Querétaro’s Demographic Diversity and High Immigration Attract Franchises
Querétaro, Qro. The state’s population growth and geographical features make it an attractive destination for both national and international franchise expansion.
Betsy Eslava, President of the Mexican Franchise Association (AMF), highlights Querétaro’s suitability for franchising due to its diverse population and high immigration rates.
“Querétaro has experienced significant population growth over the past decade, making it an excellent opportunity for national and international franchise expansion. Many people migrate to Querétaro, bringing with them knowledge of franchises from their hometowns. This often leads to local entrepreneurs introducing these franchises to Querétaro,” Eslava explained in an interview.
Geographical Advantages and Strategic Location
Querétaro’s geographical location is another attractive feature for franchises. Its proximity to Mexico City, influence in the Bajio industrial zone, and role as a connection point to other Mexican regions make it an appealing destination.
“Querétaro’s privileged location, near the city and the entire Bajio, along with its strategic road, rail, and industrial corridor linking Mexico City to Texas, makes it an important industrial corridor. This supports the supply chain, logistics, and operations for franchises; Querétaro is viewed as a strategic growth location for brands,” Eslava commented.
Projected Growth and Regional Attraction
The franchise sector anticipates an annual growth rate of 11% in Mexico this year, mirroring the Bajio’s projection. Querétaro’s significant role in this region and its high growth rate in new franchises contribute to this trend, surpassing the 2024 growth rate by one percentage point in new openings and business units.
Alongside the Bajio, the Western and Northern regions are attracting franchises, influenced by relocation trends, according to Eslava.
Franchise Establishments and Employment in Querétaro
Querétaro hosts 1,300 franchise establishments providing 11,000 direct jobs. The majority are food and beverage businesses, followed by health and beauty, pharmacies, convenience stores, logistics service providers, and others.
Challenges: Financing and Digitalization
Franchise sector growth also presents challenges, such as accessing financing and adapting to the technological advancements already prevalent in Asian countries.
Federal instances and development banks collaborate on a national franchise financing program. Additionally, integrating technological tools and autonomous systems remains a priority for this business model.
“We attended a conference in South Korea and saw firsthand how technology is integrated into daily life, from robotic kitchen staff to touchscreen ordering systems. This presents a significant challenge: keeping pace with Asian franchises that have embraced these new practices while we adapt,” Eslava noted.
According to the AMF, the Mexican franchise sector generates one million jobs, operates 95,000 sales points, and contributes nearly 5% to the Gross Domestic Product.
Key Questions and Answers
- What makes Querétaro a strategic location for franchises? Its diverse population, high immigration rates, geographical advantages, and strategic location make it an attractive destination for franchises.
- What growth rate is projected for the Mexican franchise sector? An annual growth rate of 11% is expected.
- What challenges does the franchise sector face? Accessing financing and adapting to technological advancements are key challenges.
- How many jobs does the Mexican franchise sector generate? It generates approximately one million jobs.
- What percentage of Mexico’s GDP does the franchise sector contribute to? The franchise sector contributes nearly 5% to Mexico’s GDP.
