The low-cost pizza and empanada sector is in full expansion in Argentina, driven by falling purchasing power and the growth of food delivery. The model, which was already a response to previous crises, is gaining new momentum with franchises requiring a low initial investment and centralized production.
According to the Argentine Association of Brands and Franchises (AAMF), this low-cost franchise segment already accounts for 33% of the country's franchise system. The strategy is based on small locations, around 40 square meters.
"The price attracts the customer, the volume generates scale, and operational efficiency is what ultimately produces profitability," explained specialized consultant Carlos Canudas. He added that although the overall drop in consumption affects all of the gastronomy sector, these models can perform better in difficult periods, capturing consumers looking to reduce their spending.
Among the pioneers are brands like Ugi's, in pizzas, and El Noble Repulgue, in empanadas. The latter, founded in 1998, was acquired in 2022 by Delicias Argentinas, an investment vehicle of the Fénix Entertainment Group, owned by media businessman Marcelo Figoli.
One of the main competitors, Solo Empanadas, which also operates the brands Morita, Kiosco de Empanadas, and Fábrica de Pizzas, recently faced difficulties. Its parent company, Divaflo SRL, filed for bankruptcy protection at the end of July.
However, other chains continue to open new locations at a rapid pace. Big Pizza, founded in 2018, already has 280 locations across almost the entire country and plans to open 80 more this year. The company has its own factory in Ciudadela, in the province of Buenos Aires, and sells about 20 million empanadas annually.
Meanwhile, Brozziano, which started as Pizza Gigante in 1999, has 56 points of sale, mostly franchises, concentrated in the Argentine capital. The company produces 3 million empanadas per month at its Pompeya plant and plans to double the number of franchises in the next two years.
The model is sustained by centralized logistics: franchisees receive products practically ready, responsible only for heating and selling. This allows for competitive margins even with low prices, in a market where consumers are increasingly cost-sensitive.