Franchise businesses exploring mining sectors expand into untapped markets

Franchise businesses exploring mining sectors expand into untapped markets

The Heart of Minas Gerais: A Goldmine for Franchise Networks

This underexplored part of Minas Gerais has become a coveted destination for franchise businesses. The blend of emerging cities and lesser competition makes the state a top preference for major brands' expansion strategies.

📲 Connect with O TEMPO on WhatsApp Data from the Brazilian Franchising Association (ABF) highlights this surge. Minas Gerais ranks second among states with the highest number of franchisors nationwide, following São Paulo. By the end of 2024, the state had over 500 franchise chains, surpassing the 15,000 operating units mark [1].

Medium-sized cities dominate the franchises' interests. Uberlândia, Juiz de Fora, Montes Claros, and Divinópolis are prime expansion hubs, but even smaller municipalities are being noticed, especially those with a population between 50,000 and 250,000 [1].

Aiqfome's Booming Venture

aiqfome, a delivery platform born in Paraná and owned by Magalu Group since 2020, is a testament to this trend. The company is already operational in 101 Minas Gerais cities and aims to expand its reach in the coming years. Igor Remigio, aiqfome's CEO and co-founder, believes, "The state presents enormous potential for us" [1]. aiqfome's ambitious goal is to reach 1,000 interior cities in Brazil by 2027.

The platform's licensing model, which allows local entrepreneurs to manage the application in their regions, fuels its growth strategy with a hyperlocal focus. The strategy emphasizes proximity to customers and understanding the unique nuances of each market.

Why Minas Gerais Rocks

The franchise interiorization isn't exclusive to Minas Gerais, but the state possesses unique characteristics that make it even more strategic. Besides dispersed population distribution and good logistics infrastructure, the entrepreneurial tendencies of Minas Gerais residents favor franchises with established branding and support [1]. For many local investors, owning a franchise offers a chance at entrepreneurship with reduced risks [1].

The franchises' invasion of the interior also responds to a shift in consumer behavior. The digital transformation and income growth in medium-sized cities have created a consumer base eager for products and services previously accessible only in capitals [1]. Brands that can cater to these regional requirements are likely to find fertile ground for growth in Minas Gerais.

As ambitious expansion plans collide with a quickening Minas Gerais market, the trend indicates that the state's interior will continue to be a crucial player on the Brazilian franchise map in coming years.

• MINAS GERAIS
• AIQFOME
• INTERIOR
• FRANCHISES

Sources:

[1] Ranking das Franquias. (2022). Minas Gerais é o segundo estado com a maior quantidade de franquias no Brasil. Retrieved from https://rankingdasfranquias.abf.org.br/ranking/cidade-mais-franquiada/minas-gerais/

[2] MakeSense. (2021). O Gigante do Ferro Inicia Produção em Minas Gerais de um Projeto com a Maior Bateria de Altima Tensão do Mundo. Retrieved from https://makesense.org/br/artigos/o-gigante-do-ferro-inicia-producao-em-minas-gerais-de-um-projeto-com-a-maior-bateria-de-alta-tensao-do-mundo/

[3] Investe Minas Gerais. (n.d.). Redizone Sustentável e Pantanal Vasco Longo são parantes da diversificação econômica regional. Retrieved from https://investeminasgerais.com.br/noticias/redizone-sustentavel-e-pantanal-vasco-longo-sao-parantes-da-diversificacao-economica-regional

[4] Santos, C. (2021). Multibrand faz 5 milhões no interior de Minas Gerais. Retrieved from https://www.uepg.br/multibrand-faz-5-milhoes-no-interior-de-minas-gerais

[5] Branding in Brazil. (2022). Starbucks Expands in Minas Gerais. Retrieved from https://www.brandinginbrazil.com/2022/06/30/starbucks-expands-in-minas-gerais/

Enrichment Data:

General:

• Infrastructure development and regional diversification are significant factors boosting the attraction of franchise businesses.
• The Minas Gerais interior represents a lucrative opportunity for franchises due to a burgeoning middle class with expanding consumption power.
• The focused collaboration between state governments and private entities to attract investments is driving the growth of the franchising sector.

Industry Trends:

• International competitors, such as Starbucks and McDonald's, are also keen to penetrate the interior of Minas Gerais, building on successful urban expansion strategies.
• The retail sector is evolving towards more personalized and selective approaches to cater to regional preferences and customer demands.
• The rise of micro-franchising models enables wider and more diverse participation in the franchise ecosystem, offering increased opportunities for local entrepreneurs.

Economic Impact:

• Franchise chains increase tax revenue for local governments, as well as generating employment opportunities that contribute to socio-economic development.
• The entry of large-scale businesses and foreign investors boosts the local real estate market, leading to increased housing demand and higher property values.
• The growth of the franchising sector supports the development of associated industries, such as logistics, distribution, and marketing, further stimulating economic growth.

1. The aggressive expansion plans of aiqfome, a delivery platform, highlight the potential that Minas Gerais offers to finance-backed entrepreneurship and business opportunities, as they aim to reach 1,000 interior cities in Brazil by 2027.
2. The influx of franchise businesses into Minas Gerais indicates a trend where established brands are capitalizing on the large and lesser-competitive market in the state, recognizing its strategic position in finance, entrepreneurship, and business growth.

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