McDonald’s of Peru has announced that it will acquire a larger percentage of its raw materials within Peru in 2001. In addition, the overall demand for materials will rise as a result of a 50% increase in the chain’s sales over the past year. At present, 30% of the raw materials used at McDonald’s restaurants in Peru are sourced at national level.
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Fernando de La Flor, head of McDonald’s operations in Peru, indicated that the chain hopes to increase the percentage of materials sourced in Peru by 10% during 2001. To a great degree, this growth will be achieved through strategic alliances with local producers of bread, chicken, dairy products, beverages, and paper products.
The primary advantage of sourcing materials at national level is cost reduction. McDonald’s management has established a long-term goal of sourcing the majority of materials within Peru. The process will take a matter of years because it takes time to develop suppliers that consistently meet stringent quality requirements set by McDonald’s.
Rising demand for local materials will also be driven by the company’s ambitious expansion plans. During the year 2000 alone, 13 new restaurants were opened in Peru. Management expects substantial growth in the fastfood sector during 2001 and, as a result, the number of McDonald’s restaurants will probably continue to rise over the next 12 months.
By Steve Lewis, just-food.com correspondent
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