Franchising remains lucrative in PH

Franchising Philippines | Franchising remains lucrative in PH | The expanding middle class and Filipinos’ love of food make the Philippines an appealing market for franchising, DTI Secretary Alfredo Pascual said.

Pascual invited franchisees to set up shop in the Philippines due to its strong business climate in his video address at the Franchise Asia Philippines (FAPHL) 2022 virtual conference Tuesday.

“The Philippines is the 7th largest franchise market in the world, contributing 7.8% to our GDP and creating 2 million direct and indirect jobs. Our country is one of Southeast Asia’s top franchise markets due to a burgeoning middle class. He said eating at a popular restaurant or having branded goods symbolizes social standing in Asia’s most social media-savvy populace.

The DTI chairman said franchising has helped prospective Filipino entrepreneurs launch firms because it has greater success rates.

Franchisees use proven business models, unlike entrepreneurs. Pascual said professionals help franchise owners improve managerial, operational, and quality control.

He stated that the Philippine market has a “big appetite” for food and non-food franchising.

Pascual said FAPHL data shows 1,800 domestic franchising businesses in the food area with a total value of PHP538 billion.

“Pandemic or not, the Philippine food service sector is growing as convenience grows,” he remarked.

However, 29% of franchise brands in the country are non-food, worth PHP67 billion.
He noted that health and cosmetic items, inexpensive indulgences, clinics, laundry services, homeschooling, and microfinance are emerging non-food franchising enterprises.

Pascual said franchising helps MSMEs thrive in the country.

He said DTI is assisting MSMEs access money, technology, and marketing tools post-Covid-19.

Pascual advised MSMEs, including franchisors, to digitize to stay competitive in the fast-changing market. (via PNA)

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