Lesson

Lesson from building a franchise directory: the hardest question a milk tea or coffee buyer asks is not which brand, it is whether the street can take one more cup.

By FranchiseNegosyo

Buyers who came through FranchiseNegosyo (https://franchisenegosyo.com/) often arrived with a favourite brand already picked and a location that looked busy on a weekend afternoon, and that combination tends to hide the real test, which is how many drinks the area buys on an ordinary Tuesday and how many counters are already splitting that demand. The first useful habit is counting cups rather than shops. Standing near two or three existing kiosks at mid morning, lunch and late afternoon and noting how long the queues stay shows whether current sellers are turning people away or waiting for them, and an area where every counter is idle by three in the afternoon rarely needs another one. The second habit is matching the format to the foot traffic. A school gate, a transport terminal and a residential corner each buy drinks differently, so the brands worth shortlisting change with the spot, and the food and beverage listings (https://franchisenegosyo.com/industries/food-beverage) let a buyer sort carts, kiosks and full stores before deciding which one the street actually suits. Money is the third check, because a crowded area forces a smaller format. Someone working with roughly half a million pesos can see what fits that ceiling on the budget page at https://franchisenegosyo.com/budget/500k, while a buyer in Negros with more room can look at the one million band for Bacolod (https://franchisenegosyo.com/budget/1m/bacolod) and notice how many drink brands already sit in that city before adding to the count. Mapping comes next. Plotting every competing counter within a short walk, including independent stalls that no directory lists, usually reveals clusters where several sellers fight over one mall entrance and quieter pockets a few blocks away, and the gap between those two pictures is where a new branch either earns its payback or stalls. The last step is comparing the offers honestly once the location holds up. Fee, total investment, royalty and payback read very differently when the expected cups per day are lower than the brochure assumes, and the guide on comparing two Philippine franchise offers (https://franchisenegosyo.com/guides/how-to-compare-two-philippine-franchise-offers) walks through putting two drink brands next to each other on the same numbers. The pattern that keeps repeating is that buyers who do the street work first end up choosing a different format, and sometimes a different trade, than the one they walked in wanting. The full set of brands to test against a location sits at https://franchisenegosyo.com/franchises for anyone running the same exercise in their own neighbourhood.

Reactions
0
Comments
0
Shares
0

Browse more founder updates