The Philippine Star From Potato Corner lovers to business partners Jennylei Caberte July 16, 2012 MANILA, Philippines - When Jose (Joe, Jomag, Jojo) P. Magsaysay Jr., president and CEO of Cinco Corp., opened the first Potato Corner outlet in October 1992 at SM Megamall, students and young customers were instantly drawn to the new twists the brand brought to French fries. Today, some 20 years later, some of those students who became loyal patrons of Potato Corner would bring their interest for the brand and its products to a higher level by becoming business partners of Cinco Corp. with their own franchise outlets both in the country and abroad. He attributes a huge part of Potato Corner’s international success to them. Magsaysay, “Joemag” to his business partners and friends in the industry, is a Certified InternationalFranchise Executive who holds a Masters Degree in Entrepreneurship from the Asian Institute of Management. “Our new partners are young, usually in their early-30s. My partners in Indonesia and Panama were former students here and were regular customers of Potato Corner. When they finished their courses here and relocated outside of the country, they became my partners in establishing the business in Indonesia and Panama,” Magsaysay explained. He stressed the beauty and significance of being able to develop brand loyalty. “Our young customers before are now our business partners. That is the cycle we are experiencing,” he enthused. Aside from his partners, Magsaysay managed to develop a great concept and product, build a competent organization, come up with a good management system, and establish sound corporate policies that propelled the brand to its current billing as one of a handful of Filipino franchise concepts that are successful in the global arena. In Magsaysay’s own words, here are some of the factors that made Potato Corner an international phenomenon: “The product is now a basic staple. Burger King and McDonald’s made French fries staple, so it is easy for us to get into the mainstream. We just added flavor to it,” he added. He said they are very flexible and have no problem with attitude. “We are flexible enough that one country can be different in terms of looks but the DNA has to be the same all over the world---the shaking that is done manually to mix the flavors with the fries, and the young customers.” Magsaysay said they have also professionalized their Board. “We got people from the academe, and we have three independent directors, so even if we are not a public company, we want to be very transparent,” he explained. Potato Corner currently has over 250 stores nationwide aside from eight outlets in the United States, 22 in Indonesia, and one each in Malaysia and Panama. Magsaysay, this year’s overall chairman of the Franchise Asia Philippines 2012 (FAP2012) slated July 25-29 at the SMX Convention Center, said the company is gearing up to further grow and expand its franchise outreach both here and abroad. “We are celebrating our 20th year this year, and business has never been better. While we gear to launch new brands, Potato Corner will remain our flagship product and we will continue to put Potato Corner on a pedestal. Locally, we will grow not so much in terms of the number of outlets but in sales. It is a premium brand, so we are very picky on the location. We will help our existing partners increase their sales further through enhanced promotions and development of new products,” he said. The company, he noted, is on track of meeting its 50-percent sales growth for the year, The United States is where Potato Corner will be seeing most of the action in the coming years, he disclosed. Magsaysay said even with the strict regulatory regime in the US, Potato Corner is lucky to become one of only two Filipino brands that have been given the green light to conduct franchise business in all its 50 states. Potato Corner will avail of that opportunity to establish about four additional franchise outlets this year, and about a hundred new stores there over the next three years. “We see Potato Corner US becoming bigger than Potato Corner Philippines. That is the value of franchising. You can really achieve rapid growth through franchising,” he emphasized. Although Potato Corner has entered the US mainstream and has been getting a lot of interest from prospective franchisees, Magsaysay said the company has been very prudent in managing its growth there. “We are very careful. Right now, there are many offers from investors who are ready and willing to pay, but we tell them to hold on, while we further consolidate our organization. There are more than 20 who want to pay us franchise fees for certain locations, but our Operations Group is not ready for multiple outlets right away. We have the capability to open only one store every two months, but by 2013, we will be able to open one store per month,” he further explained. Cinco Corp. has partnered with Cisco, the biggest logistics company in US, to make sure its products and collaterals easily reach its branches in California, Texas and New Mexico. Magsaysay said his membership in the Philippine Franchise Association (PFA) also helped him a lot. “The PFA is like my cheering squad in growing the brand. That is why I’m telling those who are not yet members of the Association that they are missing a lot. You are in good company if you join PFA,” he further emphasized. Magsaysay now devotes much of his time in ensuring the success of Franchise Asia Philippines 2012 (FAP2012), the biggest franchising event in Asia organized by the PFA. FAP2012 is a 4-in-1 event that includes the International Franchise Conference (July 25-26), featuring local and international franchise gurus and experts who will present the latest trends and developments in the global franchising arena; the International Franchise Expo (July 27 – 29), a one-stop-shop showcasing the best and unlimited business opportunities ranging from established and successful brands – both local and global – to new and promising franchise concepts covering every sector at various investment levels, including petroleum and related businesses opportunities in the Petro Business Pavilion; the Educational Franchise Seminars, simultaneous with the Expo, serving as an excellent forum for business matching between franchisors and would-be franchisees, and the Certified Franchise Executive (CFE) Program (July 23 and 24), a mini-MBA course on Franchise Management to be held at the AIM Conference Center. For inquiries about FAP2012, please call PFA Secretariat at (02) 6870365 to 67; 09178320731; or e-mail pfa@pfa.org.ph; or visit www.franchiseasiaphl2012.com.ph and register on-line for special admission rates.
FASTEST GROWING FRANCHISE
ENTREPRENEUR MAGAZINE- JULY 2012 issue FASTEST GROWING FRANCHISE FROM STRENGTH TO STRENGTH At first glance, Potato Corner and Posh Nails have little in common-apart from having to do your fingers, being franchise companies, and being Entrepreneurs Fastest growing Franchise co-winners for 2012. Yet these two companies are definitely going from strength to strength, as is Goldilocks Bakeshop , which gets our nod for the company that’s Best In Franchising support. Although smaller in size than either Potato Corner or Goldilocks, Posh Nails does have 21 outlets now, and as Founder and President Catherine Ilacad says, they are “coming up” with new services- more messages , more themed services like different “flavors of the month.” For our franchisees, we have more training for our nail technicians. All but one of Posh Nail’s outlets are franchised, and Ilacad says they have just opened branchise in Pampanga and Iloilo. Opening soon are outlets in Davao, Cebu and Batangas as well. Why is Posh Nails growing so fast? “I believe that we’re one of the leaders in nail industry, one of the original concepts, “says Ilacad, who founded the company 10 years ago. At the same time, we keep up with what’s happening, the latest in nail technology- I’m leaving for the Las Vegas Nail Convention, and I keep in touch with spa gurus over the internet. They keep me updated, tewll me what we can adapt here in the Philippines, she adds. Posh Nails, which has been franchising since 2008 , also boasts of great marketing support for all our franchisees. We have a lot of endorsers for radio, TV and in print, and they’ve been a big help,” says Ilacad. A plan to launch their own line of products, such as foot scrubs and foot lotions, would aid their future growth, adds Ilacad. She also aims to add more branches for our clients in the provinces, and new services that they would only experience at Posh Nails. POTATO CORNER also offers a unique experience- of eating flavored French fries, that is. Now with over 250 stores nationwide and abroad, the flagship brand of Cinco Corporation is still trying to add to its roster of 104 franchisees. These include six recently-opened outlets in the California and New Mexico in the United States, Indonesia, Malaysia, and even in Panama. Apart from its newest local outlets at Robinsons Place Puerto Princesa in Palawan, at the Promenade Building along Wilson St. in San Juan City, at Robinsons Place Calasiao Pangasinan, at Shopwise in San Pedro Laguna,and at the Wilcon City Center along Visayas Ave. in Quezon City- Potato Corner has introduced new flavors, serving sizes, and offerings. The brand recently announced it gained Halal Certification (the lawful way of preparing food according to Muslim Shariah Law ), allowing it to sell more than nine million Muslim Filipinos- as well as over 200 Million Indonesian followers of Islam once Potato Corner expands its presence there. It also recently debuted its Vanilla Thrilla dessert offering and a Seaweed option alongside its mainstay flavors-cheese, barbecue and sour cream-and serving sizes, which are now up to Giga buckets ( at about P167 each ). Goldilocks, meanwhile, got the highest marks in Entrepreneur’s franchise survey for the extensiveness of its franchise agreement, franchisee training, marketing support, and financial assistance. This is in part because the company founded in 1966 is always “mindful of the customers’ needs and wants and able to anticipate those with products and services that cater to their needs,”says Lin Deres, its franchise relation manager. New products, seasonal offerings, store designs, eco-friendly packaging materials, and energy saving devices have helped Goldilocks- which began franchising in 1991- stay top of mind its customers around its 351 outlets nationwide, adds Deres. It’s also why she sees their roster of franchisees growing beyond the 54 they currently have. For a 45-year-old company, it’s never bad to have bigger numbers. -Jimbo Owen Gulle Loading ...
Potato Corner at The Philippine Star
July 6, 2012 The Philippine Star Page B4 Business POTATO CORNER IN AN ACQUISITION BINGE Potato Corner owner Cinco Corporation is looking for existing brands to acquire and make them part of its expansion program. Jose "jomag" Magsaysay Jr., Cinco Corp. president and CEO, said funding is not an issue in its acquisition spree as a lot of investors are willing to partner with them due to the confidence and sound reputation their company has already established in the industry. “Right now, we are seeking out small brands, and other groups could also chip in. That is the beauty of earning their confidence already,”Magsaysay said. He said the brands they seek could be existing franchisors or those that are just starting out. We can be like Pancake House group or Jollibee but on a very smaller scale. We are not buying brands in the P3-billion scale yet,” he emphasized. Magsaysay, the overall chairman of the Franchise Asia Philippines 2012 ( FAP2012 ) slated from July 25 to 29 at the SMX Convention Center, said franchising plays a big role in the company’s continued rapid expansion. This, he explained, is why he is willing to lend his time in ensuring the success of this year’s Franchise Asia Philippines 2012 (FAP)under the auspices of the Philippine Franchise Association (PFA) since it is the best venue where entrepreneurs can look at models, buy a franchise business, learn the ins and outs of the industry in its pocket seminars and International Franchise Conference, and get to meet the brand owners face-to-face. “If you are thinking about franchising or you want to learn how to franchise, go to the Franchise Asia Philippines 2012 to check out the exhibitors and learn about what they are doing, in the area of franchise development,” Magsaysay advised. FAP 2012 is s 4-in-1 event that includes the International Franchise Conference ( July 25-26 ), International Franchise Expo ( July 27-29 ), the Educational Franchise Seminars, and the Certified Franchise Executive ( CFE ) Program (July 23-24), a mini-MBA course on the Franchise Management to be held at the AIM Conference Center.
