The ongoing love affair between Ticos and junk food is becoming more steadfast each day. The fast food and casual dining sectors in Costa Rica have become extremely competitive over the last two years thanks to a flurry of brands eager to capture palates, bellies and wallets. According to the 2014 Costa Rica Consumer Profile recently published by business weekly El Financiero, fast food is a very lucrative proposition in our country, and Ticos are eager to try new concoctions.

 

Winners and Losers

Not all fast food and casual dining brands have been able to thrive in Costa Rica. Fried chicken chains As de Oros (Golden Ace) and Pollo Campero have lost significant market share along with Burger King, a brand that has struggled to replicate its success in other Latin American markets. The clear winners are McDonald’s, KFC and Taco Bell.

Newcomers Carl’s Jr. and Popeye’s are still in their early expansion phases. These are brands that are taking advantage of the novelty and curiosity factor among fast food lovers in Costa Rica. Casual dining brands such as Applebee’s, Rostipollos, Spoon, and Tacontento are investing in menu changes, expansions and renovations in a effort to stay fresh and competitive. Wendy’s has announced closures of locations in Paseo Colon and Cartago, which signals a move towards consolidating operations in shopping centers and multiplazas.

Although Pizza Hut is still the king of the casual dining market in Costa Rica, this is a brand that lost nine percentage points year-over-year. The current strong competitors in this segment are neighborhood Chinese restaurants attracting diners with lower prices and special offers on beer when football games are broadcast on television. Other restaurants are experimenting with social media engagement, special breakfast items, self-service machines, electronic ordering, and even video games.

What fast food purveyors in Costa Rica are also seeing is that weekend visits by families are very strong, and that more customers are choosing to dine in than take out.