Hooters reviews model of expansion
Valor Econômico
The American chain of restaurants, Hooters, will test a new business model in Brazil. Owner of 600 points of sale in the world, nearly 200 of them belong to it, the company decided to adopt a different platform of expansion in the country. Instead of franchisees, it will have co-owners who will invest nearly R$ 500 thousand (US$ 312.5 thousand) per store, and they will have as return a fixed withdrawal of R$ 5 thousand (US$ 3.1 thousand) a month, plus 10% of the profit of the business.
Of its own cash, the American chain intends to invest R$ 30 million (US$ 18.8 million) to open 15 stores until the end of 2014. It is the second attempt of Hooters in Brazil, where it landed in 2002. For eight years, the brand did not achieve success: it was restricted to a single store in the neighborhood of Santo Amaro, South side of São Paulo. "The point was very bad", explains Marcel Gholmieh, President of Hooters in Brazil. One year ago, Gholmieh became a partner of former masterfranchisee of the brand in the country, the businessman Antônio Carlos Guimarães, who ended up leaving the business. Gholmieh then closed the point of Santo Amaro, opened a new store in Vila Olímpia in November, also in the South side of São Paulo, and remade the expansion plans with Hooters international.
"The company realized its best results came from own stores and decided to test a hybrid model in the country", says Gholmieh. According to the businessman, in just five months, the Brazilian unit of Hooters became the third best result in the world after Tokyo and Singapore City, with earnings of R$ 750 thousand (US$ 468.8 thousand) a month. "We will launch the delivery service this month and, with that, we hope to beat Tokyo, which sells nearly R$ 900 thousand (US$ 562.5 thousand) a month", he says.
The host cities of the 2014 FIFA World Cup were chosen to receive the new stores of the American chain. As a privately held family company headquartered in Atlanta, Hooters had no idea of the potential of consumption of Brazil, according to Gholmieh. "I explained them what was the World Cup and what it represents for the country", says the businessman, who also has targeted the cities of Campinas, Ribeirão Preto (SP) and Goiânia (GO). This year, Hooters should open stores in Barueri (SP), São Paulo and Rio.
The chain earns nearly R$ 1.3 billion (US$ 812.5 million) in the world and it wants to get to R$ 20 million (US$ 12.5 million) in the country this year. For 2014, it plans to reach R$ 100 million (US$ 62.5 million) in sales. In the country, its main product are the fried chicken wings and its greatest rival is the also American chain Outback. The great difference of Hooters, says Gholmieh, are the beautiful waitresses who serve the public skating, dressed in a sensual uniform. Not by chance, men are 65% of the public. The businessman says it is not a sexist attitude of the chain. "Maybe the wives and girlfriends get a little bit jealous, but soon they realize there is nothing to do with that and they see it is a familiar environment".