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The Philippines What Works, Who’S There Now

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The Philippines What Works, Who’S There Now MASTER, REGIONAL AND INTERNATIONAL FRANCHISING Global Franchise www.globalfranchisemagazine.com ASIAN FOOD ASIA FRANCHISES SPECIAL FOCUS: THE PHILIPPINES WHAT WORKS, WHO’S THERE NOW. Meet the Philippine Franchise Association ASIAWIDE FRANCHISE 组织 我们的成绩 爱思威特许经营顾问私人有限公司(28 爱思威特许经营顾问私人有限公司 CONSULTANTS PTE LTD (AFC) 年业绩)，是公认的最成功的特许 在本区域已为超过750个不同行业的 is one of the most experienced (连锁/加盟)经营咨询服务公司之一， 企业提供综合广泛而又高度专业化的 franchise consulting companies 其47办事处(包括加盟商及策略伙伴) 咨询服务。 in Asia. We currently have 47 遍及世界超过32个国家和地区。 franchise and associated offi ces in 本公司团队力量精良，现有高级顾问 over in 32 nations. Over the last 28 服务范围 多名，均具有美国特许经营协会授予 years, we have helped more than 爱思威特许经营顾问私人有限公司 的注册特许经营管理专家(CFE)头衔， 750 companies in Asia to develop 的服务范围广泛，包括： 高级执行管理顾问(Senior PMC)等。 their franchise systems to expand 1. 协助商家发展特许经营/连锁店/经 locally and worldwide. 济组合体系的全方位解决方案； 爱思威自诞生以来，获得了很多的奖 2. 扮演经纪人角色，协助企业及个人 项和赞誉，如：10年贡献奖(中国连锁经 With our worldwide network, 加入特许经营体系； 营协会2008)；卓越贡献奖(台湾连锁加盟促 in-depth knowledge, insight 3. 出版特许经营刊物，定期出版中英 进协会2014)；区域贡献奖(东盟连锁加盟协 (our consultants have managed 文「亚洲特许经营加盟连锁 • 投资 会2015)。 franchise companies before joining 良机」杂志(自1994年)； us) and qualifi cations – e.g. CFE, 4. 推广特许经营概念及相关经营理 CMC and PMC (Senior PMC), 念，协办有关研讨会、展览会 we are able to help clients from (每年30场)、组织赴英美欧日韩， various industries to develop very 等国家特许经营考察团等； strategic and effective franchise 5. 其他辅助服务。 packages, conduct incisive franchise audits, help franchisors 140 Paya Lebar Road #09-20 AZ@PayaLebar Singapore 409015 fi nd suitable franchisees in various Tel: (65) 6743 2282 Fax: (65) 6743 1139 www.asiawidefranchise.com.sg parts of the world, and to develop a market entry strategic plan into Our subsidiary Asiawide Business Consultants Pte Ltd foreign territories. Our parent provides the following services: Capability Projects / Services company Asiawide Trends Pte Ltd • Productivity (SMART / Development of Service Blueprint) is the publisher of the world’s only • Innovation (IP Business Diagnostics) English-Chinese Asia Franchise & Others Business Opportunities magazine • CaseTrust • Edutrust • Customer Centric Initiative that is very popular in Asia since March 1994. We are the most active consulting company in Asia as we participate in over 30 franchise-related shows in Asia every year. We have been awarded for contributing to the growth of franchising by CCFA (China), ACFPT (Taiwan), and ARFF (ASEAN-wide, headquartered in Malaysia). We also hold board memberships at various organisations. We know franchising. globalfranchisemagazine.com Philippines Report In the second of Global Franchise’s special reports on franchising in the business powerhouse that is Asia, we look at the Philippines. Franchising really took off here with the setting up of the country’s own franchising association in 1995. Since then, around 60 new franchises have been established annually. A large number of blue- chip franchises – mainly from the U.S. – are firmly entrenched here. Franchising has proved to be a successful and much-favored business model for local brands too, and to give you a broad view of what is succeeding in the Philippines just now, we look at ten of the Global country’s most successful food franchise operations. Franchise Could this fascinating country be your ideal base? To find out, ASIA we talk to an expert in Philippines franchising. Our curator for this edition is Ms. Chit Estrada, executive director of the Philippine ADVERTISEMENT Franchise Association. SALES DIRECTOR Mark Forsyth +44 1323 471291 [email protected] GROUP ADVERTISEMENT MANAGER Richard Davies +44 1323 471291 Ross [email protected] SENIOR ACCOUNTS MANAGER Neil Phillips +44 1323 471291 [email protected] SENIOR ACCOUNTS MANAGER Tom Hepton +44 1206 505487 [email protected] ACCOUNT MANAGER Craig Bartlett +44 1323 471291 [email protected] HEAD OF EDITORIAL (BUSINESS) Fae Gilfillan [email protected] EDITOR Ross Gilfillan [email protected] ART DIRECTOR Lloyd Oxley CREDIT CONTROL Sue Carr +44 1206 505903 PUBLISHER Matthew Tudor globalfranchisemagazine.com Global Franchise ASIA Philippines hat franchise sectors are currently thriving in the Philippines? Health food (Boost Juice, Australia,W Pure Nectar, Philippines), halal food (Ayam Penyet, Indonesia), organic food and desserts from companies such as ES Teler Franchise (Indonesia), Lava Cheese Tarts (Philippines) and Awfully Chocolate (Philippines). Convenience stores do well, as do child education/tutor services. Also succeeding Philippines with franchising are companies specializing in corporate training, hotels, therapy and Before you franchise here you will need to know what sectors are wellness spas, self-service laundries and succeeding, how receptive the country is to the franchising model house cleaning services. and where to turn for support. Chit Estrada, executive director of What are the top exported food the Philippine Franchise Association, is here to help franchises in the Asia-Pacific region? Jollibee (Philippines), Yellow Cab (Philippines), Max’s Restaurant (Philippines), Little Sheep (China), Yoshinoya (Japan), Beard Papa (Japan), Lotteria (Korea), Tous Les Jours “The estimated (Korea), Bread Talk (Singapore), Ya Kun Kaya (Singapore), Din Tai Fung (Taiwan), Cha Time (Taiwan). number of brands now How well does franchising work here? franchising is 1,500, of The estimated number of brands now franchising is 1,500, of which 66 per cent are which 66 per cent are local and 34 per cent are foreign. By sector, 44 per cent of these are food franchises, 29 per local and 34 per cent cent are retail franchises and 27 per cent are service franchises. Just now we have 25 brands which are in the process of going international. are foreign” The primary overseas markets for brands in this region are the U.S., Middle East and Southeast Asia. There is still much room for franchising growth, especially in cities outside the capital. Tell me about the Philippine Franchise Association Founded in 1995, the pioneering Philippine Franchise Association is the country’s premier franchise association. Its members are drawn from both small and large businesses, homegrown and foreign. 63 per cent of these are MSMEs. The PFA has 194 franchisor members, and 65 allied members. A voluntary and self-regulating governing body, the PFA’s mission is to promote franchising as a tool globalfranchisemagazine.com globalfranchisemagazine.com to create businesses and generate jobs. strategically located as a launching pad It is a member of the World Franchise to the ASEAN economic community; Council and also of the Asia Pacific renaissance in manufacturing; high rate Franchise Confederation. It was after the of savings due to OFW remittances; PFA became established that franchising accelerating economy set to last for started to become a key contributor decades; expected to be one of the world’s to the country’s economy. Before this, biggest economies by 2050. franchising was limited to foreign and large companies. The establishment of Which major foreign brands the PFA boosted public awareness of are currently operating in franchising as a business model. your country? McDonald’s, Wendy’s, 7-Eleven, Burger Why should foreign investors King, iHOP, Pizza Hut, Dairy Queen, choose the Philippines as a Papa John’s and many more. promising place in which to locate their franchises? What have been the Stable democracy; improving governance; main challenges for strong macroeconomic fundamentals; incoming franchises? labor peace; young, educated and Understanding the Filipino community, English-speaking labor force; huge finding the right partner and stiff market of 100+ million; median age 23; competition offered by local brands. Contact: If you are interested in franchising in the Philippines, contact Ms. Chit Estrada, CFE, Executive Director, Philippine Franchise Association. Email [email protected] globalfranchisemagazine.com Global Franchise Food Franchises: ASIA 10 Successful Food Franchises The Filipino food market boasts a wide range of foreign food concerns, including top U.S. brands such as McDonald's, Wendy's, iHOP and 7-Eleven. But local franchises are succeeding too in this busy sector and they are catering to known local tastes. Knowing what you will be up against when you take your burger bar or pizza parlour to an Eastern market such as the Philippines is essential if you are going to break new ground in this competitive region. Here's a taste of the food franchises from around the Asia Pacific region now doing well in the Philippines... globalfranchisemagazine.com Global Franchise ASIA 3. 1,100 Clever Locations in-line stores in malls, schools, hospitals, bus stations, Philippines concept Potato Corner has been a leading amusement parks and tourist destinations worldwide. 1. Market-leading international brand in the food industry for 25 years and now has The brand had garnered numerous awards, mostly Family-oriented Jollibee is the largest fast food chain in the Philippines, over 1,100 branches worldwide. Opening its first outlet recognizing the excellence of its business model. operating a nationwide network of over 750 stores. A dominant market leader in the Philippines in October 1992, Potato Corner began Interested entrepreneurs will be buying into a in the country, Jollibee enjoys the lion’s share of the local market and is very franchising the following year. Today, it can be found as long-established, iconic brand. potatocorner.com much one to watch as far as incoming brands are concerned. The company
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