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Fast Food Philippines

Before the pandemic, fast food restaurants or quick-service restaurants (QSR) were very profitable. Proof for this is that they were popping up everywhere.  

But how about now? Is it still a profitable venture despite COVID-19?

For sure most entrepreneurs have this question in mind. This uncertainty is always valid. But knowing the current situation of the fast-food industry will give you assurance and the perfect reasons to pursue or not a business venture this time.

Here are the top 15 fast-food franchises in the Philippines today and everything you need to know about them.

Philippine Fast Food Industry Overview

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In the history of the fast-food industry, homegrown Tropical Hut comes first. It is one of the oldest fast-food restaurants in the country. The Que family, owners of Mercury Drug, established it in 1962, while the Kentucky Fried Chicken (KFC), the first foreign company, came in 1966.

In 1970, Pancake House started its operations. Greenwich Pizza launched in 1971. Shakey’s Pizza, an American company, joined KFC almost a decade later in 1975, while Jollibee started in 1978.

Then, McDonald's entered the Philippines in 1981 in the middle of the influx of multinational companies. The others that came were Wendy’s (1982), Pizza Hut (1984), and many more.
From this brief history, you can see that Filipinos are open to both local and foreign fast food. Until the present, these companies are still around.

The Philippine fast food industry was affected at the start of the pandemic. The strict lockdowns caused companies to close some outlets. For example, Jollibee shut down 255 outlets last year 2020.

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However, the outlook has improved this year. Two factors contributed to this:

  • The government eased the lockdowns. Restaurants may open as long as they follow health and safety protocols. They can hold dine-in but not to full capacity. It should be within a certain percentage of its ability as set by the government.
  • Companies made adjustments. They used websites and social media to connect with the customers. They also strengthened their delivery service. If not, they partnered with web-based delivery companies.

Because of these factors, we expect the fast-food industry to grow. The forecast is that it will grow at the compound annual growth rate of 6.9% until 2026.

What Makes Fast Food An Ideal Business To Franchise

According to one survey, 46% of Filipinos eat at fast-food restaurants one to three times a week on average. Fast food’s popularity makes it a good business to franchise. The reasons for its popularity are:

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  • Young people love fast food. The Philippines has a young population. The average age of Filipinos is 25.2. Thus, the QSR industry has a large captive market.
  • The working people, because of their busy schedule, choose fast food meals. This is one reason there are many fast food outlets around business hubs.
  • Families opt for fast food when they are dining out casually. Children are excited because some fast-food restaurants have play areas.

Moreover, families also choose fast-food restaurants for celebrations. They celebrate christenings, birthdays, graduations, and many more at a fast-food restaurant. Many fast-food restaurants have party rooms. Right now, these family traditions have lessened because the government does not allow children to go to public places.

So, buying a franchise is a wise decision. The fast-food business is thriving even during this pandemic.

Pros and Cons of Fast Food Franchise

Pros

The following are the pros of starting a fast-food franchise business:

Easy to form an outlet

Setting up your franchise outlet is not as complicated as starting your own business. The franchisor will help you in putting your business. Some call this a turnkey business.

High demand market

As mentioned above, 46% of Filipinos eat at fast-food restaurants one to three times a week on average. Your market is young people, busy workers, and families.

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Instant brand recognition

Many of the fast-food chains offering franchises are well-known and respected brands. They have built their reputation through the years. You carry this to your business.

Financial funding

Franchisors will not finance your business. What they do, instead, is provide you with some guidance on where to get financing.  Philippine banks will lend money for franchising. They will provide you with options to finance your business.

Training and Support

The franchisor has a proven system. It allows them to share and train you and your crew on this. Then when the business is in operation, the franchisor will support you. They want you to succeed because your failure is their failure too.

Cons

Initial cost

Well-known fast-food chains ask for steep franchise fees and initial investment capital. One of the main reasons for this is that you are buying a brand name. Less known chains will not be expensive.

Contractual obligations

The franchise contract seals the relationship between the franchisor and franchisee. Both parties should follow the terms and conditions written in the agreement, including the locked-in period and the restrictions.

Locked-in period

Franchise contracts require a locked-in period. If you discover things do not meet your expectations, the agreement binds you. If you want to get out, wait for the locked-in period to expire.

Restrictions

Related to the contractual obligation are restrictions. You do not have the freedom to change and innovate to fit your business situation.

Royalties

Depending on the franchising company, a franchisor could require a royalty fee. It is like a membership fee paid regularly, but not all companies charge this. 

Sharing of profits

You share profit with your franchisor. The allocation of profit will depend on the agreement entered or the franchise availed. A franchise could either be a Company Owned Dealer Operated (CODO) or a Dealer Owned Dealer Operated (DODO). In the former, the franchisee receives less. In the latter, the franchisee gets more.

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The Key to Success in Fast-Food Franchise Business

If you want to succeed in the fast-food franchise business, there are two things needed.

Study Franchising 101

Arm yourself with the essentials of franchising. Franchise Market Philippines provides you with these essentials:

Apply effective management tips

Here are some tips that focus on the running of the business.

Define management roles

Clearly defined management roles and job descriptions will reduce disputes in the workplace. Instead, this will lead to efficiency and harmony. A good manual will help to clear the different roles.

Hire the right employees

Hire reliable people - people that you can trust with the work given to them. They can work with minimal supervision.

Train your staff

Although the franchisor takes care of the training, just ensure that your staff understands. Then, check that they are doing according to the standard operating procedure. The well-trained staff knows their goals in work, thus reducing constant supervision. They also work efficiently.

Maintain cleanliness

Since this business is a food business, the cleanliness of the restaurant must be the top priority. Dirty restaurants drive away customers.

Ensure safety

The safety of the workers and customers must be a top priority too. Workers should follow preventive measures. They must wear the required PPE when their work needs it. 

Adding to this is the safety of the restaurant from the COVID virus. All the health and safety protocols must be implemented.

Take advantage of technology

The grab-and-go environment of the fast-food restaurant calls for technology. Technology makes store operations flow faster and efficiently. Get the best POS software you can buy. A good POS software can help you with the sales, inventory, and customer data.

The pandemic also calls for technology. During this pandemic, less personal contact is the goal of all business establishments. Check for technology that can offer self-checkouts, contactless and mobile payments, etc.

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15 Top Fast Food Franchises in the Philippines

1. Jollibee

Jollibee is a Filipino multinational chain of fast-food restaurants. It is the largest fast-food chain in the Philippines. Today, the number of branches has reached over 1,400.

Before becoming Jollibee, it started as an ice cream parlor. In 1978, Tony Tan Caktiong and his family turned it into a fast-food restaurant. Thus, Jollibee was born.

Initial Investment: Php 35M - Php 55M
Website: https://www.jollibee.com.ph
Email: [email protected]
Contact Number/S: 2688-7128; 8-7000

2. McDonald’s

Brothers Richard and Maurice McDonald in San Bernardino, California. Starting in 1940, McDonald’s is an American fast-food chain. It is the world’s largest restaurant chain by several branches and by value.

McDonald's entered the country in 1981.  McDonald's International came in partnership with McGeorge Food Industries of George Yang. It opened its first outlet in Morayta, Manila.  Now, the company has 655 stores all over the country.

Initial Investment: USD$ 1M (Php 50M)
Website: https://www.mcdonalds.com.ph
Email: [email protected]
Contact Number/s: 88888-500 loc. 5000; 0998-9726564

3. Chowking

Chowking is a homegrown fast-food chain. It specializes in Chinese food such as dim sum, noodle soup, and fried rice in bowls with toppings.

Robert F. Kuan founded Chowking in 1985. It opened its first restaurant in Rotary Arcade, Makati. Now, it has 569 branches all over the country. Jollibee Foods Corporation bought the company in 2000.

Franchise Fee: Php 1M
Initial Investment: Php 17M - 35M (includes the franchise fee)
Website: https://www.chowkingdelivery.com/home
Email: [email protected]
Contact Number/s: 86341111-50 Local: 7526

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4. Mang Inasal

Mang Inasal  is a Filipino fast-food chain. It is famous for its chicken barbecue and unlimited rice.

Edgar “Injap” Sia founded Mang Inasal in 2003. He was just 26 years old then. He opened his first restaurant. In 2009, his company already had 100 outlets. In 2016, Jollibee Foods Corporation bought the company.

Mang Inasal allows two business models: Sole Proprietorship and Corporation.

Set-up Fee: Php 1,200,000.00 net of VAT
Initial Investment: Php 12M - 18M
Royalty Fee: 5% (net of Sales)
Ad Fee: 3% (net of Sales)
Space requirement: 220-250 SQM
Website: https://www.manginasal.com
Email: [email protected]
Contact Number/s: 0998-587-6522

5. KFC

Kentucky Fried Chicken or better known as KFC is an American fast-food chain. Colonel Harland Sanders founded it in 1930. He sold fried chicken from his roadside restaurant in Corbin, Kentucky. His business was growing, and four years after, he moved to a bigger place. Because of his business success, the Governor of Kentucky gave him the honorary “Colonel.”

KFC was the earliest multinational fast-food chain to arrive in the Philippines. It came in 1966. Now, Hansbury Inc. holds the franchise for the Philippine operations. It has 332 branches throughout the country.

As to franchising, KFC offers two models: Inline or Mall Store and Free-Standing.

Initial Investment: P19 M
Space Requirement: 160-250 sqm (Inline or Mall Store); 700 – 1200 sqm (Free-Standing)
Website: https://www.kfc.com.ph
Email: [email protected]
Contact Number/s: 288878888

6. Greenwich Pizza

Cresida Tueres founded Greenwich Pizza in 1971. Today, it is a pizza and pasta fast-food chain. Its square pizzas make it stand out from the others. Today, 272 Greenwich branches are spread throughout the Philippines.

In 1994, Jollibee Foods Corporation bought majority shares in the company. Eventually, it bought the remaining shares in 2006. Greenwich Pizza is now a subsidiary of Jollibee Foods Corporation.

Initial Investment: Php 17M - 22M
Royalty Fee: 5% (gross of sales)
Ad Fee: 5% (gross of sales)
Space Requirement: 180 sqm - 235 sqm
Website: http://www.greenwichdelivery.com/
Email: [email protected]
Contact Number/s: (02) 634-1111 loc. 4616/4614

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7. Shakey’s Pizza

Shakey’s Pizza is an American pizza restaurant chain. On April 30, 1954, Sherwood "Shakey" Johnson and Ed Plummer founded the company in Sacramento, California. It is the first American pizza fast-food chain.
In 1975, Shakey’s came to the Philippines, and San Miguel Corporation was its master franchisee. They opened their first outlet in Makati Avenue near the Rizal Theater. They promoted Shakey’s pizza with their beer.

Shakey's Pizza Asia Ventures, Inc. (PIZZA) owns the master franchise with 189 stores nationwide.

Franchise Fee: Php 1.5M
Initial Investment: Php 18M - 25M
Royalty Fee: 7.5%
Ad Fee: 5.5%
Website: https://www.shakeyspizza.ph
Email: [email protected]
Contact Number/s: (632) 8867-7677

8. Goldilocks Bakeshop

In 1966, two sisters, Milagros Leelin Yee and Clarita Leelin Go, and their sister-in-law, Doris Wilson Leelin, launched Goldilocks. They opened a small bakeshop along Pasong Tamo Street, Makati.

Initially, Goldilocks focused on cakes and pastries. Gradually, it went into fast food restaurant format. Today, it has over 420 stores in the Philippines and overseas.
It offers two models for franchising: Bakeshop and Foodshop (a full store)

Franchise Fee: Php 800, 000.00 (Bakeshop, VAT exclusive); Php 1.2M (Foodshop, VAT exclusive)
Initial Investment: Php 6M - 8M (Bakeshop, includes the franchise fee); Php 10M - 15M (Foodshop, consists of the franchise fee)
Royalty Fee: 4% of the total value of bakeshop products purchased (Bakeshop); 8% of total monthly gross sales (Foodshop)
Ad Fee: 3% of the total monthly sales
Space Requirement: min. 50-80 sqm (Bakeshop); min. 170-200 sqm (Foodshop)
Website: https://www.goldilocks.com.ph
Email: [email protected]
Contact Number/s: 8532-4050 loc 86262

9. Tokyo Tokyo

Tokyo Tokyo is a Filipino fast-food restaurant chain. It specializes in Japanese food. On April 22, 1985, it launched its first restaurant at the Quad Car Park (now Glorietta).
Now, Hansbury Inc., the master franchisee of KFC, owns Tokyo Tokyo. It has 80 restaurants nationwide.

Franchise Fee: Php 1.4M
Initial Investment: Starts at Php 14M
Royalty Fee: 5% of Sales
Ad Fee: 4% of Sales
Management Fee: 2.5% of Sales
Space Requirement: 90-150 sqm for mall stores
Website: https://www.tokyotokyodelivery.ph
Email: [email protected]
Contact Number/s: 02370-1396

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10. Yellow Cab Pizza Co.

Yellow Cab Pizza Co. is a Filipino pizza restaurant chain. Eric Puno, Henry Lee, and Albert Tan founded it in April 2001. They introduced their first outlet in Makati. Max’s Group Inc. owns the company. Over 150 branches dot the whole archipelago.

It has two franchise models: Inline store or Mall-based and Standalone.

Initial Investment: Php 10M - 12M (Mall-based, inclusive of the franchise fee); Php 13M - 15M (Standalone, inclusive of the franchise fee)
Space Requirement: 100 sqm - 150 sqm (Mall-based); 600 sqm - 800 sqm (Standalone)
Website: https://delivery.yellowcabpizza.com
Online Mail: https://www.maxsgroupinc.com/franchise/letter
Contact Number/s: +63 (2) 8-424-2800

11. Kenny Rogers Roasters

Kenny Rogers Roasters is an American chicken-based restaurant chain. Country musician Kenny Rogers and former KFC CEO John Y. Brown Jr. founded the company in 1991. They opened their first branch in Coral Springs, Florida. The company thrived for several years, with many restaurants worldwide. However, it faced several problems and went bankrupt. 

In 2008, Nathan’s Famous, a fast-food chain and the last owner of the company, sold it to Roasters Asia Pacific (Cayman) Limited, a company owned by Berjaya Group of Malaysia. The North American operations gradually shrunk. The last remaining restaurant closed in 2011. But, it is growing in Southeast Asia.

In the Philippines, Kenny Rogers Roasters started its operations in 1995. Roasters Philippines Inc. operated the local franchise. Its first restaurant was in Alabang Town Center. 

Today, Epicurean Partners Exchange, Inc. is the Philippine master franchisee of Kenny Rogers Roasters. It counts at 100 restaurants all over the country.

Initial Investment: P15M (inclusive of the franchise fee)
Space Requirement: 2,000 sqft
Website: https://kennyrogersdelivery.com.ph
Email: [email protected]
Contact Number/s: 632 893 5631

12. Dunkin’

It used to be Dunkin’ Donuts, but now it's just Dunkin’. In 1950, William Rosenberg established Dunkin’ Donuts in Quincy, Massachusetts. It is a famous American fast-food chain selling donuts and coffee.

In 1981, Golden Donuts Inc., the local master franchisee, brought Dunkin’ Donuts to the country. It established its first shop at the Quad Car Park (now Park Square) in Makati. Today, it has grown to 700 outlets nationwide.

Initial investment: Php 200,000.00
Website: http://www.dunkindonutsfranchise.ph
Facebook: https://www.facebook.com/dunkin.ph
Email: [email protected]; [email protected]; [email protected]
Contact Number/s:  (02) 8988 7300; (02)636-0550; (+63 (02)636-0550) (Golden Donuts)

13. ArmyNavy + Burrito

ArmyNavy + Burrito is a Filipino fast-food chain offering American burgers and TexMex food. In 2008, Eric Puno founded the company. He was also one of the founders of Yellow Cab. But it was on March 23, 2009, the first store opened in Tagaytay City, South of Metro Manila. There are now over 60 branches all over the country.

Franchise Fee: Php 1.5M
Initial Investment: Php 9M  - 12M
Ad Fee: 3 %
Space Requirement: 90-150 sqm for mall stores
Website: www.armynavy.com.ph
Email: [email protected]
Contact Number/s: 333-3100

14. Mister Donut

Harry Winokur is the brother-in-law of William Rosenberg, the founder of Dunkin’ Donuts. Mister Donut is an American fast-food franchise chain specializing in donuts and is the main competitor of Dunkin Donuts.

However, in the series of acquisitions, the company weakened and closed shops in North America. But the company has remained strong in Asia.

Mister Donut arrived in the Philippines in 1982. In 1995, the Ramcar Group became the holder of the Philippine franchise. 

Today, it has 1,800 outlets. The majority of them are stalled, but 200 are full stores. As to franchising, it has several formats with related investment costs:

Kiosk - Php 310k - 500k
Semi Dine-in - Php 1.4M
Dine-in - Php 2.5M
On-Wheels - starts at Php 306k

Franchise Fee: Php 100,000
Initial Investment: Php 310k - 2.4M
Space Requirement: min. 4 sqm
Website: http://www.misterdonut.ph/ (down)
Facebook: https://www.facebook.com/MrDonutPH
Email: [email protected]
Contact Number/s: 0917 889 6148

15. Max’s Restaurant

Max's Restaurant is a Filipino multinational restaurant chain. It is famous for its fried chicken, but it also serves other Filipino dishes. It started as a regular restaurant; now, it has outlets that have a fast-food format.

Maximo Gimenez is the founder of Max's Restaurant. He started the restaurant business in 1945 after World War II. The idea to create the industry resulted from American GI’s visiting his place in Quezon City. He was giving them food and drinks. The soldiers later insisted that they would pay, and this paved the way to open a restaurant.

Now, it has 127 restaurants all over the Philippines. Max’s has two models to choose from Inline store or Mall-based and Standalone.

Initial Investment: Php 17M - Php 20M (Mall-based); Php 21M - P27M (Standalone)
Space Requirement: 180 sqm - 250 sqm (Mall-based); 800 sqm - 1,000 sqm (Standalone, lot and area)
Website: https://www.maxschicken.com
Online Mail: https://www.maxsgroupinc.com/franchise/letter
Contact Number/s: +63 (2) 8-424-2800

Now, the Philippines’ fast food or QSR (quick service restaurants) industry looks more optimistic than last year. This optimism in the fast-food industry makes it lucrative. It is a business that can fit into the current situation.

The list given here will help you decide on which company you will buy a franchise from.
It’s time to consider and then decide.,

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Disclaimer: Franchise Market Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments' or businesses’ websites. Please get in touch with us directly for any discrepancies.