Mexican Franchise Network reports closure of 20% of businesses in Puebla


Puebla, Pue. Of the 1,500 franchises located in Angelópolis and its metropolitan area, 20% did not reopen after the stoppage of activities due to the Covid-19 pandemic, which translated into 1,200 layoffs, since the owners could no longer resist the lack of income or these were insufficient to continue.

Francisco Lobato Galindo, president of the Mexican Franchise Networksaid that these business closures occurred between April and the end of November 2020, while last year there were no bankruptcies.

He asserted that if the reopening of activities had happened quickly, it might have helped in some cases, but the economic situation was not ideal, because consumers were not leaving and more so because they prioritized other expenses.

He said that the partners did not resist the economic crisis and canceled the lease contracts, both for commercial and office buildings, derived from the temporary closures.

“The ravages of the pandemic are still being felt and this will not improve if businesses continue without recovering 100%, since operating a restaurant or business at 60% capacity does not contribute to economic recovery,” he deepened.

Lobato Galindo estimated that it will take the franchises all of 2022 to improve income, but it is a reserved forecast if they continue to operate halfway, which they hope will change with the summer holidays.

He explained that some franchise owners out of necessity resorted to selling their businesses, due to the urgency of obtaining money to liquidate employees and pay bank loans.

He commented that the food franchises or small cafeterias that closed had between four and five employees, which withstood only three months of strikes, after operating between eight and 15 years, located in the Historic Center of Puebla or shopping centers in the area. bordering with San Andrés Cholula and San Pedro Cholula.

The leader warned that economic activity in general continues to report low sales, for which his sector called on people to respect health provisions and thus lower the number of Covid-19 infections.

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