Texas Developers and Restaurants Target Ever Expanding Hispanic Market

Hispanic purchasing power has influenced the marketplace. Hispanic shoppers generally spend more on food purchases because their families are usually larger. But the longstanding trait that Hispanic families are more likely than others to prepare and serve food at home appears to be changing, especially as younger generations make more family decisions about meals and adopt typically American lifestyle habits.

With close to 8 million Hispanic residents, the presence and influence of the Hispanic culture within Texas where we live has been prevalent for decades and continues to increase. According to 2007 U.S. Census data, people of Hispanic or Latino origin constitute 36% of Texas’ state population making the Hispanic/Latino demographic a significant segment of the state’s consumer market. Retail marketers and consumer brand managers have long been aware of this sector’s purchasing power, and it appears restaurant concepts are following suit.

One popular example is Pizza Patron, a Dallas based pizza concept since 1986 that has “centered their entire brand to the multifaceted traditions and heritage of Latin life.” Since franchising began in 2003, the brand has grown from four local stores to 90 in six states, with more than 40 additional stores under development and plans to have 750 stores within the next decade. The majority of Pizza Patron’s stores is community-based in Spanish speaking or Hispanic neighborhoods and offers Spanish-titled pizza such as La Patrona and Le de Carnes.

Another Dallas based, Hispanic influenced restaurant concept, Burguesa Burger, opened just recently in May 2009. Jeff Sinelli, the accomplished and well-known founder of multi-unit brands Which Which and Genghis Grill, created Burguesa. Sinelli explains his new concept was inspired by his travels to Mexico and Argentina where ham is predominantly used to make burgers instead of customary American beef. (Seems to me the burgeoning Hispanic market I mentioned in the beginning of this report might have also inspired the successful entrepreneur.) Burguesa’s Latin/Hispanic influence is evident in every aspect of its business. Sinelli has incorporated Latino suppliers, Spanish (and English) menus, and Burguesa’s accepts both U.S. and Mexican currency. In addition, customers who purchase a burger are allowed one free phone call to Mexico from the store’s phone booth.

The state of Texas’ population is projected to increase by 71.5% between 2000 and 2040 to 35.8 million. Of this 35.8 million, it is estimated that Hispanic population will increase to almost 19 million. What is now often phrased as a niche market, the Hispanic/Latino population will comprise more than 50% of the state’s total population. One can only speculate that countless developers, retailers, brokers, and restaurants will follow in capturing this demographic.

*Sources U.S Census, Pizza Patron, NRN Magazine