By Madelaine B. Miraflor
Members of Philippine Franchise Association (PFA) is hoping to yield combined revenues of US$31 billion this year — its highest on record — on the back of growing middle class as well as improving business activities in rural areas.
Credit: (http://www.pfa.org.ph)
Moreover, as much as 100 homegrown franchise brands are also seen scouting investment opportunities abroad as more foreign brands come here to expand.
PFA President Richard Sanz said in an interview with reporters that the local franchise sector already surpassed its 2020 revenue target of US$24 billion and is now running after way bigger figures.
Last year, the sector posted combined revenues of as much US$25 billion, which accounts for 7 percent of the country's gross domestic product (GDP).
Sanz, who is also the owner of Bibingkinitan, said the sector intends to continue its record breaking run by aiming for a 20 to 25 percent growth this year.
Such growth target, according to him, will be driven by expanding middle class, dispersion of jobs outside key cities, and the continued growth of homegrown as well as foreign franchise brands.
PFA Chairman Alan Escalona said that as this happens, the sector will see more and more homegrown brands expanding overseas.
"What's been happening in the past year in the Philippine setting is that there is a continued influx of foreign brands. There's also growing interest for local brands to expand overseas," Escalona, who owns Fruit Magic and Pure Nectar, said.
He said that by 2025, there should be as much as 100 FPA members that have already expanded overseas.
To help make this happen, PFA had set several international roadshows for this year that aim to help local franchise brands to establish market abroad. These roadshows will be in Thailand, Indonesia, United States, Canada, and Middle East.
PFA Chair for ASEAN Chris Lim said some of the brands that are looking to expand are Farron Cafe, Snack Attack, Nails Glow, among others.
Over the years, some of the brands that have successfully penetrated the global market include Potato Corner, Army Navy, Bibingkinitan, Famous Belgian Waffle, Karimadon, Julie's Bakeshop, Pancake House, Penshoppe, Goldilocks, among others.
"There's a lot of demand in other countries for kiosk businesses," Lim said.
PFA is set to stage the annual Franchise Asia Philippines which is now on its 27th year and is will feature more local and foreign franchise brands. The event will be held on March 27 to 31.
The event is the biggest franchise event in Asia and has also become one of the world's biggest franchise shows. The event will feature over 700 franchise brands, 20 percent of which will be international brands.
In 2021, PFA will also host the World Franchise Council Meeting.