It was among large concrete mixers that Altino Cristofoletti Junior and Expedito Eloel Arena tested, in 1993, a business model previously unheard of in Brazil: the rental of heavy equipment for civil construction. And, it worked. More than three decades later, that idea became the Casa do Construtor franchise chain, which opens its 800th store, in Santa Maria (RS), and plans to earn R$1 billion by the end of 2025.
The projection is not unrealistic. In 2024, the network had revenues of R$940 million. An average of 150,000 rentals are made per month, with an average ticket price of R$312. The network has already reached Paraguay, Uruguay and Argentina, and aims to expand to Chile and Mexico.
“The biggest challenge is balancing expansion and operational efficiency, maintaining quality and standardization of processes throughout the network”, says Altino Cristofoletti Junior, founder of Casa do Construtor.
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In addition to construction equipment, such as concrete mixers, scaffolding, and other items, the network also rents gardening and heavy cleaning equipment, and serves residential construction, renovations and small businesses.
In total, there are 55 own stores, linked to the founders and more than 740 franchises. The investment to be a franchisee is R$500,000.
‘Uber’ of construction
Casa do Construtor’s business model is linked to the sharing economy, similar to what drives businesses like Uber and Airbnb. The idea is to promote access to cutting-edge equipment, which would have a high cost to acquire, but can be acquired through rental by the day, weeks or months.
This dynamic allows stores to operate with average gross margins between 35% and 40%, according to the chain.
“Our model has grown because it is replicable, scalable and connects with a modern logic of consumption. But this can only be sustained with support for the franchisee, active presence and a lot of local listening”, says Cristofoletti.
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Growth has accelerated significantly in recent years. It took 18 years to reach store 100, in 2011; six more years until store 500, in 2017; and less than eight years to reach the 800-unit mark. The goal now is to reach 1,000 units by 2027.
The expansion is focused on medium and small cities (from 40 thousand to 150 thousand inhabitants), where there is less presence of structured competitors, which guarantees greater capillarity and local economic impact. The estimate is that the network generates around 6 thousand direct and indirect jobs throughout Brazil.
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“Choosing medium and small cities brings greater regional penetration, increases the customer loyalty rate and creates a direct impact on local economies”, says Cristofoletti.
According to the founder, each store generates, on average, 8 direct jobs and moves indirect maintenance, logistics and supplier chains.
“In many locations, the arrival of Casa do Construtor represents the first professional option for structured leasing, replacing improvisations on the construction site”, he states.
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Logistical complexity
From an operational point of view, Cristofoletti states that complexity increases as the network advances to regions further away from large centers, with differences in logistics, labor and consumption profiles.
This requires a robust support model, from implementing stores, training teams and supplying the portfolio of more than 90 types of equipment, to maintaining availability rates above 90%, explains Cristofoletti.
On the financial side, the network works to sustain growth while maintaining healthy margins. As the model is franchises, it is necessary to ensure that new franchisees have a quick return on investment, according to Cristofoletti, and are able to reach the average break-even point in 36 to 42 months.
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Technology as a pillar
According to Cristofoletti, the network uses technology to scale, standardize and ensure operational efficiency. The stores have their own systems that control inventory in real time, equipment entry and exit, preventive maintenance, and billing.
“This allows even with hundreds of units spread across different regions and countries, performance indicators (KPIs) to be monitored centrally”, says the founder.
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Internationalization
The business model has already reached Paraguay and Uruguay, where units were opened in 2021, and in Argentina, in 2024. According to Cristofoletti, the focus for the next two years is on consolidation in Argentina and entering Chile and Mexico, seen as markets with high potential for residential and commercial construction.
The challenge is to adapt the model to the legislation of each country, select franchisees with local knowledge and replicate the support given to the network in Brazil. Furthermore, it is necessary to face risks with exchange rate variations, regulatory differences and cultural barriers.
