About Grupo Modelo and Modelorama
Grupo Modelo, a prominent Mexican beverage company known for its Corona beer brand, is now supporting small business owners through its Modelorama retail chain. This initiative aims to foster entrepreneurship by offering franchise opportunities for aspiring businesspeople.
What is Modelorama?
Modelorama specializes in selling beers and snacks, providing a unique business opportunity for entrepreneurs. With an initial investment ranging from 80,000 to 120,000 Mexican pesos, small business owners can open their own Modelorama store.
The Growth of Grupo Modelo’s Retail Business
Grupo Modelo has successfully expanded its retail operations to include 8,000 outlets across Mexico. During a visit to one of the Modelorama stores in Oaxaca’s city center, Rodolfo Vargas, Director of Direct-To-Consumer Marketing at Grupo Modelo, explained the company’s retail growth.
- Oaxaca has 353 Modelorama stores, with 180 located in the capital.
- The company sees significant expansion potential in the northern, central-bajío, and southeastern regions of Mexico.
Vargas highlighted that Grupo Modelo actively seeks new franchisees through a recruitment program to maintain and expand its retail network.
Franchise Model Details
Under the franchise model, Grupo Modelo takes care of leasing the store location, while franchisees are responsible for the initial investment needed to stock their businesses and maintain product inventory.
Store sizes vary based on available space, and Grupo Modelo focuses on enhancing existing store performance through mobile app Bees, which optimizes orders and inventory management.
Unique Sales Dynamics
Modelorama stores differ from typical retail outlets, as customers often purchase large quantities of beer and snacks for events and gatherings.
According to Raúl Escalante, Vice President of Legal and Corporate Affairs at Grupo Modelo, the average transaction in Modelorama stores consists of 70% to 80% beer sales. This highlights the distinct nature of these establishments, catering specifically to event planning needs.
Key Questions and Answers
- What is Grupo Modelo’s role in the Modelorama franchise? Grupo Modelo handles leasing the store location, while franchisees manage initial investments for stocking and maintaining product inventory.
- How many Modelorama stores are there in Mexico? Grupo Modelo has expanded to 8,000 Modelorama outlets across Mexico.
- What is the average transaction like at Modelorama stores? Modelorama transactions consist of 70% to 80% beer sales, reflecting the stores’ focus on event planning.
- What regions show potential for Modelorama expansion? Grupo Modelo sees significant growth opportunities in the northern, central-bajío, and southeastern regions of Mexico.
