FRANCHISING SERIES: Starting a food retail franchise
Food retailing in the Philippines is one good way to have a consistent source of income that can support your family back home. The advantage of choosing a franchise instead of starting a business from scratch is that franchisor guidelines will allow you to manage the store through your relatives in the Philippines. Even while you’re away, your family and the people you trust can operate and reap the benefits of owning a food retail franchise.
Advantages of food retail franchising
A food retail business in the Philippines is one of the most profitable ventures. A food retail business owner will never run out of customers, no matter where the store is located. People of all ages will gather at a restaurant, bakery, grocery and similar food stores because of the basic need to eat. People also need food every day, regardless of the day of the week or time of the month. A continuous flow of customers also means a healthy flow of income, enough to support a family’s needs.
It is difficult to tell the exact cost of food retail franchises, as cost highly depends on the brand of the franchisor. International labels like McDonald’s and 7 Eleven often cost more than local labels. But on average, food retail franchises start at 150,000 Philippine pesos or 3,000 Euros.
A franchise is easier to handle because of certain perks included in the franchise package. Some of these are:
- Franchise orientation meetings
- Employee and franchisee training and seminars
- Store design
- Access to inventory items
Franchise Development Process
How long it takes to jumpstart the store depends on the location. Most franchisors set requirements as to the size and location of the store. Applicants are often required to submit a proposal for store location, which will then be assessed by the franchisor. Other franchisors on the other hand will search for a suitable location for their franchise partner. Construction of the store takes a few weeks depending on the size. During this time, accepted applicants and their employees already go through company training.
All-in-all costs, including land lease, design and renovation, equipment and fixtures, can reach from 1 million to 50 million Philippine pesos, or roughly 20,000 to 1 million Euros. Fees for permits also need to be paid via the Department of Trade and Industry or the Securities and Exchange Commission to make your business legitimate.
Because a big food retail franchise has operational requirements and also needs employees, salaries and utilities bills for the first months should already be set aside.
Points to consider
Knowing the two types of food retail franchises can help narrow down the choice of brand or label. The first category of food retail deals with uncooked food. Some examples are convenience stores, fruit stands, dry or wet goods groceries and markets. The second category of food retail deals with cooked food. Some examples are restaurants, fast-food chains, bakeshops, and cafes.
One way of choosing which type of store to invest in is to decide whether you can handle the added demands of preparing cooked meals. Retail franchises that deal with cooked food should also follow health guidelines in cooking and preparation aside from standard product quality assurance. In addition, cooked retail franchises also need more people behind the counter to serve as cooks, busboys and order takers.
Food retail franchise companies
Some popular franchisors include international and local names like 7-Eleven, Candy Corner, Monterey Meatshop, Cabalen, McDonald’s, Andok’s Litson Manok, Figaro Coffee Shop, Julie’s Bakeshop, Red Ribbon, Mister Donut and others. Information regarding franchise package, costs and other information can be found in Franchise Guide Philippines and from the franchisor’s websites.