Ram Felix Rengel, Jr.


Business Icons, Saturday, 04 February 2006


East Meets West at Chowking

Chowking Food Corporation was founded in early 1985, at a time when burger chains were the dominant players in the Philippine fast-food landscape.

To stand out in the crowded fast-food market, it positioned itself in a niche where it could at once be a strong leader and a pacesetter. This it did by taking the best aspects of two distinct restaurant personalities-on the one hand, the traditional Chinatown restaurant, with its menu of delicious, easy-to-prepare but reasonably-priced dishes; on the other, the modern, western-style fast food restaurant, with its eye-catching façade, bright interiors and young staff dispensing friendly and snappy service--and fusing them into a new concept: the Oriental quick-service restaurant.

In 1989, in a bid to expand its client base and capture a bigger share of the market, the company initiated its franchising operations and marked its entry into the provincial market. The twin moves enabled the company to pursue an expansion program that has made Chowking the largest Oriental Quick-Service Restaurant (QSR) chain in the Philippines. As of yearend 2003, the chain had 245 stores, dislodging multinational giant McDonald's from No. 2 position in the store count race among QSRs. The company is now feverishly building new stores to meet its goal of 300 stores by the end of 2004.

The dawn of the new millenium was a turning point for Chowking. On January 1, 2000, Chowking became a wholly owned subsidiary of Jollibee Foods Corporation, the largest, most respected restaurant chain in the Philippines. With the merger came numerous changes in Chowking that began with a new retail identity. Hand in hand with the new physical features is the renewed pursuit of high standards in Food, Service and Cleanliness (FSC), the three pillars of the restaurant business. The goal: To serve consistently delicious and hot food in five minutes, amid clean and clean-smelling surroundings. It is a reflection of the company's Vision & Mission which, simply put, is: "Make the Customer Happy." The hard work and vigilance have paid off: Chowking has been logging double-digit growth in system-wide sales since 2001, the fastest in the industry. With 2003 sales reaching P5.5 Billion, it prides itself as only the third QSR chain in the Philippines to hit the P5Billion mark in annual sales.

Concerted efforts at gaining high marks with both internal and external customers as well as with its business partners were crowned in 2002 with the conferment on Chowking of the Hall of Fame Award for Most Outstanding Filipino Franchise by the esteemed Philippine Franchise Association.

The strategic alliance between Chowking and Jollibee has proven mutually beneficial to both companies, bolstering their individual positions in the Philippine market-Jollibee as the undisputed market leader in the fastfood industry, Chowking as the country's No. 1 Oriental quick-service restaurant chain.

Chowking launched its franchising program in 1989 when the company was only 4 years old. For a young company with limited resources, franchising was the rational route to expansion. It enabled the company to penetrate new markets and extend its reach, without straining its resources. At the same time, franchising provided a business opportunity to local entrepreneurs in search of a promising investment.

The Chowking franchising system is founded on the philosophy that franchisees are business partners, co-owners of the company and members of the Chowking family. As business partners, they are provided with a support package that includes operational services, logistics, manpower training, marketing , national advertising, and other important services necessary to give them a better chance at success.

The franchising process starts when the company receives an expression of intent to apply for a Chowking franchise. A thorough and comprehensive evaluation of the merits of the proposed store site and the qualifications of the franchise applicant follows. If the site is deemed promising and the franchise applicant is considered qualified, plans for store construction are set to motion. While construction is going on, the company provides technical support to the franchisee and assists in the selection and hiring of the required manpower. Orientation and training of the newly-hired personnel completes this cycle.

Once the store is operational, the company's operations personnel pay it periodic visits to ensure that quality is maintained, prescribed procedures are followed, and FSC standards are met.

For the duration of the 10-year franchising contract, the franchisee receives from the company a package of services that includes logistical and marketing support, as well as a continuing training program for the store managers, kitchen staff and service crew. It is a company policy to require all franchisees and managing directors to familiarize themselves with the operations manual and to take part in the training program especially designed for them. As members of the Chowking family, franchisees are expected to take part in company-organized activities that not only keep them posted on business updates but also reinforce bonds and strengthen lines of cooperation. At the end of the 10-year franchise period, franchisees in good standing may be awarded an extension of another 10 years.

Although financial means is an essential factor in the choice of franchisees, it is by no means the most important. The company welcomes entrepreneurs who understand and accept the risks and potential returns of the business, demonstrate a keen business sense, and are willing and able to invest time in the operation of the store. An absolute "must" is that they believe in the brand and are committed to contributing to efforts to polish it to a radiant shine.

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