'Franchising is the best way to expand business'

MANILA, Philippines - During these difficult times, franchising is the best way to expand the business especially in the food industry, Rommel Juan, president of the Association of Filipino Franchisers Inc (AFFI) said.

“Big foreign food companies have conquered the Philippine market through franchising. And this is also the model that has been helping a lot of local food companies promote their brands and grow the business,” Juan, who is also the CEO of Binalot Fiesta Foods Inc. said.

According to him, the franchising business model has been proven to work in the Philippines by foreign brands, especially in the food industry.

What started as a model for global food chains has been adopted by local enterprises to fuel growth and expansion and has even allowed some of them to compete with foreign brands, he said.

“Franchising allows brands to reach larger markets nationwide. Binalot, for instance, has grown its business to 41 stores since we started franchising in 2004. We are gunning for 20 more branches by the end of the year,” Juan said.

Franchising is an effective way to expand the reach of a business but the loyalty of consumers to the brand still depends on the quality of products and services provided.

Juan said customers patronize specific products and services because of perceived value-for-money as well as the value-added that comes with the brand, especially when being considered against more popular brands.

He likewise said that surviving competition and becoming an industry leader have a lot to do with a company’s culture and marketing strategy.

“We are able to grow our business and even compete with foreign brands because we are able to utilize culture as a tool to entice the market. Binalot has become the true Filipino fast-food serving all-time Filipino favorites wrapped in a very Filipino way using banana leaves. We try to promote Filipino values and culture among our customers,” he explained. 

Filipino values and culture also extends throughout the entire Binalot organization. “We indoctrinate all our employees in our nationalistic culture at the office. We want them to imbibe true Pinoy traits; even quirky Pinoy habits like pointing at things using the lips,” Juan adds.

Binalot Fiesta Foods Inc. is among the 28 franchises honored in Entrepreneur Magazine’s 4th Annual Franchise Awards. It was tagged as one of the best local franchises (low cost), which recognizes Filipino-owned franchises that have become industry leaders by creating a niche through knowledge of the local market.