Potato Corner expanding overseas
Homegrown brand Potato Corner is pursuing an aggressive expansion program within the next two years that would allow the company to have a sizable presence abroad including the United States, Middle East and Africa.
Headed by Jose P. Magsaysay Jr., Potato Corner expects to end the year with a total of 350 stores (including kiosks and outlets) in the Philippines, and 65 more in other countries. By the end of 2014, local branches are targeted to reach 380, while those overseas, particularly the United States, are seen to reach 165.
Potato Corner currently has outlets in Indonesia, Malaysia, Panama and the US. It expects to be able to put up outlets in the Middle East, Mexico, Egypt and Botswana within the year or in 2014.
Magsaysay noted that the demand for Potato Corner french fries here and overseas had been increasing steadily, driven by the market’s preference for the brand itself and the rising purchasing power of the consumers. Proof of this is the fact overseas ventures cater to mainstream markets. This means the company does not have to target niche markets or cater only to Filipinos living and working in the host country for the business to take off, he explained.
Potato Corner expects the earnings of its stores in the US to exceed revenues generated by its local branches by 20 percent to 30 percent by the end of next year, Magsaysay further said.
Local branches are currently posting double digit growth in sales yearly.
Critical to the company’s successful expansion abroad was its ability to tap the right partners, whether through a franchising arrangement or a joint venture as what happened in the US.
Given the success of Potato Corner, the company is now planning to list on the Philippine Stock Exchange within the next two to three years, Magsaysay said.
“We’ll decide on this later on but we’re already preparing for it,” he added.
Potato Corner claimed to be the first to offer the original flavored french fries, opening its first outlet in October 1992. It began franchising a year later.
