This little store is growing

Mini Stop’s rice meals are a dead giveaway of its Japanese origins. The meals are heated in the convenience store’s microwave oven and either eaten in-store or taken out by the customer.

"About 30% of our total sales come from the chilled cooked rice meals, which our customers look for at night. Our competitors offer the usual sandwiches, hotdogs, and doughnuts," said Francis Medina, franchising manager of Robinsons Convenience Stores, Inc., which supervises all company-owned and franchised stores nationwide.

RCSI is an arm of the Robinsons Retail Group, which owns 55% of the joint venture. Of the remaining 45% equity, Mitsubishi Corp. holds 40% and Mini Stop Co. Ltd. (which was formed by the Japanese founding company, Jusco Co. Ltd.) holds 5%.

Since opening for business in 2000, the convenience store chain has put up 100 outlets or one out of every four convenience stores in the country today. Worldwide, Mini Stop operates 75,000 outlets.

"We see a lot of room for maneuvering in Metro Manila, with its current eight million population. By 2006, we will be venturing northward, initially towards Bulacan, Pampanga and then to Dagupan and Baguio. We are optimistic we can reach our 500th store target by 2008," said Medina.

Advantages

At any given time, each outlet has 2,200 items or shelf keeping units, which are ordered daily by the franchisee from the central warehouse operated by Robinsons Distribution Center, Inc., the logistics partner of Mini Stop and a joint venture of Mitsubishi and Robinsons Retail Group.

"Although our products are priced 10% to 15% higher than sari-sari stores, we offer comfort, convenience, 24-hour service, and fresh and ready stocks at all times to our consumers, big and small" said franchising supervisor Lee Perez.

The chain’s primary targets are consumers aged 16 to 45 years old who belong to B-C households with busy lifestyles and are impulse buyers on the look out for the best value for their money.

"In our franchising program, we give a lot of weight to a would-be franchisee who is a resident of the community where the store will be put up and who is interested in a business that utilizes the latest retail technology with efficient operations systems already in place," said Medina.

While business experience is not needed–full support in terms of training programs, store operations, and distribution is provided– RCSI expects its franchisee-partner to be directly involved in the business.

"The franchise fee is P500,000 but the investment requirement ranges between P1.2 million and P2.7 million because of the lease component for a 100-square meter space. We help out our partners by shouldering the cost of electricity on top of the usual franchising come-ons such as signages, promotion, and store shelves," said Medina.

The company also takes care of getting the business permits and insurance applications, crew hiring, and franchisee training.

Preferred locations are high-density and highly-populated areas such as high-rise buildings, residential condominium buildings, and near a university, church or transport terminal.

"We want to be present in every possible location which would bring us closer to our customers," said Medina.