Alsea, a company that operates and franchises well-known restaurant brands, highlighted opportunities in the fast food market in Mexico.Typically, the various fast food outlets, cafeterias and food establishments serve 35% of the Mexican population located in socioeconomic levels A/B, C+ and C, according to Alsea’s estimates. Among the portfolio of brands it operates and franchises are:

• Burger King.
• Starbucks.
• Italianni’s.
• Domino’s Pizza.
• California Pizza Kitchen.
• P.F. Chang’s.
• Chili’s Grill & Bar.
• The Cheesecake Factory.
• Vips.

Alsea

This company believes that the large number of informal/street establishments typically serve 40% of the population located in the D+ and D socioeconomic level due to disposable income limitations.Consequently, it is difficult for that proportion of the population to access other types of fast food, casual or cafeteria establishments.

Demographics

Below are some of the demographic characteristics in Mexico:

• On average, the Mexican population is approximately 29 years old. 
• The majority of the Mexican population resides in urban areas: Mexico’s 59 major cities account for 54% of the Mexican population.
• Mexico has 61 million economically active people, according to Inegi, with data from 2023.
• There is an increase in the proportion of elderly people due to the aging of the population and a decrease in the proportion of children: the population over 15 years of age represents 87% of the country’s total population.
• The food service industry caters mainly to young people and adults who, for pleasure or necessity, need to consume food outside the home. 

Fast food

Considering all of the above, Alsea believes that the food service industry in Mexico has a market that is highly likely to consume the type of food and services that the company offers in its diverse business portfolio. In addition, Alsea predicts that it will benefit from current social and demographic trends that forecast a decrease in the informal sector, a growth in the middle class, and a growth in the purchasing power of the general population. As of December 31, 2023, the company had 4,622 units, of which 3,552 are corporate and 1,070 are subfranchises.