From the usual P3.5 Million, 7-Eleven's operator,Philippine Seven Corp (PSC) now offers a franchise package for as low as less than P1 Million to,set the leadership in market for 24/7 retailing format.
PSC is now spearheading a program where,qualified people (with good track record) can now invest less than P1 Million to have their own 7-Eleven store,although their P3.5 Million package still stands. This is what PSC President Jose Victor Paterno announced,on a press conference after the company's stockholders meeting last Thursday.
The company was the one who led the 24/7 convenience,store in the country being its master licensee owner. Over the years, the store attracted different investors.
He announced that they want to have a 90 percent franchisee,owned network which is similar to Taiwan's ratio in the long term.
PSC has now a network of 1,760 stores nationwide,in which 57 percent are franchisee-owned while the remaining 43 percent are of the corporate.
PSC chair Jose pardo shared that their target is to reach 2,000 stores at the soonest time possible.
“We believe that this sector will remain crowded and competition more intense, but we shall capitalize on our first-mover adv@ntage and economies of scale, to maintain our dominant position in the market,” Pardo said.
“Your company has taken steps to protect and expand its leadership, recognizing that rewards for market share are especially strong in the convenience store sector. This involves not only an increased pace of expansion areas contested by competition, but strategic entry into new territories,” he added.
By this package which is more affordable, they hope to increase their franchisees. Paterno shared:
“In the Philippines, the people with money don’t want to work; the people who are willing to work, they don’t always have the money. We have the money. We want the people who are willing to work…We’ll attract people who are really passionate about operating stores and who are willing to be there everyday. We’ll invest in everything else,”
But they clarified that risk-reward ration of this package are still different from the P3.5-million package which has higher risks but higher returns. Paterno described the P1-million package as “won’t lose money but won’t make a lot.”
“When we lower the investment, we want more applicants and we want to choose the best,” he said.
source: kickerdaily
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