Bachelor of Science in Business of Administration Major in Management

School of Management
University of Asia and the Pacific

“A Feasibility Study on Franchising of Potato Corner”

Submitted in Partial Fulfillment of the

Requirements for
MGT221: Entrepreneurship and Innovation

Submitted by:
Hipolito, Juan Miguel
Jao, Patricia Francesca
Lopez, Anna Pamela
Orense, Celina
Ortiguera, Ma. Samantha Regina
Ramos, Francesca Alexandria
Rizo, Maria Fatima Concepcion
Supan, Renzo

Submitted to:

Mr. Eric Parilla

Faculty-in-Charge

April 2017

1
INTRODUCTION
Marketing
I. Current Market Situation

A. PSIC Code
Item Code Description

Section I Accommodation and Food

Service Activities

Division 56 Food and Beverage Service

Activities

Group 561 Restaurants and mobile Food

Service activities

Class 5610 Restaurants and mobile Food

Service activities

Sub-Class 56104 Refreshment stands, kiosk

and counters
Table 1. Industry Classification (PSIC) from National Statistical Coordination Board.

According to the Philippine Standard Industrial Classification code (PSIC), Potato Corner which
is a franchise is classified under Section I of the Accommodation and food service activities. It
is under Division 56 which is the food and beverage service activity and falls under group 561
and class 5610 which is the restaurant and mobile food service activities. In addition,Potato
corner is considered a franchise and a kiosk type of business and therefore falls under
subclass 56104 which is the refreshment stands, kiosk and counters. (NSCB, 2009)

B. Describe Industry

Food cart or also known as Kiosk are “mobile kitchen” usually set up in places such as the
streets, malls and offices in order for students and workers to enjoy a quick snack. The
franchising business of this type is seen to have been increasing in the Philippines. In fact, it is
said the the Philippines is considered to be the franchising hub of asia where franchising
business has made remarkable growth in the past few decades. Some of these sectors include
retail clothing, education and training, hospitality and wellness, personal care, cafes,
confectioneries and bakeshop and food carts. ( Manila Reviews, n.d)

In the year 1992 of October, Jose P. Magsaysay Jr. President and CEO of Cinco Corporation
decided to innovate and add a twist to the french fries we eat. In the 90’s flavored popcorn was
a hit; with this, he thought of adding flavors to the fries such as barbeque, sour cream, cheese
and many more. Magsaysay's’ idea of making flavored french fries was a hit. By 1993, Potato
Corner decided to expand by being open for franchising. It was seen that the sales had been

2
increasing and the demand for these fries were high; with this in the first year of potato corner
being open to franchising, there were around 74 outlets despite the business being new entrant.
In the year 2003, Philippine franchise Association and the Department of Trade and Industry
awarded Potato Corner the franchise excellence hall of fame award.

Today, with over 500 branches in the Philippines and around the world, Potato Corner is an ideal
partner in making a secure investment for your future. Potato Corner has been a trailblazer in the
franchise industry having been in business for 24 years, both in the Philippines, as well as around
the world. With locations in Indonesia, USA, Panama, Australia, Singapore, Thailand, Dubai, and
other countries in the pipeline, it is with no doubt that Potato Corner is the brand to partner with.

Mission of Potato Corner

Potato Corner, the first and the original Flavored French Fries prides itself in being a Global Brand
that serves the best flavored fries to its customers, and by providing limitless opportunities for its
Franchisees.

In the celebration of our 24th year, Potato Corner embodied the theme: Championing The Game,
which essentially means working our hardest to ensure that we provide quality products to our
customers, and excellent service to our franchisees.

Our Cheese, Barbecue, and Sour Cream flavored fries have been a staple snack for many Filipinos,
as well as our friends around the world. It is our standard to maintain top quality French Fries with
the right crispiness and texture, which is then shaken to perfection with the customer’s preferred
flavor. It is because of our customers that we are able to succeed as a brand.

We take pride in giving our franchisees an opportunity to grow with us; we make sure that we work
hand-in-hand with them in ensuring that their branches reach optimum sales while maintaining the
quality of products and services that we provide our most loyal customers. With this, we make sure
that that as we grow, our franchisees grow with us.

C. Different Problems and Challenges Faced

Franchising is one of the successful businesses established in the Philippines. This industry has
the capability to adopt easily and grow in this tough economic environment. However,
franchising industry still faced different problems and challenges due to the growing competitive
economy. Some of the problems and challenges they are facing are: Price sensitive consumers,
growing competition, adapting to the needs of the customers, rising costs, and working
relationship with franchisor.

First, consumers are starting to spend less and become price sensitive because of the increase
in cost of living. There are a lot of economic factors that affect the consumer’s buying behavior.
Due to the increase of cost of living, consumers nowadays spend their money on the things they
really need rather than buy what they want. In effect, the purchasing behavior of the consumers
in this kind of industry happens occasionally, as a reward, and only if they have excess money

3
to spend for their unnecessary need. Businesses like this should find new ways on how to
convince their consumers to buy and satisfy them especially those who value money.

Second, a growing number of competitors are present in the food industry. There are a lot of
known competitors in the franchising industry such as Mcdonalds, Jollibee, etc. In the case of
potato corner, these competitors mentioned also offers flavored fries and gives a lot of variety of
food unlike the potato corner who focuses only on fries. This also gives their consumers a
convenience as they provide a lot of choices for the consumers as well as a place to stay. As a
result, it increases the competition in market share and makes the other brands to be
competitive in terms of their performance.

Third, adapting to consumer needs is one of the biggest challenges that the industry is facing.
For instance, many people nowadays are becoming more conscious on what they eat which
they may prefer healthier food. Consumers opting for healthier food options is one of the
example that the industry may want to improve in order to satisfy the needs of their customers.
It is important to consider the needs of the consumers in the development of the brand in order
to stay in this competitive market.

Fourth, the rising costs for franchises in the food and restaurant industry. The increasing utility
costs, equipment costs, maintenance costs and etc. are putting more strain on the bottom line of
franchises. With customers being price sensitive, it will be difficult for franchises to pass on
these costs to customers.

Fifth, working with the franchisor is the toughest challenge in the franchising industry. It is a
legally binding relationship that last for a long time. The franchisee’s relationship with the
franchisor will be extremely important. Thus, franchisor and franchisee should have an open
communication. Franchisors determine the direction of the business, the marketing and the
product offering, this can often put them at odds with their franchisees who view them as a
challenging business partner that does not engage them enough in the decision making
process.

Analysis: Despite the success of the franchising industry in the Philippines, problems and
challenges are normal to the business but this can be avoided or reduced. Some people may
think that opening a franchise is easy and a simple way to start your own business. One thing
that a franchisee must always remember is that they are not the superior of the business they
want to enter in. it is challenging to be in the franchising industry because there are rules that
needs to be followed even if you see an opportunity to change a certain process that will benefit
the business. This problems and challenges faced by the industry are the responsibility of the
franchisor and not the franchisee. However, having knowledge with these different challenges
may help you in decision making if you still want to pursue it. Thus, research about the industry
you want to franchise is very important and it is one way to avoid future mistakes.

4
 II. Issue and Opportunity Analysis
A. Opportunities

Proven system
Since there is already a system for the business, it would be a lot easier for the franchisee. The
franchisor will just give a roadmap and the franchisee would just have to follow this. Everything
that is included in the roadmap has already been tested and proven by the franchisor. This
would result for the franchisee not to have the ‘trial and error’ phase that would eventually lead
to generating profit within a short period of time. (Adama, n.d.)

Avoid many start-up systems

Starting a business from the ground up requires a lot of time and effort just getting the basics in
place. These would include having major setbacks and undertakings such as having to develop
a reputation in the market or overcoming competitive threats. The franchisee would not have a
hard time going through all these because the franchisor already did it. (Adama, n.d.)

Existing name and reputation

As stated above, you do not need to invest significant time and effort into getting your business
known in the marketplace as the franchisor will already have done this for the benefit of anyone
who would want to franchise the business. (Adama, n.d.)

Advertising is easier
The franchisee does not technically have to advertise Potato Corner. It’s known to the public
and is loved by the public. (Adama, n.d.)

Greater knowledge base

The franchisor is likely to have invested in market research for the benefit of all the people who
would want to franchise the business. This means that the franchisor already has a great
knowledge of their market(s) than those of the the local "independent" competitor/s. The results
of this market research can be put to good use in the other of the advertising and marketing
programs. (Adama, n.d.)

Analysis: The Opportunities include having a proven system, avoiding many start-up systems,
already having an existing name and reputation, advertising would be much easier, and greater
knowledge base. Having these opportunities for a certain business would ensure the business
to have a sure market and sure profit.

B. Threats
Capital Investment
Establishing a franchise requires investment of time and money in business development, a
flagship store, legal document preparation, marketing and packaging plans, and recruiting
franchisees. (Adama, n.d.)

5
Restrictions
Since the franchisee is buying the rights to participate in a proven "system,” the franchisor will
be concerned that all franchisees adhere to the system and not operate outside it. After all, if
franchisees are free to adhere to the system or not as they see fit, there is no point in buying
into a franchise at all. For this reason, for the benefit of the system as a whole, franchisors will
generally impose strict controls on things such as the quality and types of products and services
that you may offer for sale, the types of local advertising you may undertake, methods of dealing
with customers, ethical conduct and the like. Franchisees must be careful to balance restrictions
and support provided by the franchisor with their own ability to manage their business. (Adama,
n.d.)

Time
Since they do not have control of the system, the term (duration) of a franchise agreement is
usually limited and the franchisee may have little or no say about the terms of a termination.
(Adama, n.d.)

Location
Since there are a lot of Potato Corner already nationwide, it would be a lot harder for the
franchisee to look for a location that would be perfect for the preferred target market. If there is
not enough people or the market is not in the place the franchisee chose, this would be hard for
them to generate profit from this. (Adama, n.d.)

Ongoing Costs
Besides the original franchise fee, royalties, a percentage of your franchise’s business revenue,
will need to be paid to the franchisor each month. The franchisor may also charge additional
fees for services provided, such as the cost of advertising. (Adama, n.d.)

Analysis: The threats Potato Corner will encounter are capital investment, restrictions, time,
location, ongoing costs. These “threats” are very common to all people who franchises a
business there can be misunderstandings with the franchisor that can cause damage to the
business (financially or operationally) this is why the franchise agreement is usually limited and
is subject to renewal. Moreover, looking for possible locations for this brand can be tricky since
most places in the Philippines already have a Potato Corner stall. Furthermore, there can be
opportunities present on this business. Since the brand is already established there is already a
roadmap and system ready to be followed. The reputation of the brand is very significant as it
can be easier for advertising to the market and is easily acceptable.

6
 III. Competitor Analysis

A. Competitive Advantage/Edge

DIRECT COMPETITORS

Name of Direct Years of Usual Branches/Pla Product/s Price Competitive

Competitors Existence Customer ce Advantage

MJ Bagnet 2 years Students One Corporate 1 Viand + Rice P 70.00 They offer
Express and Office Center 2 Viand + Rice different kinds
workers of Filipino food
Olopsc Choices of that comes in
College viands: a meal. Not a
fast food
Marikina Lechon Kawali P120.00 restaurant.
Bicol Express
Adobong Pusit
Afritada
Igado
Chopsuey
Pakbet
Adobong Sitaw
Sinigang sa
Miso
Buttered
Veggies
Ginataang
Langka

Paotsin 16 years Office SM City North DUMPLING P 42.00 They offer

workers EDSA SOLO their signature
and mall Hainanese
goers Trinoma Mall DUMPLINGS Rice with
w/ cheap
Savemore - Hainanese Rice P 55.00 dumplings
Nagtahan w/ Lemak Rice
w/ Laksa Soup P 60.00
SM City San
Mateo ASIAN P 65.00
CHICKEN
SM City w/ Hainanesse
Lucena Rice
w/ Lemak Rice P 70.00
Pacific Mall w/ Sweet Potato
Lucena Fries
w/ Laksa Soup P 75.00
SM City BEVERAGES:
Manila

7
 Buko Pandan P 75.00
Robinsons 12 oz.
Manila 16 oz. P 80.00
20 oz.
Hypermarket
Makati SM Bonus P 22.00
Bottled Water P 25.00
SM 325mL P 27.00
Hypermarket
Adriatico EXTRA
ORDER: P 10.00
Metro Point
Shopping Mall Hainanese Rice P 22.00

Savemore Lemak Rice P 25.00

Empire

Forum
Robinsons

Pavillion
Foodcourt

Hypermarket
Mandaluyong

Sta. Lucia
East Grand
Mall

Savemore
Novaliches

Robinsons
Cybergate 3

Makro Sucat

SM Mall of
Asia

SM Cubao

Starmall
Alabang

SM
Centerpoint

Worldwide

8
 Corporate
Center

SM Southmall

SM City
Novaliches

SM Rosario

SM City
Marilao

Sun Mall

SM Aura
Premier

SM
Hypermarket
Talipapa

SM Makati

Market!
Market!

Las Pinas

SM Marikina

SM City Sucat

Walter Mart
North EDSA

Waltermart
Makati

Waltermart
Calamba

Waltermart
San Fernando

Waltermart
Carmona

Waltermart
General Trias

9
 Waltermart
Guiguinto

Waltermart
Sucat

Waltermart
Makil

Waltermart
Trece Martires

Waltermart
Bicutan

Waltermart E.
Rodriguez

Waltermart
Cabuyao
Waltermart Bel
Air

Omelette On 6 years Office Ayala 1 Meat + 1 P 65.00 They offer

The Go workers Makati filling + Rice multiple
and UP versions of
students Benilde MEAT: rice together
One Corporate Bacon with a filling
Center Chicken and meat
Corned Beef which will be
Ground Pork the customer’s
Ham choice.
Hotdog
Longanisa
Maling
Tocino
Tuna
FILLING:
Bell Pepper
-Cheese
-Cucumber
-Garlic
-Mixed
Vegetables
-Onion
-Potato
-Pineapple
-Mushroom
-Chili

10
 -Potato

RICE:
Chicken Chili
Cheesy Bacon
Corned beef &
Potato
Ham and
Hotdog
Maling
Hawaiian
Spicy Ground
Pork
Spicy Tuna
Vegetarian
Asian

Khalab 10 years Mall goers, Pasig PRODUCTS: They mainly

students, STE offer
families Starmall Shaw Shawarma Pita P 60.00 shawarma
Sm Kebab Pita P 65.00 products, it
Mandaluyong Shawarma Rice P 70.00 can either be
SM Cubao Celo Kebab P 70.00 placed on rice
Farmers Pitazza P150.00 or pita.
Market
Starmall BEVERAGES:
Alabang
Sm Baliuag Bottled Water
One Corporate Red Tea P 20.00
Center Cucumber P 20.00
SM North Lemonade P 20.00
Shopwise
Commonwealt
h
SM Baliwag
Waltermart EXTRA:
MOA
Market Market Egg
Rustans’ Sliced cheese P 15.00
SM novaliches Cheese sauce P 10.00
Hot sauce P 10.00
Garlic Sauce P 10.00
P 10.00

Healthy Hour 1 month Office One corporate VIANDS: Aside from

Workers center offering
Roast Beef P 99 different
viands, they
Veggie Kare P 99 offer “taho”
Kare

11
 Garlic Chicken P 99

Fish Fillet in P 99
Tausi Sauce

Sweet and Sour P 99

Fish

Fish Fillet in P 99
Crab and corn

RICE:
Brown Rice P 20

SOYA/TAHO:

Special Taho P 35
(12oz)

Special Taho P 50
(160z)

Cold Taho P 45

Soya Milk P 40
(500ml)

Chicken Zilla 7 years Office The Galleon, BONELESS They

workers 6th Floor One CHICKEN specialize in
and Corporate CHOP BENTO serving
Students Center Julia different
Vargas (Classic, Plum, flavors of
BBQ, chicken
Food Arcade, Cheese,Pepper
9th Floor, Salt, Seaweed,
Philam Life Curry,
Tower, Paseo
Mushroom)
de Roxas
Baby P 79.00
2nd Floor,
Multi-Deck
Parking Lot, With
University of small
Sto. Tomas drink:
P 89.00
Food Club,
Ground Floor, With
Philplan Large

12
 Building, drink:
Kalayaan P 94.00
Avenue

Upper Ground Junior P 99.00

Floor, Original
Worldwide With
Corporate small
Center, Shaw drink:
Blvd
P 109.00

With
Large
drink:
P 114.00

Original P 119.00

With
small
drink:
P 129.00

With
Large
drink:
P 134.00

CHICKEN
WINGS:

Korean Soy 4 Pcs:

Garlic +Spicy P 99.00
Buffalo
8 Pcs:
P 135.00

CHICKEN
TEMPURA: P 55.00

Spicy Teryaki
___________
Sweet Chili P 59.00

SIDES AND
BEVERAGES:

13
 Fat Fries
Hashies
Guava Stx P 20.00
Shrooms P 20.00
Tempura Solo P 15.00

Orange Juice
Ice Tea
Softdrinks

Sandwich Guy Office Robinsons PREMIUM The

workers Cybergate SANDWICHES: sandwiches
and mall Tower 1 BBQ Chicken Half: P63 offered come
goers Whole: in different
One E-com P105 variations that
Center can be bought
Half: P60 in half or a
Dela Rosa NY Pepperoni Whole: whole.
Carpark 1 P110

SM Megamall Half: P63 They also offer

Whole: pasta, salad
McKinley Hill HBLT P110 and kinds of
potatoes.
PhilPlans Half: P60
Corporate Whole:
Center P110
Cuban Lean
Pacific Star Pork
Building
Half: P60
Net Plaza Whole:
P110
SM The Block
Chicken Pesto Half: P82
Robinsons Whole:
Forum P145

Worldwide
Corporate Ultimate
Center Roastbeef Half: P55
Whole:
Robinsons P90
Summit
Center HEALTHY Half: P55
SANDWICHES: Whole:
Robinsons Grilled Cheese P90

14
 Cyberscape Carpese
Aplha Half: P60
Whole:
Cash and P95
Carry Mall Cheesy Pesto
Half: P60
The Globe Whole:
Tower P105

Rockwell BBQ Tofu Half: P63

Makati Whole:
P110
One Corporate
Center
Country Tuna Half: P45
RCBC Plaza Whole:
Tower 2 P75

SM City Half: P45

Calamba Crabstick & Whole:
Mangoes P75
SM City
Bacoor Half: P50
Whole:
SM City P85
Dasmarinas PASTA:
Pesto Half: P50
SM City Whole:
Pampanga P90

SM City Clark
Tommy Boy Half: P53
Marquee Mall Whole:
P85

Half: P55
Tomato Basil Whole:
P90

Half: P55
Whole:
Creamy P95
Carbonara

SALAD
Caesar Salad

15
 POTATO
Beefy
Mushroom
Potato

Cheesy Bacon
Potato

Siomai King Office St Francis Shanghai P 30 They only offer

Workers Floodway Siomai four Siomai
and Mall Crossings variants and it
goers One Corporate HongKong P 30 can be served
Center Siomai with Black
Gulaman
Chicken Siomai P 32

Japanese
Siomai P34

Black Gulaman
P12

Belgian Waffle Students SM Megamall SIMPLY They offer

and Mall PERFECT! different kinds
goers SM City of waffles that
Fairview Plain P30 goes well with
hot drinks
SM Chocolate P35
Centerpoint
Peanut Butter P35
Festival
Supermall Cheddar P35
Cheese
Ali Mall
Strawberry P45
SM
Consolacion Creamcheese P45
SM City San
Lazaro Blueberry P45

SM City Sucat Hazelnut P45

SM City PERFECT
Manila COMBINATION:

SM Marikina Ham & Cheddar P45

16
 SM Mall of Banana Peanut
Asia Butter P45

SM Clark Banana
Pampanga Chocolate P45

SM City Chocolate
Calamba Peanut Butter P45

SM City Ham and

Baguio Creamcheese P55

Trionma Blueberry
Creamcheese P55
Eastwood Mall
Strawberry
Lucky Creamcheese P55
Chinatown
Mall HOT DRINKS:

One Corporate Malaysian

Center Coffee P35

SM Rosario Malaysia Strong

Coffee P35
PATTS
College of Malaysian Hot
Aeronautics Choco P35

Fisher Mall

Riverbanks
Mall

SM Center
Las Pinas

St. Lukes
Medical
Center

SM City
Novaliches

SM
Valenzuela

Glorietta 4
Science Hub

17
 Trinoma
Supermarket

SM Southmall

SM Center
Angono

SM City North
EDSA

Waltermart
North EDSA

Waltermart
Makati

Waltermart
Dasmarinas

Waltermart
Sta. Maria

Waltermart
Cabuyao

Waltermart
Sta. Rosa

To Sisig is To Office Farmer’s Solo Pork P 55.00 They offer the

Believe workers Plaza. Araneta Chicken w/o Filipino Sisig
and Mall Center Cubao Rice which has
goers different kinds;
One Corporate Solo Pork or P 60.00 pork chicken,
Center Chicken squid, bangus
Ortigas, Pasig and shrimp
Combo Pork or P 65.00
Strata 2000 Chicken w/
Building drinks
Ortigas, Pasig
Salo w/o rice P 105.00
Pork or chicken
(Good for 2-3
people)

Squid/Bangus:
Solo w/o rice P 65.00
Solo w/ rice P 70.00
Combo w/ P75.00
drinks

18
 Salo w/ rice P125.00

Shrimp:
Solo w/o rice P 70.00
Solo w/ rice P 75.00
Combo w/ P 80.00
drinks P140.00
Salo w/ rice

Extra Rice P 10.00

Half rice P 5.00
Egg P 10.00

Pizza Hut Office Gateway Mall FLAVORS OF 2 slices It is a very

workers, PIZZA: of pizza popular go-to
Mall goers, BF Homes for snack for the
students Mushroom P 55 employees,
and Market! Beef Sausage the pizza is
commuters Market! Hawaiian heated well.
Malabon City Supreme This stall only
Square sells 2 flavors
of pizza.
Puregold
Malinta

SM Megamall

SM City North
EDSA

SM Mall of
Asia

SM City
Fairview

SM City
Manila

Mindanao
Ave.

EDSA Central

Ever Gotesco
Commonwealt
h

Fort Bonifacio

19
 Shell - San
Antonio Ave.

SM Southmall

South
Supermarket

Shaw Center
Mall

Visayas Ave

Star Mall
EDSA

Tutuban
Center

Insular Life
Bldg.

Park Square

SM
Centerpoint
Robinsons
Place Manila

Robinsons
Place
Novaliches

SM Sucat

SM City
Bicutan

Araneta
Square

Ali Mall

Greenhills
Shopping
Center

Harrison Plaza

20
 Robinsons
Galleria

Robinsons
Metro East

New Farmers
Plaza

Olivares Plaza

East Service
Rd.

Cafe France Office Alabang Town Chicken Pastel P70 The stall is
workers., Center Pie easily located
Mall goers, and is
medical SM Mall of Chocolate P94 accessible to
establishm Asia Walnut people.
ents and Croissant
travelers East Ave. Their products
Choco Bun P12 offered are for
RCBC Plaza snacks - bread
Ham and P94 (croissant,
U.N. Plaza Cheese baguette).
Croissant Their cheapest
Pergola Mall product is the
St. Luke’s Mini Chocolate P51 Choco Bun
Medical Walnut that is worth
Center Croissant only P12

The Podium Mini Ham and P51

Cheese
Roosevelt Croissant

Zeta Hawaiian Pizza P120

Baguette
Greenhills
Theatre Mall Four Cheese P120
Pizza Baguette
Shell SLT -
Southbound

C5 Libis

Shell SLT -
Northbound

NAIA
Domestic

21
 NAIA
International

NAIA 3 -
Domestic

Robinsons
Place Manila

Ayala Tower
One

AIM
Conference
Center

Metropolitan
Medical
Center

SM Center
Las Pinas

Asian Hospital

Jupiter St.
Makati

Cardinal
Santos
Medical
Center

Glorietta 1

Our Lady of
Lourdes
Hospital
The Medical
City

Korean Healthy 2 years Office One corporate Ramen P 70 Their products

Food Seoul workers center are mainly
Seoul and Kimbap and P 99 korean food,
Students UP Mandu they are the
only korean
Ever Cheese Ramen P 99 stall in the
Commonwealt Japchae and P 99 cafeteria.
h Mandu

22
 Bibimbap P 150

Bulgogi P 95

Mandu P 40

Mandu P 100
Ramen

Gomtangmen P 80

Kimchi Fried P 65
Rice

Pork Galbijjm P 85

Gem P 25

Samba Kimbap P 40

Rice n Dice Office One Corporate Beef Mushroom The food can
workers Centre Steak P79 be easily
eaten and
Garlic Beef carried
Teriyaki P79 because of the
packaging.
Cheesy Butter
Steak P79

Gravy Meat
Love P79

Ice Tea
P20

Paj Grill 20 years Office Adamson 2pcs Pork BBQ P70 They offer
workers, University w Rice grilled food
students, that is served
bazaarista MAPUA Grilled Liempo P75 with rice.
w Rice
One Corporate
Centre, Grilled Liempo P65
Ortigas w Rice

Sampaloc Grilled Chicken P85

Leg Quarter w
Private Rice

23
 functions
Grilled P100
Food bazaar Boneless
Chicken w Rice

Grilled Chicken P70

w Rice

Pork BBQ P35

Chaofan Rice P20

FreeStyle Large Fries P45 They offer

(Barbeque budget meals
Cheese Sour at a
Cream) reasonable
price.
BUDGET
MEALS
Burger Pattie P35
Sandwich

Single Burger P30

Pattie

Double Patty P70

with Rice

Double Patty P80

with Rice and
Egg

Spam Sandwich P30

Single Spam
P25
Spam with Rice
and Egg P55

ALL DAY
BREAKFAST
(w rice and egg)
TJ Jumbo
(w bacon)
P55
TJ King P65
(w bacon)
P60
TJ Cheesedog P70
(w bacon)

24
 P60
Chicken Franks P70
Jumbo
(w bacon) P60

P70
Table 2. Competitor Analysis of Direct competitors

Table 2 contains the direct competitors of potato corner. These are the direct competitors since
these are the stalls that can be found in the 6th floor cafeteria of One Corporate Centre. They
offer variety of food products that will satisfy the needs of the consumers. This table discusses
the years of existence, usual customer, other branches/places, product/s they offer, price, and
competitive advantage of each competitor.

Analysis:

MJ Bagnet Express
MJ Bagnet Express offers a variety of “lutong bahay” filipino food at affordable prices. Although
it is quite new in the market, it has already expanded in numerous cities and caters to both
students and office workers.

Paotsin
With over 16 years of existence in the industry, Paotsin never fails to offer their signature
hainanese rice with cheap dumplings and free soup. It has expanded and has over 20 branches all
over the Philippines. The usual customers of Paotsin are mall goers and office workers.

Omelette on The Go
Omelette on the Go offers a variety of meat filling which you could choose from and placed in
the omelette. Some examples of these are: hotdog, bacon and chicken. Omelette on the Go has
been in the food industry for 6 years and has 5 branches around Makati, Ayala, UP, Benilde and
One Corporate Center. It caters to both students and mall goers.

Khalab
Khaleb mainly offers shawarma which customers could choose to either place it on rice or a
pita. It has been in the industry for 10 years and its usual customers are mall goers, students
and families. Khaleb has been doing well in the food industry because of the quality food they
are able to provide and the affordable prices. Today, Khaleb has over 10 branches all over the
Philippines.

Healthy Hour
Healthy Hour has only been in the food industry for a month. Aside from offering different
viands such as roast beef and brown rice or veggie kare-kare and brown rice; it also offers taho
and soya milk. As of today, Healthy hours only branch is in One Corporate Center and its target
market are workers and employees.

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 Chicken Zilla
Chicken Zilla has already been in the food industry for 7 years. It continues to expand Its market
all over the philippines; and as of today, it has 6 branches already. It specializes in serving
flavoured chicken at affordable packages and prices which consumers could pick from.

Sandwich Guy
Sandwich Guy offers a variety of different sandwiches consumers could pick from. Not only
does sandwich guys offer sandwich but they also offer pastas as well. Consumers could pick
and choose whether they would want to buy half the sandwich or the whole sandwich. The
usual customers of sandwich guy are mall goers and office workers.

Siomai King
Siomai King offers a variety of siomai, which range from P30 - P34 consumers could pick from.
They offer four variants of siomai which are: Shanghai, Chicken, Japanese and Hong Kong
Siomai. Siomai King, also offers black gulaman which consumers love since it is a good
combination with the siomai. As of today, it has 4 branches all over metro manila which caters to
mall goers and office workers.

Belgian Waffle
Belgian Waffle offers a variety of waffles consumers could pick from. Whether they want it plan
or with filling, Belgian waffle offers it. It has over 15 branches all over metro manila and caters to
mall goers, students and office workers.

To Sisig is To Believe
To Sisig is To Believe offers affordable and a variety of filipino sisig consumers could pick from;
These are: pork, chicken, squid, bangus and shrimp. As of today, it has 3 branches all over
metro manila that caters to both mall goers and students.

Pizza Hut
Pizza Hut is a popular snack employees usually buy. Since it is only a kiosk type, it only offers 4
flavours of pizza which are: mushroom, beef sausage, Hawaiian and supreme which cost P 55
for 2 slices.

Cafe France
Café France which is placed in One Corporate Center is a kiosk type of business and offers
snack bread products and flavoured buns. Employees usually come and buy these because it is
easy to eat and at the same time has a variety of flavours. Its usual customers are mall goers,
travellers, medical establishments because of the locations of the stalls.

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 Korean Healthy Food Seoul Seoul
Korean healthy food seoul seoul offers a variety of korean food such as ramen, kimbap and
many more. It has only been in the industry for 2 years and currently has 2 branches which are
placed in UP and One Corporate Center.

Rice n Dice
Rice n Dice is known for its asian street food served in a box. Customers could choose from a
variety of viands that would be mixed with rice.

Paj Grill
Paj Grill offers a variety of grilled filipino food that is served with rice. It is known because of
delicious tasting food which is affordable for its consumers.

FreeStyle
Freestyle offers a variety of budget meals such as burgers, rice all day breakfast and a lot more. It
also offers different flavoured fries such as barbecue, sweet and sour and cheese; all of these
served at an affordable prices.

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Market Share of Direct Competitors

Kiosk Daily Sales Market Share

MJ Bagnet Express 3,000 4%

Paotsin 6,000 8%

Omelette On The Go 4,000 5%

Khalab 5,000 7%

Healthy Hour 6,000 8%

Chicken Zilla 5,000 7%

Sandwich Guy 4,000 5%

Siomai King 5,000 7%

Belgian Waffle 5,000 7%

To Sisig is To Believe 5,000 7%

Pizza Hut 5,000 7%

Cafe France 5,000 5%

Korean Healthy Food Seoul 3,000 4%

Seoul

Rice n Dice 5,000 7%

Paj Grill 5,000 7%

FreeStyle 4,000 5%

TOTAL: 75,000 100%

Table 3. Market Share of Direct Competitors based on their Daily Sales

Analysis: Table 3 shows the market share of each competitor through their daily sales.
Combining all the daily sales of all the competitors’ equals to 75,000. There are two competitors
that have the highest market share with 8% and these are Paotsin and Healthy Hour. Next are
Khalab, Chicken Zilla, Siomai King, Belgian Waffle, To Sisig is To Believe, Pizza Hut, Rice n
Dice, and Paj Grill with 7%. Moreover, the 5% market share goes to Omelette On the Go,
Sandwich Guy, Café France, and FreeStyle. Lastly, MJ Bagnet Express and Korean Healthy
Food Seoul Seoul has only 4% of the market share.

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Indirect Competitors
The Indirect Competitors of Potato Corner are those restaurants in One Corporate Center but
not part of the Cafeteria. Theses Indirect Competitors are Gandiva Archery range and cafe and
Nozumi.

Buyer to Consumer Strategy (B2C)

Potato Corner uses the buyer to consumer strategy or also known as consumer marketing. This
kind of strategy is used by consumers since they are the ones who make the final decision in
purchasing and at the same time they pay for their own transactions

B. Pricing strategy
Potato Corner uses cost focus strategy. This is because potato corner offers its french fries to a
niche market or those who are fries lovers. Its is also considered a cost focus strategy, because
often times the people who usually craves and buy potato corner are those people who find
these fries affordable.

IV. Market Demand

Foot Traffic Results

TIME

9:00AM - 10:00AM 168

10:00AM - 11:00AM 193

11:00AM - 12:00PM 590

12:00PM - 1:00PM 660

1:00PM - 2:00PM 255

2:00PM - 3:00PM 155

3:00PM - 4:00PM 247

4:00PM - 5:00PM 200

5:00PM - 6:00PM 36

6:00PM - 7:00PM 0

7:00PM - 8:00PM 0
Table 4. Foot Traffic Market Demand

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Analysis: The graph above shows the foot traffic done on a weekday specifically on a
wednesday. The foot traffic was done per hour in order to see what time has the most number
of people who come in to buy food. With this, we were able to see that during the 12:00-1:00pm
has the highest number of people who come to the cafeteria and this is because of their lunch
break. It was also seen that the 11:00-12:00 foot traffic was high and it was seen that ,
employees would go down and eat early in order for them to avoid the hassle of going through
and lining up with everyone during their lunch break.

V. Demand Forecast
Sample Survey:

1. Ilang taon na po kayo? _________

2. Ano pong trabaho niyo? __________________
3. Ano po buwanang sahod niyo (Range)? ____________________
4. Gaano ka kadalas kumakain sa 6th floor? _______________
5. Anong oras po kayo bumibili sa cafeteria? _________________
6. Bumibili ka ba ng pagkain dito? Oo Hindi
7. Mahilig ka ba sa French fries? Oo Hindi
8. Magkano ang nais mong ibayad para sa French fries?

P29-50 P80-100 P100 pataas

9. Kapag nag-tayo ng Potato Corner dito, bibili ka ba? Oo Hindi

10. Ano ang paborito mong “flavor” ng Potato Corner?
Barbecue Cheese Sour Cream

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Results:

The respondents said that they eat at the 6th floor in a daily basis during their break time at One
Corporate Centre. Others said that they eat once a week, followed by thrice a week. These
respondents said that this is due to the reason that they are assigned to do field work.

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The respondents said that they usually spend their lunch time at the 6th floor followed by
merienda time. This is due to the reason that this is the time when they buy and eat their food.
People don’t buy and eat their breakfast and dinner at the 6th floor of One Corporate Centre
because these time are not part of the office hours anymore.

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A big chunk of the respondents said that they buy their food at the 6th floor of One Corporate
Centre. However, a minimal number said that they don’t buy at the 6th floor of One Corporate
Centre, rather they just eat their “baon” or at the least, they just accompany their colleague.

A big chunk of the respondents said that they like eating french fries. However, a minimal
number said that they are not into french fries and that they prefer other type of food such as
sandwiches and others.

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The respondents said that they are willing to spend P29- 50 for an order of french fries.
Followed by P80- 100 and at the least, P100 and above. These people like french fries
however, only willing to pay at a minimum amount because there are other needs to be
prioritized.

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Respondents were easily able to recognize the brand of Potato Corner and all were ready and
happily accepted the idea of the franchise being put up in their cafetera.

Given that all the respondents would favor a Potato Corner being put up in the cafeteria, they
were also accepting of the the famous flavors of the franchise, with Sour Cream being the top
favorite of the respondents, Barbecue following after, and lastly cheese.

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 VI. Target Market

The target market of Potato Corner consists of men and women ages from 21-40 from class C.
Moreover, it can also be for the “kids and the kids at heart”. This is because the lifestyle of these
people seem to be willing to try new flavors, if not buying the same original flavors Potato
Corner offered at first (Barbeque, Cheese and Sour Cream). They are able to meet with the
different taste and preferences the brand wants. These group of people The affordability of this
brand can be a factor to why these people like buying from Potato Corner. Potato Corner has
been a favorite snack for many Filipinos and others around the world.

Target Market Demographic Geographic

Workers and Employees Ages 21-40 Workers in One Corporate

Class C Center
Male and Female

VII. Positioning Statement

“To men and women, 21-40 years old, Potato Corner is a business that serves top quality
flavored french fries to the market. They satisfy the customer’s preferred flavor through the right
amount of shaking!”

VIII. Marketing Mix

A. Product
Potato Corners offers a variety of flavor such as barbecue, sour cream, and cheese. Potato
Corner became such a hit here in the Philippines and thus, potato corner expanded
internationally and added new flavors such as wasabi, sweet corn, and cheddar fries.

B. Place
Potato Corner has over 800 stores both nationally and internationally. With over 500 branches
here in the Philippines, Potato corner has been part of the top franchise industry business in the
Philippines for over 24 years. It has also expanded internationally in countries such as
Indonesia, USA, Panama, Australia, Singapore, Thailand and Dubai.

Based on the foot traffic and the demand for french fries in this area , the group decided to put
up a Potato Corner franchise at the 6th floor of One Corporate Center Cafeteria. One Corporate
center is located in Julia Vargas corner Meralco Avenue, Ortigas business district Pasig City.

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 C. Price

Potato Corner offers affordable price where consumers could pick from. Depending on the
location of the place, the price may differ because of the rent in that certain area.

SIZE PRIZE

Regular P 29

Large P 50

Jumbo P 80

Mega P 100

Giga P 169

Tera P 199
● Prices differ depending on the location on Potato Corner

Potato Corner offers a variety of flavors and Sizes: For the Regular size it cost P 29, Large is
P50, Jumbo is P 80, Mega is P100, Giga is P169 and Tera is P 199. For both the regular and
large size customers are only allowed to choose one flavor. However, for the jumbo to tera
sizes, customers are allowed to combine 2 flavors. Potato Corner prices may also vary
depending on the rent of the place.

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 D. Promotions and Advertising
A Potato Corner franchise may opt and not need to spend for franchising since potato corner
has already an established market and is known for its name.

Operations

I. HR Requirements
A. Organizational Chart

The franchise’s (Potato Corner) organizational chart begins with its franchisee and he will be
overlooking the daily operations of the business. He will also be supervising the two crew
personnel who will be in charge of handling the stall.

B. Duties and Responsibilities of each personnel

1. Franchisee

The franchisee runs the location of the purchased business. He runs the basic operations of the
franchise and handles the different departments such as marketing, financials, and human
resource.

2. Crew personnel

The crew personnel follows a prescribed procedure in preparing and serving the food daily to
customers. They will operate various types of equipment such as the deep fryer, (etc). They will
be responsible for washing the necessary utilities, equipment, and the work area including
mopping the floor. The crew personnel will also be handling the cash register to take orders and
handle purchases.

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 II. Facilities, Equipment, and Machineries Requirements

Facilities, Equipment and Machineries are the necessary items needed for the franchise to
make the business operation successful. These items will be able to help the business meet
their target profit. Moreover, using such equipments will be the key to producing and preparing
the good quality flavored-fries Potato Corner is known for. For the this franchise, the required or
needed items for the business are listed below.

Franchise cart

Image 1. Potato Corner franchise cart

This is the standard cart of Potato Corner, this is the cart that will serve the flavored-fries every
person is looking forward to eating as a snack. Behind the cart there are shelves above that will
act as a storage for the paper bags and flavored powders.

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Deep fryer (electric) with strainer

Image 2. Deep fryer with strainers

The deep fryer is responsible for cooking the fries, there is a timer for the fries so that it will be
cooked not to crispy and not too soft. The timer on the deep fryer will help the franchise be
consistent with the quality of fries they are serving to customers.

Freezer

Image 3. Freezer

There is a medium sized freezer which holds and stores the fries and a cooler for the
beverages. It is used to store the perishable items the franchise uses, so that it will not go to
waste.

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Canisters (Shaker)

Image 4. Canisters (Shaker)

These canisters hold the fries that will be shaken so the powdered flavorings will stick to the
fries. There are separate canisters for every flavor Potato Corner has so that the fries will not
have a mixture of the different flavors.

Container with spoon

Image 5. Container with spoon

These containers hold the various powder flavorings that is used in Potato Corner. Also, these
containers are provided for easy access, of the different flavors, of the crew personnel.

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Fry Scoop and Container Pan

Image 6. Fry Scoop and Container Pan

These items hold the fries after they are shaken and ready to be put in the container ready to be
weighed. It is of stainless steel so it has to be washed for sanitation purposes.

Paper Containers/ Packaging

Image 7. Paper Containers

Being a franchise business Potato Corner have their signature containers where they serve their
fries. It comes in various sizes like large, jumbo, mega, giga, tera and etc.

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Weighing scale

Image 8. Weighing Scale

Every Potato Corner stall uses a weighing scale to match the amount of fries they are serving.
The franchise offers multiple sizes from the smallest to the biggest which can be shared by a
group. The weighing scale determines the quantity that is to be served so that the business will
not suffer losses.

Tongs

Image 9. Tongs

The franchise will have tongs for transferring the product inside the paper bag. This promotes
sanitation as the customer will see that the personnel will not be using their hands.

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Paper Bags

Image 10. Paper Bags

Potato Corner has its own paper bag design that will hold the product so that the people eating
will not have a hard time. Every french fries that is served to the customer always comes with a
paper bag.

Plastic Gloves

Image 11. Plastic Gloves

The gloves will promote sanitation to assure the customers of the clean food they will provide to
the customers. The gloves will help the personnel avoid touching the fries when they transfer
different containers.

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Hairnet

Image 12. Hairnet

The hairnet is to be able to assure the customers that their food will be clean and safe to eat.
The branch can avoid complaints from customers if they will be extra careful with the handling of
their food.

Plastic mask

Image 13. Plastic mask

For proper sanitation the personnels working their shifts will be wearing it when preparing and
serving the product. It is not a requirement to use this, it can depend on the branch but it is
highly advised to use it.

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Cash box

Image 14. Cash box

The cash box will be located in a drawer that is attached to the cart. Since the Potato Corner
stall is not that big there is no need to use a big cash register.

Frying oil

Image 15. Frying oil

The frying oil is used to cook the french fries. Potato Corner uses a specific frying oil to be able
to cook the fries into the desired quality Potato Corner sells, the franchise should make sure that
the quality of fries is consistent.

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 Regular Large Jumbo Mega Giga Tera

Price 29 50 80 100 169 199

(Php)

Gram (g) 50 100 150 200 350 400

Price per 0.58 0.5 0.533333 0.5 0.482857 0.4975

gram

Bill Of Materials

Item Number Description Unit Used Quantity Price

0001 French Fries Kilograms P 92/kg

0002 Powder Kilograms P 450/kg

0003 Cooking Oil Liter P 80/liter

0004 Packaging Pieces P4/piece

Size (grams)

Regular 50

Large 100

Jumbo 150

Mega 200

Giga 350

Tera 400

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Financials

Conclusion and Recommendation

After studying and conducting a feasibility study, the researchers found out that putting up a
Potato Corner franchise in One Corporate Center would not be feasible due to the due to the
extended length of time of return of the investment (ROI). Some of the possible reasons of this
would be because of the high rent expense and the cafeteria only being open five days a week.
Another factor that contributed to the study not being feasible is because the target market in
One Corporate Center are mostly Class C and that they would not really pick Potato Corner
over a complete meal that is less expensive as well.

With this, the researchers would recommend to put up a Potato Corner franchise in a different
location which would offer a lower rent expense, a location that has greater foot traffic, and a
location that will cater to its target market.

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References

Adama, A. (n.d.). The Franchise Alternative. Retrieved March 27, 2017, from
http://www.ideacopy.com/the-franchise-alternative-a96092.html

Arboleda, G. (2010, July 09). THE FOOD CART BUSINESS IN THE PHILIPPINES. Retrieved
March 27, 2017, from http://manilareviews.com/2010/07/food-cart-business-philippines.html

Philippine Standard Industrial Classification. (2009). 2009 Philippine Standard Industrial

classification. Retrieved from
http://nap.psa.gov.ph/activestats/psic/publication/NSCB_PSIC_2009.pdf

Six challenges facing the franchising sector. (2016, February 11). Retrieved March 27, 2017,
from http://www.fin24.com/Finweek/Entrepreneurs/six-challenges-facing-the-franchising-sector-
20160211

Top 5 challenges faced by Franchisees. (2015, June 19). Retrieved March 27, 2017, from
http://www.imgroup.com/top-5-challenges-faced-franchisees/

Strauss, K. (2016, June 22). 13 Mistakes New Franchisees Make -- And How To Avoid Them.
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mistakes-new-franchisees-make-and-how-to-avoid-them/#7d66489d5bd6

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http://www.businessdictionary.com/definition/low-cost.html

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