Restaurant bloom in Cebu credited to stronger economy

CEBU, Philippines - The increasing disposable income of Filipinos and the good pathway to stronger economic growth pushed some Cebu-based restaurant operators to take advantage of the development and consider active expansion programs across the country.

In Cebu, more and more restaurants have announced their plans to expand within the metropolis, as well as plans for franchising programs to expand their operations outside of Cebu.

Dong Juan, a local restaurant chain, recently opened its 18tth outlet at the Calyx Center in Cebu I.T. Park.

"Hopefully we'll have four more outlets opening this year, one in Quezon City which is a company-owned outlet," said owner Audrey Borja.

In 2007, Borja and husband John invested P500,000 for their first outlet. They later opened their business for franchising in 2011.

A typical 60 square meters store requires an investment between P3 million to P3.5 million, Audrey said.

Likewise, after 11 years of just being a "hole in the wall" type of restaurant along General Maxilom, the Uy family decided to open the first branch of Frontgate in Paseo Arcenas, Banawa, Cebu City.

According to Sydney Uy who manages the chain, they are seeing Cebuanos now going out and becoming more "adventurous" when it comes to trying out different dishes.

Uy, who studied at the International Culinary Arts Academy Cebu (ICAAC), said they are bent on opening three to five company-owned outlets by next year in strategic areas within Metro Cebu.

Proprietors of Cebu Golden Restaurant Inc., which owns Filipino-cuisine inspired Golden Cowrie and Hukad, are eyeing to open three more Hukad branches this year, one at Parkmall in Mandaue City by September, and two franchise outlets - one in Puerto Princesa City, Palawan and another in Butuan City this December.

Restaurant owners Kenneth and Christine Kokseng said that for every expansion, an investment of at least P3.5 million is allocated, apart from the P1 million franchise fee.

Kenneth said Cebu's dining scene have become more dynamic through the years, and homegrown restaurants are now gaining foothold in provinces around the country.

At present, there are six Golden Cowrie outlets in Cebu including the first store along Salinas Drive, Lahug, in SM City Cebu, Robinsons Cybergate, Marina Mall and Ayala Center Cebu, which carried the Hukad brand.

Other branches are in Davao City with three branches now, Ozamis City, Dumaguete City, Bohol, General Santos City and Boracay.

A report by Colliers International Philippines indicated that the booming food business in Cebu is a ripple effect of the vibrant retail developments caused by the increased spending capacity of the people, availability of large-scale develop-able land, a high population, a healthy tourism market and a generally strong business environment here.

"The surge of outsourcing firms has also paved the way for retail hubs to emerge in commercial complexes or through mixed-used developments. The strong spending from the business process outsourcing employees, who have relatively higher disposable income, has contributed in the increase of store sales, thereby pushing developers to proceed with widening their footprints," the report added. — (FREEMAN)