Franchising in Cebu City, The Queen City of the Philippines

This post was written by Michael on April 13, 2011
Posted Under: Entrepreneurial

Julies Bakeshop, a successful franchise based in Cebu

In spite of the global economic recession, the franchising industry in Cebu, the second biggest city in the Philippines, continues to grow. This is evident in its average growth of 20 percent, year on year, for the last 15 years.

Not a bad figure at all, if you ask me. International and local franchises dot the business landscape of the city attesting to the industry’s strength. Mc Donald’s, Shakey’s, Starbucks, Dunkin Donuts and the like have been available to the locals for a decade or so. Manila based Jollibee, Goldilocks and Chow king have also invaded the city’s taste buds. And lately, local Cebu brands have expanded into franchising as well. The Cebu based Julie’s Bakeshop has expanded into hundreds of bakeries located all over the Philippines since it ventured into franchising a couple of years ago.

It seems like the new generation of businessmen in Cebu City are more aware of the benefits and business opportunity offered by franchising packages. It has become a popular way of fast tracking a growth of a business in contrast to the traditional concept. Although admittedly, there are still a number of entrepreneurs who still do not recognize the advantages brought about by opening a business into franchising, or starting a business through franchise.

Franchising is also becoming a popular investment for Cebuano’s who work overseas. Infused with capital but inexperienced in business, they find the franchising model advantageous. It sure is a safer way to set up their family in business back home in the Philippines.

Last March, over a hundred businesses joined a franchising exhibit in Cebu City. A wide range of businesses joined the show that include bakeshops, banks, beauty supplies, business services, consumer goods, drugstores, restaurants, salons and spa, fast food, health and wellness, oil companies, publishing house, water stores/water treatment, school, and health related franchises. The franchise expo not only showcased businesses that are open for franchise but also provided expert advise and the know-how to enter into franchise business through a seminar.

In Cebu City and perhaps in general, food franchises have the highest volume in number of franchise outlets followed by beauty and wellness sector. Water refilling sector is also a popular industry for franchising here.

The good news for those who are interested to go into franchising is that the pricing of franchise offers in Cebu City have remained relatively stagnant in the last few years. This is a testament to the time’s financial sensitivity and the stiff competition between franchising companies.

Nowadays, a food cart type of business may cost P300, 000 (USD7,000) while salon franchises may require P1.2 million pesos (USD28,000). Restaurant franchises, on the other hand, range from P2 million (USD46,000) to P12 million packages USD277,000. It is indeed time to take advantage of franchising in the Philippines’ queen city of the South.

About the Author

Maria Victoria Beltran is one of Cebu’s more interesting personalities, she runs two hotels in Cebu, both called Kukuk’s Nest. She is a well-known artist who paints, sculpts, writes and organises artistic events in her city. Regular poetry readings are held in Kukuk’s Nest. She has written the script for a successful movie and is currently working on two more. As you can tell from this article, she also has a keen interest in business.

More about Maria and the Kukuk’s Nest

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