it is an average of 3 kg per year, but with many regional variations and only here we have the number of stores that we have. So, in relation to international expansion, the process is to understand the consumer’s taste, the best occasion for consumption for each location and to naturally being able to add value, but with a good cost-benefit ratio for the customer.
About Franchising Brasil
Franchising Brasil is a joint project of the Brazilian Franchising Association (ABF) and the Brazilian Trade and Investment Promotion Agency (ApexBrasil), which aims to support the internationalization strategy of Brazilian franchise networks and their international trade promotion. The initiative was conceived to promote this recognized business model in the main international markets.