Introduction to the Restaurant Industry’s Investment Needs
The Mexican capital, along with the Bajío region states and tourist destinations, are the most attractive zones for investments in the restaurant industry. According to Ignacio Alarcón Rodríguez Pacheco, the president of the National Chamber of the Restaurant and Condiment Industry (Canirac), having legal certainty and regulatory improvement policies in municipalities and states is essential for the industry to boost investments.
Challenges in Opening a Business
Alarcón highlighted that excessive bureaucracy for opening a business still exists in some municipalities and states, causing frustration among investors. He mentioned that some entities have made progress in digitalizing procedures and establishing single-window services.
- Digitalization of procedures in many states has simplified the process, requiring only a USB for completing various tasks.
- However, not all states have achieved this level of digitalization, and some areas still demand extensive paperwork for each procedure.
Factors Affecting Investments in the Restaurant Sector
Despite these advancements, investments in the restaurant sector are not progressing as expected. Alarcón outlined several factors contributing to this slowdown:
- Global uncertainty: The prevailing global uncertainty indirectly affects the country’s investment climate.
- Security concerns: Entrepreneurs are wary of security issues, which deter investment.
- Credit risks: Many potential investors are hesitant to secure loans or take on debt, further hindering investment growth.
Attractive Investment Zones
The Ciudad de México, Bajío region states, and tourist destinations are the most appealing areas for restaurant industry investments. The Bajío region, including Querétaro, León, San Luis Potosí, and Aguascalientes, is particularly attractive due to its industrial investment appeal and subsequent development of other economic sectors, including the restaurant industry.
High Failure Rate Among New Restaurants
Alarcón emphasized that maintaining a restaurant’s operation is crucial, as approximately 60% of new businesses fail within a year. Lack of knowledge about the startup process and insufficient preparation are common reasons for these failures.
Canirac aims to address this issue by guiding aspiring entrepreneurs through the necessary procedures and requirements for successful business establishment.
The Significance of the Restaurant Industry in Mexico
The restaurant industry in Mexico accounts for 12.2% of all businesses and generates 2.1 million direct jobs, as reported by Canirac.
Key Questions and Answers
- What does legal certainty mean for the restaurant industry? Legal certainty refers to having clear, stable, and predictable laws and regulations that enable businesses to operate with confidence.
- Why is regulatory improvement important for restaurant investments? Regulatory improvement streamlines procedures, reduces bureaucracy, and encourages investment by creating a more favorable business environment.
- What factors are hindering restaurant sector investments? Global uncertainty, security concerns, and credit risks are key factors affecting investment growth in the restaurant industry.
- Which regions are most attractive for restaurant investments? The Ciudad de México, Bajío region states, and tourist destinations are the most appealing areas for restaurant industry investments.
- Why is it challenging for new restaurants to succeed? Many new restaurants fail due to insufficient knowledge of the startup process, inadequate preparation, and high operational costs.
