The Generics Pharmacy, one of the country’s fastest-growing franchises, is targeting to open another 800 outlets within the next two years, focusing on provincial locations.
Benjamin Liuson, president of The Generics Pharmacy, said the drugstore business was almost foolproof, as people, no matter how poor, would have to buy medicine when they get ill.
Capitalizing on this fact, he said the franchise business aimed to hit the 2,000-branch mark in two years, from the current 1,200-outlet network.
“If you want to go into business, go for the basic necessities like food and medicine,” Liuson said in a recent interview. “We grew our network to 1,200 in just four years, and we plan to continue to grow quickly in the next two years.”
In its first four years in business, he said about 300 The Generics Pharmacy franchises opened each year. This year, the opening rate had slowed a bit to 200-250 outlets.
Over the next two years, however, Liuson said the company would be more aggressive in getting franchisees, targeting mostly provincial locations, including low-tier municipalities.
The Generics Pharmacy has only one company-owned drugstore. All the rest are owned by franchisees, at an average ratio of four branches per owner.
“Owning only one branch is one of our secrets to growing the number of outlets so fast. Our objective is really to grow the number of branches quickly,” he said.
Individuals wanting to secure a franchise can do so for a total capital of P741,000, including the franchising fee, renovation, signage, point-of-sale terminal, and initial operating capital.
Each branch’s monthly expenses are estimated at P68,000, while monthly break-even sales are estimated at P180,000.