Joint venture yields ‘double success’ for Pancake House franchisees

The food business is one dynamic industry, enticing a vast range of entrepreneurs looking to serve Filipino families who enjoy simple meals served in a homey ambience. While the more popular option is to open a full franchise for a favorite fast food or resto chain bearing an already established brand, some businessmen are now considering the joint venture arrangement to guarantee a win-win situation for both the franchise owner and the partners.

Pancake House’s CCP Complex – Harbour Square branch is one primary example of a winning tandem between the franchisor and a group of entrepreneurs – Benjie Alcober, Mario Cruz, and Tony de Rivera.

The joint venture has seen this Pancake House succeed since it opened last year, and currently exceeding its target sales. Alcober points to the prime location, the quality and consistency delivered by the restaurant, the franchisor’s expertise in management and operations and their group’s business inputs as keys to the outlet’s success.

Pancake House has proven its stability in the changing market scene, Understanding the Filipino consumer, Pancake House has consistently "delighted" various market segments, such as families, office workers, executives, children and grandparents. Proof of this was the recent citation of Pancake House as an "Outstanding Filipino Franchise of the Year 2005."

"The joint venture has a lot of advantages over 100 percent franchising, among them the very strong operations management by Pancake House which we can readily utilize," said Alcober. "They know how to run their restaurant so you can definitely see the attention they provide to every detail in operations. What’s more heartening is the fact that Pancake House is constantly evolving for the better, thus attracting a newer generation of customers."

The three are all retirees from a big company. It is only about three years ago that they decided to go into the food business. "They tasked me to oversee the operations because I’m the one with the experience in marketing, while they serve as the silent partners. Now, we have two restaurants and it’s been an immensely enjoyable experience," Alcober related.

After the success of their first restaurant franchise, the three started scouting for another food chain to handle. First on Alcober’s mind was Pancake House. "Personally I like Pancake House because of the consistency of quality. Through the years, their pancakes and waffles have retained the same great taste and quality which reflects the owners’ dedication to maintaining high standards. They also have a strong following among families who have kids who grew up with the restaurant."

Initially, Pancake House offered them a 100 percent franchise, but eventually, the franchisor expressed their interest to form a joint venture with Alcober’s group for Pancake House CCP Complex-Harbour Square because of its strategic location fronting the Cultural Center of the Philippines.

The outlet now attracts tourists, participants of conventions, and businessmen frequenting the vicinity of Roxas Boulevard, along with the theater people and audience of the CCP.

"We chose the joint venture to ensure success for all parties. It was very easy to process the deal with Pancake House. In two months, we were in agreement immediately. They are very professional. In fact, they provided us conservative estimates which is important when going into investments," said Alcober.

The site was negotiated by the franchisor with Meedson Properties, the company which owns Harbour Square – the food complex where Pancake House stands along with other food establishments.

"What’s good with Pancake House is that if they know you are a good operator, they will offer you sites and negotiate for you, compared to other franchisors which ask you to look for your own site. At the moment we are discussing other good sites already, and it’s up to us what type of arrangement we want to have, whether a full franchise or a joint venture," Alcober added.

Currently, Pancake House operates 35 full franchise outlets, 5 joint venture outlets, and 20 company-owned stores, totaling 60 branches all over the country. For franchising inquiries, call 894-2000.