Figaro gets ISO certification

Growing and selling premium coffee constitute just half the business mission of Figaro Coffee Co. The other half is perfecting the franchising system so that it can be universally applied to all outlets here or abroad.

Figaro CEO Pacita Juan worked hard to come out with what she believes as the perfect design, system and franchising services that would conform to the rigid requirements of the Geneva-based International Organization of Standards.

To ensure that the franchising business operates smoothly and complies with world standards, Juan put up the Figaro Coffee Systems Inc. for uniformity and "replicability" of the franchising program.

After one year, Figaro Coffee Co. and its sister, FCSI finally got ISO’s seal for design, development and provision of franchising services, the first local company to obtain it. Behind FCSI are Feliciano Alvarez, corporate internal audit manager and accounting manager and Michael Aranilla, franchise manager.

"What the ISO certification means is that we have put in place a franchising system that would be uniformly applied to all our existing or new stores, whether here or abroad," Juan said.

A uniform franchising system will professionalize the business so that personal relationships do not become a basis for choosing franchisees, Juan said.

"We started working at our ISO certification in October 2004 and it took us a year to comply with all the rigid requirements and standards set by the organization," Juan said.

Figaro now has 52 outlets in all (including the 2 outlets in Shanghai (the trading capital of China), one joint venture outlet in Hong Kong and one in Dubai). Of these, 28 are franchised and 24 company owned. Locally, Figaro is present in Davao, Cebu, Baguio, Laguna, Pampanga, Tagaytay and Metro Manila. In Metro Manila, the first company-owned outlet was put up in 1993 at Glorietta. Soon after, outlets were put up in major malls and even street sides like those in Emerald Ave., Brick Road (Cainta), Alabang Town Center, Bohol Ave., Congressional Ave., Magsaysay Avenue, Commonwealth Ave., Baywalk in Roxas Blvd. and Brittany Bay in Sta. Rosa, Laguna.

For 2006, Figaro is looking at putting up an outlet in Beijing, China and an outlet each in UAE and Saudi Arabia. By 2007, Figaro is setting up its first company-owned store in Hong Kong, after five years from its first joint venture outlet. "It took us so long to set up our own store there because of the high property cost," Juan said.

The local specialty coffee market is growing at three percent a year (higher than population growth rate) and per capita intake is also increasing, especially among the young. There are 250 major coffee shop chains with 60 percent coming from Starbucks and Figaro. The average growth of the specialty coffee sector is at 20 percent a year.

The country’s coffee production is estimated at 25,000 metric tons as against actual consumption of specialty coffee of 45,000 tons. Consumption is increasing by three percent a year, even higher than population growth.

Juan said despite Figaro’s expansion mode, "we are not forgetting our mission of helping local farmers improve their production and bean quality so that the Philippines can re-enter the global coffee market."