Young entrepreneurs turn to franchising to boost business

MANILA, Philippines — In a country where a cup of good coffee is a favored staple that’s enjoyed almost any time of the day, it is no wonder that coffee shops both big and small have gained success over the years. Among the brewing bunch, one particular coffee franchise – Farron Café of couple Farwa and Ronnel Hombre – has risen above expectations and competition in the coffee-on-the-go concept.

Farron Café’s success is a mix of hardships and triumphs – a humble origin that’s strengthened by the couple’s combined hard work and perseverance. An independent homegrown business that proudly brings simple Pinoy taste to affordable yet premium quality line of signature blends, Farron Café’s inspiring story is one that proves how genuine passion, sacrifice, grit and ingenuity can empower a business.

No instant success

Prior to establishing Farron Café, its founder and CEO Ronnel was a young self-supporting student who had to stop schooling to assume various jobs to help augment their family’s finances.

“The trend among students then, particularly within the university belt area in Manila, were frappucino drinks from an international coffee brand. When you are holding a cup, it simply meant that you’re ‘in’ but it’s really expensive for many students like us then who can’t afford it all the time. So we thought, ‘why not make a localized version of this drink at a cheaper price?” recalled Ronnel.

After several trial-and-errors and initial capital of only P50,000 – combined money that Ronnel and Farwa raised from a personal loan from a college professor and pawned jewelry – the first Farron Café branch, a food cart, was opened beside UE Manila in February  2010.

Offering hot and cold coffee, chocolate, and tea, Farron Café also carried frosty frappés that come in different flavors: rocky choco snow, mocha, minty choco, cappuccino, hazelnut, cookies and cream, barraco, and coffee jelly.

The cup that keeps on giving

In just 10 years, Farron Café has become a familiar name and is making huge strides in many locations, serving avid coffee lovers with value-for-money, unique and premium quality blends and other beverages.

“Farron Café is not just selling frappes but we are selling experience to Filipino masses that can’t afford expensive beverages from foreign brands. Our three-year goals include setting up another 300 stores nationwide and to expand 100 stores internationally,” Ronnel said.

While would-be coffee shop franchisees are eager to learn the secret to Farron Café’s success, Ronnel said that there is no fool-proof formula or shortcut to success. Instead, pursuing one’s goal with a strong motivation and clear growth objectives lead to one’s desired successful outcomes.

For Ronnel, it all boils down to one’s ability to innovate products and services as a way of adapting to consumers’ evolving taste profiles and keeping customers satisfied and happy.

“Starting a business is difficult, and sustaining it is also a different story. While the market preference and competition are becoming stiffer, you must have ingenuity to stay in the market.  It is not all about passion or “diskarte” factor to sustain your business.  You need to know how you can scientifically, professionally and systematically run the business. Knowing the parameters of your business, new strategy and new perspective then you can strategically grow your business,” Ronnel said.

Finding the right partner

“For a small business venture like ours, we thought that tapping the services of a franchise consulting firm might cause us a big budget,” Ronnel said. “But we realized that if we want to make it big, we need to make that first step”.

The couple made a short-list of franchise consulting firms. It was Francorp that stood out with its credentials of having big brands in the country, such as Jollibee, Hap Chan, Bench and Tokyo Tokyo, as its clients.

They then knew that Francorp could make a big difference in their goal of expanding their brand to a wider reach.

“We know that Francorp can deliver but we are hesitant at first that our financial back may not support or match their rates,” Ronnel said. “But destiny seemed to lead us to Francorp. Just when we are about to sign the contract with another franchising company, someone from Francorp called us up. We were surprised to learn that Francorp offers a scheme that made it easier for new businesses like Farron Café.”

Farron Café eventually expanded its portfolio by establishing more outlets including the cart inside SM Manila, its first kiosk inside a mall.