While many investors and stock traders are getting dismayed by slow sales volume and red figures crawling on the ticker tape, franchise owners are showing a little hint of smugness these days. Entrepreneurs behind food kiosks and restaurant chains boast of maintaining control over their investments and even growing their businesses in these tough times.
In fact some are even looking at this year and 2010 as the period of expansion. For instance, fast-food chain Binalot is planning to open 20 more stores this year and will try to explore the possibility of going into dine-in restaurants.
According to Rommel T. Juan, owner of Binalot and president of the Association of Filipino Franchisers, Inc. (AFFI), there members are all expecting a double-digit growth in their total sales this year alone.
In an interview with BusinessWorld, Mr. Juan explained that, "franchising is a strong option because people will have control over their money. The beauty of franchising is you don’t have to learn everything from scratch."
Alegria S. Limjoco, Philippine Franchise Association (PFA) chairperson and chief executive officer of franchising consultancy Francorp Philippines agreed with observations of Mr. Juan. She also advised those who are a little scared of venturing into franchising to try a business that caters to a basic need like food business.
"We still eat five to six times a day, no matter what," Ms. Limjoco said in a phone interview also with BusinessWorld.
"I think it will continue to be strong as people will always eat...This downturn in the economy is nothing new to us. The Philippines is resilient," Mr. Juan added.
However, there is one important observation that should be noted from the two interviews. Ms. Limjoco and Mr. Juan both advised interested franchisers to try and look into getting a brand with an exceptional product. Filipino consumers usually are keen in patronizing those that offer the best value for their hard-earned cash. This does not mean offering the cheapest price, but the best price in the market for a particular good or service.
Armando O. Bartolome, president of GMB Franchise Developers, Inc., believes that the best price right now can be found in food carts.
"Food carts will shine [next year]. More people are going to eat outside rather than cook at home, especially with contact centers coming up," Mr. Bartolome explained.
The next problem a potential franchiser would have to solve is selecting the best location for a food cart.
Strip malls or malls that are just two stories high is a good option because many people go there for such products. Franchising outside Metro Manila would be good too since a number of provinces are actually booming. With high cost of traveling abroad, local travel spots have become an attractive alternative and could help boost the chances of a successful food enterprise in these areas.
The most important thing that experts advised though is that interested franchisees must do their homework. This means, they have to know the business, the people behind the franchise and the franchisees and it should be a hands-on during the early part of the business.
Selling will come easily if the entrepreneur is passionate and knows what they are selling and why they should be bought by the consumers.
In fact some are even looking at this year and 2010 as the period of expansion. For instance, fast-food chain Binalot is planning to open 20 more stores this year and will try to explore the possibility of going into dine-in restaurants.
According to Rommel T. Juan, owner of Binalot and president of the Association of Filipino Franchisers, Inc. (AFFI), there members are all expecting a double-digit growth in their total sales this year alone.
In an interview with BusinessWorld, Mr. Juan explained that, "franchising is a strong option because people will have control over their money. The beauty of franchising is you don’t have to learn everything from scratch."
Alegria S. Limjoco, Philippine Franchise Association (PFA) chairperson and chief executive officer of franchising consultancy Francorp Philippines agreed with observations of Mr. Juan. She also advised those who are a little scared of venturing into franchising to try a business that caters to a basic need like food business.
"We still eat five to six times a day, no matter what," Ms. Limjoco said in a phone interview also with BusinessWorld.
"I think it will continue to be strong as people will always eat...This downturn in the economy is nothing new to us. The Philippines is resilient," Mr. Juan added.
However, there is one important observation that should be noted from the two interviews. Ms. Limjoco and Mr. Juan both advised interested franchisers to try and look into getting a brand with an exceptional product. Filipino consumers usually are keen in patronizing those that offer the best value for their hard-earned cash. This does not mean offering the cheapest price, but the best price in the market for a particular good or service.
Armando O. Bartolome, president of GMB Franchise Developers, Inc., believes that the best price right now can be found in food carts.
"Food carts will shine [next year]. More people are going to eat outside rather than cook at home, especially with contact centers coming up," Mr. Bartolome explained.
The next problem a potential franchiser would have to solve is selecting the best location for a food cart.
Strip malls or malls that are just two stories high is a good option because many people go there for such products. Franchising outside Metro Manila would be good too since a number of provinces are actually booming. With high cost of traveling abroad, local travel spots have become an attractive alternative and could help boost the chances of a successful food enterprise in these areas.
The most important thing that experts advised though is that interested franchisees must do their homework. This means, they have to know the business, the people behind the franchise and the franchisees and it should be a hands-on during the early part of the business.
Selling will come easily if the entrepreneur is passionate and knows what they are selling and why they should be bought by the consumers.
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