Filipino Franchise Brands Aim For Rapid International Growth

Here in the UK, two Filipino franchise brands are starting to make their mark amongst British consumers. In the past few years, both fried chicken chain Jollibee and Potato Corner – famous for its flavoured fries – have established presences in various locations across the UK and have plans to expand further both this side of the pond and into other newly-developed international territories.

It’s all part of a significant drive by the Philippine franchising industry to push their home grown brands out across the globe, with chairman emeritus of the Philippine Franchise Association (PFA) Samie Lim saying in March this year that the aim is to have fifty Filipino franchise brands operating globally over the next three years. At present, around twenty Phillippine-based franchises have an international reach, the majority in the fast food sector.

For over a decade now, Lim and the PFA have worked tirelessly to promote the Philippines as the franchising hub of Asia. Goldman Sachs has identified the country in it’s “Next Eleven”, a list of countries with the potential for significant economic growth. It forecast that by 2075 the Philippines would be the 14th largest economy in the world, citing the country’s open economy, it’s strategic business location between two great trade routes and a crossover point between Asian and Western markets, and its business process outsourcing industry.

The Philippines has long been a welcoming home for international franchise brands looking to launch new overseas locations, with an estimated 2 million Filipinos being employed in the franchising sector. There are around 1,300 international franchises operating in the Philippines, attracted by its growing middle class and its social-media loving youthful population. Seeing how these overseas franchise brands have enjoyed success on their own doorstep has undoubtedly spurred on Filipino franchisors to start their own international journeys and seek success outside of their home nation.

With high levels of international migration and thriving expat Filipino communities overseas, it is perhaps not a surprise that many of these expanding brands have looked to establish their initial international locations in areas with a busy Filipino community who know and love what they do. Chicken brand Jollibee’s initial growth strategy centred on just that – offering a taste of home to Filpinos overseas and opening in locations with a ready-made base of Filipino customers. Founder Tony Kan Catkiong telling Forbes back in 2013 that “We don’t have to advertise when we open in these places. The longing for home is there. It’s just packed. They come here because it’s the taste of comfort food. When we opened a store in the Middle East, a customer asked me, ‘Sir, can you play your old jingle? I want my daughter to hear it.'”

2023 sees the Philippines play host to a number of significant franchising events. Earlier this year it was home to the Franchise Asia Certified Franchise Executive Program and the International Conference. In October the Franchise Asia International Expo will take place in Manila and will afford local brands a key opportunity to be exposed to global markets. It includes the hosting of the World Franchise Council (WFC) and the Asia Pacific Franchise Confederation (APFC).

“Our hosting of the WFC and APFC meetings coinciding with Franchise Asia shows that the world indeed regards the Philippines as the franchise hub of Asia and is a testament to our industry’s resilience and the capacity of our economy to buttress franchising growth,” said Samie Lim of the PFA.

The Expo is expected to draw as many as 75,000 attendees, making it the biggest franchising event in the Philippines. And it seems highly likely that this event will place the country firmly on the international franchise stage and move the Filipino franchising industry several steps closer to achieving their international expansion goals.