Recommended Food Business
Franchisor
The explosive growth potential of major franchisors
In the Philippine food franchise market, the common practice is to open a fast-food restaurant as a franchisee (franchise owner) by contracting with a large franchisor (franchise sales company). However, a good franchise requires enormous capital, and it lacks the excitement and appeal of a typical business. Large franchisors must avoid any loss of their brand, so it's true that they often require franchisees to be Filipino citizens with a college degree or higher. Qualified individuals and staff undergo thorough training and are instilled with advanced skills. Furthermore, large franchisors acquire successful food businesses in areas where they don't have competitors or their own, and develop them with a thorough branding strategy, making it impossible to compete without enormous financial resources.
The appeal of being a small to medium-sized franchisor
There's no need to fight against opponents you can't match financially. Rather, you should enter the market with the intention of leveraging their strengths. After all, food franchises are nothing more than fast food providers. Restaurants in malls are limited to sourcing their ingredients from subsidiaries of the mall's management company. Can you really accept that restaurants from various countries all source their food from the same company? This is commonplace in giant malls. The original owner sells their brand to the mall company in exchange for the mall company granting permission for them to open a store with its own concept. This has resulted in a dull business where the negative consequences are passed on to the customer. What small and medium-sized franchisors should aim for is a business that can be run steadily with ideas, skills, pricing, and menus that large companies cannot easily imitate.
Having a strategy that can adapt to any situation
To seriously advance your franchisor business, it's wise to incorporate as a limited company early on. Then, you should cultivate a brand that major franchisors will want. You don't necessarily need to aim to sell to a large company, but setting that as your goal will naturally establish an attractive franchise brand. A common scenario is when Japanese owners of food businesses try to sell their businesses to large malls, but they are often taken advantage of and end up losing money. Cold calling is outside their strategy, so they are treated poorly and that's the end of it. Our franchisor business strategy provides strategies that can lead to success in any situation, whether your goal is to sell or to develop your business as a franchisor.
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Garyo Strategic Consulting, Inc.
Robinsons Cyberscape Gamma,
Topaz & Ruby Rd, Ortigas Center,
Pasig City, Metro Manila, 1600 Philippines
TEL: 63-968-248-2904
MAIL: info.garyosc@gmail.com / info@garyosc.com