Francorp - The Franchising Leader in the Philippines
Francorp - The Franchising Leader in the Philippines

Franchise Hotline : (+632) 638.3149 to 50

Archive for July, 2017

Franchise Talk

Posted on: July 28th, 2017 by Francorp No Comments

4 ways to market your franchise to millennials

Make your franchise more appealing to this young, informed, and entrepreneurial “selfie generation.”

Written by

Sam Christopher Lim

SVP for Marketing and Strategy, Francorp Philippines

Millennials have been top of mind for marketers for the past five years. This generation, supposedly born between 1982 and 2004, remains on the radar of marketers mostly due to their size and influence. In the Philippines alone, more than 32.2 million—or a third of the population—are Millennials between 15 to 34 years old.

Due to the rise in popularity of entrepreneurship, these Millennials are now also looking to franchising to jumpstart their entrepreneurial journeys. This stems from the frustration of not finding the right job after graduation, or of having a less than favorable job market in the country.

As of October 2016, the country’s unemployment rate is still at 4.7 percent. Of the total unemployed, 77.7 percent are Millennials between 15 to 34 years old. Franchising still remains a viable alternative to corporate employment or starting a business from scratch.

There was a time when owning and running a franchise was an “old man’s game,” often reserved for retirees and returning overseas Filipino workers (OFWs). But now, data from the Philippine Franchise Association (PFA) reveal that there has been a shift—over the past five years, attendees of the PFA’s annual Franchise Asia were mostly 16 to 25 years of age, with Facebook as their major source of information on franchising.

Since there is growing interest in franchising among Millennials already, here are some tips on how you can better market your individual franchise concepts to this “selfie generation.”

  1. Go social, but still stay present in multiple channels.

According to market insights firm Nielsen, Millennials are the top smartphone users in the Philippines. This prompted more companies to go mobile first, developing digital marketing and social media campaigns that directly cater to smartphone users. While mobile and social media remain the main battleground for brands these days, they are not the only channels where one can course marketing efforts effectively.

The aim is to provide a seamless experience to customers, regardless of the channel or device. This means that customers should be able to engage with the company whether it’s in a physical store, on the company’s website or social media accounts, through a mobile app, or even through print catalogues and brochures.

For example, in-store advertising and out-of-home media resonates well with Millennials; the former often serve as backdrops for photos of food and #OOTDs (outfit of the day), while the latter often become the subject of memes shared through social media if they are funny or catchy enough.

  1. Invest in youthful and graphics-driven materials.

Millennials like content which are easy to consume and are visually appealing. Therefore, eye-catching graphics with very minimal text are more likely to draw them in. Infographics are also likely to catch their attention, and are more likely to be shared across their networks. These infographics can contain useful information about the franchise, or just trivia about the products or services you are selling.

Tap into the culture and its prevailing messages, such as following one’s passion and not settling for the ordinary. If applicable, you can also inject a touch of travel and even relationship #hugot into your marketing messages, as long as it is still related to the franchise and the products or services it is selling.

You can also choose to engage with young online influencers, such as bloggers and vloggers (video bloggers), to come up with compelling customer experience-based content which can help market your franchise.

  1. Highlight other benefits of owning a franchise.

Millennials are highly informed and, more often than not, also have informed opinions on social issues and current events. With that said, it would help if they can see that the franchise, beyond being a financial investment, is also an investment for social good. If the company is helping out a good cause, such as caring for the environment or supporting the livelihood of certain sectors, it can make the franchise more appealing to Millennial investors.

Millennials also love to learn, so it also helps to highlight the franchise as a learning investment. Since franchisees are owner-operators, they will be trained on how to run the business and how to handle its different aspects like management, sales, and marketing. Essentially, a franchise is like an MBA (Master’s in Business Administration) that pays for itself.

  1. Inject hard data into your marketing.

Remember those infographics? Well, Millennials love them because they also love hard data. Thanks to the wealth of information made available to Millennials via the Internet, they can easily do their own research and find the numbers to back up any claim.

Therefore, you can use hard data to make a more compelling case about your franchise offer. Don’t just say that the franchise has “quick returns on investment;” offer a simple and visually-appealing computation of your claim. Don’t just say that it is “the number one franchise in the Philippines;” explain the basis of your claim—may it be based on annual gross sales, number of outlets nationwide, or number of franchisees.

Marketing your franchise to Millennials can indeed be a challenge. But with the right mindset and the right marketing tools on hand, it can be achieved with great success. U-Franchise Sales & Management is in the business of marketing homegrown and international franchises, and can help you land the right franchisee. For more information, please visit ufranchiseasia.comor call (02) 634-0586 and 0917-8816999.

*****

Sam Christopher Lim is the senior vice president for marketing and strategy at franchise consultancy Francorp Philippines; president of U-Franchise Sales &Management; and chairperson and director for special projects for Asean integration at the Philippine Franchise Association.

Franchise Talk

Posted on: July 21st, 2017 by Francorp No Comments

[Title] A “snack shack” for your American comfort food fix

[Subhead] Learn how Weber’s Snack Shack went from Tagaytay to Metro Manila with its array of classic American comfort food.

[Byline] By Sam Christopher Lim

It was a case of East meets West: husband-and-wife John Vanden Dungen, a Canadian quality auditor, and Mae Heredia, a Filipina chef and baker, had always been partners in life and in business. The couple started the concept for Weber’s Delicatessen and Greg’s Fruitcakery & Bakeshop in 2009, as Mae baked and sold fruitcakes from their home in Canada.

It was a tradition they kept alive when they moved to the Philippines in 2012. They baked fruitcakes from the basement of their home in Tagaytay, and then sold the baked goods online via a Facebook page which has since garnered more than 15,000 followers. Their friends believed in the food concepts so much that they decided to become investors and business partners.

Thus, Weber’s Delicatessen and Greg’s Fruitcakery & Bakeshop opened their flagship outlets at the SM Wind Tower 3 in Tagaytay City in 2015. Weber’s Delicatessen eventually evolved into a community diner, a must-see landmark for all-American comfort food in the windy city of Tagaytay, thanks in part to word-of-mouth from satisfied visitors and curious tourists.

Customers keep coming back for more since there is always something new to taste. Weber’s has been known for John’s homemade chili, which they often slather onto their chili dogs, corn dogs, Buffalo wings, and nachos. They also serve deep-fried goodness such as French fries, onion rings, and even western fried chicken.

To cap off your American comfort food binge, Weber’s also serves lemonade, soft serve ice cream, frozen yogurt, and small pastries and other baked goods. Weber’s has also since introduced an all-day breakfast menu which boasts of fluffy pancakes, eggs benedict, sausages, and loaded omelets, among other breakfast favorites.

In addition, customers keep coming back to Weber’s due to its high standards of food quality. After all, John, an ISO-certified quality auditor, has been known for his passion for good taste, consistency, and quality. He created the operations policies of Weber’s and sees to it that it is implemented properly. To sum up his rules for Weber’s operations: always serve hot, never say “out of stock,” and every menu item is made from scratch.

Within a year, Weber’s Delicatessen created a food kiosk spin-off called Weber’s Snack Shack, which opened at SM Sky Ranch Tagaytay. It had all the elements which made Weber’s Delicatessen a hit with customers—generous servings of classic all-American comfort food at affordable prices—but in a food kiosk format, which can easily be placed in malls and other commercial establishments.

After opening two stores in Tagaytay, the clamor to open more outlets of Weber’s Snack Shack prompted John and Mae to open the business for franchising.  They also saw it as good means to penetrate the Metro Manila market, as it is easier to find good locations for a food kiosk rather than a full-service restaurant.

Indeed, the franchising gamble paid off as Weber’s Snack Shack has since found its way into different locations all over Luzon and Metro Manila, such as Robinson’s Galleria, Starmall Alabang, and Starmall EDSA Shaw, among other locations. However, John and Mae are still open to franchising Weber’s Delicatessen as a full-service restaurant. After all, Weber’s is all about giving Filipino customers the best classic all-American comfort food experience at a fraction of the cost.

Finding the right franchise starts with education. U-Franchise Sales and Management conducts regular “How to Invest in the Right Franchise” seminars. For more information, please visit www.ufranchiseasia.com or call (02) 634-0586 or (0917) 881-6999.

*****

Sam Christopher Lim is the senior vice president for marketing and strategy at franchise consultancy Francorp Philippines; president of U-Franchise Sales &Management; and chairperson and director for special projects for Asean integration at the Philippine Franchise Association.

Franchise Talk Size Matters, especially in franchising

Posted on: July 14th, 2017 by Francorp No Comments

This young franchisor experimented with location size to get a better handle on his food business.

By Sam Christopher Lim

Even while he was working in marketing and advertising, JR dela Paz already knew that he wanted to become an entrepreneur. But the former waiter, who has a degree in hotel and restaurant management, also knew that he needed a novel and compelling product in order to break into the food industry.

For inspiration, he first looked to his favourite food—burgers. It just so happened that his wife, Marge, has a special recipe for sausages. It didn’t take long for dela Paz to think of making sausage burgers. Thus, Size Matters was born, with the name inspired by the 12-inch Hungarian sausage offering.

The name was more than apt: It had a hint of naughtiness for name recall, and it highlighted the brand’s promise of big flavors and big servings. But as the business grew, size mattered in a different way for dela Paz as an entrepreneur.

When Size Matters first opened in 2011, it only had a small branch in Quezon City. Since Size Matters was just promoting burgers and sausages at the time, what dela Paz dubbed “cinema food,” he thought that its customers would just order food to go and not need seating—he thought wrong.

Their regular customers started demanding a bigger location which further proved to him that, indeed, size does matter in the food industry. So dela Paz experimented with the location sizes for his food business: Size Matters started out as a take-out counter and then eventually evolved into a sit-down restaurant. For Size Matters, dela Paz is now veering away from small locations, going for at least 25 square meters which can seat 18 people.

After having three franchised outlets for Size Matters, franchise inquiries revealed another concern for dela Paz. “People come up to me and say they like the concept, they want to venture into a franchise business, but they can’t afford to invest more than a million pesos for a restaurant,” said dela Paz.

In 2016, dela Paz launched a food cart concept called Jack’s Sausage Wagon, which specializes in authentic European sausages. It has all the elements customers have come to love about Size Matters—the big flavors and the big servings—but in a more compact setting. “I created this for the people who wanted to franchise the concept but just can’t afford the investment and commitment of a full restaurant,” said dela Paz.

For dela Paz, this move made good business sense as he noticed that it remains a largely untapped market. “I noticed that there’s still no solid sausage or hotdog cart in the Philippines. As a food entrepreneur, I am constantly looking for the next food trend; I want to start the next food trend in hotdogs and sausages,” said dela Paz.

Jack’s Sausage Wagon’s franchise package, which has a smaller area requirement and set-up cost, makes it an attractive investment for aspiring franchisees. “It is also easier to find locations for food carts, especially in the major malls,” added dela Paz.

For the next two years, dela Paz wants Jack’s Sausage Wagon to be a top food cart brand and the go-to place for affordable yet quality homemade European sausages—and he believes that the way to achieve this vision is through developing bite-sized packages that can grow through franchising.

Finding the right franchise starts with education. U-Franchise Sales and Management conducts regular “How to Invest in the Right Franchise” seminars. For more information visit www.ufranchiseasia.com or call (02) 634-0586 or  (0917) 881-6999.

*****

Sam Christopher Lim is the senior vice president for marketing and strategy at franchise consultancy Francorp Philippines; president of U-Franchise Sales &Management; and chairperson and director for special projects for Asean integration at the Philippine Franchise Association.

FranchiseTalk

Posted on: July 7th, 2017 by Francorp No Comments

6 steps to convert your business into a winning franchise

Want to finally franchise your business? Get started with these pointers.

Written by

Sam Christopher Lim

SVP for Marketing and Strategy, Francorp Philippines

After years of running a successful business, you finally want to give franchising a shot. After all, franchising can help your business reach national and even global heights using the time, resources, and manpower of other people.

But, like most first-time franchisors, you probably don’t know where to start. Most business owners choose to get the help of franchise consultants and franchise developers to give them a head start in the franchise business. But just to give you an idea on how to get started in franchising, here are six steps needed to convert your business into a winning franchise.

  1. Strategic planning

Franchising is all about creating a win-win scenario for both you as a franchisor, and also for your potential franchisees and customers. To create this scenario, strategic planning is crucial. This usually starts with the creation of a business plan and a financial model that ensures you and your franchisees become profitable. This business plan should also detail where and who to sell your franchise to; how much the franchise and royalty fees should be; and how to develop your franchise operations and its support infrastructure. In the end, strategic planning is all about maximizing the revenues of the franchise in a way that’s still fair for all parties involved.

  1. Streamlining operations

As a business owner, you should also be able to detail the tasks and activities required to operate your business on a daily basis, from opening to closing time. In addition, it’s crucial that the operations manual also captures the essentials of how to run the business, from hiring policies, financial controls and effective audit practices. The operations manual is an effective tool for both the franchisor and the franchisee, as it serves as the benchmark for auditing the quality of the work done by staff members and managers of each franchised outlet and ensuring consistent quality throughout your franchise network.

  1. Legal documentation

Since franchising entails granting a franchisee the rights to market your product or service, and to use your registered trademarks and names, it will do you well to prepare all the legal documents needed to also protect you as a franchisor. You also need to draft a franchise agreement, which will thoroughly define the rights and responsibilities of both the franchisor and the franchisee. If your franchise agreement is below 20 pages, it is probably too short as the franchise agreement and would be lacking important points that would protect both you and your franchisee. Take note that both the franchise agreement and the operations manual are considered legal documents, and any violation has its corresponding penalties.

  1. Franchise marketing

As a business owner, you’ve probably mastered the art of marketing your signature product or service. But marketing a franchise will be a different playing field as you’d be appealing to potential investors and franchisees, most of whom are entrepreneurs just like you. It requires a different marketing strategy, one that will require you to know who your ideal franchisee is and how to reach them more effectively. And instead of just playing on the strengths of your products or services, franchise marketing also plays on the aspirations of people to start their own business and be their own boss.

  1. Franchise sales

As with franchise marketing, selling your franchise will be different from selling your products or services. Selling a franchise is a function of business matching; that is, finding the right franchisees for your business concept. So while you can’t choose the customers who will avail of your products or services, you can always choose your franchisees accordingly, depending on your growth targets. So, you can’t just sell your franchise to anyone. More often than not, the success of a franchise rests on an effective franchisee selection process.

  1. After-sales support

One of the key promises of franchising is that people can be in business for themselves but not by themselves. As a franchisor, you also need to be there for your franchisees even after the contracts have been signed. This usually entails consultations with your franchisees even after the opening of their outlets.  To ensure the success of every franchisee, a franchisor should be able to provide the support and guidance needed to further fuel the growth of the franchise network.

This proven six-step process is what enabled Francorp to help brands such as Jollibee, Potato Corner, Bench, The Generics Pharmacy, Crystal Clear, Mont Albo Massage and 3,000 other clients globally grow from small business into huge franchise success stories. Follow these 6 steps and you will be on the patch to being the next big franchise brand.

For more information on franchising, contact Francorp Philippines at (02) 638-3149, email info@francorp.com.ph, or visit francorp.com.ph.

The International Franchise Association (IFA) is conducting a search for the Next Generation in Franchising. The international search is open to entrepreneurs aged 18 to 35 years old. Winners will be flown to the US (up to $1,500) to attend the international franchise convention, take part in a 90-day accelerator program with industry leaders and CEOs, industry-wide media exposure and many more.  Details are on http://nextgenfranchising.org/

*****

Sam Christopher Lim is the senior vice president for marketing and strategy at franchise consultancy Francorp Philippines; president of U-Franchise Sales & Management; and chairperson and director for special projects for Asean integration at the Philippine Franchise Association.