From the factory to the final consumer through the franchise network, it is the business model that the Buenos Aires firm has to expand throughout the country. With sustained growth during 2023, it continues its expansion plan throughout the country.
Led by Gabriela Benac and present in the dairy market at the federal level since 2012, the company born in Azul – province of Buenos Aires – produces more than 30 million liters of milk per year, has more than 500 collaborators and more. 70 franchised locations throughout the country, reaffirming the company’s federal profile.
“Our business model undoubtedly continues to be a good option thanks to its policy of direct factory sales without intermediaries that allows us to have prices 20% cheaper than the leading brands,” explains Benac and adds: “We sell top-notch products.” necessity and the reality is that despite the context, people are not going to stop eating, but also, it must be said, people began to turn a lot to this type of local businesses because it no longer happens like before when you went to the supermarket and you filled the car, now it is impossible. The price and quality equation is what makes Luz Azul perfect.”
With reference to the balance of the year, Luz Azul sustained its federal growth with 12 openings in: Lamadrid (Prov. of Buenos Aires), Chillar (Prov. of Buenos Aires), Parána (Entre Ríos), Caseros (GBA), Ramos Mejia ( GBA), Martínez (GBA), Puerto Madryn (Chubut) Caballito, General Roca (Río Negro), Coronel Suarez (Province of Buenos Aires), a third in Olavarria (Prov. of Buenos Aires and Corrientes.
With all these new openings throughout the country, the Buenos Aires SMEs continue their goal of growing throughout Argentina and for all Argentines to have a Blue Light near their homes. “We love having franchisees who are encouraged to continue betting on the brand knowing the importance of staying present, taking care of customer service, merchandise and the overall image of the premises” Benac.
An example is the Monzón brothers who decided to open their first location in the city of Corrientes: “We have always been linked to the gastronomic trade and in Luz Azul we saw a solid company that despite all the crises and reality of the country continues to survive and grow. I learned about the brand through the Posadas store, which caught my attention in every way (facade, colors, presentation of the products, prices and quality). That’s how we started to investigate, and we saw the potential they had, especially for opening in a province where they were not yet present. We believe that the residents of the city of Corrientes are a public that understands what price-quality is and this is the great differential of Luz Azul” highlights Emilio Monzón, new franchisee.
How much does a Luz Azul franchise cost??
Currently, the chain has 71 franchises and 12 openings throughout 2023.
Setting up a dairy company franchise requires an approximate investment of US$45,0000, taking into account everything from equipment to merchandise for the first 15 days of activity.
“For us it is key to add active franchisees, who work and are thinking about generating an income, not someone who needs to calculate if they will recover the money in 1, 2 or 15 years,” says Gabriela.
To be part of the chain, experience in the field is not required, but training is required. For this reason, in the Buenos Aires neighborhood of Belgrano (Av. Cabildo 1612), Luz Azul has a local school where they provide training for franchisees and their employees from all over the country, they even have bedrooms for those who live far away and have nowhere to go. Lodge. “The courses last around 15 days and we teach them everything from how to cut the cheese or prepare the shelves to how to manage orders and the store’s finances,” he details.
Currently the firm has stores distributed throughout the country: CABA, GBA, Province of Buenos Aires, Costa Atlántica, La Rioja, San Luis, San Juan, Rio Negro, Chubut, La Pampa, Chaco, Mendoza, Neuquén, Tucumán, Córdoba, Misiones, Between Rivers and Corrientes.
BUSINESS CHARACTERISTICS
• Stable item; mass consumption products.
• High billing volumes.
• Low staffing.
• Permanent training.
• Very simple operation.
• The stores register 100% of their sales
• Insured supply of merchandise.
• Very competitive public prices and excellent product quality.
FRANCHISE TECHNICAL SHEET
LOCAL REQUIREMENTS Minimum dimensions: 120 m2 full, 80 m2 compact
Minimum population: 50 thousand inhabitants
Entry fee: US$ 10 thousand full, US$ 8 thousand compact
Initial investment without stock: 25,000 / 20,000 USD
Starting stock: 10,000 / 7,000 USD
Total investment: 45,000 / 35,000 USD
Royalties: Not received
Advertising fee: 1% of sales
Average annual billing per location: Variables
Average number of employees per location: 3
Financing available: To be agreed
Start-up time: 45 days
Contract duration: 4 years
Corporate advertising: YES
Exclusive territory: YES
Previous experience of the franchisee: Not necessary
Place and duration of training: Luz Azul’s own premises and training center in Capital Federal – 4 weeks
www.luz-azul.com.ar/
by CEDOC