The state’s population growth, as well as its geographic characteristics, are some of the qualities that make it an attractive destination for the expansion of both domestic and foreign franchises.
For Betsy Eslava, president of the Mexican Franchise Association (AMF), Querétaro is fertile ground for this business model, due to its diverse population and the fact that it is one of the states with the highest immigration rate.
“Querétaro is one of the fastest-growing cities in our country in the last decade. The reality is that it is a great opportunity for the expansion of domestic and foreign franchises. There are many people who migrate to Querétaro (…) because so many people migrate there, they know the franchises in the city they come from, and some Querétaro entrepreneur emerges who brings the franchise to Querétaro,” she stated in an interview.
The state’s geographic location is another feature that attracts franchise businesses: its proximity to the nation’s capital, its influence on the Bajío industrial zone, and its connection to other regions of Mexico.
“Querétaro also has a privileged location due to its proximity to the city, the entire Bajío region, and the highway, rail, and industrial corridors that connect Mexico City with Texas. It’s a very important industrial corridor, with industrial and automotive industries moving west. All of this helps supply logistics and operations for franchises. For brands, we see Querétaro as a strategic location for growth,” he commented.
This year, the franchise sector estimates annual growth of 11% in the country, the same trend projected for Bajío, due to Querétaro’s presence in this region and its status as one of the states with the highest growth in new franchises. This forecast, according to the AMF, exceeds the 2024 increase in openings and new business units by one percentage point.
The Bajío, the West, and the North are among the regions attracting franchises, a trend also influenced by the relocation trend, the AMF president shared.
Querétaro has 1,300 establishments operating under the franchise format, contributing 11,000 direct jobs; the majority are food and beverage businesses, followed by the health and beauty segment, pharmacies, convenience stores, and logistics service providers, among others.
In recent decades, Querétaro has climbed among the states with the highest average annual population growth rate; in 2000, it recorded a rate of 3%, ranking fifth nationally. In 2010, it registered a rate of 2.6%, placing it in third place, and in 2020, an average annual growth rate of 2.7% placed it in second place nationally, surpassed only by Quintana Roo with 3.5%, according to data from INEGI (National Institute of Statistics and Census).
In 2023, it was the state with the sixth highest internal immigration rate. This represents the percentage of the population (five years of age and older) who resided in another state five years earlier, representing 4.2% of the population. 0.3% came from another country, and 95.5% already resided in the state, according to statistics from the National Institute of Statistics and Census.
The growth of the franchise sector also entails challenges: accessing financing and joining the technological wave already experienced by Asian countries are some of the complexities facing this business model.
Together with federal agencies and development banks, they are working on a national financing program for franchises.
Furthermore, adding technological tools and autonomous systems are also among the pending issues for this business model.
“We attended a conference in Korea and saw that they already live the technology, as if it were from the future. For them, it’s common to see franchises with robotic hands preparing food. From the moment you arrive, everything is done on touchscreens where you enter what you want (…) That’s a big challenge: keeping up with the Asians who are already bringing these new practices to the franchise sector, and for us to adapt to everything. The truth is, we’re doing well because more than 75% of our sector has logistics delivery platforms,” he noted.
According to the AMF, this is a sector that generates 1 million jobs in Mexico, has 95,000 points of sale, and contributes almost 5% of the Gross Domestic Product.
Source: eleconomista
