Franchise sector eyes expansion
THE PHILIPPINE Franchising Association (PFA) expects the industry to expand by 12-15% this year backed by new clients seeking to get into business after the pandemic.
“Last year was a bit difficult, of course. Everyone was recovering from the pandemic, but I think this year, we’re looking at about 12-15% growth in the industry because we see things opening,” PFA President Chris Lim told BusinessWorld on the sidelines of a franchising event.
He said after the pandemic, many franchisees realized that franchising is the best tool to get into business to earn extra income.
“So, we’re seeing a big boom this year,” he added.
Mr. Lim said the association is seeing “a new breed of franchisees” who are employees who want to have extra income, senior managers who do not want to go back to the corporate world, and entrepreneurs who want to restart.
He added that franchising “has always been a simpler way to get into business” because of the existing businesses that one just needs to learn how to operate.
“But at the end of the day, it is still getting into business. There’s ups and downs. You have to be innovative. You have to lead your team. You have to choose the right locations. But it’s just an easier way to get into business,” he said.
Among the business segments, food remains to be popular, he said, while franchises related to healthcare and pet care are seen to grow.
“Maybe in the next few years, the agricultural franchises — whether it’s in the logistics or retail side — we see that growing as well,” he added, noting that it may be the fastest to grow as some brands want to tap into it.
The PFA is set to host the World Franchise Council and Asia Pacific Franchise Confederation meetings this year.
“Our goal with the Philippine Franchise Association is to create 50 new market entries for our Filipino brands around the world, so we want more brands to go international,” he said.
Apart from the meetings, the PFA will also be hosting the International Expo in October, which is part of the Franchise Asia Philippines 2023. It is expected to draw about 60,000 local and international visitors.
“The Philippine hosting of these meetings is a testament of the market attractiveness of the Philippines as a tourism and investment destination of the world,” said Richard V. Sanz, founder, chief executive officer, and chairman of the Board of Philippine FoodAsia Corp. — Sheldeen Joy Talavera
