From Querétaro Pizza Hut will produce dough for the Mexican market

Queretaro, Qro. Food Delivery Brandsthe multi-brand operator of pizza hut In Mexico, it inaugurated a new plant in the entity, with the capacity to produce 14 million kilograms of dough per year (equivalent to the production of 31 million pizzas) to supply this raw material to the Mexican market.

The firm invested 7.5 million dollars in this new center. Additionally, it spent 1 million dollars to build its corporate headquarters, which it will move from Mexico City to Queretaro.

Global CEO of Food Delivery Brands, Jacobo Caller, explained that this is the fifth factory they are building, adding to those they have in Spain, Colombia, Ecuador and Chile; he highlighted that the Querétaro plant becomes the second most important, in size, after the one on the European continent.

“Mexico’s economy is doing well, it is one of the most resilient and they report an increase… there is a great opportunity for growth in the pizza business to go faster than the competition. It has the advantage of the Mexico-United States-Canada Treaty (T-MEC) to access raw materials, and access to Latin America”, assured the director of Food Delivery Brands, operator of Pizza Hut.

According to the firm, with these projects, Querétaro has become the foundation for the development of the brand in Mexico.

Through this new plant -in the KAIZEN Industrial Parkin Colón- the company continues with its operational standardization process, in order to offer the best quality in its products.

These investment projects are part of the 30 million dollar purse that Food Delivery Brands will exercise in the operation of Pizza Hut in Mexicowhich also implies the transfer of its offices from Mexico City to Querétaro and the expansion of franchises and new Pizza Hut stores in Mexican territory due to the boom in the home delivery business.

With these actions, the state of Queretaro it is consolidated as the hub of the brand at a national level; because in addition to the plant and the corporate, there is a Development and Innovation Center where new product ideas will be developed.

CEO of Food Delivery Brands in Mexico, Juan Luis Bueno, highlighted that the new installation is part of the growth plans in the Mexican market. He specified that from this point 120 direct jobs will be generated, 150 indirect jobs, plus those that will be added in the following phases of the project.

“Not only is it a factory where we have the guaranteed quality of our most important ingredient, which is the dough, but we also have the corporate office and a center of excellence and innovation; the new recipes will come from here with our experts, the new innovations will come from here for the whole country and why not? for other Latin American countries,” he explained.

In this way, he added, the firm will continue its expansion plan this year, anticipating the opening of 60 stores, to close 2022 with 314.

The location of the plant is intended to make the cost of frozen dough more efficient, in addition to raising the quality of the product, as well as its life and response time.

The new unit has a mass production area, with a storage space focused on frozen, refrigerated and dry products; packaging, packaging and labeling machines. As well as a platform for raw materials and shipment of finished products, over 7,000 square meters.

For now, the production will be destined for national consumption; and the distribution process will be carried out through the 3PL (Third Party Logistics) logistics scheme, an outsourced logistics service, with the purpose of exporting to other countries in the region in the future.

pizza hut It has 264 sales units in Mexico, of which 60% are its own and the rest are franchises. Pro with the injection of capital, aspires to reach 600 units in the medium term.

However, Jacobo Caller acknowledged that the war in Ukraine has impacted the cost of the raw material that is flour, since 50% comes from that nation, (but) “work is already being done to import grain from other Latin American countries – Brazil and Argentina-“, he limited.

Due to the Covid-19 pandemic, pizza hut it already registered inflation of 12%, and with the conflict in Ukraine another 8% was added, “it is a 20% increase in the price of raw materials, and only 6% has been transferred to the consumer,” commented the Caller.

Caller highlighted that the fast food company has recovered pre-pandemic sales levels and pizza consumption is growing, although he did not give the figures.

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