Mr. Softy on the pocket

Family get-togethers at the Marikina home of Victorino Perea began to get interesting after a brother-in-law based in the United States sent home a soft ice cream maker.

"Everybody looked forward to dessert when all sorts of ice cream flavors and combinations would be served. It became so popular that we began to get requests from friends and neighbors. That was when the family decided to turn it into a business," said Mr. Softy Ice Cream, Inc. general manager Vinson Perea.

In 2000, the company rented out a two square meter space at the nearby public market of Sta. Elena for P9,000.

"The stall was located within the rice section. We began to draw long queues of people that blocked the stalls of rice vendors, who complained. We then asked our buyers to line up by the pedestrian lane but this was also not fair to the pedestrians," said president Victorino Perea, a former sales manager of CFC Corp.’s Presto ice cream.

To meet demand, the company began opening outlets in other wet markets. Pricing its ice cream at P5 per cone, the company attracted market goers with some loose change after making their market purchases and who want to treat their accompanying children.

Today, Mr. Softy ice cream retails for P6 for a basic cone and P8 for a caramelized dip. From five flavors, the company has now developed 300.

From Dealer To Franchisee

A year after opening for business, Mr. Softy Ice Cream, Inc. decided to set up a dealership network where the company sold the ice cream machine and supplied the dealers with the raw materials.

"Before we set up our network, we voluntarily had our products tested three times by the Bureau of Food and Drugs. We wanted to ensure our partners that our products were safe for consumption," said Mr. Softy Franchise Systems, Inc. franchise director Vernon Perea.

The company quickly grew to a network of 120 outlets in the span of two years.

Early this year, the company changed the network to a franchising program, with most of the existing dealers staying on. Mr. Softy currently has 100 outlets, mostly based in Metro Manila.

Total investment is P455,000, inclusive of the ice cream maker, cart, and staff uniforms.

Average payback for the five-year franchise agreement is 15 months, with average daily earnings of between P5,000 and P7,000.

This year, the company expects to open another 20 outlets, particularly in Metro Manila and Cebu as well as in Baguio and Davao. By 2006, the company expects to have a chain of 300 outlets nationwide. – RGdelaCruz