www.CostaRicaTicas.com

Has anyone figured out why American fast food businesses do so well here and how they can get away with charging prices much higher than the US?

The meals are 20 to 50 percent higher than the US and yet McDonald’s, Burger King, KFC and Pizza Hut are always full. I took my young offspring to Pizza Hut and we had one large pizza and a pitcher of ginger ale: The bill was $30. We went there on a Friday at noon and had to wait to get a seat.

I saw on US television that Pizza Hut offers a large pizza for $10. Now that may just be the current sale price but seeing that ad on TV made the sticker shock of $30 for a pizza and liter of soda even more shocking.

Go to the food court at one of the major malls on a Sunday; the lines are huge at the American fast food franchises.

On second thought, Bigwavedave may be on to something but definately not in the Gulch. It may work in the malls which are jammed with middle class Costa Rica and it would have to be a name brand: Starbucks, Seattle's Best; Coffee Bean & Tea Leaf; Java City; amd Peet's.

Well starbucks is really popular in my country knowing that I'm on a 3rd world country. So establishing a franchise with starbucks is better than just starting with your own name or anything, unless your gambler though. Gourmet coffe shop always appeal on rural places. I'm wondering if its a good idea to establish a lease office space office business there.

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It is difficult to start a office for lease company with small investment.

OK, I admit it, I am just killing time as I get ready to get back to work, but; I think that there are several factors that people who think CR may be a good place to set up a business never factor in while developing their dreams that often turn into nightmare as in the case of several businesses that opened and then quickly folded in the Gulch:

1) Have you successfully ran a business in the US? If you haven't run one in the states, then you are not aware of the needs for constant attention that is even more applicable in CR.
2) Are you aware of government regs reference foreign owned businesses, food operations, sanitary standards etc?
3) Do you speak the language or at least have a good local lawyer to do that for you?
4) How much do you have to sustain operations until the business can be established?
5) What kind of a market survey have you do aside from asking other members of the board if they think it would be a good idea? Certainly not many Ticos will pay 4 bucks for a Cappuccino, but will mongers on a mission do so? Starbucks is definitely an American experience, I mean we even have them on military bases in Kuwait, but Ticos are used to making coffee with one of those reusable coffee filters and hot water for pennies a cup.

Its funny, but I met several would be business owners from the Gulch and I had a feeling right off that they would not make it. The guys in question exhibited the attitude that this was going to be something that they could do on the side, while mongering; I was not too surprised to learn that their place had gone under. Anecdotally, the guys that I know who have made a good living have filled a need and lived by some of the guidelines I listed; Bill once told me that CR has a need for a greater number of hotel rooms for example. As someone who had to complete a business plan for my degree, I can tell you that a lot of those elements need to be covered in said plan. Just MHO.

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“Good people sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.” And we are the guys that keep them in Eggs & Grits

I don't go to a Starbuck's where I live because it's way to expensive and offers me no other value for the overpriced coffee. The book and/or music store angle sounds like it could work if you do your diligence and run some numbers. The Gulch isn't just about our group. Cafe Mundal doesn't have a CRT discount and it's going real well. I can't believe that all of those fast food places are packed, given thier prices but they are. Pizza Hut for a family of 5 ran me about 80 bucks back in November. Of course the menu is different and they do wait on you but still, it's Pizza Hut. Rosti Pollo in The Gulch wasn't much less about 2 weeks ago.

I'll agree if you haven't run a successful business at home you aren't going to stand a snowball's chance in Florida.

There are possibilities but as for a chain who knows. There is a Venezuelan place that is stylish over on A 7 that would be worth keeping an eye on.

A coffee shop like a Starbucks or Panera (which I think has a better chance of success) may work. After all, there is the tico/latino tradition of taking a late afternoon coffee. Brit does have a shop on C 7. Costa Rican coffee tends to keep its flavor characteristics from hot to cold, so you could make a whole lot of different concoctions.

A Canadian tried a cafe in the gulch region. Made money the first month, then deviated from his business plan. Went under quick.

A key factor...you should have enough capital to fund your place for one year. To weather the ups and downs of establishing a business.

Damn shame about that--I was looking forward to visiting The Maple Cafe. Better luck next time, Canuck.

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"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED

I'm heading back again next month on business and will keep an eye out for Cafes. There's a small stand at Marcado Central, way in the back near the West entrance/exit that always has people sitting onthe stools. Not the venue or location being discussed on this thread but it's been there as long as I can remember.

IMHO it's important to remember that any gastronomic eandeavor in CR is going to be tough to make a success out of it it's dependant on just Gringos. SL is an exception to the rule. Bill has found a niche and has a formula for success that works. He, the DR are and a very few others are exceptions, not the rule.

If one wants to target Gringos and develop them as regulars wouldn't the Escazu area be better. Those of us in the east are known as Gringo's but just sort of fade into the wordwork and go native. Maybe others see it differently but that is the way I see it.

Diego, if that's who the target market is, I would agree. Personally, when I relocate I'd kind of like to fade into the woodwork to some extent . I know that it will never be completely possible but I'm not going to move to Costa Rica to go to Hooters. My goal is to speak Spanish well enough to be able to discuss every day issues and topics with Ticos and go to Tico establishments. I guess I wouldn't necessarily be the target market.

That is a good goal and I agree with you, if a person wants to go to Denny’s, Hooter’s, McDonald’s or any other US based franchise, just stay in the US; it is cheaper and higher quality in the US.

Personally, I wouldn't visit a Starbuck or the little coffee cafe. There's nothing wrong with the strong coffee you get at (almost everywhere) in CR. Also, some great points about starting a business in cr... I remember reading somewhere on this site, the the easiest way to leave CR with a million dollars is to come to the country with 2 million and start a business. , but keep up the dream!

Two comments:

Mr. MarlinAssault, I'm far from a liberal homo & enjoy my Frappucinos at my local Starbucks every day I'm in town, sometimes twice. That's okay 'cause I've endured many comments from my friends as well, just as I have for drinking my Pilsen in a glass with ice (which I learned to enjoy in SJO).

To the original comment, I think it's a good idea. For several reasons. Case in point - the Juan Valdez chain in Colombia is a pretty close Starbuck knock-off though their Frappucinos are not available in a "light" version, are heavier & smaller. Their whipped cream, however, is decidedly better. Those JV cafes are friggin' everywhere.

Now to put that in perspective; last I read the per capita income in CR in 2008 was around $450 a month while in Colombia it was around $275. Yet this expensive, discretionary item seems wildly popular in a decidedly poor nation (both Bogota & Medellin, for sure)

All the caveats remain - doing business here without experience, being a gringo, etc., etc. However, if you follow the mantra of location, location, location I think it's a winning idea. It's difficult to find a large mall in Colombia that doesn't have at least one of the JVes.

/dddick

OK doing the work at home routine today so I have a little time to comment on what I see as the major findings from our illustrious colleagues or the Brotherhood of the traveling Mong.

1) Location, location, location; The gulch is out as its focus is elsewhere; whore, booze, gambling etc.
2) In a Centro Comercial in or near Escazu, Barrio Amon or by the embassy(Rosehemuer?) so you could draw in the target audience; those folks with a disposable income that are out shopping.
3) Offer the Starbucks experience by perhaps partnering with a bookstore or offering the experience that they offer wifi, comfy chairs, overpriced pastry and bartistas that act like total know it all snobs with lots of piercings and tattoos.

The business plan is getting closer to fruition.

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“Good people sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.” And we are the guys that keep them in Eggs & Grits

Mr. Bones - funny you mention Rohrmoser, near the American Embassy. Our apartment is in Rohrmoser & we always stop at Spoon (was across the street from the embassy, now down a few blocks). It was ALWAYS packed. So they moved to a new location, quadrupled the space & at least quadrupled the parking. Last two times I've had to park down the street. It's a veritable cash cow. And they close at 8 and always have people inside at 8 & I've seen may turned away. When I'm in town we usually stop by at least every other day....so that's at least 4 - 5 visits a month & I work in the U.S.. I get the Frozen Latte Avallana [sp?] & my little friend usually gets a salad, pasta or a ham sandwich.

The key is that if you're in a more afflluent area (Rohrmoser, Ezcazu, etc) you MUST have a butt-load of parking & be conveniently located.

/dddick

The best idea I have heard is to place a Crispy-Creme Donut shop downtown near the Del Rey and also offer to deliver the pastries to the San Jose hotels. I called the Crispy-Creme folks and was told once that it's already sold and the next time when I asked for contact info for the CR franchisee, I was told they do not have a CR franchisee and that they have no interest in the country.

Too bad. I can just imagine the chicas going back to the Del Rey after being with a gringo at the Preidente and wanting something sweet to take the gringo taste out of their mouth.

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Slut Puppy in Training

Is low self esteem a prerequisite for being a good Ho or is it a result? ;-)