Mid-range restaurants thrive amid the crisis

Mid-range restaurant chains expect to thrive as consumers now opt to dine-out in affordable dining outlets instead of spending in fancy and expensive restaurants, amidst a crisis-battled economy.

"Those people who are used to fine dining restaurants, will now slide down their choices to semi-fine dining outlets to save cost," said Pancake House, Inc. brand group managing director Bernadette M. Lee.

 Pancake House Inc. is the operator of different middle-range restaurant brands such as Pancake House chain, Teriyaki Boy, Dencios, Singkit, among others.

Food outlets such as those catering for the middle-range consumer base as considered as "catch basin" in times of crisis, while lesser people are going to expensive fine dining restaurants amid the belt-tightening situation.

For this reason, Lee said the Pancake House group is still on track with its expansion plan around the Philippines, starting with the opening of its Teriyaki Boy outlet in Cebu located at The Terraces.

Dining out is already part of Filipino lifestyle. With or without crisis, families, and group of friends still find out the need to eat outside for bonding and relationship nurturing.

Thus, the food business in the Philippines in general, especially those catering to the middle-earner market are still projected to grow, although profitability expectations are thinner compared to other years.

Pancake House Inc., one of the largest restaurant chain operators in country, has expressed its confidence in Cebu market, as it considered the province, as one of the dynamic cities in the Philippines, continues to be strong amid economic turmoil.

Although, growth is seen to be sluggish in the next few years, especially next year, Lee said the group is holding to its confidence and is ready to invest more in the Cebu market in the next couple of months, or years.

The robust tourism industry here, has boosted the group's confidence to expand, while other businesses are holding on, saying it is good to take advantage of the dynamic tourism market in Cebu.

Next year though, the company is bracing for a "tough year" ahead thus, it formulated its own formula for the entire group to thrive and catch up with the stiff competition in the food service industry in the Philippines.

It's not only that locally-developed brands have mushroomed all around the country, but international restaurant chains have also find their way in the Philippines, and one of the target areas for expansion is Cebu.

Much accustomed to the Filipino spending culture, Lee said that the group is ready to fight the terrible competition in the food business, specifically in Cebu.

The company is maintaining 160 restaurant outlets nationwide, including 83 branches of Pancake House, 25 outlets of Dencios, and 37 Teriyaki Boy casual dining restaurants.

For the group, she said amid the for-seen slowdown in spending habits among Pinoys next year, the company is prepared to counter-off this situation, by implementing extensive cost cutting measures in its back-end operation.