Resto upbeat on Cebu-A A +A
Wednesday, October 24, 2012
A RESTAURANT in Cebu is upbeat on business prospects this year, citing the city’s vibrant and thriving business process outsourcing (BPO) and tourism sectors as drivers of growth.
Officials of Tosh Cebu Inc., the franchisee of The Old Spaghetti House in Cebu, said they withstood the tough competition in the food business sector because of Cebu’s thriving economy.
“Tourism and BPO are the two industries that fueled the growth of the business, especially during weekends,” said Tosh Cebu Inc. finance director Rosita Theresa Miranda.
She said the increased spending ability of Cebuanos fueled domestic consumption, specifically in the food sector.
Miranda said customers normally spend at least P500 when dining at their restaurant.
The booming services sector was the main driver for the country’s 5.9 percent second quarter growth. Remittances also fueled the domestic consumption that keeps malls and food services thriving.
“Given the hectic schedule of consumers these days, we observed that some opt to dine outside before going home to relax,” said Millicent Espinosa, managing director of Tosh Cebu Inc.
To stay ahead of the competition, the company has decided to renovate the restaurant and refresh the menu.
Espinosa said they only retained 30 percent of their “fast moving” menu and added healthy food selections.
Miranda said they are not threatened with the entry of new players in the market.
“The market has evolved now. They now take risks and try out new products being introduced in the market. The presence of new players has helped Cebuanos become well-rounded in food and dining,” said Miranda.
The company has already gotten a return on its investment in four years of operation.
Tosh Cebu invested P5million for the franchise of the business.
The Old Spaghetti House has 24 branches, mostly located in Luzon. Its branch in Cebu is located in SM City, the first outlet outside Luzon. Tosh Cebu Inc. plans to open its second outlet in SM-SRP.
Published in the Sun.Star Cebu newspaper on October 25, 2012.