Cebu spa operator expands to key cities in Visayas, Mindanao

CEBU, Philippines - A young Cebuano spa operator has opted to pursue an aggressive expansion plan in Visayas and Mindanao to take advantage of the fertile market for spa and wellness services in southern Philippines.

Merrick Anthony L. Siao, proprietor of Grand Royal Spa chain in Cebu, is going to expand his spa brand in key cities in Visayas and Mindanao such as Cagayan de Oro, Davao, Iloilo, and General Santos City., through franchising package.

“The wellness sector is one of the industries that is not affected by the global economic crisis. All the more people need to avail of wellness services when they are pressured [at work, or in their businesses],” said Siao during the introduction of Grand Royal Spa’s
newest location in Banilad Town Center (BTC).

Siao, 26, the youngest spa operator in Cebu, said that although there are a lot of spa outlets in Cebu that capture different market segments, the industry is still posting encouraging performance, at least to those outlets that offer “value for money” services, and upholding the best customer service practices.

 The Grand Royal Spa has now a total of seven outlets, four of which are company owned and three are operated by franchisee partners. The company started to venture into its out-of-Cebu expansion with the opening of its Bacolod and Dumaguete branches in 2004 that are managed by franchisees.

Aside from the current “pressured” environment (brought about by global financial difficulties) that bring people to spend on “relaxing” and wellness services, the increased number of health-conscious individuals has also made the wellness industry thrive while other companies, and industries are complaining of market slowdown, and other business concerns.

Siao, whose family owned the   Chiquito Bazaar in the Cebu downtown area, started the spa business in 2003 as a gift-business from his parents, immediately after he graduated from college.

He said in the last five years, the business has been posting an encouraging growth, the reason why he is determined to focus on this business, and capture the less-tried areas in Visayas and Mindanao.

Grand Royal Spa, which is known for its affordable massage services that combine the Swedish, Shiatsu, stretching and a little of Thai massage styles, offers P450,000 franchise package which include trade-name and all-in manpower/therapists training.

A franchisee shall invest on the facility set up, which would range from P1.2 million to P2 million depending on the size of the spa outlet.

Siao’s family invested around P1 million for the establishment of the first Grand Royal Spa in 2003. He said the business got its Return of Investment (ROI) in the span of six months.

Siao, is one of the beneficiaries of the 600,000 Euro grant given by the Asia Invest of the European Union (EU), to fund an international standard training for massage therapists.

The Grand Royal Spa is one of the few spa operators in Cebu that holds CIBTAC license, an international license for massage service.