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EMAC 2024 Annual


The Dissonance of the Bakery Industry and the Franchising System in the Food Retail in Brazil
(A2024-119667)

Published: May 28, 2024

AUTHORS

Felipe Lazereis, FGV - EAESP; Carlos Lourenco, Fundacao Getulio Vargas

ABSTRACT

This study addresses the franchising system as a business expansion strategy and investigates the factors that create the bakery segment against the success experienced by other food retailers. The bakery industry has remained dissonant to this success and, despite its relevant numbers for the economy, it still does not have a large offer of franchised brands or a large national player. To understand the causes, Agency Theory and the Resource Scarcity Theory were used to assess ten in-depth, semi-structured, and open interviews with professionals working on franchising in the food sector and bakery industry. From the thematic analysis of the interviews, it was concluded that the causes of high dispersion in the local industry are related to cultural specificity, operational challenges, capital investment, and human resources management. Theoretical and practical contributions show ample avenues for improving the franchising system in intricate business models.