Food & Drink Mcdonalds, Starbcucks and Burger King to be closed down soon!

[CarliNeces]

Have you guys heard about this rumor?

The cause being the hassles being faced by these food chains to import the goodies they need at the right price.

 

[AmirJacks]

Over the top IMO.
I can see SB turning tails, not both McD and BK. These two can certainly adapt and continue.

I say it's BS.

 

[earlyretirement]

Absolutely this won't happen. Some of these rumors are getting crazy now...

 

[CarliNeces]

According to the Mcdoanlds senior manager , all the 3 chains are undergoing serious losses despite the business! I could not understand the "mumbo-jumbo" but I understand it was to do with high import costs and difference in blue/white dollar rates. Go figure!

 

[earlyretirement]

According to the Mcdoanlds senior manager , all the 3 chains are undergoing serious losses despite the business! I could not understand the "mumbo-jumbo" but I understand it was to do with high import costs and difference in blue/white dollar rates. Go figure!

This is absolutely NOT true. I have a feeling either there was some communication error or this guy was feeding you some BS....

But no way McDonalds and Starbucks will close in Buenos Aires. I don't have any idea about Burger King or what their profits are like but no way McDonalds or Starbucks is going to close.

 

[CarliNeces]

@earlyretirement, maybe you are right but as the wise say " their is no smoke without a fire"

 

[TechNow]

This is a crazy rumor. Arcos Dorados (the McDonald's master franchisee for Latin America) is an expert in crazy markets and unstable governments. They have been prospering for decades and they are one of the top 10 employers in Latin America. Plus they import almost nothing. All the beef, french fries, bread, etc, is all locally sourced here in Argentina.

My sister-in-law worked at Fargo and their biggest contract was supplying bread to McDonald's here in Argentina. About the only thing McD has to import are the little ketchup packets, which they could easily source locally if they had to. This is a totally unfounded rumor.

 

[Mart]

Doesn't McDonalds import the french fries? I thought there was a story a while back about them not having french fries due to the fact that McCains couldn't get enough into the country.

I would be surprised if they closed down BUT at this stage, anything is possible.

I can't imagine what Starbucks is paying to get coffee in right now given my 157 pesos for a 1L bag of coffee. Obviously they don't pay retail prices but still, their import costs have got to be killing them. Esp if they have to pay the coffee brokers in dollars.

 

[earlyretirement]

This is a crazy rumor. Arcos Dorados (the McDonald's master franchisee for Latin America) is an expert in crazy markets and unstable governments. They have been prospering for decades and they are one of the top 10 employers in Latin America. Plus they import almost nothing. All the beef, french fries, bread, etc, is all locally sourced here in Argentina.

My sister-in-law worked at Fargo and their biggest contract was supplying bread to McDonald's here in Argentina. About the only thing McD has to import are the little ketchup packets, which they could easily source locally if they had to. This is a totally unfounded rumor.

Right. Exactly. And don't forget that ARCO is based right there in Buenos Aires. They actually are growing, not closing down stores as people correctly mentioned.

Starbucks as well is highly profitable. Look at the prices they charge. Mostly the same as anywhere else. And their operating costs are a fraction of what they are in other more expensive places.

The OP mentioned where there is "smoke there is fire". But what smoke do you see besides someone telling you something probably trying to scare you? I don't see any smoke. I see them growing like crazy in the Capital.

 

[PhilipDM]

Right. Exactly. And don't forget that ARCO is based right there in Buenos Aires. They actually are growing, not closing down stores as people correctly mentioned.

Starbucks as well is highly profitable. Look at the prices they charge. Mostly the same as anywhere else. And their operating costs are a fraction of what they are in other more expensive places.

The OP mentioned where there is "smoke there is fire". But what smoke do you see besides someone telling you something probably trying to scare you? I don't see any smoke. I see them growing like crazy in the Capital.

Its probably less over all, but I'm not convinced that its a small fraction. The coffee is all imported, milk costs more here than in the US. Those US18000 espresso machines have to be fixed with imported parts. They import (and pay taxes on) cups, lids, carrying trays, sleeves (some local ones mixed in lately), etc. And are labor costs really THAT much lower than those for minimum wage positions in the US.

 

[earlyretirement]

Its probably less over all, but I'm not convinced that its a small fraction. The coffee is all imported, milk costs more here than in the US. Those US18000 espresso machines have to be fixed with imported parts. They import (and pay taxes on) cups, lids, carrying trays, sleeves (some local ones mixed in lately), etc. And are labor costs really THAT much lower than those for minimum wage positions in the US.

I'm sure they do have hassles just like any other place that deals with imported goods. But the profit margins are still huge on things like coffee. And those $18,000 espresso machines I can't imagine would break down too often. From what I understand, most of the cups they are using now are all local now due to import restrictions.

Labor costs are lower and especially rental spaces are MUCH lower than places in the USA and Europe. I'd still imagine them highly profitable.

 

[PhilipDM]

I'm sure they do have hassles just like any other place that deals with imported goods. But the profit margins are still huge on things like coffee. And those $18,000 espresso machines I can't imagine would break down too often. From what I understand, most of the cups they are using now are all local now due to import restrictions.

Labor costs are lower and especially rental spaces are MUCH lower than places in the USA and Europe. I'd still imagine them highly profitable.

Actually you'd be surprised at the amount of maintenance those espresso machines need, they hardly ever break down but they're frequently serviced. (I was a barrista for a bit in highschool). I agree, they have a great business and great margins, I'm just doubtful that the costs are that much lower for BsAs than the US.

 

[earlyretirement]

Actually you'd be surprised at the amount of maintenance those espresso machines need, they hardly ever break down but they're frequently serviced. (I was a barrista for a bit in highschool). I agree, they have a great business and great margins, I'm just doubtful that the costs are that much lower for BsAs than the US.

Hmm... I have several friends that work at Starbucks. I've not heard them talk about how often those machines break down or get serviced but I'll ask them. Interesting...

How long has it been since you were a barrista in high school? Are we talking a few years ago or a few decades ago? LOL. I think that would make a difference since technology has come a long way.

I'm not sure about now as things are very crazy but I met with the owner of the first Starbucks in Argentina a few times (albeit several years ago) and they were making a killing. I'm sure with the crazy restrictions and controls it's probably fallen but if I had to own one business in Argentina it would be Starbucks!

 

[TechNow]

Hmm... I have several friends that work at Starbucks. I've not heard them talk about how often those machines break down or get serviced but I'll ask them. Interesting...

How long has it been since you were a barrista in high school? Are we talking a few years ago or a few decades ago? LOL. I think that would make a difference since technology has come a long way.

I'm not sure about now as things are very crazy but I met with the owner of the first Starbucks in Argentina a few times (albeit several years ago) and they were making a killing. I'm sure with the crazy restrictions and controls it's probably fallen but if I had to own one business in Argentina it would be Starbucks!

Starbucks Argentina is owned by Grupo Alsea, a publicly traded company based in Mexico. They operate Burger King and all Starbucks locations in Argentina. So I don't know who you met, but he wasn't the "owner" of a Starbucks location. Starbucks locations are not franchised out, except to huge corporations like Alsea.

 

[earlyretirement]

Starbucks Argentina is owned by Grupo Alsea, a publicly traded company based in Mexico. They operate Burger King and all Starbucks locations in Argentina. So I don't know who you met, but he wasn't the "owner" of a Starbucks location. Starbucks locations are not franchised out, except to huge corporations like Alsea.

It was one of the Torrado brothers. Starbucks has a joint venture partner in Argentina. So when I said "owner" I meant it in that aspect of being a joint venture partner which indeed "owns" in a sense Starbucks in Argentina.

 

[earlyretirement]

Many people/investors tried bringing Starbucks to Argentina for many many years. It finally happened through a joint venture. Starbucks Coffee Argentina SRL was part of that happening. Just an FYI.