Julie's Bakeshop mulls expansion outside RP

The largest bakeshop chain in the country, Julie's Bakeshop, plans for international expansion, although putting up at least one Julie's Bakeshop in every town in the country within five years remains its top priority.

Julie's Franchise Corporation (JFC) chairman Bobby Gandionco said Julie's international venture has to be studied very carefully, as the company sees a bigger challenge if it were to start opening branches outside the country.

Gandionco, who was one of the speakers of the newly launched monthly Business Summit hosted by Microsoft Philippines, and Entrepreneur Magazine, said that the company is taking very careful steps in its out-of-country venture.

Although the success of Jollibee abroad seems encouraging, Julie's Bakeshop is also contemplating on failed attempts by Filipino food businesses that tried to expand abroad.

According to Gandionco, after the company achieves in putting up at least 1,000 more Julie's Bakeshop in the next five years, international venture will be the company's next priority.

"If we expand to the international market, we would like to make presence in Filipino populated areas first, or in countries that have similar market with the Philippines," Gandionco said in an interview.

In the Asian countries, Julie's is looking at Indonesia, or Vietnam. In the United States, Daly City is a potential.

But as of now, the international venture is still a difficult move saying "to be able to service the overseas branch you have to expand the backroom support service of the company."

The most probable case for Julie's to speed up its international expansion bid, is to be convinced by a Filipino entrepreneur based outside the country to express interest to partner with Julie's or to get a franchise, Gandionco said.

Gandionco described last year as the "worst" year for the company, as it only opened 73 outlets, lower compared to the previous years.

From a "mom-and-pop" business that started some 26 years ago in Cebu, Julie's Bakeshop has grown into a professional company that now has over 500 branches around the country.

Julie's is offering from P1 million to P1.5 million franchising fee, including already the training, one-time invention, equipment among others.

In the next five years, if the 1,000 new outlets will be realized, Julie's is expected to earn about over a P1 billion for the franchise fees alone, excluding the monthly royalty fees from franchisees, among others.

With the growing Filipinos working abroad, opportunities for Julie's Bakeshop to expand in other countries is tempting, as Julie's Bakeshop brand has become a household name in majority of Filipinos, when it comes to bread.

The bakeshop's founder Julie Gandionco started the bakeshop in 1980 primarily "to put food on the table." The first Julie's Bakeshop was put up in Mandaue City.

In 1991, the Gandionco family started to forge joint ventures with different partners to penetrate other areas in the country.

The first Julie's Bakeshop in Metro Manila was set up about 10 years ago. Problems with some joint-venture partners, however, emerged and compelled the family to rethink their strategy.

In 1999, the family formed the JFC to expand further. Joint-venture partners were given three options: stay and convert to franchise operations; continue but buy out the shares of the Gandionco Family; or get out of the network.