Franchising a classic

The Aristocrat restaurant is a historical and gastronomic icon that has inspired the growth and development of the restaurant industry in the Philippines. Founded on the pioneering spirit of the Reyes forebears Engracia Cruz-Reyes, fondly known as Aling Asiang, and husband Justice Alex Reyes, Aristocrat has become a benchmark for success in the industry for 72 years now.

Businessman Jay Ramos already had a successful bakery franchise in Olongapo when he decided to go for an Aristocrat franchise. A resident of Quezon City, Ramos relocated to Subic in 2003 to attend to their family real estate business and saw the potential for franchising in Olongapo.

“Our family would always dine in Aristocrat when I was growing up, and I really loved the chicken barbecue,” Ramos states. “But more than that, Aristocrat is a solid brand that has enjoyed popularity for more than 70 years now with minimal advertising, but just on the sheer strength of its products.”

Ramos soon became the first Aristocrat franchisee outside the Reyes family, with the opening of the free-standing Subic branch in December 2005. “This is a high traffic area with visibility, accessible to both the tourists and the local residents. The tourist market is very seasonal, peaking during summer and the holidays. We had to be able to draw in the local residents during the rainy season and regular days.”

Challenges

Surprisingly, during the opening, the place was jampacked with the Manila crowd who were pleasantly surprised to find their old favorite in Subic. The local residents posed a bigger challenge to Ramos, as the brand was only recognized by the older generation, and those who had prior exposure to Aristocrat.

“The younger generation, those who had no exposure to Manila, were initially intimidated by the brand,” says Ramos. “After opening Aristocrat for franchising, the management updated and modernized the look of the restaurant, so the locals were inclined to think it was an expensive restaurant.”

To counter the intimidation factor, Ramos did some local marketing with house-to-house flyering in nearby communities, and by introducing combo meals. Soon, the restaurant was up and running, with locals starting to come in regularly.

“We cater to a very broad market, from A to D,” says Ramos. “Business functions are our bread and butter; we cater to 30-50 business meetings a month. We also hold a lot of binyags, and weddings – it’s become an aspirational place and people save up to celebrate their special occasions here. We also get balikbayans, who are often delighted to find Aristocrat in Subic because of the memories it brings back. We even get Balikatan troops – the restaurant gets filled with American servicemen enjoying their lumpia and pancit canton!”

With the success of the Subic branch, Ramos opened in October 2007 his second franchise in SM Pampanga, one of the best performing provincial malls mainly because its market has purchasing power, and its highway location opens it up to mallgoers from neighboring provinces.

The challenges were similar to Subic, but there was a larger chance of familiarity among the mall goers. Ramos also introduced the combo meals at the SM Pampanga branch, which is now a model for the other Aristocrat mall branches.

“Actually, even with the combo meals, people go right ahead and order their favorites, or the popular dishes,” says Ramos. “When they see other people eating the chicken barbecue, they order it too. The beauty of the menu is that it’s Filipino comfort food – there’s something familiar that appeals to everyone.”

Franchise relations

Aristocrat may be young in the franchise business but Ramos is pleased with his franchise relations.

“Aristocrat is highly selective in choosing their franchisees because they are extremely meticulous in maintaining the high quality of food served, making sure it is consisted among the company-owned and franchised branches,” Ramos pronounces. “We get monthly inspections, and I have direct access to the president, Raymund A. Reyes. Our stores are successful because the franchisor has been very supportive of us.”

Coming from a store-front bakeshop franchise, Ramos states that he did not find it difficult to transition into the restaurant business. “That’s where you find the beauty of franchising. You are buying into a successful, tried-and-tested formula. All you have to do is implement it.”

Aristocrat restaurant welcomes franchisee applications for the Greater Manila Area. For more details, email [email protected], or call 524-7671 to 80 local 247 and look for Carol Timbol.