Boholana baker to expand operations via franchising

A Bohol-grown bakeshop operator has seen the power of franchising to expand the business and enter into bigger market penetration in Visayas and Mindanao.

Kiddies Bakehouse, which now has 12 outlets in Bohol is getting ready to enter the entire Southern Philippine market, to compete with bakeshop giants especially those providing freshly baked breads, pastries, and cakes.

In an interview with Rachelle N. Sombrio, proprietress of Kiddies Bakeshop, she said that the best way to grow her business is to ride on the effective way of franchising.

Sombrio is planning to seek help from the Philippine Business and Social Progress (PBSP) for consultation in her plan to go into franchise, as her business has been a beneficiary of PBSP, and the Canadian government’s Canadian Executive Service Organization Business Advisory (CESO-BAP).

She said that the success of her bakeshop business in Bohol is a good indication that it can also succeed in other parts of Visayas and Mindanao.

However, she said she still has to prepare the necessary requirements, including a serious consultation with PBSP, on how to go into full franchise offering.

Sombrio was one of the participants during the recently concluded 1st Regional Retail and Franchise Conference, hosted by the Philippine Retailers Association (PRA), and the Philippine Franchise Association (PFA).

Although there are a number of famous bakeshops that now dominates the market, she is confident that Kiddie’s Bakeshop will gain market attention.

Sombrio, whose family was into bakeshop business for years now said that there is still room for growth in the bakeshop market, provided that quality of the goods will not be compromised in the name of "profit."

She largely attributed the growth of her business in Bohol, through the help of these two support agencies, PBSP, and CESO-BAP, to employ internationally-at-par bakeshop operation.

CESO-BAP2 is a bilateral project between the Philippines and Canada that started in 1999 and is funded by the Canadian International Development Agency (CIDA). It aims to increase the operating effectiveness of Small and Medium-Sized Enterprises (SMEs) in Visayas and Mindanao.

Since, Kiddie’s Bakehaus is also specializing custom-made cakes that stand to compete with giants like Red Ribbon, Goldilocks, and others.

However, she said Kiddie’s Bakehaus has different positioning as it is targeting to locate in high traffic areas, such as terminals, ports, and tourism hot-spots.

Franchising in the Philippines accounts for 15 percent of the total retail sales, there are over 100,000 (and growing) franchise businesses operating nationwide.