Mustard, born in 1999 by Argentine entrepreneurs, managed to establish itself as a solid alternative to large international chains and position itself as one of the most important fast food brands in the country. With more than 184 branches strategically distributed throughout Argentina, the company that employs more than 9,000 people, supported by the franchises, plans to continue expanding. For this year, they hope to open 30 new branches, of which 20 will be under the franchise format. Looking ahead to the next five years, they project 100 more openings.
The company was an initiative of Christian Galdeano Alvarado and his partner Federico Aste, the idea arose during a vacation on the Argentine coast, where both entrepreneurs glimpsed the opportunity to create a fast food business offering quality burgers and much larger than what the market offered.
“This idea did not remain just a conversation; at the end of that same year they made an investment and opened the first Mostaza store in the Adrogué Shopping Boulevardusing a bar format,” he tells iProfessional Pablo De Marco, director of Expansion and Development of Mostaza.
60% of Mostaza stores are franchises
Today, Mostaza annually serves more than 50 million customersits mobile application has more than 1.1 billion usersand manage more than 500,000 monthly orders through the delivery channel.
This growth is no coincidence. According to De Marco, “the key was a combination of strategic expansion and adaptation to local needs.” Mustard opera 184 branches in Argentina, with a presence in 23 provinces, and 60% of these stores are franchises.
“This model allows us to take our value proposition to various places in the interior of the country beyond the large cities, guaranteeing continuous and sustainable growth,” explains De Marco.
Franchises allow a rapid and efficient expansion, without the need to make large initial investments by the parent company. Additionally, by partnering with local franchisees, Mostaza can take advantage of the knowledge and experience of these entrepreneurs in their respective areaswhich is crucial to adapt to the particularities of each location.
“By opening new franchises, Mostaza creates job opportunities and encourages local growth. In addition, the model ensures the uniformity in the quality of the products and services offered, maintaining rigorous control over standards” highlights De Marco.
Since 2016, Mostaza has also been working for its international expantion and actually, They operate with 12 stores in Uruguay, 10 in Paraguay and 2 in Bolivia., and they plan to continue growing in the international market. “All branches abroad are Master Franchises“De Marco details, indicating that this model allows for quality control and more effective management of operations in new markets.
From US$500,000 is needed to have a Mostaza franchise
Investing in a Mustard franchise offers multiple benefits. He endorsement of a consolidated brand provides franchisees with instant recognition and a base of loyal customers. “Our franchise model is highly adaptable to the changing context of the country,” says De Marco. This flexibility allows franchisees to adjust their operations and marketing strategies based on economic conditions and market trends.
“Although consumption was affected in the first part of the year, burger business proves highly elastic“says De Marco. In any case, he clarifies that the company has already deployed several strategies to adapt to the situation, working closely with suppliers to guarantee competitive priceslaunching new advertising campaigns and attractive products.
Mostaza’s support for its franchisees is comprehensive. The company offers continuous training, advice on location and construction, and the administration of critical business variables to maximize profitability. “We have a staff made up of professionals in different areas, which allows us to provide the franchisee with comprehensive training and advice on an ongoing basis,” explains De Marco.
To be part of the Mostaza family, the company offers three store formats: All in Onewhich has delivery, pick-up, drive-thru, self-service totems and parking (1200 square meters), Public road (300 square meters) and Mall (100 square meters), although the executive clarifies, currently They are not granting franchises for shopping, since they have full coverage.
The initial investment to open a Mustard franchise is starting at US$500,000 with the possibility of some turnkey branches. “High sales levels with low costs allow us to obtain a greater marginal contribution. The performance of our business unit far exceeds the market average, with a return on investment after 36 months“says the businessman, who also estimates that by point of sale the billing average annual around $1,200,000.
Monthly, franchisees must pay the 6% royalties and the 35% advertising to the enterprise. In exchange, Mostaza offers them rights to use the brand, access to pull purchases, and constant training
Mostaza operates 184 branches in Argentina, with a presence in 23 provinces, and 60% of these stores are franchises.
With a strategic approach and a proven business model, Mustard continues its path towards consolidation as one of the main fast food chains in Argentina and the region, granting franchises. “Our objective is to consolidate our leadership in the Argentine market and continue growing in a sustained manner”, concludes De Marco.
