THE country’s franchising industry is aiming to grow between 10 and 15 percent this year, given a growing economy .
“Franchising remains robust. It is good when the economy is up but it is even better if the economy is not doing well because there would be a lot of entrepreneurs and employees who will venture into business,” said Richard Sanz, president of the Philippine Franchise Association.
“Franchising is the first step to entrepreneurship,” he added.
Sanz and other officials of the PFA were in Cebu yesterday to conduct a seminar on how to franchise a business.
Today, PFA Cebu is opening its two-day Franchise Negosyo Para Sa Cebu expo in the Waterfront Cebu City Hotel and Casino, which showcases exhibitors from food, retail, and service sectors.
Franchising contributed five percent to the country’s gross domestic product in 2015.
Sanz said they expect the sector’s GDP contribution to increase, on the back of accelerated economic development in the country, which will result in the rise in demand for products and services.
Sanz pointed out that Cebu is in the best position to expand its franchising base with the opening of the Terminal 2 of the Mactan Cebu International Airport in July.
“With the influx of travelers, Cebu would need to have more restaurants and other support services and products. And this is where franchising comes in,” he said.
Tourism Secretary Bernadette Puyat earlier said that Cebu will play a critical role in attaining the national targets of 12 million inbound visitors and 89.2 million domestic travelers in 2022.
These tourism figures, according to Sanz, will be the ready market for the country’s franchising sector.
Christoper Lim, director for special projects at PFA, also announced that the organization is mounting this July the Franchise Asia Philippines 2018 with the theme “Be the Boss.” The show will present over 700 business opportunities to explore, with over 35 percent being first-time, emerging franchise concepts.
Lim said they expect 60,000 visitors this year as the show also carries international brands from Indonesia, Taiwan, Singapore, and Europe on top of the national and regional brands of the country.
Using the expo as a vehicle to expand the industry, Lim said they want homegrown brands to venture outside their turf and explore the international market.
“Cebu brands are doing quite well, with some already making big waves in Asia and the Middle East. But we are aiming to inspire more,” said Philippine Chamber of Commerce and Industry president Ma. Alegria “Bing” Sibal-Limjoco, who is also the vice chairperson of the PFA.
Limjoco is referring to Cebuano brands Penshoppe and Bo’s Coffee, which now have branches in Southeast Asia and the Middle East, respectively.
“Cebu is a difficult market. Consumers are a lot more demanding in terms of quality and price. But over the past years, it has become competitive,” said Lim.
“Penshoppe, for one, is a big success story in terms of brands going international.”
PFA has over 270 members, of which 52 percent are in food, 27 percent are in services and 21 percent in retail.
Eighty-two percent are local brands while 18 percent are international master franchises.
Note: This article was re-posted from SunStar Cebu’s website available at: http://www.sunstar.com.ph/article/1748684/Cebu/Business/Franchising-is-first-step-to-business