Franchisers target 8-10% revenue growth this year

MANILA, Philippines — The Philippine Franchise Association (PFA) is eyeing growth of eight to 10 percent in revenues this year with food businesses expected to be the main driver.

In a press conference, PFA chairman Sam Christopher Lim told reporters the group is looking at an eight to 10 percent revenue growth this year.

If the upper end of the PFA’s growth projection is realized this year, the group’s revenues would reach around P800 billion.

While PFA is still expecting to post higher revenues this year, the projection is lower than last year’s growth projection of 10 to 12 percent.

“I think we’d like to temper the projections this year just because there’s a lot of headwinds,” Lim said, citing risks posed by trade wars and inflation.

Asked about the impact of the United States’ reciprocal tariffs on trade partners, he said this is expected to be “a bit muted” as the sector has been diversifying the supply base.

He said food, which remains the biggest sector for franchising, is expected to drive growth this year.

Lim said services are also expected to support revenue growth this year.

“We do see a lot more people getting into franchising. So we see a lot of people really wanting to be their own boss, especially people in the provinces,” he said.

He said the Department of Trade and Industry (DTI)’s support for franchising, including the loan facility for the sector, is expected to help drive revenue growth.

“With the DTI franchise loan, that allows people to gain access to really low-cost loans as long as they’re opening a franchise,” he said.

Overseas expansion will also help drive growth.

The PFA is set to conduct a business mission to Sydney, Australia to explore opportunities.

Lim said improving the ease of doing business would help the franchise industry grow further.