Local franchises target 25% sales growth, but nCoV poses challenge

Louella Desiderio (The Philippine Star) - February 9, 2020 - 12:00am

MANILA, Philippines — The Association of Filipino Franchisers Inc. (AFFI) targets a 25 percent growth in sales this year but notes their businesses are challenged by the spread of the novel coronavirus (nCoV) which has resulted in lower foot traffic in malls.

AFFI president Jorge Noel Wieneke III said in a press conference the group’s gross sales is targeted to grow by 25 percent this year from P61 billion last year.

“I am hoping the January challenges will stop in February because the decline of foot traffic in the mall is now affecting us because of the coronavirus,” he said.

The spread of the virus, which emerged in the city of Wuhan in China, and is marked by runny nose, cough, fever and pneumonia-like symptoms, has discouraged individuals from going to crowded places like malls.

Prior to the spread of the nCoV, Wieneke said individuals also avoided malls due to the ash fall brought by Taal Volcano’s eruption last month.

“We’re hoping the issue will die down,” he said.

With foot traffic declining in malls where AFFI members’ outlets are located, he said the group is looking for ways to still achieve higher sales.

Among the steps being taken is to increase its focus on digital delivery platforms for selling products like Grab, foodpanda and Lalamove.

Wieneke said delivery platforms have been helpful in contributing to AFFI members’ sales.

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