The Market Monitor Minding the Nation's Business
The Philippine franchising industry is expected to post an eight to 10 percent revenue growth this year, reaching approximately P800 billion, with the food segment continuing to lead the charge despite global market uncertainties.
At the International Franchise Conference held at the SMX Convention Center in Pasay City, Philippine Franchise Association (PFA) chairperson Christopher Lim shared the group’s latest outlook, describing the projection as “a bit more muted but still quite aggressive.”
“We do know there’s a lot of headwinds around the world. And we don’t know where inflation, or, I think, more importantly, interest rates are going,” he said.
Lim also downplayed concerns about the potential impact of former U.S. President Donald Trump’s reciprocal tariffs on Philippine franchise brands operating in the U.S. He noted that most businesses have already diversified their supply sources to mitigate risks.
“If ever they get anything from the Philippines, it would usually be the proprietary sauces and mixes. But the main products, whether it’s chicken, potato, you try to source it as close or as local as possible,” he said.
PFA director Sherill Quintana said the country currently has around 120,000 franchised outlets—still below the pre-pandemic level of 200,000. She expressed optimism that the industry could fully recover within the next three years.
“Maybe we can do it in three years,” she said.
The franchising sector continues to be a major contributor to the national economy, generating around 2 million direct and indirect jobs and accounting for 7.2 percent of the country’s gross domestic product.