And now there are four

Not content with its Potato Corner franchise chain, Cinco Holdings, Inc. launched last year two more cart/kiosk-based food concepts. One sells food such as squid balls and kikiam that can be strung up a stick called Quick Stix and the other sells dimsum like siomai and siopao called China China.

"There is no such things as bad timing. There may be seasonality but it is always a good time to go into business," said Cinco president Jose Magsaysay, Jr. "Last year was our best year, with a 50% growth in business and there is no reason why this year is not going to be better."

The total investment for Quick Stix (inclusive of the franchise fee, cart/kiosk, products, staff training, and market research) is P100,000; and that of China China, P150,000.

"We do not just leave you to your own devices after you have paid the franchise fee. We make sure that you maintain your business," said Magsaysay. "If the franchisee feels that his outlet is not selling very well, we help him find another place to put his business. That’s the beauty of the cart or kiosk model. You can pull it out anytime you feel that the location is not a good one."

Top Performers

Among the 25 outlets of Quick Stix, the top performer (which is located outside Metro Manila) generates sales of P300,000 a month. A China China outlet can earn as much as P5,000 a day.

"Aside from the cheaper franchise fee, the appeal of Quick Stix to investors is the quick payback time. The average payback is half a year. By the end of the first year, your investment would have doubled," said Magsaysay. "Right now, China China is not doing as well but we expect a better performance this year as we expand our product line to include mami and toppings."

The Quick Stix payback already inputs the P15,000 to P20,000 monthly rental cost in high food traffic areas such as malls. The rental cost for China China carts/kiosks is cheaper since the preferred location is either inside a school or near a school.

This month, at the Philippine Business Fair on Feb. 27-29, Cinco will be launching another cart/kiosk concept called Slippery Sam, which will offer flavors served in bars but without the alcohol. Total investment is about P150,000, depending on the location, and the estimated payback is 80% within the first year.

Advice

To ensure that quality is being maintained by every franchisee, Cinco conducts a surprise audit every month. A business review is also held every six months with franchisees.

"I have seen franchisers come and go. In selecting a business, especially if you want to be a franchisee, one must be very cautious as there also fly-by-night franchisers who know nothing about running a business and are only after the franchise fee," said Magsaysay, who is currently the president of the Philippine Franchising Association. "If you want to invest in a food business that has become a fad like pearl shake, be sure that you can get your investment back after three months of operations. If the payback is quick, you can open another business or the same business in another place that is less saturated."