Why franchising works

MANILA, Philippines - In his book the “Cashflow Quadrant”, successful business practitioner, Robert Kiyosaki, defined categories on how people earned money. The cash flow quadrant identifies are as follows: employed, self-employed, business owners, and investors. Of the four classifications, the business owners and investors are the ones who are most successful financially with the best income potential.

It is very difficult to start up a business. Efforts begin at creating a concept, hiring a good design house for the look and image of the new company. The biggest risk is the cost of capital. For some, this may never happen for fear of taking the first step towards starting their own business. For others, the answer is getting a business franchise.

Why is franchising best?

In most businesses, the standard is: great risk brings greater returns. With today’s economic condition, who wants to risk everything? The fact is, the emergence of business opportunities have opened doors for almost any player in the market. Franchises are being offered left and right.

An established company gives the assurance of less risk and better income potential. With proper supervision and marketing support from the franchisor, the franchisee would have a better chance of success than setting out on a new business venture.

The greatest risk in franchising is finding the best franchise to own. That would be the franchiser with whom you can be confident will give you the best support in terms of operations, product supply, innovation, and marketing.

Why Shakey’s

Shakey’s Franchisee, Mike Advani, shares that “When choosing a franchiser to be your business partner, it is very important that you select one that gives you the best support. In a way, it is the practice of maintaining good business relations. You have to make sure that the franchiser will really watch out for your benefits. Shakey’s has been fully supportive in terms of marketing, advertising, and supply.”

“There was a time when I thought it was good to get a franchise from another food chain. Unfortunately, the support was not there. The mother company did not protect our interests because they offered the same franchise to another group within our area. Sad to say, it resulted in a bad investment.”

Shakey’s franchisees truly believe in the brand. This is seen through the length of time they have been partners. The Sehwani Group has owned franchises since 1976, Danny Tan of Cebu has owned his franchises since 1991, and Belen Fernandez of Dagupan has had her franchise since 1993.

Strong support

Shakey’s franchisees go into business with the goal of financial independence, but the brand definitely does not leave them to fend for themselves. The moment they are welcomed into the Shakey’s family, support is provided in all aspects of the business – strategic planning, site selection, design and construction of the restaurant and technical support.

Each franchisee is cared for the way a family is. A new restaurant is nurtured like a baby, guided with baby steps as it grows, all the while being provided with its needs and supplies. A franchisee is never left on its own. Marketing and promotional support are available at any time requested by a franchisee and more often than not, even when no request is made. A franchisee is provided the following support: strategic planning and site selection, operations standards, systems and support, marketing and advertising services, human resources training and development, standardized financial systems, research and development/quality assurance, centralized purchasing and distribution, design, construction, and technical support.

To maintain its consistency in quality, continuous human resources training and development is provided: written and hands-on exams are given to ensure adherence to Shakey’s quality standards. Again, consistent with its service standards, periodic workshops are given to ensure delivery of excellent customer service.

A show of strength

Since 2003, the brand has shown consistent double-digit percentage growth. COO, Vic Gregorio credits not only the major innovations in the company, but credits the team spirit of the people in his company. “Every department has been kept on its toes since changes were instituted in 2003. From the calculated, well-planned store renovations, to the aggressive marketing promotions, intense brand awareness and advertising, tedious monitoring of product quality and guest service, down to the people development and career opportunities that have kept everyone determined to be, simply, the best.