Pinoy Business Coach

BY JESSICA ANNE D. HERMOSA, Reporter

Politics and remittances are expected to drive growth in the revenues of food, retail and service franchises, which are projected to grow by 30% this year after rising 20% in 2009, the Philippine Franchise Association (PFA) yesterday said.

Election-related spending will stimulate sales in the first half while the expected rise in outlets funded by strong flows of overseas workers’ remittances should likewise boost revenues, PFA officials said.

"[It should hit] 30%, or at least 20%," PFA Chairman Emeritus Samie Lim told reporters at the press launch of the upcoming Philippine International Franchise Conference and Expo.

Growth in 2009, in comparison, is estimated to have hit 20%, he said.

"[In the run-up to the elections], people feed the crowds and there’s optimism. For the first few months, politics will drive sales" Mr. Lim explained.

"After, growth will come from new investments from business people who are just waiting for a clear signal on who will head the country," Mr. Lim said.

"One of the factors is the remittances of overseas Filipino workers," PFA Chairman Robert F. Trota for his part said.

Already, the PFA is expecting more visitors to its five-day franchise trade fair which kicks off on July 14 at the SMX Convention Center. It is estimated that some 30,000 visitors will attend the event where they can choose from 335 franchise exhibits and take part in industry conferences, a PFA statement read. Last year the expo drew 25,000 visitors.

The PFA will also be hosting the World Franchise Council Meeting and Asia-Pacific Franchise Confederation Meeting in 2011, it said.

"[The events in 2011] will take our industry to the next level. The effect of hosting these in unimaginable," Mr. Lim said.

Trends can increase sales!