According to a report by Zacks
Investment Research,Darden Restaurants Inc.,a Florida based company,has
struck a deal with CMR,a Mexican casual dining company,to expand into
Mexico's growing dining market.
Red Lobster,Olive Garden and Longhorn Steakhouse are the three Darden brands
that will initially be developed and operated by CMR,but many of the specific
terms of the deal were not disclosed in the announcement.
What was revealed is that CMR
will be responsible for setting up 37 restaurants over the next ten years in
various parts of Mexico. This
certifies the intent of their management to make Mexico one of the main markets
for Darden to expand internationally.
CMR already has more than one
hundred restaurants throughout twenty-six cities in Mexico,making them one of
the largest casual dining companies in the region. The company’s record proves their local market knowledge for
franchising and owning international and local branded restaurants,such as
Fonda Mexicana and Chili’s. P.F.
Chang’s is another American restaurant that has developed a strong presence in
Mexico during recent years.
Many of Darden’s international
locations are operated by external franchise partners,while Darden itself
successfully operates its locations in the domestic market. The high level of competition in the
United States casual dining market has encouraged many companies like Darden to
seek business beyond the American borders and to expand into strong
international dining markets,like those found in Mexico.
Darden has also developed an agreement with the American Group of Kuwait
to develop the Middle Eastern casual dining market over then next five
years. They have opened a Red
Lobster in Dubai recently,which is their first restaurant in the Middle East,
and the company has already expanded their Longhorn Steakhouse franchise into
other parts of South America,such as Puerto Rico,with five franchised