Hispanic Americans Represent a Franchise Cash Cow

¿Hola, cómo estas? What is your brand doing to appeal to Hispanic Americans? If your answer is “not much,” it’s not smart.

Recent data from The NPD Group showed that while non-Hispanics visited restaurants and other foodservice outlets 1 percent less last year, Hispanics visited them 4 percent more. Even if your Spanish is a bit rusty, you can no doubt understand the sound of a cash register’s cha-ching.

The NPD Group went on to highlight the average U.S. Hispanic consumer visits quick-service restaurants more than their non-Hispanic counterpart. The same goes for full-service establishments. No matter what kind of food retail establishment you own, there’s a good chance Hispanic customers are its bread and butter, especially if it’s a franchise. Data showed 75 percent of Hispanic consumers choose chains compared to just 62 percent of non-Hispanic consumers.

The team at Papa John's has caught on to this trend and reacted accordingly. However, it’s important to point out that doing so didn’t require a major overhaul of the brand's marketing strategy.

“We put a Spanish-language strategy in place, but the message hasn’t had to change,” Papa John’s Chief Executive Officer John Schnatter said. “Papa John’s goal of bringing family and friends together resonates with Hispanics who are very focused on getting together with family. Similarly, it wasn’t necessary to change any of our menu items; we just needed to communicate to Hispanics in a way they understood in order to build their confidence in the Papa John’s brand.”

Other brands hoping to attract Hispanic customers would be wise to take notice.