The pioneer in the 24/7 retail-store format in the Philippines is cooking up another revolutionary prospect for Filipinos with entrepreneurial mindset. Philippine Seven Corp. (PSC) has recently announced plans to offer a lower investment package for 7-Eleven franchise locally.
The operator of the American brand of convenience store in the country is considering lowering the current P3.5-million franchise package to less than P1 million. The company aims to attract more franchisees for two reasons. During a recent press briefing, PSC President Jose Victor Paterno said they have a goal to soon exceed a 2,000-store mark (currently, there are about 1,760 7-Eleven locations nationwide).
Secondly, PSC is looking at increasing the ratio of franchised 7-Eleven stores in the country to 90%. Presently, only about 57% of all the brand’s stores nationwide are owned by franchisees, while 43% are corporate-owned.
This goal can also be considered as a strategy to maintain PSC’s dominant position in the convenience store market in the Philippines. “We believe that this sector will remain crowded as the competition gets more intense,” said Paterno. “But we shall capitalize on our first-mover advantage and economies of scale.”
However, Paterno hinted that PSC might be a little more stringent when screening franchising applications. He said they might more likely choose applicants who are passionate about operating the business and those who could commit to manage their store physically every day.
We’ll keep you updated on the next development to this promising opportunity.