Negosyong patok ba ang hanap mo? If you have less than a million pesos, how far can it go? With the huge popularity of food carts today, you might make it big in the food franchise industry.
Franchising is a sound business model that allows aspiring food entrepreneurs to leverage on the strong brand recall and business operating systems of popular food brands—all at relatively lower costs than starting a business from scratch.
Moreover, food is one of the best businesses to franchise in the Philippines. Filipinos love to eat. In malls, train stations, and other crowded areas, people would go hungry and buy something to munch on. Office workers and students barely have time to prepare their own baon. See the money-making opportunities there?
Moneymax has compiled a list of potentially profitable yet affordable food businesses that are open for franchising in the Philippines. It’s a mix of both well-recognized and up-and-coming food and beverage brands with a starting business capital ranging from PHP 50,000 to almost PHP 1 million.
Package inclusions: Franchise fee for five years, food cart or kiosk, equipment, small wares, initial stocks, and crew uniform (Excluded: PHP 3,000-PHP 3,500 branding fee and PHP 50,000 refundable security deposit)
Package inclusions: Brand name use, site inspection, layout and design, equipment setup and installation, source and product tanks, marketing materials, support products worth PHP 10,000, water analysis, water dispensers and containers, etc.
Boy Kanin Food Cart, Kiosk, Dine-In Counter, or In-Line Store
Initial investment: a. Kiosk: PHP 149,000 b. Dine-in counter: PHP 199,000 c. Small in-line store: PHP 249,000 d. Big in-line store: PHP 299,000 e. Food cart: PHP 299,000
Package inclusions: Franchise fee, trademark use, initial stocks, franchisee and crew training, marketing support, opening assistance, crew uniform, cart, equipment, etc. (Excluded from the kiosk, dine-in, and in-line store packages: Construction cost, equipment, and marketing materials)
Contract term: 3 years
Space requirement: 4 sqm (Kiosk/food cart) / 15 to 20 sqm (Dine-in) / 30 to 50 sqm (Small in-line) / 60 to 100 sqm (Big in-line)
According to Rudolf Kotik, founder of RK Franchise Consultancy, food remained to be the top franchise in 2016. Many food kiosks have sprouted all over the Philippines in the last decade, and it’s partly due to the relatively low cost of starting a food cart franchise. If you’re kicking off with small venture capital, a food kiosk is your best bet. You have many options to choose from:
Potato Chips and Fries
Fried potato in all shapes and sizes is a staple food found everywhere—in malls, food courts, schools, terminals, night markets, and food fairs.
Pinoys simply love deep-fried, fresh-cut potatoes seasoned with all types of flavors. One popular franchise of this kind is Potato Corner, which now boasts over 500 branches in the country. It’s only been around since 1992, but it has already expanded to countries like Indonesia, the USA, Panama, Australia, Singapore, Thailand, and just recently, Hong Kong.
Siomai and siopao remain to be popular snacks for Pinoys. They’re not too expensive, plus they can count for a complete meal when partnered with sago’t gulaman. Some notable food kiosks in this department are Master Siomai, Siomai King, Hen Lin, and Pinoy Pao. On a side note, another food item that has grown in popularity over the years, although not exactly a dimsum, is takoyaki. It’s worth a mention on this list.
Coffee and tea
You can never go wrong with coffee, especially in this era that embraces it so willingly. Coffee lovers are everywhere—one peek at a coffee shop will tell you just how big the craze is for this prized beverage. The same can be said about milk tea, which, unlike its cousin, the pearl shake, is steadily growing more popular each year. Some notable coffee and milk tea franchises are Foss Coffee, Star Frappe, Chatime, and Happy Lemon.
This affordable Mediterranean snack has always been a favorite among Pinoys. Its convenient packaging makes it easy to eat. Plus, it’s also a portion of relatively healthy street food. Some of the common shawarma carts you will find in the market are Turks and Shawarma House.
These Spanish snacks are like donuts—except they’re deep-fried, crunchy, and dusted with sugar or cinnamon. You can consider franchising Churros City or Don’s Original Spanish Churros, which are two of the most common kiosks in the Philippines.
Pros and Cons of Franchising
No business offers guaranteed success—not even franchising. Consumers’ tastes are continually changing, making the market more unpredictable by the day. That’s why whatever existing frameworks a franchise may have must constantly evolve with the times. Even so, there are some pros and cons you can expect from franchising.
Let’s start with the good points. The most obvious advantage of franchising is that you get to start in the middle. You don’t have to develop a business concept from scratch because you’re basically adopting one that has already been proven effective. Other advantages include:
Well-Documented Operating System
When you buy a franchise, you purchase more than the products and services—you also pay for the knowledge and experience that the franchisor has gained over the years. You’re paying to adopt a model that has been proven to work.
Better Brand Recognition
Most franchises have existing customers that patronize them, so this saves you extra time and effort that you would otherwise use to come up with a marketing plan to attract a solid customer base.
Running a food franchise business isn’t a walk in the park, but your investment will literally pay off in a year or two. Some franchisees even get their ROI in just half a year. For more franchise business options in the Philippines, check the Philippine Franchise Association website
No matter how affordable starting a food franchise business may be, you can’t spend all your savings on it. If you’re looking for a way to fund your startup food business, consider getting a personal loan from a bank that makes the cost of borrowing so much less than loans from other types of lenders.