SERVICE franchise concepts are gaining ground and seen to match the contribution of food-franchise concepts to local franchisors’ revenues in three years.
“The ratio of people into food and services around three years ago is 70:30. Ngayon the picture has changed, 54:45 na because there are more entrepreneurs coming in with service franchises. Unlike before when you talk about franchise development, it’s more of food. Ngayon, ang dami nang services,” said Armando O. Bartolome, president of the Association of Filipino Franchisers Inc. (Affi), during the association’s 14th Franchise and Business Expo at the World Trade Center. “In the next three years, mag-e-equal iyan. I see the services sector as booming,” he added.
Service subsectors that are considered “sunrise” areas for franchising are beauty and wellness, construction, education and health care.
Drivers for the foreseen rise in service franchises, Bartolome said, is the need for more convenience from condominium-dwelling residents who are now accustomed to have all their needs within reach.
“Especially with the proliferation of condominiums, more people now are after convenience. Another reason is the traffic, with that problem, people would rather phone in and call for a service,” the Affi president said.
In the first half of the year, Affi members hauled in revenues to the tune of $96 billion. This is expected to grow by 25 percent annually. Of the $96-billion revenues, the majority is still being contributed by food concepts.
Franchise business concepts now by Affi members are now at 2,500.
Affi has 165 members to date, with a store count of 31,239 as of 2015. Last year outlet count was at 16,093.
Filipino franchisors of Affi employed 96,000 in 2014, and now has 197,000 workers this year.
The 14th Franchise and Business Expo is held from October 2 to 4, and will feature the Business Journey guided tour, aimed at helping enterprising individuals start-up a business through a walking tour of six stations representing different steps in the start-up process.