Local food manufacturers, quick to respond to the new demand, prepare convenience foods such as prepared pizzas, Italian dishes, Chilean-style frozen casseroles and sandwiches. New, more stringent food sanitation regulations, however, have made it difficult for many cottage industries to compete effectively. Small domestic producers need to improve the preparation, quality and packaging of their products to meet the new standards. A recent survey showed that over 70 percent of Santiago residents eat one to two meals outside the home every day. Hamburger, pizza, sandwich and chicken outlets offer good expansion opportunities, while Mexican restaurants and pancake houses, still struggling for a market share, haven't caught on.
Most chains have plans to expand outlets outside Santiago.
Corner the highest profit margins by labeling less expensive products that lack strong brand connections. Tea, sugar, spices, frozen vegetables and canned foods are leading candidates. Supermarkets Are Retail Leaders Accustomed to low prices for domestic fresh fruits and vegetables and staples, Chilean consumers continue to enjoy low grocery prices due to intense competition among supermarket chains. Chile's four largest supermarket chains, which serve almost half of the market, have put intense competitive pressure on independent and smaller chain retailers. Small markets, which traditionally offered groceries, fruits and vegetables, now increasingly depend on snacks and alcoholic beverage sales to stay in the black.