Background on the Situation
In Puebla’s Historic Center, approximately 300 franchises are experiencing a significant decline in sales, with losses reaching up to 30%. The main reason for this downturn is the presence of street vendors, who create unfair competition by offering goods at lower prices without paying taxes.
Franchise Sector Overview
The franchises affected include fast-food restaurants, cafeterias, perfumeries, and clothing stores. These businesses are struggling to maintain profitability due to high operational costs, such as rent payments that can range from 25,000 to 40,000 pesos per month, as they are located within Puebla’s first-ring area.
Financial Impact
Francisco Lobato Galindo, vicepresident of the local Red Mexicana de Franquicias, explained that these sales losses are irrecoverable. Restaurants, for instance, must use perishable ingredients daily to meet quality standards, making it difficult to absorb the financial hit.
Employment and Economic Implications
Lobato Galindo highlighted that these franchises generate around 8,000 jobs in Puebla. He emphasized the importance of safeguarding this source of income for many families and acknowledged that the presence of street vendors negatively impacts Puebla’s image as a tourist destination, indicating a lack of urban reorganization.
Call for Action
Lobato Galindo urged the local government to create an action plan to protect established commerce from this unfair competition. He noted that removing street vendors will not happen overnight but stressed the need for municipal authorities to demonstrate commitment to addressing this issue, as it was a key campaign promise.
Key Questions and Answers
- Who is Francisco Lobato Galindo? He is the vicepresident of the Red Mexicana de Franquicias local in Puebla.
- What franchises are affected? Fast-food restaurants, cafeterias, perfumeries, and clothing stores are experiencing significant sales losses.
- Why are franchises losing sales? The primary reason is the presence of street vendors who offer goods at lower prices without paying taxes.
- What are the financial implications? High operational costs, such as rent, make it difficult for franchises to absorb sales losses. Additionally, perishable ingredients in restaurants must be used daily, adding to the financial strain.
- How many jobs are at risk? Approximately 8,000 jobs in Puebla are at risk due to the struggles of these franchises.
- What is the call to action? Francisco Lobato Galindo urged the local government to create an action plan to protect established commerce from unfair competition.
