Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/400168
"Beleki offers several advantages to its franchisees, such as locations with a high traffic of shoppers like shopping centers and supermarkets," said Vinay, president of Francorp International, a franchise-specialist consulting firm that has worked with Beleki. Vinay says this concept is a good example of the oppor- tunities Latin American franchisers can have outside the region. "Latin Ameri- can retailers need to stop thinking of expanding only up north, to the U.S., and capitalize on the cultural and lan- guage similarities we share with the rest of Latin America," said Vinay. The Beleki format lends itself to ex- pansion. Franchisees can opt to set up a corner store or a kiosk, in either case designed with easy mobility. In Mexico nearly three-quarters of the units are located outside supermarkets, catering mostly to mothers, who comprise nearly 70 percent of the consumer base, as they shop with their children. The menu has been expanded to include hot and cold beverages, and the average ticket price is now $5. The doughnuts still make up 80 percent of sales, however. Though there remains room for growth, particularly on the home front, Beleki management is aware that con- sumers are increasingly concerned about the health effects of fried foods. So last year the company rolled out a sis- ter chain called La Crépe de la Crépe, which sells custom-made sweet-and-salty crepes for which customers can choose from various fillings. This chain has 10 units in Mexico City, seven of which are franchises opened by investors who al- ready have a Beleki franchise. "Since we have the business relation- ship with shopping centers, we came up with this concept to diversify our offerings," said Julio Beleki. "Also, we often are offered islands inside malls that are too big for a Beleki. With La Crépe, franchisers have the option of setting it up along with Beleki, with table and chairs in between for consumers. Meanwhile, the company is testing yet another healthy option. In March it opened Hotcakes Monkey to meet the demand from consumers wanting to eat sweet nonfried bread. "The idea is to open Hotcakes Monkey in locations where fried products are not popu- lar," said Julio Beleki. The test store is in a Walmart in Mexico City's south. The company is eyeing the U.S. mar- ket, particularly Chicago and New York City. "We are sorting out the U.S. legal and health regulations before opening one or two test stores," said Julio Beleki. "If everything goes well, the first one could open in 18 months." S C T 40 S C T / N o v e m b e r 2 0 1 4 r e T a i l i n g T o d a y