Chain Leader

Franchise Developer: Tapping Hispanic Markets

February 1, 2007

Subway gives its franchisees the flexibility to cater to local Hispanic markets with regional items such as Carne Asada subs and Cuban sandwiches.

By 2007, Hispanics will become the most powerful minority consumers in America, spending an estimated $863.1 billion annually on goods and services, according to the University of Georgia Selig Center for Economic Growth.

“It’s paramount to reach out to those communities in your market and to understand their buying power,” says Mauricio Velásquez, president and chief executive officer of Herndon, Va.-based Diversity Training Group and Spanish Translation Services, a diversity consulting and training firm. Here are his tips on how area developers and multiunit franchisees can reach out to Hispanic consumers, managers and sub-franchisees.

• Seek out community groups and leaders. Talk to groups that represent Hispanic ethnicities in your community, suggests Velásquez. Look to local churches and politicians, Hispanic chambers of commerce, and groups such as the National Council of La Raza and League of United Latin American Citizens. Then join those groups. Go to the meetings. Ask the leaders for their advice on the lay of the land, such as where to put a new unit, how to find local employees and where to advertise.
• Target your advertising. “Spanish radio and Spanish newspapers are a critical component to getting the word out,” says Velásquez. “And by the way, Spanish radio is a very inexpensive place to advertise.”
• Understand the diverse cultures. The Hispanic umbrella includes people from dozens of different countries and cultures. “You’ve got Mexicans, Cubans, Columbians, Puerto Ricans, all with their own unique cultures,” says Velásquez. Be aware of these differences and try to hire from the group or groups that live in your local community, he suggests. Within each community are also varying levels of acculturation, as the American-born generations assimilate. “The first-generation people are great to hire to work up front, because they understand both cultures,” says Velásquez. “And bilingual staff helps attract lots more customers.”
• Make it a team effort. Rather than creating a “director of diversity marketing” or “director of community outreach,” make all employees part of your effort to respect and embrace the diversity of your community. “When you dedicate one person to be the guru, the savior, that’s a tremendous expectation to put on someone,” says Velásquez. “I’m of the school of thought that it’s everybody’s responsibility.”