Ask any Filipino what their idea of a franchise is, and chances are, the majority of the answers that you will get refer to brands such as Shakey’s Pizza or McDonald’s. People popularly associate franchising with food and foreign businesses. From my experience, the reason is that my earliest recollections of a franchise include those in which Dad packs everyone inside the car before heading off to Shakey’s or McDonald’s.
These two brands are indeed very popular and largely successful franchises from the United States. The concept of franchising has been around for a long time. Franchising provides entrepreneurs the opportunity to own a business that has a built-in system to run operations under a brand name that ensures recognition.
The hardest part of starting a business is gaining traction. Even if you have undertaken an exhaustive research and have hired the best consultants to design an operational system, everything is still theoretical until proved effective in real-world situations.
You also still have to focus on building your brand. This element is a key in business development, given that your brand represents your enterprise. Developing a brand that can be readily associated by the market to your business takes years.
A franchise takes care of all of that. All you need to do is to be approved as a franchisee, pay the fees, and then implement the program. According to the Philippine Franchise Association or PFA, franchising in the Philippines has a 97% success rate. Thus, entrepreneurs are expected to continue exploring franchising opportunities in the Philippines.
However, what trends are in the foreseeable future for franchising?
PFA President Samie Lim believes that four trends in the Association of Southeast Asian Nations or ASEAN will soon make their way to the Philippine shores:
- International dining concepts. Restaurant brands will branch out to an extensively varied internationally flavored menu.
- European fashion brands. Strong European brands from France, the Netherlands, London, and Spain have shown interest in the Philippines.
- Healthy food options. As people become increasingly health conscious, the market for healthy alternatives continues to grow.
- Interactive technology. Retailers will integrate technology in their systems to provide excellent customer experience.
Mr. Lim has been a visionary. Thus far, we’ve seen several internationally themed concept restaurants open up over the last few years. These include Irish pubs, traditional Korean restaurants, and modern Taiwanese noodle houses. We’ve also noticed the proliferation of yogurt stores, smoothie shops, and tea houses that offer lower calorie and generally healthier options than those offered by regular fast-food restaurants.
As we head toward 2016, we should expect exciting, fresh concepts to appear on the horizon. We should also expect the continued popularity in the proven brands among Filipino consumers.
Looking into our crystal ball, we present in this article the best business franchise opportunities in the Philippines in 2016. We have categorized these into products and services for easier reading.
Best Business Franchise Opportunities in the Philippines for 2016
I. Food Kiosks
Food kiosks are among the most affordable franchises you can own. The minimum investment is approximately Php 20,000, whereas the established brands cost Php 250,000 up.
Of course, you will need to provide a working capital for at least six months until your business gains a regular following.
Food kiosks are popular because they offer Filipinos good quality food at very affordable prices. They are best situated in areas where there is a high volume of foot traffic, such as train stations, food court, and bus stations.
The following are among the best concepts for kiosk-style franchises:
1. Dim sum
There has been a proliferation of dim sum food stalls in the train stations and food courts. Dim sums have been very popular among Filipinos because you can get a full, satisfying, good quality meal for under Php 50. Among the popular ones are the stalls that sell siomai with chili garlic and soy sauce.