Arcos Dorados Holdings Inc. (English: ''
''Golden Arches Holdings, Inc'''') is a company that owns the
master franchise
A master franchise is a franchise relationship in which the owner of the franchise brand (the master franchisor) grants to another party the right to recruit new franchisees in a specific area. In exchange, the other party typically pays some pric ...
of the
fast food restaurant chain
A chain store or retail chain is a retail outlet in which several locations share a brand, central management and standardized business practices. They have come to dominate the retail and dining markets and many service categories, in many pa ...
,
McDonald’s in 20 countries within Latin America and the Caribbean.
As of December 31, 2010, it represented 6.7% of McDonald's franchised restaurants globally.
It has more than 81,250 employees,
one of the region's leading employers of young, first-time job holders. It is the largest
quick-service 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 ...
(QSR) chain in
Latin America
Latin America or
* french: Amérique Latine, link=no
* ht, Amerik Latin, link=no
* pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
and the
Caribbean serving over 4.3 million customers daily.
[
The company operates the McDonald’s-branded restaurants as company-operated restaurants and franchised restaurants.][ Company revenues depend on sales made by company-operated restaurants and rental income from franchised restaurants. The rental income depends on the greater of a flat fee or a percentage of sales.][
]
Business areas
Arcos Dorados' territory includes Argentina
Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the second-largest country in South America after Brazil, th ...
, Aruba, Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
, Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
, Colombia, Costa Rica, Curaçao, Ecuador
Ecuador ( ; ; Quechua: ''Ikwayur''; Shuar: ''Ecuador'' or ''Ekuatur''), officially the Republic of Ecuador ( es, República del Ecuador, which literally translates as "Republic of the Equator"; Quechua: ''Ikwadur Ripuwlika''; Shuar: ' ...
, French Guiana
French Guiana ( or ; french: link=no, Guyane ; gcr, label=French Guianese Creole, Lagwiyann ) is an overseas department/region and single territorial collectivity of France on the northern Atlantic coast of South America in the Guianas. ...
, Guadeloupe, Martinique
Martinique ( , ; gcf, label=Martinican Creole, Matinik or ; Kalinago: or ) is an island and an overseas department/region and single territorial collectivity of France. An integral part of the French Republic, Martinique is located in ...
, Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
, Panama
Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Co ...
, Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = National seal
, national_motto = "Firm and Happy f ...
, Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and unincorporated ...
, St. Croix
Saint Croix; nl, Sint-Kruis; french: link=no, Sainte-Croix; Danish and no, Sankt Croix, Taino: ''Ay Ay'' ( ) is an island in the Caribbean Sea, and a county and constituent district of the United States Virgin Islands (USVI), an unincor ...
, St. Thomas, Trinidad and Tobago
Trinidad and Tobago (, ), officially the Republic of Trinidad and Tobago, is the southernmost island country in the Caribbean. Consisting of the main islands Trinidad and Tobago, and numerous much smaller islands, it is situated south of ...
, Uruguay
Uruguay (; ), officially the Oriental Republic of Uruguay ( es, República Oriental del Uruguay), is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north and northeast; while bordering ...
and Venezuela
Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...
. 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.
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.
Arcos Dorados (Spanish for "golden arches
The Golden Arches are the symbol of McDonald's, the global fast food restaurant chain. Originally, real arches were part of the restaurant design. They were incorporated into the chain's logo in 1962, which resembled a stylized restaurant, and i ...
") 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. 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
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...
(NYSE).
Operations
With nearly $3.8 billion in sales in 2012, Arcos Dorados represents 5.6 percent of McDonald’s global sales. 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. 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.
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.
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.
McCafé locations and Dessert Centers
Launched in 1999, the McCafé
McCafé is a coffee-house-style food and beverage chain, owned by McDonald's. Conceptualised and launched in Melbourne, Australia, in 1993, and introduced to the public with help from McDonald's CEO Charlie Bell and then-chairman and future ...
concept is meant to attract new customers, particularly during breakfast and after lunch, 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.
"Dessert Centers," operate separately from existing restaurants, offering traditional McDonald’s desserts like the McFlurry
The McFlurry is a brand of flavored ice cream distributed and sold by the American-based international fast food chain McDonald's.
History
The McFlurry was created by Canada, Canadian McDonald's franchisee Ron McLellan in Bathurst, New Bruns ...
and soft-serve ice cream. As of 2021, there were 3,265 Dessert Centers in Latin America. 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.
Menu
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
''Dulce de leche'' (; pt, doce de leite), also known as caramelized milk, milk candy or milk jam in English, is a confection from Latin America prepared by slowly heating sugar and milk over a period of several hours. The resulting substance, w ...
desserts in Argentina and Uruguay, and the McMolletes (English muffin with refried beans, cheese, and salsa) in Mexico.
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.
Nutrition and well-being
In 2011, Arcos Dorados launched a new Happy Meal, with reduced sodium, calorie and fat totals. 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
The World Health Organization (WHO) is a specialized agency of the United Nations responsible for international public health. The WHO Constitution states its main objective as "the attainment by all peoples of the highest possible level of ...
. Also in 2011, sodium in buns, McNuggets
Chicken McNuggets are a type of chicken nuggets sold by the international fast food restaurant chain McDonald's. They consist of small pieces of reconstituted boneless chicken meat that have been battered and deep fried. Chicken McNuggets w ...
, cheese and ketchup were reduced by an average of 10 percent.
Arcos Dorados was the first restaurant chain in Latin America to publish all its calorie content in its restaurant boards in 2013. 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.
Advertising and promotion
Through McDonald’s, Arcos Dorados sponsors several global sporting events such as the Olympic Games
The modern Olympic Games or Olympics (french: link=no, Jeux olympiques) are the leading international sporting events featuring summer and winter sports competitions in which thousands of athletes from around the world participate in a vari ...
and the FIFA World Cup
The FIFA World Cup, often simply called the World Cup, is an international association football competition contested by the senior men's national teams of the members of the ' ( FIFA), the sport's global governing body. The tournament ha ...
2014 in Brazil. 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.
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.
Employees
Arcos Dorados is one of the largest employers in Latin America with 81,250 employees.
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.
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. 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.
Charity
One of Arcos Dorados’ major charitable causes is the Ronald McDonald House Charities
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.
RMHC has a global network of c ...
(RMHC). 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.
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.
Environmental and social responsibility
Sustainable food sourcing
Globally, McDonald’s has worked with animal welfare expert, Dr. Temple Grandin
Mary Temple Grandin (born August 29, 1947) is an American academic and animal behaviorist. She is a prominent proponent for the humane treatment of livestock for slaughter and the author of more than 60 scientific papers on animal behavior. Gra ...
, since the mid-1990s to help ensure animals in the supply chain are properly cared for. 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.
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.
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.
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
The International Organization for Standardization (ISO ) is an international standard development organization composed of representatives from the national standards organizations of member countries. Membership requirements are given in Art ...
(ISO), the British Retail Consortium
The British Retail Consortium (or BRC) is a trade association for retail businesses in the United Kingdom.
History
The British Retail Consortium was formed in January 1992 with the merger of the British Retailers' Association and the Retail ...
(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.
References
External links
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{{Authority control
McDonald's subsidiaries
Fast-food franchises
Companies listed on the New York Stock Exchange
Companies based in Buenos Aires
Restaurants established in 2007
Holding companies of Argentina
Food and drink companies of Argentina