Grupo Anderson's has announced plans to sell its iconic fun themed restaurant brand Señor Frog's in the US. The group owns and operates restaurants and bars located in the main cities and tourist destinations in Mexico, the United States and the Caribbean. Currently they have five Señor Frog's business units in the country: Myrtle Beach, Las Vegas, Miami, Orlando and San Juan (Puerto Rico).
According to a study conducted by Lizan Retail Advisors (LRA), a New York based consulting firm that recently assessed the chain's potential of market development in the US, Señor Frog's brand recognition is very high. Many people in the US know the brand from their trips to the Caribbean and Mexico. Its clientele being comprised mainly of customers on vacation looking for a place to have a good time.
"Señor Frog's is a key player in the fun themed restaurant market, a niche segment serving food and drinks in a casual / relaxed atmosphere, unified by a central theme, catering to tourists / visitors and local populations" reads the study, which identified 30-40 feasible US locations that qualify to support a Señor Frog's restaurant, by prioritizing those locations within high-traffic domestic tourist destinations.
The travel industry has been growing at a high pace for the last 10 years and it is expected to grow further at an average of 4.2% in the next five years, according to the US Travel Association. This increase will impact most businesses in the Hospitality and Leisure industry, mainly those focused on the Accommodation and Food Service sub-sectors.
Additionally, the fact that consumer food service in the US is undergoing several significant changes, one of them being a rise in the demand of more experience-based concepts, brands such as Señor Frog's have huge potential of growth due to their offer of value-added experiences.
Themed restaurants provide an experience as opposed to only meals and drinks; therefore, investing in the Señor Frog's brand is a good opportunity to tackle such market trends. Sales at their US units show a growth rate in the last 3 years.
For almost five decades, Señor Frog's has been serving interactive action and humor as side orders to their characteristic Mexican dishes. Their atmosphere and relaxed environment have already become staples in the tourist hot spots where they currently operate. This is an advantage for US investors interested in the brand, as the concept is already developed with proven success.
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