we bought a franchise restaurant. it didn't go well... | Salee
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- Опубликовано: 3 окт 2024
- Imagine owning a well-known brand, a proven business model, and the promise of financial freedom. It sounds like a dream, right? Well, that's what I thought too until our franchise restaurant turned into a nightmare. Hi, I'm Sally, and in this video, I'll be sharing the raw truth about our journey with a franchise restaurant that didn't go as planned.
Aspiring entrepreneurs need to hear not just success stories but also struggles and failures. In this video, I'll take you through the highs and lows of our franchise journey - why we decided to buy one, the challenges we faced, the mistakes we made, and most importantly, what we learned from it all.
You'll get an insider look at the entire process - from initial decision-making to investment and unexpected setbacks. By the end of this video, you'll have a clearer understanding of the realities of owning a franchise restaurant and key takeaways to consider before diving into the same business.
Whether you're considering buying a franchise or already own one or simply curious about entrepreneurship journeys - stick around! There's so much to learn from our eye-opening ride.
#FranchiseRestaurant #entrepreneurshipjourney #FinancialFreedom #business
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#salee #reinventyourself #selfimprovement #motivation #buhaycanada
Girl, basically any franchise works that way, you are not buying the brand, you are buying the rights to manage one of their restaurants, you work for them basically.
I would never advise anyone jumping into restaurant business, having been in it for 28 years. I have to replace a 15 tons dinning room AC, that was $ 30k. Then the evaporator in the walk in cooler needs replacement, that was 5k. I’m there 12hrs day, 6 days week (only bc we close on mondays). It zaps the life out of you.
thank you for sharing that 🙏
I started out working in the restaurant business back in’78 when SF NY were beautiful things were great back in the day people were happy we had a good economy Reagan was president and a hell of a good president when was the last time you said that 40 years later our country is in the shitter these new generation politicians don’t know their ass from a hot rock they are all weak incompetent morons that believe angels are real our country is in the shitter because our leaders are corrupt & incompetent
So bad you kept doing it for almost 30 years
And your point being? What I commented was my personal opinion and I have seen quite a few local restaurants failed badly. I got in it with two new born at the time. Once I’ve gone down that path with a wife and two babies, they are my responsibility. I didn’t get to bow out. I missed all their school functions, swim practice and meets, trick or treating. We didn’t eat dinner together. Once our last kid is out of law school this year we are done.
@@pittwm you didn't mention any of that stuff, all you focused on was the cost of repairs. So expensive that you kept doing it for 30 years
Proven experience ko, Start small. Hirap maghabol ng ROI, need ko lng deny ego ko when starting small, in case magfail, madali mag re course.
thank you for sharing 🙏👍❤️
Exactly the advice of Ramon Ang, start something with just a small capital.
this is true. i was also an ofw for 7 years, i started a small business at home. I use our garage to put up a sari sari store during pandemic. I dont want to rent a place for business. Thank God, naging ok lahat thru hardwork, prayers and perseverance.
The idea and i believe what i strongly believe now is.... "Be your OWN Franchise" it is worth the effort and suffering to endure as the reward is fully 100% yours.
thanks for your insight. 👍
ay pag meron ka kasing trabaho mahirap yang ganyan. Kaya yhung nag franchise yung iba kasi dahil meron na system sila na susundin.
This is the kind of advice that traps people into disappointment. 🤣🤣
parang yung advice na "Start a business that you are passionate about".
ayun nag simula ka ng siomai house kasi hilig nyo ng anak nyo kumain ng siomai...
ang end result, lugi.... kasi kayo umuubos ng paninda nyo 🤣🤣
Starting a business needs management skills.
and management skill starts at home.
Check your room, maayos ba yung kwarto mo. hindi magulo?
do you have time table of what you do everyday?
may laman ba yung Planner mo na nakuha sa starbucks oh andun sa kabinet inaamag na?
it all start at a personal level (personal management)
if you do not have at least personal management on you. don't bother starting an business. you are not gonna make it.
lagi nila sinasabi maraming Chinese ang may business dito sa pinas.
it has nothing to do with race.
it all have something to do with mindset and management skill.
they have GRIT, discipline and practice delayed gratifications.
which most Pilipino doesn't have.
90% of your concerns are not because you franchised . Those are the normal problems that new business owners will face franchise or not. Food business is really hard.
thanks for watching
True, it is hard, yet sounds like it is so simple !
@@salee_talkssaan ba yan? Kakain ako dyan
Yes po, Ma'am. Saan po matatagpuan iyan?
in fact, food business should
maintain a 90% margin to survive long run and establish its customer base. which is its really hard to attain if you don't have a flexibility due to franchising agreement.
Hello! I also started in the food business, and I understand how challenging it can be. There are some who seem to be more fortunate, but as a cook by profession, I know the important factors to consider when franchising a food business. Maybe it just wasn't the right time for you.
However, as entrepreneurs, we must maintain a mindset of perseverance and never give up or quit easily. Success often comes to those who are patient and persistent, continuously learning from their experiences and striving to improve.
Your journey in the food business, no matter how difficult, is a valuable learning experience. Keep your determination strong and your goals clear, and don't hesitate to seek advice and support from fellow entrepreneurs. We are all in this together, and it's through our collective efforts and shared wisdom that we can achieve our dreams.
Full support from a fellow entrepreneur with a Pinoy business mindset here in Canada. Let's keep pushing forward and turn our challenges into stepping stones towards success.
thanks very much 🙏🙏❤️❤️
If you have no food & beverage experience, don't open a food & bev place!!!
As someone who worked for almost five years at one of the busiest places in London's west end. That shit ain't easy. Even if you have quality food and reputation (big ifs), keeping that machine running smoothly is a masochistic labour of love.
thanks for sharing 👍
A Franchise is someone else’s vision and investment! Buying a Franchise it is guaranteed that Franchise owners will win either way, they would control every aspect of your business and investment! As an entrepreneur is good to take that reap of faith by starting your own name and business! Starting a business is always a 50/50 chance of success or failure!
thanks for that
Relate ako. Sobrang hirap tlga ng food business at malaki ang gastos. Super expensive matuto sa ganitong negosyo. Nlugi ako ng 600k sa operation, 2.5M nagastos ko sa building at equipments. Pero blessing in disguise s kbila ng lugi nakacreate ako ng isang food business na profitable at may potential. And continue running it
thanks for sharing your story. I'm glad to know that you are doing well now. Kung may nawawala, may mas malaking pumapalit. 🙏😇♥️
any business doesn't guarantee a success. most will fail. it depends on how you manage and run it. just come back strong and do better next time. dont stop believing
that's the attitude! 💪👌💯
The minimum monthly supply purchases is a huge red flag and should be deal breaker
@@vender68 true, ginawa siyang tagasalo ng benta o ginawa siyang sure buyer ng franchise tsk tsk evil company
Targets are normal...
the thing is they agreed.
Right! Instead of you being an extension of their business, ginawa ka nilang customer.
Thank you for sharing this. Hearing these from different people spreads awareness for everyone who is looking into entering a franchise business.
I almost started a food business franchise this year. Admittedly i was blinded with all the details that they presented. I paid the reservation fee on the spot and in the process of getting a bank loan. After telling this to some of my friends, i was advised similar to what was mentioned here. Luckily a franchisee was willing to answer my questions in running the business. I decided not to continue with it due to lack of financial cushion if i will ever be in the same situation that the business/branch had.
thanks for sharing 🙏
I, too, invested in a franchise in the Philippines. My take. It's better to come up with something on your own. The struggle is the same, but the control is yours. This is how you can define success when you're able to control your business. Construction is expensive, especially when they know you're from a different country.
thank you for sharing... and yes I agree with the construction. When they know you are from abroad, they will give you high quotation
From what I've learned listening and reading books about business, you have to experiment with your business idea first and test if the market has a need for such a business. What was suggested was to reach out first and market and if a lot of people are and stay interested then the idea has a high probability of being successful. Nonetheless, the lessons you have presented are very useful and real life experiences we can definitely benefit from. Thank you for sharing!
Thank you for sharing your insights, Amane! You're absolutely right-testing the market and validating your business idea is key to ensuring success. It’s great to hear that you’re applying these lessons, and I’m glad the experiences I shared were helpful. Wishing you all the best on your business journey!
Less than 2 minutes in and you already have the answer. "In the Philippines"
Always things go wrong
It failed coz it is in the PH? PH economy is growing steadily, even better than developed countries. Investing in it rn is great. you just need to do your homework and invest in social media. it is the way
@@captainbalao its doing well b/c the upper crust is making the $bank$. Villar fam is rocking with the buying and selling of real estate, etc even if they use rather unsettling tactics like robber baron, strong arm, etc.
for everyone else, its a roll of the dice.
Most successful businesses starts small. Leap low so when you fall it doesn’t hurt that much.
@@captainbalaoregarding investments, I would rather invest in Thailand, Indonesia & Vietnam rather than the Philippines. The Philippines has the worst bureaucracy in Southeast Asia except Cambodia, Laos and Myanmar. Government officials and employees always take money from businesses, if you don’t pay them under the table money they’ll make sure you have an extremely hard time and you won’t be able to get the permits to operate until months later where your spent capital is already stuck in limbo. Majority of the growth comes from medium & big businesses, while small businesses struggle heavily.
The last statement concerning "hardwork" is spot on. Everything of worth does require hardwork
💯👌
I'm also a franchise owner. Everything you said is true to a tee. Rent is exploding right now and some small franchise would opt out due to the high cost, unless you're a company with a lot to lose. Employment system here is absurd as many employee would be like a knife on your back when you employ them, most would be trying to milk you thru the law. Govt support for businesses here are non existent, but there's a caveat wherein you exploit the system to the fullest, not making regular employment and not paying rent and other amenities on time would garner success of a business. Top companies would do this as their employees would really fight for that regularization spot. A total angel of an employer would really go down a rough path to get employees, yet they'll stab at your back when it present itself. Government would look out for the tiniest mistake they make, but you'll have to shoulder the penalty. Rent would eat most of your sales, and they'll keep on jacking up the rent price
thanks for watching and sharing your experience.. it is indeed a painful experience.. lots of lessons learned.
Talking to other franchisees is a must. I had plan to buy a viral coffee shop franchise. But when I talked to other franchisees, in reality the franchise were overwhelmed with the demands. They're unable to provide the equipment and menu that were highly demanded. The new franchisees were left with leftover because the franchise supplied the franchisee that came first.
If you want to buy a viral franchise, make sure you're among the first. After the hype diminished, no one wanted to visit anymore. I saw this on Mixue. Their business was booming at first, and first franchisees got break event. But after few months, the people who came later must closed their door before break event.
thank you for sharing
The biggest overhead expenses will be rent and payroll! My business before was a photo studio with an overhead of $2,000.00 monthly!
I managed to run it for 3 years till I quit for some reason. I have so many accounts (schools) that alone made us survived. But it was so draining. Money will come and go. Also I have taxes monthly, quarterly and annual that I had to deal with. That was way back 2004. Now rents are higher! Lesson learned from this is get your own business space, to avoid rent.
thanks for sharing
Honestly, every restaurant franchise has its pros and cons. I remember a BBQ restaurant franchisee being told he couldn't even send people home early if the restaurant was too dead without permission from the corporate office. That was a simple example of how little control you can have if you are not the main boss.
thanks
They do that simply because they are moron enough to understand the word synergy and interdependence. Parang rule of the squatters tribe lang.
My path-crossing-experiences as a foreigner with Filipino business has shown a lot of things that would be complicated if one were trying to be creative here (I'm from the USA). Thank you for sharing your experiences.
my pleasure 🙏❤️
A franchise is a proven system and a recognized name. That is what you are buying with your franchise fee. The franchisor should be selecting the site and acting as the general contractor to build and design the store. The franchisee pays these costs. The franchisor should be arranging suppliers and terms. The franchisor sets pricing and selection. There can be some customization for local markets. They should assist in hiring. There are usually other fees depending on how the business is set up. Royalties on sales, co-op advertising, purchasing. Buying a franchise is not the same as starting your own business. Franchisors exert varying degrees of control to protect the business name.
Start small, think BIG. Do your homework. Lesson learned😊
thank you 🙏❤️
grabe mami.. sana nag franchise nalang kayo ng 7/11 or Angles Burger hindi naman sa pagiging ano man pero talaga sumagi sa isip ko or ng family naming mag franchise ng resto kase alam namin na hagard talaga yan especially kung hindi pa naman ganun ka famous and solid rock yung name ng franchisor. Thank you for this video super naka help as added knowledge. Just like others I'd rather advise other people to have what's on the mainstream but on careful thoughts. Resto is a no for us lalo na kung malaki kagad ang labas.
salamat sa pagshare
The issue is that you believe this brand is popular, but it's actually the opposite. I've seen many of its branches closing. Having owned a restaurant before, the challenges include high expenses and the need for a large customer base to be profitable. Additionally, managing inventory is difficult, and finding trustworthy employees who can handle things when you're not around is a challenge.
we quickly jumped into it without checking other branches 😬
This is why we, in the U.S., have tougher regulations on franchise businesses to protect investors. Other wise individuals are vulnerable for many scam. The South Korea, Vietnam, China, and other Asian countries have endless victims in franchise businesses industries.
thanks for sharing
it’s a surprise to me that a thorough research is out of the question. in business i thought it was already given that you do a thorough research. it’s a must. you even have to check on the the real owners of the franchise. you even have to know the statistics of how well this franchise is profitting or lossing. even in retail trading we do this
thanks for watching
Ang mga nagpapa-franchise kasi ang pokus nila mass-sell products nilang wala nabili. 😊 Saka hindi naman nila target yong magsucceed ang franchise nila. Pag nakabayad na, ang concern na lang nila is pano makatulong mga to as buyers of their unsaleable products. Maganda lang sila sa umpisa. Marami sa mga nagpapa-franchise pumuntang school namin at iyan na notice ko na common characteristics nila.
thanks for watching and the insight 🙏😊
True! Kaya wag basta2 magfranchise.
I would never start a restaurant unless it was purely for fun. The problem with the restaurant business is that you’re competing against four types of restaurant owners
1. Those who are in it for big profits
2. Those who are in it only for fun and don’t care if they lose money
3. Those who are in it for fun but are ok with breaking even. Don’t want to lose money but don’t want to make money.
4. Those who are adamant about making a profit, but are ok with just enough to pay for basic living expenses. They would like wild profits but as long as they can pay bills they will work the restaurant for decades.
The first guy has to compete against all the other guys. Those other three guys will drive down menu prices and drive up the cost to enter the restaurant business because they’re willing to pay more to own a restaurant. The end result is that it’s basically impossible to make good money in the restaurant business unless your extremely lucky and extremely good at business in terms of reducing costs to a minimum and increasing the customer base to a maximum. Most restaurants fail in five years.
thank you for sharing
Franchise means you work for somebody and they enjoy profit through your hardwork. They get the meat and you get the bone
Location is very important. In our neighborhood, there is this area where I noticed at least 3 "different" stores who rented it already. But all 3 of them aren't successful. All closed.
agree 👌🤗
Be ur own franchise
Experience will teach us. Much deeper understanding before venturing into any business is a must. Research and ask for mentors if it is wise to invest or not. Lay down all your plans to them.
I completely agree! Experience is one of the best teachers when it comes to business. Research, mentorship, and careful planning are crucial for making wise decisions, especially in investments. Thanks for sharing this valuable insight!
That's part of the Risk you've taken. Analyze the learnings and move forward
yep exactly! 👍
I had my restaurant and i failed. Thanks God im gone from it and left gracefully
thanks for sharing 🙏
Who cares if it didn't go well. Before you bought the franchise. You studied and understood the risk. That is business. It may flip or flop it depends on your management.
@@RigilKent-x7o Thank you for your perspective! You're right-business is about taking risks, and sometimes things don't go as planned. It was a valuable learning experience, and we've moved forward with even more insight and resilience. Appreciate your support!
From experience I want to say that there are basically WAY TOO MANY food options in the Filipino Market. You must have a really good brand in order to get your ROI back, and if possible open outside a mall. Malls tend to fill up with too many other restaurant concepts, and can't always guarantuee enough 'food traffic'. Because of all the other restaurant options, Pinoys are not really loyal anymore, they have so many options to choose from that they will temporarily eat in your restaurant and then move to another concept that opens up near to your establishment.
We also lost eventually after operating for 3 years.
I will never open a franchise again, unless it is a very good brand.
thanks for sharing your experience 👍
Franchise is always a rip off. Before you buy a restaurant watch it a lot and work there for two months with low pay to see the real operations. The big red light is why are the sellers selling the place and restaurants are very hard to succeed in. Its as hard as a clothing store.
thanks for sharing your thoughts
The lesson here is to do your due diligence before going in to a franchise. Different brand have different restrictions. You can disagree, but they are not red flags.
Brand name helps, but that doesn’t guarantee success. Look at Nokia, Microsoft phone and Sony.
It looks like you had too many expectations instead of goals. The goal is to have more free time/ flexibility, what do I need to do to reach that goal? The goal is for the restaurant to be successful, what does success looks like in 3 months? Things that I need to do to reach that goal. Yung mga tipong ganon.
absolutely! 💯👌 thanks
Stay away from small time franchises. I've read a lot of franchise agreements, most if not all are geared to fill the franchisers pockets the quickest way possible since the food business is very volatile. Just start your own brand, source your own raw mats that way youll have complete control and sooner or later youll be the franchiser instead of the franchisee.
thanks
We had a pizza shop in Tanza Cavite, but covid shut us down we spent 14,000 plus on advertising and it did very well in the 11 weeks it was opened.
We made a good profit, and we'd do it again in due time.
If yiur busines shows a profit in its first year after opening then has an 85% chance of success and advertising is crucial to that success.
thanks for sharing 👍
The hard truth is most franchises fail because the ultimate control rests on the franchisor while franchisees take the risk financially. Franchisees are basically outlets who are willing to gamble they will be successful by following a business model they have very little control of with no type of guarantee of return. Even a McDonald's franchisee still needs to shell out over $1M and must wait several years to get the return on their initial investment.
thanks for watching and sharing that 👍
Thank you for sharing this. Much appreciated.
My pleasure!
Thank you for sharing this. Small business owners make our country run. Hopefully you get to succeed on your next endeavor.
thanks! all is good 👍❤️🙏
I move back in the Philippines for good on 2022 after living in the U.S for most of my life I planed it for 5 years so when i move on 2022 i had an idea what to do, within 1 month i was able to buy a 14 unit apartment complex with tenants already its an easy income as long as there is tenants and 3 months later i started to diversify. I open a motor shop in our property so no rent and i already have a mechanic before i open the shop it was just the two of us so no overhead so far so good and just this July 2024 i open 2 more business a computer shop and a water refilling both business i don't pay rent since its inside my apartment complex and all 4 business i only have 1 employee that i move around and now i can relax 2 years later.
good job there! thanks for sharing and good luck to your businesses. Love it! 🙏♥️
i worked in a commissary before and i never thought ganito pala ang struggle ng franchisee ng store/restaurant, now i understand yun challenge as r&d na magiging shock absorber sa frustration ng management committee sa mga hindi kumikitang sku at palitan ng bagong sku, minsan napapahinto na lang ako sa mga gilid gilid na mga food stand sa kalsada na tinutumpukan ng mga tao at tikim tikim sa magiging new prospect flavor ng masa
thanks for sharing that 🙏
I thought you where going to say you bought a McDonalds or a Jollibee. You bought one of those unknown small start up franchises that has logistical issues and don't even have a marketing program. Go buy a branded franchise,its all professionally time tested and proven. Got to spend money to make money.
thanks for watching
Yes pag ng franchise k at least may 100milion k
@@kidkud10 35 million only for a Jollibee franchise, pocket change.I use that for gas money.
@MARCBEA1 35 Million? Pinang loload ko lang sa RFID un eh 😂😂
@@jakerex32 hahahaha
Franchisee here also thanks for sharing this so far our first 6months we are managing to break even but July start to have problems I hope when school starts everything will be better everything you've said is noted thanks
thanks for sharing
Congrats Mami! You are one step away from success! 🎉
yay!! thank you 🤩💪🙏
As an Entrepreneur i understand where ur coming from and would like to say that this is just a minor setback and preparing for ur future success. The issue i can see for people trying to open a business back to the motherland is they try to incorporate what they've learned abroad which is great but people back home as well know does not like change and their vested in the business except their mid week pay and end of the week lol. FIlipinos are one of the smartest people in the World but at times are to smart for their own good.
Thank you for sharing this! Just in time before I make a downpayment to one of my dream business .❤ You saved me!
You are so welcome! ♥️🙏
been working in F&B all my life, and i felt like with all my experience ready nako to own and run myself, pero everytime na uwi ko sa pinas di ko nakikita sarili ko na mag start dito sa sobrang risky kaya natatakot ako,minsan naiisip ko baka hanggang pangarap ko nalang ang mag open ng sarili ko, mas takot din ako sa franchise considering sa dami kong idea tapos ililimit lang nila ako sa hindi pwedeng gawin,salamat for sharing this...
you're very welcome. there's a reason you found this video
@@salee_talks parang mas mahirap ang competition sa pinas kesa abroad,maybe sa tipid ng mga pinoy at sa sistema dito?i hope you bounced back from this bad investment
yes thank you.🥰 it happened many years ago and we already bounced back stronger than ever. 😊🙏 Running a business in the Philippines is really different from Canada, gagamayin mo lang talaga at aaralin. 👍👌
You failed to do your research. Signing 'anything' during the first meeting is a no-no, especially if there is a huge cash outlay expected. Everything that you mentioned about expenses associated to being a franchisee, the franchise rules (what you can/cannot do), employee training, etc, those are all obvious and common things for franchises. The restaurant business is very competitive. It takes a minimum 18 months to 3 years to break-even. That is if the restaurant even lasts that long. Another important thing is location, location, location.
thanks for watching and sharing
I feel for you. Maybe not the right time for that kind business. Definitely lesson learned an expensive one but you certainly became wiser and took in valuable insight should you have plans in the future. Franchises really have strict rules since you're typically running their branch for them, some would find that appealing but personally I would rather go about it my own especially if you value your own ideas etc. As a cafe owner myself, I do have the same struggles you mention which I think a lot of business owners can also relate. Owning a business is not all rainbows and sunshine, it requires a lot and one should be prepared for unforseen setbacks. Yep like you said just stay resilient and always, always be open and adapt to the changing times.
thank you very much for sharing and your comment.. I'm sure many will be enlightened ❤️😊🙏 God bless
I started a restaurant bizness in Philippines coming from Australia. It was a nightmare. If your happy spending 1000 pesos to make 100 pesos. Then go ahead, u need to be present at all hour's of opening to set a good example. Philippine workers are good, but need good leadership or else they will just doze off or go on their phones and not pay attention. Its alot of work for minimal profit
thanks for sharing your experience 🙏
It’s business. Every business has its own risk even if it is Franchise. In life there’s no certainty.
yep thanks for watching
Thanks. I need this right now. Carefully planning + strong financial cushion.
my pleasure.. 👍 Good luck
Great content! This info is very relevant to all of us looking to go into the franchising business. This is real life story and is an eye opener. We can all learn from this. There is a saying that a smart man learns from his own mistakes but a wise man learns from other peoples mistakes so that he will not make the mistake himself.
thanks! now be the wise man 💪
Usually the process is the franchisor will do a site evaluation base on their target market. Location is a big factor for success.
yes indeed. thanks for watching 🙏
I just listen up to 4:21. One of your red flags is you can't change what on the menu. Beside forcing you to buy their products even if slow moving. Bases on your experience as Restaurant owner/operator in Canada. Those are the problem you notice as experience restaurant operator. But the Franchise still keep on existing whatever they like even at your losses. Franchise are for Newbies while like you just better to start your own brand
Thanks for sharing this video💓💕. Many start businesses hoping to make it big, but at times, struggles offer many lessons. Restruarant business is very hard but I am glad you shared your experiences
you're very welcome 🙏♥️
Upon watching your video, i think the main root of your problem is you bought a franchise, judging by the franchise fee, i assume its not as big as you thought their brand is. I also planned buying a franchise when we were just starting. But decided to make my own brand. the biggest take away with franchising is you cannot innovate or add menu's of your liking, you're stuck with the menus they are offering which will hold back your growth and not being really hands on to your restaurant. You already have a restaurant in canada you should've had a lot of knowledge about running a restaurant and still not confident of making your own brand.
thanks for watching. All good, lessons learned.
Thanks for sharing your experience. I'm also weary of franchising "newer" brands as I've heard of high franchise fees and lack of customers from stores I encounter. I also have a brick and mortar business, printing shop, and I feel most of the struggles you shared with. I wanted a new business and it will be a retail store so management will be easier compared to running a printing or restaurant business which needs lots of work like layouting, customization, etc.
thanks for watching and for sharing your own story 👍❤️ Good luck to you and your future business. God bless
dapat una mong ginawa is computation debit credit then dun mo malalaman kung kumikita ka ba o hindi. things to consider is yung overhead expenses. permits, sahod, electric bill water bills , etc. if renting lalo na malaking gastusin yan vs yung pumapasok na income. Location, tapos yung kakayahan ng mamimile bka naman isang kahig isang tuka e di makakabile ng menu yan. Magandang location is lapit s opisina twing lunchtime duon n sila bibile, churches etc.
good points. thanks for watching
I used to work as an accountant for a Family-owned restaurant company in the Philippines with branches in Metro Manila and Cebu. I would say na hindi talaga profitable ang business na ito. I moved to Canada as an accountant, and I'm on a career transition to nursing. One of my nursing instructors owned a nurse agency company where nagha-hire sila ng mga travel nurses and dini-deploy nila kung saan saang area dito sa Canada. Since bumalik na kayo ng family mo dito sa Canada, try mo yung ganong business, I heard na profitable daw hehe.
Before po kayo nag decide and do d franchise u should 1st check the business plan, the supply and demand,location and the expenses.
Iba padin if napag aralan muna.
agree
OMG the renovations here is really a head scratching.
napansin ko sa pinas maam pag mga tapsihan ang target talga dyan is mga low to medium class. so pag nagsetup ka ng restaurant tapos yan ang menu mo mahirap bumenta. Mas okay yung parang style turo turo para makamasa style ang dating.
yes tama 👍
Do first a strategic planning, analyze the location, target customer, 6 months or 1 year back up for your finances and last your restaurant should have different niche
thanks for watching
The niche is really important. Food business is hard, it's all about how to keep strong customer base.
I think food truck will be your better option?
Franchising is a good business but as franchisor, that can be a struggle. Kasi matic kita agad sa franchise fee then s orders ng raw mats s knila mo din bibilin. Then the appliance and equipment, they can compel u to buy sa kanila only then may markup n nila din un. Design and construction also. Kaya if u are starting with a franchise, dpt ung subok matatag na.
yep exactly 👍💯🙏
sana may actionable steps din na naprovide para maachieve yung 3 points na binigay. Sobrang hirap ma achieve nung number 1.
This is pure experience, please don't take this video because you have new subscriber from this.
Also, thank you for sharing this!
@@ciero9288 thank you 🙏❤️
this is also the reason why kahit 5 years na kami sa market di pa namin inoopen yung franchising. Kasi we care about peoples money lalo na yung iba life savings nila yan. Nakakabahala yung market sa pinas na months pa lang nag ooperate eh nag ooffer na ng franchising. Kahit hindi pa proven yung financials. 😢
thanks for doing that..very few people really care. God bless you and wish you all the best. 🙏❤️
So what happened after that first opening day? It looked like it was gonna be a big success. Was every day slow after that?
yes
Firstly i think you were the housewife in Canada and not working in the Canadian restaurant. Secondly you seemed surprised at many of the restaurant aspects that experienced operators would be comfortable with!!??
To be honest it looks like you had no restaurant or businesses experience and this was your first venture.
Also if the franchise failed, you still could have utilized the store to make your own brand or adapt the space for another business.
thanks for watching! yeah it's obviously our first time in franchise business but I'm glad we failed because we learned quickly. 👍🙏 All good!
Anyway it was very interesting hearing your story because it will help a lot of people looking to get involved in buying a franchise.
I learned a lot from you even though I had 30 plus years in the restaurant/Cafe game.
I did the same mistake pero sa foodcart lang. I realized that selling perishable goods is not that practical for a newbie businessman. So recently I decided to start a laundromat, at least di basta masisira yung sabon, di na din aq nag franchise, nag build nlng kami ng sariling brand, sa service nlng magkakatalo yan hindi sa name.
thanks for sharing 👍
These seems like usual business starting aspects and challenges. Don't think that it is particularly linked to choosing a franchise business. As if when you open your own business company, you don't need much money and time to break even, don't have to do anything, just sit and count money. Maybe except that you don't have to keep products you see nobody is buying. Expected some information about any unsuspected danger of franchise business. Nothing like that.
thanks
I am planning to put up my own business soon and i have been scouting, watching videos, tutorials, etc any information about putting up a small business , i watch it. Thanks for this video. My two cents here, i guess the brand you franchised was not really a well known brand. If that is the case and they have this required minimum monthly inventory purchase, you should have thought about that part critically before you signed the contract.
thanks for sharing 👍
Location location location for the right franchise for the right area. Good luck. It’s a partnership. It’s not about you or the franchise it’s about the people you will serve.
thanks
Thank you this is an eye opener for starting up checking franchises❤
The food industry is saturated now. You need an original niche, good location, and demographics of how much the average person is willing to spend if you can get them in the front door. Then, there is the operations side of things that has a whole host of challenges. Food prices are high now, so profit margins are squeezed tight. Our restaurant failed, and we were thinking of getting back in, but as things stand now, I will not, certainly not foods.
very good points and yes I agree 👍 thanks for watching
Business done for fun in better left undone.
@resultspaid7250 not when you're losing money with all the hard work and passion put in.
When i retired in the govt service , kailangang may sustanable income kahit maliit , luckily on the same year nakapagumpisa ako ng business and would you believe I started with only glass estante and until now Im still using with only one estante at kahit paano kumikita naman , Hindi ako naghahangad ng malaking pwesto dahil mahal ang renta , since 1998 to present the space is still 1 by 2 sq mtr.
thank you for sharing
The best franchises in the Philippines are Jollibee, McDonald's, and Mang Inasal its always busy non stop of people lining up and profitable though these franchise are expensive
yes 👍💯
Not so fast . . .
- If you are renting, chances are your landlord will jack up your rent when he hears the sales register ringing. And according to commercial lease laws, and thanks to Asian crab mentality, the landlord can push your rent to the roof upon renewal.
- Are you aware that the franchise fee you fork out has an expiration? And usually the renewal of the franchise would cost you more than you originally spend?
- There are a lot of Jollibee/Mcdo franchisee who don't anymore renew their franchise, it would help if you ask them why they quit. Good luck, you need it.
That’s what you think. You will know once you sign up for them. Walang katapusang gastos
@@johnlove6194wow…na eexpire pala . Nasa 20M yta franchise fee now ng mga ganito..
Franchisees are main source of franchiser's income. Most franchisers focus on squeezing franchisees instead of building a win-win business.
thanks
Thank you for sharing your experience Salee!
My pleasure 🙏☺️
when you think to use this brand , didn't you know you must follow it's menu and rules?
Based on your experience they are like MLM's. You have to buy every product even if it is unsaleable. So if that's the case what will you do with those products? And you have a quota which will add more burden. It is better to create your own product.
thanks for watching
I recall my brother in law want money from me so that he can open up a restaurant. I said no, your are a bartender what makes you think you can run a restaurant plus no business experience. Go ask a bank for money. Well he went to photography business.
thanks for sharing
Listened very well on this. Thank you!
thanks! 🙏
Location is the key lalot tapsihan business kayo. It's not like a small kiosk na either coming to office or going home buyers ang target nyo. Foot traffic is really important.
I used to work as an Operations Officer for a bakery chain naman but sadly, most of the franchise na nag co close is mismanagement kasi di maayos pag handle ng tao (tapos walang pang knowledge on baking din ang owner), so pag walang baker, sira operation ng bakery.
thank you for sharing
Of course you're not allowed to change the menu without approval. its normal for franchises. Its also a way to avoid any "failed experiments" that could hurt the brand. About the products that dont sell, its the fault of business model. they should look at 7/11 Japan's business model. Other issues you said are just normal for franchises. Overall, you should've done more due diligence, like check other existing franchises for feedbacks. Hope you learned and good luck on your next venture! I admire your courage for doing what you did.
Thank you for your input! I totally agree that changing the menu without approval is a standard rule in most franchises to maintain brand consistency. Unfortunately, some of these ‘experiments’ we tried were done in an attempt to boost local sales, but I see now how important it is to follow the franchisor’s system. You're right about due diligence-definitely something I’ve learned the hard way, and I appreciate the advice to check out other successful models like 7/11 Japan. Every venture has its lessons, and I'm grateful for the experience and the courage it gave me. Thanks again for the support!
Hmm... As expressed somewhere here, what you experienced is of the typical start up (even if it a franchise, established or not). Honestly with the trend in the Philippines in the food service sector, you could have started your own brand. And invest/spend in making it trend and even go viral if you want to go that route.
@@backtoback3697 thanks for watching
why so many think that because one way to make $millions or a lot of money work for someone will also work for anyone. Get real and know the truth.
I am also a coffee shop owner it’s in Bohol, Philippines, 5 months after II open my cafe I moved to the US because my immigrant petition was approved that was 2023 and up until Now I am still remotely managing my cafe, pay my suppliers thru g cash, monitoring sales and inventory while working and starting my life in the US. I visited the Philippines for about 4 months and there was a significant increase in sales while I was there, and now that I am back in The US sales were challenging again, I still continue running this business with all the challenges so still hoped that one day all my efforts will be worth it because I still believed in the Brand I created from the heart..
nice to know.. care to share the name of your cafe and will pay a visit next time we go to Bohol. We went there in October and the whole family loved it. Planning to go back and do whale watching 😊☺️
Thanks for visiting Bohol and I’m glad you loved our Humble place.. I am planning to visit again there too maybe early of next year, the Cafe’s name is Brewhol (combination of brewing coffee + Island of Bohol) it’s a small humble cafe situated in our old ancestral house which was build in the late 50s :)
wow we will keep that in mind next time we're in Bohol. 🤗 Thanks for sharing 🙏
@@salee_talks you’re welcome and thanks also for sharing videos with us :) are now guys back in Canada or still in the Philippines? :)
yes no problem. we are still in the Philippines. We are in the middle of training, hiring people, making sure all the staffs are properly trained so that the business runs smoothly while we are away. We probably will go back every 6 months or so depends on how things go...will see. 😊
Hi. First time watching your vids and already subscribed!
Thanks for the detailed walk thru on how franchising works.
Continue to make videos as open as this 🎉❤
thanks for watching and the comment.. appreciate it! 🙏❤️
mahirap talaga ang food business,kaya ako dun ako sa di nasisira o nabubulok na negosyo,like selling shirts,gadjets etc.
thanks for sharing
franchises are a big scam in the Philippines, there are new ones all the time. Micro gas stations was a big one a couple years ago, maybe okay if in right location but here in Manila region there are so many gas stations that difficult to make a profit unless one has a more exclusive location
Dami scam din sa mga franchise sa pinas kaya mahirap mag franchise.mas ok na na sariling concept at business mo nalang malaki matitipd mo kc wala franchise fee
Failure it's part of success mistakes it's made to learn to grow but the tuition fee it's expensive
agree and you must really learn the lesson 😔
I went to graduate school here in the U S….MBA
We touched all the topics that you discussed
thanks for sharing
Im really sorry to hear about your misfortunate business. However, after viewing your video, the message and content are very unclear. All I see is you talking to the camera, narrating the facts, without much footage, pictures, videos, interviews, charts or financial analysis to explain or prove your point. Exact breakdown of the franchise operation, P&L statements, revenue and cost forecast vs. actual budgets, payroll and menu impact over operating costs, guest demographics and many many other KPI’s, were all missing, leaving the video just as a narration without precise data.
If a franchise FAILS there must be a tangible, concrete explanation linked to measurable facts and details, but how it was exposed, is difficult to understand where the issues were, or how it could have been different / better, if none of those key elements are displayed, explained, conceptualized. I have been in F&B Ops more than 30 years and trust me, the analytical phase BEFORE execution is as important as the guest experience once the outlet is open.
My very best wishes to your next good adventure 💙 just keep in mind: in some large European capitals, if in one year they open 5,000 restaurants, 12 months later only 900 have survived, my point been, you chose to open a business perhaps in the most challenging and underestimated industry sectors there can be.
thanks for sharing 👍