Franchising industry aims to sustain double-digit growth
PFA president Chris Lim
MANILA -The local franchising industry is projecting a 10 percent to 13 percent annual growth in revenues in the next five years, with the nearly P30 billion business seeing better performance postpandemic.
Philippine Franchising Association (PFA) chair Sheryll Quintana on Monday expressing optimism about the franchising business, which was hobbled at the height of the health crisis.
“We’ve seen a lot of growth now for the service sector. There’s a clamor in the overseas market. But, of course, the food [sector] has really been a winner through and through,” she said in a press conference.
PFA president Chris Lim echoed this sentiment, citing that the food franchise sector had already exceeded its prepandemic performance, but noted that the services sector had yet to recover.
READ: Franchise industry aims for 15% growth in 2023
“Salons [and] spas, some of them haven’t fully opened yet. But we foresee a lot of them opening, recovering by next year,” Lim said, adding that agricultural franchising was also showing some potential.
“We know there is a big push in agriculture here. And franchising can serve that sector a lot—from retailers, from those who supply input to agriculture, or even servicing,” he added.
The PFA official added that an agricultural drone franchise would soon launch in the Philippine market, one that would offer services on mechanized fertilizer and pesticide application.
Data from the PFA showed that the local franchising industry had recorded P27 billion in revenues in 2022, a figure very close to prepandemic level, according to Lim.
Today, there are more than 2,000 franchise brands in the Philippines, according to him, with nearly 25 brands already present in overseas markets.
PFA is set to hold its annual flagship event, the Franchise Asia Philippines 2023 International Expo, from Oct. 27 to Oct. 29 at the SMX Convention Center in Pasay City.
“As we promote franchising, every one that opens is [equivalent to] another five to 10 jobs created. So, we now have over 2 million jobs now here in the Philippines [in the franchising sector],” Lim said.
More than 1,000 brands will be showcased during the event.
