Arcos Dorados Holdings

Last updated
Arcos Dorados Holdings Inc.
Company type Public
NYSE:  ARCO
Industry Food
FoundedAugust 3, 2007;16 years ago (2007-08-03)
Headquarters
Buenos Aires
,
Argentina
Number of locations
4.522 restaurants (2021) [1]
Area served
 Latin America and the Caribbean
Key people
Marcelo Rabach (CEO) Woods Staton (Executive Chairman)
RevenueIncrease2.svg US$ 2.65 billion (2021) [1]
Increase2.svg US$ 139.5 million (2021) [1]
Increase2.svg US$ 45.48 million (2021) [1]
Total assets Increase2.svg US$ 2.36 billion (2021) [1]
Number of employees
81,256 (2021) [1]
Website arcosdorados.com

Arcos Dorados Holdings Inc. (English: ''Golden Arches Holdings, Inc'') is a company that owns the master franchise of the fast food restaurant chain McDonald's in 20 countries within Latin America and the Caribbean. [2] As of December 31, 2010, it represented 6.7% of McDonald's franchised restaurants globally. [3] It has more than 81,250 employees. [1] It is the largest quick-service restaurant (QSR) chain in Latin America and the Caribbean serving over 4.3 million customers daily. [2]

Contents

The company operates the McDonald's-branded restaurants as company-operated restaurants and franchised restaurants. [3] Company revenues depend on sales made by company-operated restaurants and rental income from franchised restaurants. The rental income depends on which is greater, a flat fee or a percentage of sales. [3]

Business areas

Arcos Dorados' territory includes Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Croix, St. Thomas, Trinidad and Tobago, Uruguay and Venezuela. [1] The company dedicated itself as the organizer of the 2014 FIFA World Cup to provide customer service training to more than 15,000 World Cup volunteers. [4]

History

McDonald's first restaurant in this region was in Puerto Rico in 1967. Since then, McDonald's expanded its presence across the region, opening its first stores in Costa Rica in 1970, in Brazil in 1979, in Mexico and Venezuela in 1985, and in Argentina in 1986. [5]

Arcos Dorados (Spanish for "golden arches") was formed on August 3, 2007, as a result of the acquisition of McDonald's Corporation's Latin American business by the region's operations managers. [6] Prior to the acquisition, Woods Staton, Arcos Dorados' Chairman, CEO, and controlling shareholder, was the joint venture partner of McDonald's in Argentina for more than 20 years and also served as President of McDonald's South Latin America division from 2004 until the acquisition. Arcos Dorados announced its initial public offering and became a publicly-traded company on April 14, 2011, after listing its shares on the New York Stock Exchange (NYSE). [7]

Operations

With nearly $3.8 billion in sales in 2012, Arcos Dorados represents 5.6 percent of McDonald's global sales. [5] In Latin America and the Caribbean, it is the largest fast-food chain and is more than three times the size of its closest competitor. [8] Compared to the US, Latin America has fewer McDonald's per person. There's one McDonald's for every 22,200 citizens in the United States. In Mexico, Costa Rica, and Panama there's one restaurant for every 254,000 citizens; in Brazil, there's one for every 310,700 citizens; and in the rest of South America, there's one for every 317,400 citizens. [9]

Company-operated and franchised restaurants

Arcos Dorados operates its McDonald's-branded restaurants under two structures: company-operated restaurants and franchised restaurants. Arcos Dorados owns, manages and operates approximately 75 percent of its restaurants. [10] [ citation needed ][ unreliable source? ]

Restaurants operated and managed by franchisees account roughly for the remaining 25% of affiliated locations. They receive technical and operational support from Arcos Dorados, including training programs, operations manuals, access to its supply and distribution network, and marketing assistance. [5]

McCafé locations and Dessert Centers

Launched in 1999, the McCafé concept is meant to attract new customers, particularly during breakfast and after lunch, [11] in separate areas within restaurants where customers can buy lattes, cappuccinos, mochas, hot and iced premium coffees and hot chocolate. As of 2021, there were 298 McCafé locations in Latin America. [10] [1]

"Dessert Centers", operate separately from existing restaurants, [11] offering traditional McDonald's desserts like the McFlurry and soft-serve ice cream. As of 2021, there were 3,265 Dessert Centers in Latin America. [1] The first Dessert Center opened in Costa Rica in 1986.

Reimaging

Arcos Dorados has been updating its McDonald's restaurants throughout the region. Between 2010 and 2012, more than 260 restaurants were fully renovated with larger gathering areas, warmer colors, contemporary furniture, artwork, large windows and often have outdoor space with tables and umbrellas for outdoor dining. [5] [12]

Arcos Dorados' menus feature the same core items as McDonald's throughout the world, including hamburgers, fries, salads, and chicken sandwiches, but also include foods unique to the region. A few examples include a flan-like dessert in Peru, dulce de leche desserts in Argentina and Uruguay, and the McMolletes (English muffin with refried beans, cheese, and salsa) in Mexico. [13]

A typical menu includes three tiers of options: affordable entry-level options, such as the Big Pleasures, Small Prices, or "Combo del Día" ("Daily Extra Value Meal") offerings; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder; and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches. [14]

Nutrition and well-being

In 2011, Arcos Dorados launched a new Happy Meal, with reduced sodium, calorie and fat totals. [15] All Happy Meal combinations in Latin America contain less than 600 calories – less than one-third of the daily calorie intake recommended for children by the World Health Organization. Also in 2011, sodium in buns, McNuggets, cheese and ketchup were reduced by an average of 10 percent. [15]

Arcos Dorados was the first restaurant chain in Latin America to publish all its calorie content in its restaurant boards in 2013. [16] In-store, Arcos Dorados locations advertises its nutritional information in all restaurants on posters near the counter, and on paper mats that line the meal trays. Full nutritional information on every food item is available on its website. [17]

Advertising and promotion

Through McDonald's, Arcos Dorados sponsors several global sporting events such as the Olympic Games and the FIFA World Cup 2014 in Brazil. [18] The company uses similar advertising and in-store campaigns as McDonald's locations in the United States like running the McDonald's Monopoly campaign in many countries in Latin America, including Chile, Argentina, and Brazil.[ citation needed ]

McDonald's has been criticized by advocacy groups to end advertising and marketing to children. In 2008, Arcos Dorados implemented McDonald's Children's Marketing Global Guidelines which stipulate that the company communicate balanced food choices that fit within a child's nutritional needs; use its licensed characters and properties to encourage physical activity, and promote balanced food choices for children; instill positive messages about well-being, body, mind, and spirit; provide national information to help parents and families make informed choices, and engage third parties to help guide its efforts. [19]

Employees

Arcos Dorados is one of the largest employers in Latin America with 81,250 employees. [1]

Arcos Dorados has a structured training program that helps with personal and professional development. McDonald's University trains restaurant managers, mid-managers, and owners/operators on best practices in restaurant and people management, sales, marketing, and accounting. Additional management training curriculums are available for employees who want to advance within the company. More than 52,000 people from across Latin America have participated in McDonald's University courses and educational activities. [20]

In April 2012, Arcos Dorados became one of the first companies to join the New Employment Opportunities (NEO) Program. Developed by the Inter-American Development Bank and the International Youth Foundation, the program helps to increase the employability of the region's youth. [21] Its goal is to increase job entry among poor and low income young people. Corporate participation in the program involves an initial investment from sponsors of $37 million in cash and in-kind resources. [22] [ citation needed ]

Charity

One of Arcos Dorados' major charitable causes is the Ronald McDonald House Charities (RMHC). [23] As of 2021, there were 67 Ronald McDonald House Charities programs in 13 countries in Latin America and the Caribbean. This includes 30 Ronald McDonald Houses; 35 Ronald McDonald Family Rooms, and 2 Ronald McDonald Care Mobile, which was built to deliver pediatric care services to remote locations. [5] [1]

McHappy Day, McDonald's global fundraiser for RMHC, raises money for various children's causes, including the Ronald McDonald House Charities Foundation, through proceeds from the sales of Big Macs. In 2021, McHappy Day in Latin America raised nearly $6 million for RMHC. [24] [1]

Environmental and social responsibility

Sustainable food sourcing

Globally, McDonald's has worked with animal welfare expert, Dr. Temple Grandin, since the mid-1990s to help ensure animals in the supply chain are properly cared for. [25] McDonald's is currently in discussion with its pork suppliers to explore ways to phase out gestation stalls for pigs and is working with producers and suppliers to develop traceability systems to prove that the meat it buys is not from farms that use gestation stalls. [26]

McDonald's became a member of the Global Roundtable for Sustainable Beef (GRSB) in 2012. The group is working to advance the sustainable production of beef through the commitment of stakeholders in the beef value chain. [27]

Supply chain

All of Arcos Dorado's food and paper suppliers comply with McDonald's Supplier Workplace Accountability policy, which stipulates that workers are compensated and treated fairly, work in safe conditions and produce high-quality foods and packaging. [28]

Arcos Dorados also surveys and audits its suppliers in Latin America and the Caribbean to ensure their operations meet McDonald's quality, health and safety standards. based on globally recognized, established industry standards including the International Organization for Standardization (ISO), the British Retail Consortium (BRC), and the Hazard Analysis Critical Control Plan (HACCP).

Reducing consumption

McDonald's restaurants use a significant amount of energy, specifically in cold storage to protect food safety. During the past several years, Arcos Dorados implemented a restaurant maintenance strategy to reduce water consumption, energy utilization where possible, and waste reduction at its restaurants.

As one example, the company developed a collection and storage system for the water generated through condensation from the air conditioning equipment. They used the collected water to clean external areas and to water plants, reducing daily water consumption at one restaurant in Brazil from 8,000 liters to 6,800 liters. [29]

Related Research Articles

<span class="mw-page-title-main">Fast-food restaurant</span> Type of restaurant

A fast-food restaurant, also known as a quick-service restaurant (QSR) within the industry, is a specific type of restaurant that serves fast-food cuisine and has minimal table service. The food served in fast-food restaurants is typically part of a "meat-sweet diet", offered from a limited menu, cooked in bulk in advance and kept hot, finished and packaged to order, and usually available for take away, though seating may be provided. Fast-food restaurants are typically part of a restaurant chain or franchise operation that provides standardized ingredients and/or partially prepared foods and supplies to each restaurant through controlled supply channels. The term "fast food" was recognized in a dictionary by Merriam–Webster in 1951.

<span class="mw-page-title-main">Ronald McDonald House Charities</span> Nonprofit organization

Ronald McDonald House Charities (RMHC) is an independent American nonprofit organization whose stated mission is to create, find, and support programs that directly improve the health and well-being of children.

<span class="mw-page-title-main">Happy Meal</span> Childrens meal sold by McDonalds

A Happy Meal is a kids' meal usually sold at the American fast food restaurant chain McDonald's since June 1979. A small toy or book is included with the food, both of which are usually contained in a red cardboard box with a yellow smiley face and the McDonald's logo. The packaging and toy are frequently part of a marketing tie-in to an existing television series, film or toyline.

<span class="mw-page-title-main">Lotteria</span> South Korean fast food restaurant chain

LOTTERIA is a South Korean company that operates a chain of fast food restaurants in East Asia, having opened its first restaurant in Tokyo in September 1972. Taking its name from its parent company, Lotte Corporation, it currently has franchises in Japan, South Korea, Indonesia, Vietnam, Cambodia, Laos, and Myanmar. The origin of the name is a combination of corporate names Lotte and Cafeteria.

<span class="mw-page-title-main">The Cheesecake Factory</span> American restaurant chain

The Cheesecake Factory Incorporated is an American restaurant company and distributor of cheesecakes based in the United States. It operates 219 full-service restaurants: 206 under the Cheesecake Factory brand and 13 under the Grand Lux Cafe brand, not including the number of restaurants operated under the North Italia nor any of Fox Restaurant Brands' names. The Cheesecake Factory also operates two bakery production facilities—in Calabasas, California, and Rocky Mount, North Carolina—and licenses two bakery-based menus for other foodservice operators under the Cheesecake Factory Bakery Cafe marque. Its cheesecakes and other baked goods can also be found in the cafes of many Barnes & Noble stores.

<span class="mw-page-title-main">McDonald's</span> American fast food restaurant corporation

McDonald's Corporation is an American multinational fast food chain, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona. In 1955, Ray Kroc, a businessman, joined the company as a franchise agent and in 1961 bought out the McDonald brothers. Previously headquartered in Oak Brook, Illinois, it moved to nearby Chicago in June 2018. McDonald's is also a real estate company through its ownership of around 70% of restaurant buildings and 45% of the underlying land.

<span class="mw-page-title-main">Romano's Macaroni Grill</span> American casual dining restaurant chain specializing in Italian-American cuisine

Romano's Macaroni Grill is a casual dining restaurant chain specializing in Italian-American cuisine. As of April 2024, the company operates 31 locations in Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Nevada, Ohio, Pennsylvania, Tennessee, Texas, and Utah.

<span class="mw-page-title-main">Marrybrown</span> Malaysia-based fast food chain

Marrybrown Sdn Bhd is a Malaysian-owned multinational chain of quick service restaurants originated in Johor Bahru, Johor, Malaysia. Being one of the largest global halal fast food-establishments, the chain has since expanded to over 500 locations throughout Malaysia and across 15 countries. The restaurant focuses on Malaysian and western dishes.

When the predecessor of international fast food restaurant chain Burger King (BK) first opened in 1953, its menu predominantly consisted of hamburgers, French fries, soft drinks, milkshakes, and desserts. After being acquired by its Miami, Florida franchisees and renamed in 1954, BK began expanding its menu by adding the Whopper sandwich in 1957, and has since added non-beef items such as chicken, fish, and vegetarian offerings, including salads and meatless sandwiches. Other additions include a breakfast menu and beverages such as Icees, juices, and bottled waters. As the company expanded both inside and outside the United States, it introduced localized versions of its products that conform to regional tastes and cultural or religious beliefs. To generate additional sales, BK occasionally introduces limited-time offers of special versions of its products, or brings out completely new products intended for either long- or short-term sales. Not all of these products and services have been successful; in 1992, Burger King introduced limited table service featuring special dinner platters, but this concept failed to generate interest and was discontinued.

The legal issues of Burger King include several legal disputes and lawsuits involving the international fast food restaurant chain Burger King (BK) as both plaintiff and defendant in the years since its founding in 1954. These have involved almost every aspect of the company's operations. Depending on the ownership and executive staff at the time of these incidents, the company's responses to these challenges have ranged from a conciliatory dialog with its critics and litigants to a more aggressive opposition with questionable tactics and negative consequences. The company's response to these various issues has drawn praise, scorn, and accusations of political appeasement from different parties over the years.

<span class="mw-page-title-main">McDonald's Israel</span> Israeli master franchise of the fast food restaurant chain McDonalds

McDonald's Israel is the Israeli master franchise of the fast food restaurant chain McDonald's. Operated and licensed by Alonyal Limited, McDonald's Israel is the largest of Israel's burger chains with a 60% market share. It was the first Israeli outlet to be opened in 1993 and a major competitor of the local restaurant chain Burger Ranch. The world's first kosher McDonald's was opened in Mevaseret Zion in October 1995. McDonald's purchased Alonyal Limited in April 2024.

<span class="mw-page-title-main">History of the hamburger</span>

Evidence suggests that the United States was the first country where two slices of bread and a ground beef patty were combined into a "hamburger sandwich" and sold. There is some controversy over the origin of the hamburger because its two basic ingredients, bread and beef, have been prepared and consumed separately for many years in both countries before their combination. Shortly after its creation, the hamburger quickly included all of its currently typically characteristic trimmings, including onions, lettuce, and sliced pickles.

<span class="mw-page-title-main">Freshii</span>

Freshii is a Canadian fast casual restaurant franchise that serves burritos, wraps, soups, salads, and frozen yogurt. Founded in 2005 by former CEO Matthew Corrin, it has expanded to over 100 locations in countries such as Canada, the United States, Colombia, Peru, Sweden, Austria, Switzerland, Ireland, and United Arab Emirates, with franchises under development in Germany, Guatemala, and Saudi Arabia.

Jan Fields is an American business executive, who has served as president of McDonald's USA and who has served on the board of directors for numerous corporations. Fields held every role in the management chain of McDonald's, beginning as a crew member, before becoming the president of McDonald's USA. She was recognized by Forbes Magazine in 2012 as one of the most powerful women in business and she was listed on The Wall Street Journal's 50 Women to Watch list.

<span class="mw-page-title-main">McDonald's New Zealand</span> Restaurant chain in New Zealand

McDonald's Restaurants Limited is the New Zealand subsidiary of the international fast food restaurant chain McDonald's. Its first location opened in 1976. In 2017 McDonald's New Zealand had 167 restaurants operating nationwide, serving an estimated one million people each week. The company earned revenues of over $250 million in the 2018 financial year.

<span class="mw-page-title-main">Fast food in China</span> Overview of fast food in the Peoples Republic of China

Western-style fast food in mainland China is a fairly recent phenomenon, with Kentucky Fried Chicken (KFC) establishing its first Beijing restaurant in November 1987. This location was met with unprecedented success, and served as a model for many local Chinese restaurants that followed it.

<span class="mw-page-title-main">McDonald's Philippines</span> Philippines division of McDonalds

McDonald's Philippines, known locally and colloquially and shortened as McDo, is the master franchise of the multinational fast food chain McDonald's in the Philippines. The master franchise is held by the Golden Arches Development Corporation, a subsidiary of Alliance Global Group.

<span class="mw-page-title-main">Operations of KFC by country</span> Fast food franchise

KFC is a subsidiary of Yum! Brands, one of the largest restaurant companies in the world! KFC had sales of $23 billion in 2013. KFC is incorporated under Delaware General Corporation Law, and has its headquarters at 1441 Gardiner Lane, Louisville, Kentucky, in a three-story colonial style building known colloquially as the "White House" due to its resemblance to the US president's home. The headquarters contain executive offices and the company's research and development facilities.

Yolanda Fernández de Cofiño was a Chilean-Guatemalan businesswoman and philanthropist. She managed the McDonald's franchise in Guatemala from its start in 1974 and is recognized for having introduced a concept for a small children's menu to the company that would lead to the creation of the "Happy Meal".

References

  1. 1 2 3 4 5 6 7 8 9 10 11 12 13 "2021 Annual Report". Arcos Dorados IR. April 29, 2022. pp. 12, 15, 30, 48, 52, 53, 54, 80, 81, 82, 83, 94, 95, 109, 111. Retrieved July 18, 2022.
  2. 1 2 Company Description in Homepage, archived from the original on 2017-11-02, retrieved 2013-11-17
  3. 1 2 3 the Company's description in Reuters
  4. ↑ "Arcos Dorados Plays Pivotal Role in 2014 FIFA World Cup Preparations". Yahoo Finance. 2014-01-19. Retrieved 2014-02-27.
  5. 1 2 3 4 5 "Arcos Dorados Holdings Inc. - 20-F - For 12/31/12". SEC Info. Retrieved 2014-01-05.
  6. ↑ "Chairman, and CEO of Arcos Dorados, Woods Staton | Latin Trade Group". Latintrade.com. 2012-12-12. Archived from the original on 2014-01-06. Retrieved 2014-01-05.
  7. ↑ Patton, Leslie (2011-04-14). "McDonald's Operator Arcos Dorados Soars After Initial Offer". Bloomberg. Retrieved 2014-01-05.
  8. ↑ "Latin America News". Latinvex. Retrieved 2014-01-05.
  9. ↑ "Is Arcos Dorados a Better Pick Than McDonald's?". Beta.fool.com. Retrieved 2014-02-25.
  10. 1 2 "Arcos Dorados Reports Fourth Quarter & Full Year 2012 Financial Results | Business Wire" (Press release). businesswire.com. 8 March 2013. Retrieved 2014-01-24.
  11. 1 2 "Arcos Dorados Holdings Inc. (Form: 424B4, Received: 04/15/2011 06:05:05)". Nasdaq.com. Retrieved 2014-01-05.
  12. ↑ "McDonald's Latin America (2) | Flickr - Photo Sharing!". Flickr. 2012-04-16. Retrieved 2014-01-05.
  13. ↑ Fairchild, Caroline. "21 McDonald's Meals You Won't Find In America (PHOTOS)". Huffingtonpost.com. Retrieved 2014-01-05.
  14. ↑ "McDonald's - Puerto Rico" . Retrieved 2014-01-05.
  15. 1 2 "McDonald's Restaurants Latin America Evolve Menu to Offer More Options". McDonald's. 2011-07-26. Archived from the original on 2017-11-09. Retrieved 2014-01-05.
  16. ↑ Choi, Candice (2012-09-12). "McDonald's new menu item: Calorie counts". Bigstory.ap.org. Retrieved 2014-01-05.
  17. ↑ "Arcos Dorados". Arcosdorados.com.elserver.com. Archived from the original on 2013-12-14. Retrieved 2014-01-05.
  18. ↑ "McDonald's supports FIFA and the LOC". FIFA.com. Archived from the original on February 9, 2013. Retrieved 2014-01-05.
  19. ↑ "Children's Marketing Global Guidelines". AboutMcDonalds.com. Archived from the original on 2013-12-13. Retrieved 2014-01-05.
  20. ↑ "Arcos Dorados Latin America - Arches of Triumph". Industry Today. Archived from the original on 2013-12-14. Retrieved 2014-01-05.
  21. ↑ "NEO: Youth Employment Initiative - Inter-American Development Bank". Iadb.org. Retrieved 2014-01-05.
  22. ↑ "Investing in Young People" (PDF). Youtheconomicopportunities.org. Retrieved 2014-02-25.
  23. ↑ "Our Relationship With McDonald's". Rmhc.org. 2012-12-19. Archived from the original on 2014-02-07. Retrieved 2014-01-05.
  24. ↑ "Ronald McDonald House Charities Honors Jamie Lee Curtis, Dr. Michael R. Harrison and Woods Staton With Awards of Excellence - Yahoo Finance". Finance.yahoo.com. 2012-10-29. Retrieved 2014-01-05.
  25. ↑ "Animal Health & Welfare". AboutMcDonalds.com. Archived from the original on 2013-12-13. Retrieved 2014-01-05.
  26. ↑ P.J. Huffstutter (2012-05-31). "McDonald's to end pork gestation crate use by 2022". Reuters. Retrieved 2014-01-05.
  27. ↑ "McDonald's Addresses Sustainable Beef Sourcing". Triplepundit.com. 2012-10-10. Retrieved 2014-01-05.
  28. ↑ "Supplier Workplace Accountability". AboutMcDonalds.com. Archived from the original on 2013-12-13. Retrieved 2014-01-05.
  29. ↑ "Natal Project – Reuse of Condensation Water - McDonald's Best Practices". Bestpractices.mcdonalds.com. Archived from the original on 2013-11-10. Retrieved 2014-01-05.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.