SERVICES concepts have overtaken food and retail as the most preferred startup businesses for Filipino franchisees.

This is based on the inquiries received by Franchise Corp. (Francorp) at the recently concluded Franchise Asia 2011 at the SMX Convention Center organized by the Philippine Franchise Association.

According to PFA chairman emeritus Samie Lim, of the total number of inquiries received by Francorp, 54 percent were directed at services concepts, 28 percent at food and 18 percent at retail.

“So in short, food is still competitive, retail is there, but the one with most potential for Filipinos is services, and that is mainly because we have excess manpower,” Lim said.

One factor that is driving interest in the services sector, he said, is the sprouting of small condominium and housing units that compels owners to outsource household work and other similar services such as plumbing and electrical. The small size of the dwelling units prevents owners from employing help because there are no available rooms for them.

In the US, Lim said there are already franchisors offering household work, plumbing, and electrical services with standard uniforms, equipment, training, and fees.

At the three-day Franchise Asia 2011, Lim said Francorp received inquiries from about 850 people who want to buy a franchise and 423 businessmen who are seeking to franchise their concepts.

Lim said another “next big thing” in the local franchising industry is the emergence of multi-brand franchisees.

Jollibee Foods Corp., Lim said, has already shown that it is profitable to become a multi-brand franchisor. 

He said there are franchisees who will hook up with different concepts and then hire professionals to manage the businesses. “This is new because in the past, this is a taboo,” Lim said.