There are more U.S. fast-food restaurants in China than in any other emerging market, which isn't much of a shocker. The surprise is the country with the greatest concentration of the eateries: Peru.
Hungry residents of Peru's populated areas have to travel, on average, just two-thirds of a mile to find a U.S. fast-food joint, according to data compiled by Bloomberg. This is all good news for fast food companies, which are increasingly counting on Latin America for growth after thriving in China.
"We're starting to see the emergence of Brazil and South America being a hotbed for American restaurant franchises to go and open up," said Darren Tristano, executive vice president at food industry consultant Technomic Inc. "South America is kind of becoming the next window. Now that Asia has already started, I think South America is really going to be where the growth is."
The first U.S. chain opened in Peru in 1981, and the result is evident. Eight fast food counters line the walls of the Jockey Plaza mall in Lima -- half of them Peruvian brands and the other half U.S.
Yum! Brands Inc.'s Kentucky Fried Chicken, the largest U.S. fast-food chain in Peru, and Burger King are doing a brisk trade, as is Bembos, Peru's biggest burger chain.
After three decades blighted by dictatorships, terrorism and hyperinflation, Peru is reaping gains from free-market policies adopted in the 1990s that fueled the fastest economic growth in Latin America in the past decade. Economic stability is spurring a consumer boom that has gathered steam during the past decade.
Peruvians now spend more time shopping and eating at a growing number of malls and new shopping districts, increasing demand for fast food. That market grew 15 percent last year, according to data from the Peruvian Chamber of Franchises.
U.S. chains such as KFC, McDonald's Corp. and Burger King Worldwide Inc. moved into Peru in the 1980s and 1990s and have since branched out beyond its capital, Lima.
