Corporate News

Binalot chain to ramp up franchising in 2012

Posted on November 07, 2011

BINALOT FIESTA Food, Inc., a homegrown quick-service restaurant chain, plans to ramp up expansion with a target of having 40% more outlets by 2012, an official said.

PATRONS VISIT an outlet of Binalot Fiesta Food, Inc. which plans to ramp up expansion.
“For 2012, we plan to expand by 40% in number of stores,” Rommel T. Juan, president of Binalot Fiesta Food, said in an e-mail to BusinessWorld late last week.

In the meantime, the company expects to close 2011 with 39 stores, 15% higher than the 34-store tally the previous year.

“We are now focusing on area development franchises, which give exclusive rights to one franchisee for any given province or region,” he said. “We are now eyeing the Batangas and Quezon area in the south as well as Pampanga and Tarlac in the north for area development.”

Mr. Juan in a separate interview yesterday said the Binalot outlet tally hit 40 in 2009; however, the company shut down seven stores located in food courts.

“In 2009, we had a realignment of stores. We closed around seven stores, which are located in food courts in malls because we realized that our stores should be stand-alone,” he said in a telephone interview.

Mr. Juan said the company is expecting to post better results in the second semester of the year compared to the first half.

“As always, the second-semester projection are higher than the first semester because of the increase in sales caused by the entry of the… holiday season,” he said.

“Although we have experienced some decline in sales brought about by the recent typhoons, we still project that sales will top last year’s performance primarily because of our improved operations and marketing, better product lineup as well as better store locations opened within the year,” he added.

The company is also expecting a double-digit growth for next year inline with its expansion.

“We did a conservative 8% increase in net profit from last year. We project a 12% increase in net income next year…” Mr. Juan said.

He, however, declined to give specific figures.

The company has also implemented a new scheme that Mr. Juan deemed would be convenient for the franchisee.

“We are also the first to introduce the company supervision scheme, which allows a franchisee to have a franchise without being hands-on in the store operations,” he said. “The Binalot head office will supply a manager or supervisor to take care of your store for you.”

He added that franchise cost for Binalot would cost up to P2.5 million on average. -- Cliff Harvey C. Venzon