THE Philippine Franchise Association (PFA) expects the industry to post revenue growth of 10 to 13 percent next year, driven by an increase in food players.
“The 10 percent… is our projection for next year… on a high side or a high note, we are looking at 13 percent… we’d like to be able to seize that for next year, before next year finishes. But our planning is really on a five-year stretch,” PFA Chairman Sherill Quintana said in a press conference on Monday at the Crowne Plaza in Ortigas Center.
“This revenue growth is for the entire franchising industry,” she added.
PFA President Chris Lim said the main driver for growth next year would be an increase in food industry players as the economy was continuing to recover from the pandemic. The services sector, meanwhile, is also seen growing next year.
“Driving this growth target is the food industry … services in the industries have lagged behind, such as salons and spas, among others. Some of them haven’t really fully opened yet, but we foresee a lot of them opening and recovering by next year,” he said.
For the food franchising industry, beverages such as coffee are also seen to “possibly drive growth.”
“One more thing that can possibly drive the growth is the trend of drinks, especially coffee. During the pandemic, we noticed that there were a lot of home brewers who really specialized or upgraded their coffee experience because coffee shops were closed,” Franchise Asia Philippines 2023 co-Chairman Richard Sanz said.
Lim said the franchising industry’s revenues reached P27 billion in 2022, creating 2 million direct and indirect jobs.
The PFA is organizing Asia’s biggest and longest franchising show, Franchise Asia Philippines, which will be held on Oct. 27-29, 2023 at the SMX Convention Center and involve 350 companies showcasing about 1,000 brands.
It added that participants in this year’s trade show would be 39 percent new exhibitors and 61 percent repeat one or PFA members. Also, 20 percent will be international exhibitors from Australia, China, Japan, Singapore, Taiwan, the United States and Thailand, among others.
It will also be attended by 60 delegates from 26 countries, and a total of 60,000 visitors are expected to come.
Franchise Asia Philippines coincides with the twin meetings of the Asia-Pacific-Franchise Confederation and the World Franchise Council hosted by the Philippines. The PFA is a voluntary self-regulating body for the franchising industry in the Philippines.