DTI Urges Businesses to Put Up More Franchises

Department of Trade and Industry (DTI)’s Secretary Alfredo Pascual wants investors to establish more franchises in the nation and cites the healthy business climate of the Philippines.

At the Franchise Asia Philippines 2022 conference, Secretary Pascual said that the country has the seventh largest franchise market in the world and contributes 7.8% to the gross domestic product (GDP) of the Philippines, and generates two million direct and indirect jobs.

“With a growing middle class, our country is considered one of the largest franchise markets in the Southeast Asian region. Eating at a popular establishment or owning branded items signals societal status in one of Asia’s most social media savvy populations, “  said Pascual.

Secretary Pascual has also said that aspiring entrepreneurs in the country are looking into the franchising route due to the fact that franchising gives a higher success rate if compared to starting a business on your own since franchises derive from business models that are tried and tested.

According to Secretary Pascual, franchises have an upper hand in terms of brand recognition, market-wise.

Secretary Pascual says that “Name recall makes franchise brands popular, making sales easier,”

From the two basic franchise categories, Secretary Pascual also says that food takes precedence over non-food, with food taking up 43% of the approximately 1,800 franchise brands in the Philippines.

“Pandemic or not, the Philippine food service sector is growing as demand for convenience grows. The liberalized retail trade landscape and, to some extent, the reduction of import duties have contributed to the growth of the food service sector,”  says Pascual.

Source: Philstar