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  • November 2022
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Arcos Dorados’ Quest for the Digitalization of Last-Mile Delivery in Colombia

By: Jorge Tamayo, Jenyfeer Martinez Buitrago and Mariana Cal
  • Format:Print
  • | Language:English
  • | Pages:23
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Abstract

In 2018, Francisco Staton, Managing Director of Arcos Dorados in Colombia had to decide on the company’s strategy to expand its food ordering and delivery business in the country. Arcos Dorados stood as McDonald’s largest independent franchisee, and Colombia was one of the 20 markets and territories in Latin America and the Caribbean where the company operated. Arcos Dorados had analyzed the conditions under which the company would offer delivery services at its restaurants, following the announcement of an agreement entered into by McDonald’s corporation for offering delivery globally through a last-mile delivery company. As there were local limitations not addressed by the global agreement, Arcos Dorados’ Colombia management team were considering two potential alternatives that could help to address them. The first alternative hinged on stepping up the company’s efforts to consolidate its own delivery service. With the second alternative, the company would pursue partnering with last-mile delivery platforms under more favorable conditions than the ones agreed upon by the global agreement. What would be the best alternative to move forward?

Keywords

Digital Transformation; Delivery; McDonald's; Latin America; Quick Serve Restaurants; QSR; Transformation; Decision Making; Decision Choices and Conditions; Global Strategy; Technological Innovation; Growth and Development Strategy; Agreements and Arrangements; Negotiation Tactics; Logistics; Service Delivery; Organizational Culture; Performance Improvement; Partners and Partnerships; Strategy; Food and Beverage Industry; Latin America; South America; Colombia

Citation

Tamayo, Jorge, Jenyfeer Martinez Buitrago, and Mariana Cal. "Arcos Dorados’ Quest for the Digitalization of Last-Mile Delivery in Colombia." Harvard Business School Case 723-395, November 2022.
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About The Author

Jorge Tamayo

Strategy
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Related Work

    • November 2022
    • Faculty Research

    Arcos Dorados’ Quest for the Digitalization of Last-Mile Delivery in Colombia (B)

    By: Jorge Tamayo, Jenyfeer Martinez Buitrago and Mariana Cal
Related Work
  • Arcos Dorados’ Quest for the Digitalization of Last-Mile Delivery in Colombia (B) By: Jorge Tamayo, Jenyfeer Martinez Buitrago and Mariana Cal
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