Food Stall Franchise Business: How Profitable can it be?

Published: 22nd August 2011
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Franchise businesses became popular in the Philippines when a number of popular small franchise business were introduced in the market which not only expanded the industy’s market, but also allowed many Filipinos to have the opportunity to start their own small franchise business. This is when food cart or food stall franchise businesses were introduced.

Food Stall Franchise Business: How Profitable can it be?
According to many business experts, franchise businesses in the past are mostly comprised of medium and large businesses such as grocery stores, convenient stores, bakeshops, and even fast-food restaurants.

Today, the franchise industry of the Philippines had significantly changed when a new franchise business were introduced in the Philippine market. These new franchise businesses are food stall or food cart businesses.

Compared to fast-food restaurants and convenient stores, food stalls are mostly small businesses, which normally occupy a small space in a high-traffic location, such as in malls and shopping centers.

However, though small, it can still generate large amounts of profits for its owners, particularly if its location can guarantee a high volume of foot-traffic. Because of its potential, many franchising companies in the Philippines started to acquire these businesses and redistribute it as a type of franchise business, hence the start of the food cart/stall franchise businesses in the Philippines.

Profitability
One of the reasons why food cart businesses became a very popular and profitable franchise business is because of the Filipino’s love for food, particularly for street foods like the popular siomai, kwek-kwek, tokneneng, fishballs, squidballs, and even other popular fast-foods like hamburgers and shawarmas.

Because most of these food-stuffs are significantly less expensive compared to the food-stuffs sold on popular fast-food restaurants, these businesses can easily attract many customers, which is the reason why these businesses are usually very profitable.

Mobility
Another reason why small franchise businesses such as food cart businesses became popular in the Philippine market is because of its mobility. Compared to medium and large franchise businesses, food cart businesses can easily be moved from one spot to the other.

Business Loans for Franchise Businesses
Another reason why franchise businesses became popular in the Philippines is because of the many loaning firms and banks that offer business loan services to Filipino entrepreneurs. A popular example is BPI Ka Negosyo franchise and Business Loan services. With their services, which also includes offering Small business loans Philippines, many Filipino entrepreneurs were given the opportunity to finally start their own business, or franchise a small food cart business, even though they lack the necessary capital to cover not only the franchise fee but also its many overhead costs.


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