Home-grown franchises forecast 25% growth in sales in 2020

Published February 8, 2020, 12:00 AM

by manilabulletin_admin


The Association of Filipino Franchisers, Inc. (AFFI), which groups homegrown and grassroot franchising startups, has projected to generate 25 percent increase in gross sales this year boosted by more provincial concepts and online delivery platforms.

AFFI President Jorge Wieneke III projected their 312 member companies together with their 17,703 outlets/franchisees to generate ₱61 billion in estimated gross sales from ₱54.7 billion in 2019. The growth target is more than double the 10 percent growth AFFI members reported in 2019 versus 2018. AFFI members employ 103,318 workers as of December 2019, most of them are in food (85%), non-food retail (16%), consultancy and services (1%).

“We are hoping the January challenges will stop in February to arrest the decline in foot traffic in malls because of the novel coronavirus,” he said. To boost sales, most of their members have joined the delivery service to offer convenience for their customers.

Wieneke, one of the 9 founders of AFFI and the successful Potato Corner, was hopeful that the 2020 Expo to be held on Feb. 28 to March 1 at the World Trade Center would help perk up sales among member franchises.

The new franchise trends are still in food and pharma but Wieneke said more new food concepts are coming and new entrepreneurs from the provinces are also going into franchising.

“Food is the safest, it is the first and last line of defense because even during recession period people still eat,” he adds. But new concepts that are technology-driven and are spearheaded by the millennials.

AFFI Chairman Enrique Caeg noted that most of major malls are expanding their food area but not much for fashion.

Some business trends that AFFI sees will experience a boom this year include those that provide convenience such as online shopping and delivery services. There is also strong demand for specialty cuisines and home-made products. Old and traditional food products are expected to improve because of available delivery platforms.

To help new entrepreneurs, Caeg said that the AFFI 2020 Expo will feature a Franchise Depot and a Boot Camp to help small businesses and would franchisees from the provinces understand the franchising business for free in cooperation with the government.

“It is expensive to hire a consultant so this is AFFI’s gift to help our aspiring entrepreneurs,” said Wieneke, the owner of Tokyo Tempura.

Notably, the group said that 30 percent of visitors in the 2019 Expo are from the provinces. With that the 2020 Expo will feature exclusive pavilions from the provinces for OTOP products, there is also a pavilion dedicated for the south area or the Laguna. Of its associate members, 20 percent come from the provinces. It has helped developed 180 brands mostly in the National Capital Region and Region 1V-A.

Some of its members, who have gone global are Maxi Mango, Figaro, Crystal Clear, Potato Corner, Eat Bulaga, Lay Bare, Unified, and Acquasuisse.