IHOP Arrives to Guatemala City

IHOP menu Guatemala City by Rudy Girón

IHOP is just the latest kid on the block of all the U.S. restaurant chains to open up a branch in Guatemala. If drive around Guatemala City you can find McDonald’s, Burger King, Taco Bell, Wendy’s, Subway, KFC, Domino’s, Pizza Hut, Applebee’s, T.G.I. Friday’s, Tony Roma’s, and now IHOP. I am sure I am missing a few more restaurant chains.

It’s easy to see the motivation to open up branches in Guatemala. For one, the labor is at least 85% cheaper (minimum wage in Guatemala is about ±$200 versus ±$1400 in the U.S.). Second, these restaurants are for the middle and upper classes so they can charge more for the same food. For instance the Country Fried Steak and Eggs breakfast combination will set you back Q99/±$12.50 in Guatemala City. Third, most of ingredients can be found locally at much lower prices. Rent and floor space is so much cheaper in Guatemala City. The same for insurance. If you add up all these figures, you can quickly see the profit margins of operating in Guatemala are so much higher.

How much is the country fried steak breakfast with a coffee carafe in the IHOPs in the United States?

IHOP es la última cadena de restaurantes de EE.UU. que abre una sucursal en Guatemala. Un paseo por las calles de la Ciudad de Guatemala es todo lo que se necesita para ver sucursales de McDonald’s, Burger King, Taco Bell, Wendy’s, Subway, KFC, Domino’s, Pizza Hut, Applebee’s, T.G.I. Friday’s, Tony Roma’s, y ahora IHOP. Seguro que me falta mencionar otras cadenas que se me escapan en este momento.

Es fácil ver las motivaciones de abrir sucursales en Guatemala. Primero, los costos del recurso humano es por lo menos 85% más barato siendo Q1700 el salario mínimo por mes en Guatemala en contra de ±Q11,400 en Estados Unidos. Segundo, estos restaurantes se enfocan en las clases media y alta por lo que venden sus platillos a precios más altos de lo acostumbrado en la Unión Americana. Tercero, la mayoría de los ingredientes se pueden conseguir a precios más bajo. El alquiler de las instalaciones y seguros también son más baratos en Guatemala. Si uno suma todo esto se da cuenta rápidamente que los márgenes de utilidad por operar una franquicia en Guatemala son por mucho más altos.

Country Fried Stake Breakfast by Rudy Girón IHOP Coffee by Rudy Girón

© 2011, Rudy Girón. All rights reserved.

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  • Anonymous

    I went to IHOP this week, it was normal taste, nothing awesome,  my Q59 bfast is more expensive that the average same in other places (-Q15).. One important fact.. coffee for fastfood standard was really bad. :-/

  • Eric

    I wouldn’t know, Rudy; I haven’t visited a chain restaurant in, realistically, years (!!!), but I will see if I can find an IHOP here for the answer. 
    …Oh, wait, I DID go to a Pollo Campero that opened here less than a year ago.  It was my only exception to the “no chain restaurants” rule.  You know I’m a little biased, but I have to say…MMMM, MMMMMM, delicious !

    • Eric

      FOLLOW-UP: Here it depends on the steak.  The IHOP had a sirloin steak breakfast, 13.00 U.S. w/coffee, and a T-bone steak breakfast, 15.00 w/coffee.  Forgot to look for the “country fried” steak.  betcha it’s cheaper en Ciudad, though!

  • hermor

    The prices ar outrageous!!! A breakfast for one At IHOP in Guatemala City is as expensive as breakfast of a family of four in thes states. I’ll wait to go the states!!!