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Ja nua r y 2016

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Wienerschnitzel: facing the future of franchising growth

Food, Drink, And The Internet Of Things SPECIAL REPORT

BLOOMIN’ BRANDS New Units And Product Development For A Growing Global Brand


EDITOR’S COMMENT

“Do not wait until the conditions are perfect to begin. Beginning makes the conditions perfect” – Alan Cohen T H E R E ’ S S O M E T H I N G I N H E R E N T LY E X C I T I N G about the start of a new year.

It’s a time for change, building on last year’s successes—and the wisdom gained from last year’s setbacks—to take your business further in the quarters ahead. In this issue of Food Drink & Franchise, we’re looking into the future with eyes wide open. We’re looking at the future of the Internet of Things and how it may shape technology and growth in food manufacturing, and we’re looking at the progress of social media and who’s doing it right in the industry. We’re also sitting down with Tim Milburn, Director of Franchise Development at California-based Wienerschnitzel, to discuss how the regional franchise is making a bid for expansion in the coming year. So read on, enjoy, and keep on planning how to make 2016 your best business year yet.

Enjoy the issue!

Sasha Orman Editor Sasha.Orman@fdfworld.com 3


CONTENTS

Features

PRODUCTION Food, drink, and the internet of things

6

LEADERSHIP Wienerschnitzel facing the future of franchising growth

14 4

January 2016

TOP10 Restaurants Owning Social Media

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BRAZIL

26 Bloomin' Brands

A M E R I C A L AT I N A

40

Pollo Favorito S.A. POFASA


PRODUCTION

Food, drink, and the internet of things As the “Internet of Things” continues to develop, how will this interconnectivity affect the food and beverage industry? Written by: SASHA ORMAN 7


PRODUCTION AS TECHNOLOGY IMPROVES, the world is only growing more interconnected. Through innovations like smart devices and the Cloud, the Internet of Things (IoT) is helping businesses more effectively manage their operations and connect with their consumers. From farm to fork, IoT applications promise to make life easier for manufacturers and consumers alike. A Better Way to Grow The Internet of Things has a hand in improving the food system down to the very beginning of the supply chain—in the field. The agriculture industry is already starting to make use of IoT technology, using it to build efficiencies into everyday operations. One major way that IoT is becoming integrated into the agriculture world is through sensors that can be placed in soil right alongside crops. These sensors can store and directly relay a wealth of real time data— temperature, moisture, and even nutrient levels in the soil—back to farm operators through the cloud. Tracking this data can help producers use fertilizer and water more efficiently, which translates to cost savings. 8

January 2016

IoT is becoming integrated into agric

‘These sensors can store and directly relay a wealth of real time data –temperature, moisture, and even nutrient levels in the soil – back to farm operators through the cloud’


FOOD, DRINK, AND THE INTERNET OF THINGS

culture through sensors that can be placed in soil right alongside crops Additional cost savings can come from IoT-based sensors on equipment, which can alert operators to any issues like obstructions or mechanical failure. While it can be impossible to manually monitor the vast acreage of industrial farms, sensors can help operators address malfunctions and other problems immediately, creating more efficiencies by minimizing equipment downtime. As this technology becomes more widespread, it

may prove to be the key to a more productive agricultural future. Improving Food Safety and Transparency Despite all of our advances, food safety and transparency continue to be serious issues facing the food production industry. Fraud and misinformation is prevalent, and the CDC reports that major multistate foodborne illness outbreaks 9


PRODUCTION have tripled over the last 20 years. But IoT could play a significant role in reducing or even eliminating these issues in the future. A key part of improving transparency through IoT lies in tracking products along the supply chain. RFID technology is already making this possible, and many forward-thinking growers and producers are taking full advantage of this technology to track raw and value-added produce through the field and the warehouse, allowing them to quickly isolate and eliminate pathogens or other contamination

‘Many forwardthinking growers and producers are taking full advantage of this technology (RFID) to track raw and value-added produce through the field and the warehouse’

10

January 2016

problems down to the batch without shutting down the entire facility. Much like with agriculture, IoT can also improve the state of equipment in the food manufacturing industry, especially as the industry moves further toward reliance on automation. Sensors can relay problems with machines, as well as taking notice immediately of contaminants like metal or other foreign elements, allowing manufacturers to further increase food safety before problems make it to the consumer.


FOOD, DRINK, AND THE INTERNET OF THINGS

Rethinking Packaging Consumers want to know more about their food, but there is only so much room on a label—but the Internet of Things can expand product labels far beyond the physical boundaries of cardboard and plastic and bring packaging into the digital age. Interactive packaging can utilize RFID technology and QR codes to communicate directly with consumers. A quick smartphone scan could easily reveal extended nutrition and allergy information, or extra benefits like recipes, coupons, or reward points. This more comprehensive

form of engagement can go a long way toward building a more loyal repeat consumer base. Meanwhile this packaging also relates back to the issue of traceability—manufacturers and third party logistics companies can use the same RFID chip and bar code technology to track packages as they are distributed across the country or even around the world. This can serve a variety of functions, from compiling location-based sales data in real time to making targeted product recalls easier by knowing exactly where batches were delivered. 11


Wienerschni

facing the future of franchisin

As the franchising world evolves, iconi franchise Wienerschnitzel is ready to g Writ ten by: Sasha Orman

12

January 2016


itzel

ng growth

ic California grow

LEADERSHIP CHILI DOGS AND chili cheese fries: this fan favorite concept has carried California-based QSR franchise chain Wienerschnitzel for half a decade. Still, even as a leader in its category and the largest hot dog chain in the world, the brand is still regional in the United States, available mostly on the West Coast. But change is coming. “Cindy Galardi Culpepper, when she assumed the reins of CEO in 2013, really had a vision and focus to reenergize this brand and put it in a position to grow again,” said Ted Milburn, who came on board as Director of Franchise Development at the start of 2015. “There were some things already in place—clearly a neat brand that people know, love and trust, and leadership at the top that wants to grow and is willing to put the money and the resources into it—and they were trying to put the puzzle pieces together.” With 25 years of experience in franchise development for high profile brands, including four years spent with Nestlé Toll House Café, Milburn joining the team was one more puzzle piece falling into place. Now, he and the Wienerschnitzel team are working to make the goal of active growth a reality in the years to come. 13


LEADERSHIP A heritage design for a heritage brand For Wienerschnitzel, the most substantial display of commitment to growth is the launch of its Heritage model, a new design concept led by Director of Real Estate and Director of International Development Geoff Ingles. With a walk-up, drive-thru, and a compact design that can be built on as little as 15,000 square feet of land, the updated design pays tribute to the brand’s original iconic A-Frame structure while offering a competitive edge at a lower cost. “A stand-alone building, where our competitors typically cannot go gives us broader opportunities on a smaller parcel of land with a very unique and unforgettable building design,” Milburn said. In 2014 Wienerschnitzel opened its first Heritage prototype in El Paso, Texas as the flagship model. After a year of success surpassing expectations, the Galardi Group has made the building concept available for franchising, and is moving forward with nine additional Heritage locations—four of which are to launch within the new year.

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January 2016


WIENERSCHNITZEL

The Express model: when less is more When it comes to growing a successful business chain and attracting the interest of franchisee partners, numbers speak volumes. “A key component for growth is that when you have same store sales that are increasing, and with a price point that is near an industry low, it makes for an attractive offering,” said Milburn. Same store sales are no question: Wienerschnitzel has seen 18 consecutive quarters of rising same store sales. “That tells a story right there,” said Milburn. “A lot of that has to do with a visionary marketing team that is attracting a younger generation as a new wave of customers, and combining that with our extremely loyal following of a little older demographic. Our training, purchasing and operational support is phenomenal. There are many contributing factors to the consistent increase in sales which has been a great team effort.” For the second half of the equation, Wienerschnitzel is looking for ways to decrease its franchising price point through an even smaller concept. 15


LEADERSHIP

Wienerschnitzel Franchising Introduction The Express model is designed to fit a modified, slightly scaled down Wienerschnitzel and Tastee Freez into a 300 to 500 square foot space, with a price point of approximately $100,000 all-in. This is in contrast to the Heritage model, which is currently a $482,000 to $1.3 million investment for franchisees, though the brand is actively working to narrow down 16

January 2016

an all-in figure between $600,000 to $850,000. This scaled-down model dovetails in nontraditional spaces like casinos, convenience stores, military bases, and college campuses. With two test locations up and running and several more on the way, the potential is limitless. “We haven’t even scratched the surface as to what we believe that


WIENERSCHNITZEL

tidal wave of opportunity could be for the Express concept,” said Milburn. “For my development team, to put dedicated resources toward going after that market is definitely a consideration for 2016 if these test locations go as we expect. We couldn’t be more excited about that arm of the business.” Building the future With a new website, new franchisee brochures, and new location models already proving successful, Wienerschnitzel is ready to ramp up its expansion efforts even further and take the brand nationwide in the new year. “We are very aggressively wanting to open up new markets in the South and Midwest,” said Milburn, noting that the restaurant chain is exploring trade shows like October’s NACS Show and the upcoming Multi-Unit Franchising Conference in April to build its national presence, especially among multi-unit franchisees. “Our number one priority is to attract good operators,” he added. “For people with experience and knowledge, who understand the matrix of this business model,

we have a winner to share with them in what I consider to be a category that we own.” Respecting the past For all its growth plans, perhaps the most crucial puzzle piece is ensuring that Wienerschnitzel never loses sight of what makes it an iconic brand. “The chili cheese dog, chili cheese fries, soft serve and corn dog—as simple as they are, our proprietary products are a phenomenal offering,” said Milburn. “It’s a great product, it’s value priced, and it’s one we do better than anybody else. We stay true to that and don’t get outside of our lane— you’re not going to see us doing kale salads—because it’s what works.” As plans continue to build on such a strong foundation, Wienerschnitzel is ready to face the future head-on. “Through the end of December, it’s been the trial of getting things put into place—making sure our marketing is going in the right direction, that we’re putting dollars in the right places, that we’re getting the right people,” said Milburn. “We’ve done a really good job—we have hit the momentum, or at least have our shoes laced ”

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TOP10 Restaura

Owning Social


TOP 10

ants Media

Written by: Sasha Orman

Social media is an important part of building your brand in this day and age. In contrast with other forms of advertising media like TV or print ads, social media marketing is an opportunity to engage directly with your biggest fans, creating a dialogue while learning what matters to them most. Which QSR brands are making the biggest impact on social media? It can be hard to tell—of course the brands with the most locations have the largest social media reach in terms of sheer numbers, but are they truly making an impact? The Restaurant Social Media Index strives to put all restaurants big and small on an equal playing field, through a weighted metric that takes the values of influence, engagement, and sentiment into account. Using this metric, the index tracks the top brands winning at social media. So how does the QSR industry stack up?

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TOP 10

09

Shake Shack

Danny Meyer’s Shake Shack started out as a simple cart in Madison Square Park, Manhattan, and over the past 15 years has grown into an international phenomenon despite just a few physical locations. With more than 49,000 Twitter followers and 163,000 followers on Facebook, plus a well-connected LinkedIn and localized pages, Shake Shack engages its fans with high quality photos, Spotify collaborations and more.

10

In-N-Out Burger

For a restaurant chain that doesn’t even have a Twitter account (yet—it’s apparently in the process of acquiring one), In-NOut Burger has had no problem reaching its diehard audience. In addition to a Facebook page with nearly three million followers, the burger chain also uses the localization approach with dozens of pages for each location. 20

Janaury 2016


TOP 10’S OF 2015

07

Buffalo Wild Wings

The rapidly growing hot wings franchise relies on localized social media to connect with its expanding fan base, opening dozens of Twitter and Facebook accounts to communicate with consumers on a regional level.

08

Firehouse Subs

Founded in 1994, Firehouse Subs has been growing rapidly in recent years. While the franchise has a smaller Twitter following, its Facebook following is strong with over 1.3 million likes from fans who look forward to Firehouse’s frequent highlights of firefighters, paramedics, and other worthy causes. 21


TOP 10

06

Taco Bell

It’s no surprise that Taco Bell made it on this list—it’s not only one of the largest and most popular fast food franchises in North America, but it also has a keen understanding of its social media influence. The brand frequently engages with its 1.64 million Twitter followers through dialogue and special treats from brand gear to parties for its biggest fans.

05

Wendy’s

Wendy’s has seen a revamp of its image in recent years, and that brand-building also includes its social media image. The franchise takes the feel good route, promoting stories and videos from its founder’s Dave Thomas Foundation for Adoption along with smart deals and coupons. 22

Janaury 2016


TOP 10’S OF 2015

04

Panera Bread

Panera may have a lot to choose from among breads and bagels, but its social media presence keeps it simple and sweet: just lovely well-crafted images and videos to promote its specials and new items.

03

Chipotle

Chipotle uses tasteful images and fun gifs to keep its fan base informed on limited time deals, brand-related news, and info on its charities and events including the Chipotle Cultivate festival and its Cultivate foundation. 23


TOP 10

02

Sonic Drive-In

Sonic Drive-In has been growing fast, expanding to new markets and building a strong fan base all the while. The chain builds a name for itself with quirky commercials, and that persona extends to its social media as well, where fun images are paired with plenty of tip-offs on limited time deals. 24

Janaury 2016


TOP 10’S OF 2015

01

Chick Fil A

It’s no surprise that Chick-Fil-A has a huge cult following, and its fans are following the chicken sandwich haven on social media as well. Fans can tune in to its Facebook and Twitter feeds for spotlight news on franchisees and team leaders, limited time deals, and even recipes.

25


PERSONALIZED SERV AND QUALITY PRODU Constantly growing, group invests in new units and center of in research and product development Written by: Flรกvia Brancato | Produced by: Taybele Piven


VICE UCTS excellence

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BLOOMIN’ BRANDS, INC.

L

ooking for a relaxed atmosphere and focusing on quality and service, four friends specialized in the hospitality industry put into practice the dream of opening a restaurant. It started in 1988 in Florida, where the team opened the first Outback Steakhouse as the first of the six brands of the Bloomin ‘Brands Inc. group: Abbraccio Cucina Italiana, Fleming’s Prime Steakhouse & Wine Bar, Bonefish Grill, Mexcla and Carrabba’s Italian Grill. Considered to be one of the largest restaurants in the

casual dining segment of the world, the corporation employs around 100,000 workers, spread throughout its 1,500 stores across 20 countries. The experience of partners Peter Rodenbeck and Salim Maroun produced the first Outback Steakhouse in Brazil in 1997, located in the city of Rio de Janeiro. Abbraccio Italian Cucina was planted later. According to Salim Maroun, CEO of Bloomin’ Brands in Brazil, 2016 will see the first Fleming’s Prime Steakhouse & Wine Bar in the country.

Abbraccio’s facade in São Paulo

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January 2016


Outback’s facade in São Paulo

“We are maintaining our growth pace, expanding 20 percent a year, breaking records in clients served and bringing new brands to Brazil,” he explains. In 2015 alone, 11 Brazilian Outback franchises and three new Abbraccio franchises were opened. Also in 2015, the Mexcla brand opened an inaugural franchise at the Shopping Eldorado mall, representing the first concept of the

group in the fast casual segment. After taking the CEO position of the Bloomin’ Brands group in Brazil, Maroun aimed at guaranteeing continued operational excellence of the group. Along with the rest of the executive leadership, he decided to strengthen the brands with key management. For this purpose, the following individuals operate the group’s brands with a complete focus on people, quality, service w w w. b l o o m i n b r a n d s . c o m

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Outback in Alphaville, S達o Paulo


BRAZIL

and profitability: • Atila Noronha, a veteran in the food service market, leads the Outback Steakhouse operations • Ricardo Carvalheira, another veteran in food service, took over the Abbraccio Cucina Italiana operations • Mauro Guardabassi with 17 years of extensive experience in the casual dining is the head of Fleming’s Prime Steakhouse & Wine Bar brand • Ryan Trierweiler heads up the brand new Mexcla. Today, the company also has other experienced executives in

other areas of business support activity, including: Antonio Bridges responsible for the supply area; Gilberto Santos in the area of real estate; Silvio Bandini in finance; and Paula Castellan as head of marketing. Passion for food One of the main objectives of the company is to provide outstanding customer experiences, sharing good times and offering quality services. “Our difference is the way we look at our line of business: for us, food is a very serious matter, so we prepare all inputs, sauces and

SUPPLIER PROFILE Main text goes here and can be a block of copy - if there is no desire to indent the copy with headings. Main text goes here and can be a block of copy - if there is no desire to indent the copy with headings. If you need to create a new paragraph then just hit return and a separating rule appears for segregating the paragraphs. The text in this box aligns from the bottom up. Adjust the text box height of ordinate of 742pt. Website: address goes here as the last entry Ribs on the barbie

w w w. b l o o m i n b r a n d s . c o m

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BLOOMIN’ BRANDS, INC.

products daily in our kitchens, from the finest ingredients. We strive to deliver the best service and different environments for those who go to our restaurants, “says the CEO. Among the concepts and flavors that Outback introduced in Brazil, different sauces, such as honey mustard, are standard, as well as Australian bread, Caesar salad, specialty meat cuts and refills on sodas. Ninety-seven percent of products are made in-house at each restaurant location. Business model A pleasant and informal dining style is the hallmark of the group. The concept is appreciated by people who like feeling at home with friends and family while socializing,

eating good food and, added to all that, being well served. Maroun says that all this is possible only due to a distinctive business model, where the restaurant manager must have extensive experience in the hospitality industry. “All the restaurants are company owned, allowing the manager to be selected based on experience rather than financial investment.” This opportunity for professional growth makes almost 70 percent of the members “former Outbackers;” in other words, they have grown within the company, starting as servers and kitchen assistants. “It gives a sense of ownership to the managerial level and allows the restaurant management to be

“Our difference is the way we look at our line of business: for us, ‘food’ is a very serious matter.” – Salim Maroun, CEO of Bloomin’ Brands in Brazil

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January 2016


THERE IS A COCA-COLA BRAZIL BEVERAGE FOR ALL YOUR THIRSTS. There is a thirst for every moment. Whatever it may be, we do everything to find the perfect beverage. Therefore we offer more than one hundred products, all with Coca-Cola Brazil’s quality assurance. After all, our biggest thirst is to satisfy yours.

YOUR THIRST DRIVES OURS.


Bloomin’ Onion is one of Outback’ specialties since its inauguration

operated by extremely qualified and experienced partners,” he adds. According to Maroun, usually to open a unit, you must have experience in retail and have worked in sectors related to hospitality, in addition to being an entrepreneur and possess leadership skills. “For us, investing in training is the right way to keep the good results. We want partners who know the work and live out our principles and culture, so we’re always focused on training and listening to employees,”

he says. Management practices Following a strong philosophy that educational partnerships enable development, Bloomin’ Brands offers a special career path. It starts in the selection process, where tests and interviews are used to identify the candidate’s profile through its “DNA of Hospitality” qualification process. The process continues with a cycle of two to three weeks of w w w. b l o o m i n b r a n d s . c o m

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C O M PA N Y N A M E

Ribeye steak special cut prepared on the grill

training until courses focused on entrepreneurship and leadership are administered. Every year technical and behavioral assessments are made to track the performance of each team member. “The co-owner business model is a major motivational items to attract and retain our talent, as great part of their income is based on restaurant results and profit sharing. 36

January 2016

One difference is that customer satisfaction, measured by surveys, makes up the bonus of members and managers, thus ensuring that everyone has the customer as a priority,� says the CEO. Every effort has been recognized through numerous awards, and the group has appeared three times in a row among the top 10 customer service companies in


BRAZIL

Outback’s bread became the second best selling bread in bakeries around Brazil

Brazil according to the ranking examination by IBRC. In 2015, Bloomin’ Brands was placed second in the list, the only food company to be among the ranking. Constant expansion Since the opening of the first restaurant, more than USD 103 million has been invested in infrastructure in Brazil. On average,

Abbraccio’s sangrias w w w. b l o o m i n b r a n d s . c o m

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BLOOMIN’ BRANDS, INC.

Salim Maroun - CE

each open restaurant receives an investment of USD 1.3 million. “We have a strong expansion plan for the Outback Steakhouse, for Abbraccio Cucina Italiana, for Mexcla and for Fleming’s, and we are continually studying growth opportunities,” said the CEO. Abbraccio is slated to reach 50 restaurants in the next five years, during which the Outback will surpass the mark of 100 restaurants in the country. For 2016, the group 38

January 2016

is also investing in a modern center of research and development products, with corporate chefs and a training center. “We maintain our investment because we believe in the strength of the company and long-term investment in the country,” says Maroun. “We are considered by the parent center to have operational excellence. The Brazil operations have received special attention at international conventions of the


BRAZIL

Company Information NAME

Bloomin’ Brands, Inc. INDUSTRY

Food HEADQUARTERS

Tampa, Flórida E S TA B L I S H E D

1988 EMPLOYEES

EO of Bloomin’ Brands in Brazil

100,000

network and the country was chosen to lead the expansion in Latin America,” Maroun also points out the importance of partners as essential factors for the development of Bloomin’ Brands in Brazil. “Partnerships helped build the casual dining market in the country, always ensuring the quality of products and a strong local supply chain. JBS, Marfrig, Coca-Cola, Ambev, Aryzta, BRF and McCain are some examples of strategic suppliers for our business,” he concludes.

PRODUCTS / SERVICES

It is one of the largest companies in the world of casual restaurants

w w w. b l o o m i n b r a n d s . c o m

39


Writte

Mateo Rafa

Produc

Taybele

Intervi

Ing. Jorge Villamizar, Gerente G


en by:

ael Tablado

ced by:

e Piven

iewee:

General de Pollo Favorito S.A.


P O FA S A

P

ollo Favorito S.A. (POFASA) is part of Ecuador’s Corporacion Favorita, one of the country’s top five businesses, whose history dates back to mid-20th century Ecuador when La Favorita factory diversified its operations. Within a few years, La Favorita stores evolved into a nationwide retail and supermarket chain. POFASA began operations in 1976 with the purpose of supplying poultry products including chicken and turkey to Corporacion Favorita’s stores. The company has experienced continuous

Pollo Favorito S.A. opened its new poultry processing plant in July 2015, this expansion increased the company’s production rate from 3,000 to 4,500 chickens daily 42

January 2016


L AT I N A M E R I C A

growth by reinvesting earnings in machinery upgrades and staff training. POFASA’s work begins with the incubation process and ends with the delivery of packaged products at distribution centers, avoiding product freezing at any time during the process. Details such as chicken feeding, weight, development, environment and temperature are under constant surveillance and care from POFASA’s staff at all times. Aside from supplying poultry products to Corporacion Favorita’s supermarket chains, POFASA also ranks as an important supplier for KFC’s Ecuador division. The constant growth experienced by the company made necessary the construction of a new processing plant, which opened in July 2015. “The new facility allows for more advantages beyond plain expansion, it also improves our resources to deliver chicken and turkey products with better quality,” said Jorge Villamizar, General Manager for Pollo Favorito S.A. Villamizar has been running POFASA for more than three decades. He graduated in agricultural engineering from the University of Maryland. Villamizar also finished postgraduate studies in agricultural regional planning at the Hebrew University of Israel.

Key People

Jorge Villamizar General Manager for Pollo Favorito S.A Villamizar graduated in agricultural engineering from the University of Maryland, in the United States; afterwards he finished his postgraduate education in agricultural regional planning, at the Hebrew University of Jerusalem. Villamizar was hired by Pollo Favorito S. A. POFASA in 1984, when the company operated only four farms. During his tenure, POFASA has become stronghold for Corporacion Favorita, a business group which has maintained among Ecuador’s top five companies for years.

43


P O FA S A

{

Health and safety issues are a central part of POFASA’s staff training

44

January 2016

Prepared for a constantly changing environment The poultry industry in Ecuador interacts within a very dynamic market; new players come and go, competing with Pollo Favorito and other established farms. These fluctuations rule profit margins and possible growth for poultry businesses. “All of us poultry farming and packaging


L AT I N A M E R I C A

companies shift according to the market’s tendencies; as demand increases, production increases too,” the general manager said.

New processing plant: increase in workspace and production POFASA’s new processing plant opened on July 5th, 2015. The new 10-acre facility received $8 million in investments, funding the creation of an

}

w w w. c o r p o r a c i o n f a v o r i t a . c o m

45


Cleanliness and safety for every procedure 46

January 2016


L AT I N A M E R I C A

improved working space with optimized lighting and upgrading the poultry processing machinery. Aside from expanding operational space, this new plant also contributes to an increase in production from 3,000 to 4,500 chickens per hour. “The main purpose for building this new facility was to provide a more comfortable workspace for our employees,” Villamizar said.

The staff at POFASA is properly trained in health and safety standards

Room for suppliers in every facility POFASA and its suppliers work very closely with each other at the company’s breeding, processing and feeding plants. Having suppliers’ and the company’s own livestock in the same grounds eases production adjustments resulting from the market’s dynamics. “Our suppliers in these three areas must adjust to the market’s conditions too,” the executive said.

Safety and health standards: a must during staff training The workforce at POFASA is considered in every step of the production process. One important reason for expansion into a new plant was to improve working conditions.

“The new facility improves our resources to deliver chicken and turkey products with better quality” – Jorge Villamizar, General Manager for Pollo Favorito S.A.

w w w. c o r p o r a c i o n f a v o r i t a . c o m

47


P O FA S A

POFASA products at the point of purchase

Employee Training is also a priority, since safety and health matters are important for the company’s workforce, suppliers, and also the end product. Besides compliance with federal and municipal health and safety codes, POFASA employs a third party for facility inspection, determining areas for improvement in these matters. Machinery upgrades is a standard for POFASA

48

January 2016

“Workshops are programmed with regularity; it is very important that the entire staff learns about health and safety standards, reducing accident rates. We follow through with our clients’ standards too,” Villamizar said.


L AT I N A M E R I C A

Besides being poultry supplier to Corporacion Favorita’s supermarket chains, POFASA is supplier of important brands, such as KFC Ecuador

Commitment to surrounding communities POFASA is constantly improving its waste management programs; most residuals are transformed into raw material to feed livestock. Water management at their facility is also under strict standards both for use in production as well as in water residuals. Laboratories in farms, processing and feeding plants have also been expanded, improving conditions to provide proper care to livestock.

From incubation to distribution, POFASA’s

POFASA’s involvement in supporting surrounding communities consists in efforts such as easing school transportation for children, chicken donations for the handicapped,

raw material is properly nurtured

w w w. c o r p o r a c i o n f a v o r i t a . c o m

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L AT I N A M E R I C A

sponsoring water pipeline works to bring this resource to rural areas, and other endeavors. “We strive to provide our community of any kind of help they ask from us,” the general manager said.

Company Information NAME

Pollo Favorito S.A. POFASA INDUSTRY

Avícola

The future for Pollo Favorito S.A. HEADQUARTERS

POFASA experienced a sustained growth rate of 11 percent throughout the last few years, with exception of 2014 and 2015, when market conditions resulted in only a 4 percent growth. An increase in production is expected after the processing plant’s expansion. The company’s staff will keep attending workshops, taking part in conferences, congresses and other gatherings within the industry. Exports have been considered, but there is still plenty of pending work to achieve in such area; steps for exports will be thoroughly reviewed before receiving a green light.

Av. Eloy Alfaro S/N y Avigiras, Quito, Quito, Ecuador FOUNDED

1976 EMPLOYEES

220 REVENUE

$140 million WEBSITE

“The poultry market in Ecuador is wide open; too many producers came in already and saturated the market,” Jorge Villamizar said.

www.corporacionfavorita.com

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