Spoleto: internationalizing a Brazilian franchise of Italian cuisine

Abstract

Purpose The purpose of this paper is to show students the problems that a Brazilian franchise in the fast food sector faced while internationalizing its business to Mexico and Spain. Specifically, discuss how the entry mode of master franchise used by Spoleto presented problems to the company's managers. Design/methodology/approach This is a teaching case, designed to make students reflect on issues related to international business and international marketing. The primary data were collected through interviews with Edwin Junior, International Expansions Manager of Spoleto. The information gathered in the interviews was complemented by secondary data from newspapers, business magazines, internet sites and the Spoleto sites in Brazil and Mexico. Findings The choice to make partnerships with companies that already have experience in managing big multinational franchises might not be the best move for a brand that is unknown outside of its country. This aspect of master franchise partnerships is scarcely discussed in the literature, which instead tends to focus on other negative aspects of this kind of arrangement. It is also important to point out that close control over the master franchisees actions, especially in the initial phases of international expansions, is important to guarantee that operations will be up to standards in all countries. Originality/value The value of this study is in the discussion it raises about the mistakes, rather than the successes, made by a Brazilian franchise in its first attempts to expand internationally.