THE milk tea craze has been going on in the Philippines in recent years, but it’s far from over.
In fact, milk tea shops are strongly driving the franchising sector today, said Rudolf Kotik, chief executive officer of RK Franchise Consultancy.
“Filipinos love the taste of milk tea and its popularity has never diminished,” the franchising guru told SunStar Cebu in an interview Friday, Sept. 27, 2019, at the opening of the 20th Franchise Expo in Cebu City.
In Cebu alone, many milk tea stores have popped up as Filipino consumers continue to patronize the popular Asian drink, which is emerging as a “super sweet” market for food entrepreneurs.
According to Kotik, food has remained the biggest industry in the franchising business, with milk tea concepts leading the trend.
“Milk teas continue to grow. We already surpassed the ‘fad’ stage and we continue to see Filipinos patronizing them,” Kotik explained.
Shops and kiosks selling the popular sweetened drink are mushrooming in malls, commercial centers, schools and food bazaars.
The tea and milk concoction known for its seabed of chewy tapioca pearls has been around in major Asian places, like Hong Kong and Taiwan for many years.
Since its influence has reached the Philippine market, Filipinos, especially the millennials, have then become a big consumer of the popular drink.
“It’s (milk tea business) growing,” Kotik said.
“The trend right now is still food. It is the leading sector,” he said, noting that more than 60 percent of franchise businesses in the country are food.
Driving such a trend are the strong purchasing power and rising incomes of Filipino consumers.
“The economy is doing well. People are earning well,” Kotik said.
He said the interest in franchising has continued to improve in recent years, as it proves to be an effective investment for aspiring entrepreneurs.
“The knowledge about franchising is higher now,” the franchising expert said, explaining that such business model has been a key means for businesses wanting to expand by tapping the capital of other people.
“Franchising is the way when you want to grow and expand,” he said.
Today, overseas Filipino workers are among the strong markets for franchising.
On average, the investment in getting a franchise business starts at around P300,000.
He advised potential franchisees to choose the right business they want to invest in by considering key factors such as the trademark of the enterprise and its financial viability.
He further advised entrepreneurs to choose franchise concepts that are “properly and professionally” managed to ensure that they’re investing in the right businesses.
“Financial viability is very important. They need to ensure they make money in the businesses they’re investing in,” Kotik said.