Home 
Cebu City, Philippines - As a former employee of a big corporation, Ma. Rocelie ?Rose? Maquiling knew that entering the business world will not be easy.
She started with a ready-to-wear (RTW) business in 2006 where she became more aware of the three factors for her business to succeed - a good market, good management and a good start.
The business did well but the store space rental was eating into their profit.
And so Rose and her husband Leo started to look for another business.
The couple, who are in their late 40s, attended seminars, which tackled varied business forms from franchising down to starting your own venture.
?We were choosy. We already have a captured market (of students) from Royal Christian College because of our RTW store in Highway Mandaue. My husband and I really looked for a business which can address the needs of this market,? she told Cebu Daily News.
They decided to enter the food business. The challenge now was to find the kind of food to sell.
?We went around and we saw Ngohiong Express near Cebu Home Builders. We ate there and liked the taste. We were told it was up for franchise at P45,000,? the Maquilings said.
The fee seemed reasonable for the couple noting that most franchise fees range between P200,000 and P1 million.
In the early 2007, they closed their RTW store. In June that year, they became the official franchisees of Ngohiong Express. They put up a small store in an eight-square meter lot on A.S. Fortuna Street, Mandaue City.
The store was named Siomai Express, which later on, expanded to a 20 square-meter eatery selling ?lutong bahay? dishes such as stewed pork, nilagang baka and minced pork stew.
She also opened another store named Rose Chicken selling lechon manok and fried chicken at P170 for whole chicken and P25 per chicken piece.
The couple did not carry the name of Ngohiong Express because the franchise fee did not include carrying the store's original name.
They also did not pay the royalty fee or ongoing obligation to pay the franchiser a percentage of the gross sales.
?We did not carry the name but every time customers ask us where our siomai came from, we say it's from Ngohiong Express,? she said.
Rose said she gets products such as ngohiong, tempura, squid ball and squid roll, and siomai from Ngohiong Express.
More than a year since they became a franchisee, Rose said she did not regret the decision of ?buying part ownership of a well-established food brand.?
Aside from the ?affordable? package, Rose said opening a franchise store is the most viable way to start the business or to make your presence felt in the market.
?The system is already there when you buy a franchise. The brand is established and product consistency is in place since you only have one supplier,? Rose said.
?There is also an existing production line. It's harder if you start on your own. A franchise is the first step to call attention,? she said.
Challenges
Rose, however, cited some challenges of building your business on a franchise.
Maintaining the quality and price of products are primary concerns as many stores open, she said.
?We have not increased ngohiong and siomai prices because we noticed that our clients, mostly students, are now buying less (due to the price increases),? she said.
Prices of ngohiong and siomai remain at P6 per piece.
She did not increase the price of dishes with pork as the main ingredient since the increase is only between P5 and P10 and can still be absorbed by daily operating costs.
But she increased the price of the other food products such as whole roasted chicken, which now costs at least P35 more, while the per-piece fried chicken costs P3 more.
?It's a balance and a decision to make,? she said.
Rising cost of office space and raw materials is another challenge.
Rental for the 20 square-meter store is now at P12,000 per month from the P5,000 last year.
Since running the food business involves meticulous management, she said, it is important to be ?hands-on.?
?I am in the store everyday so I know my customers. I always see to it that they are treated pleasantly, that my tindera (sales girl) treats them well,? Rose said.
A certified chemist, Rose is also strict in preparing, cooking and serving food. She said the highest standard of hygiene is implemented.
?It doesn't mean that only expensive food (is) clean. Affordable food should also be clean,? she said.
Lessons learned
Like other franchisees, Rose also advised that prospective franchisees research on the store before paying the fee.
?Check if they have other outlets and how these outlets are doing because you will learn from them. My husband and I did that. We eat in their stores to really get a feel and taste of their service and product,? she said.
She also said any entrepreneur needs a financial buffer, a back-up, when financing the business is hard.
Considering a business as an avenue for continuous education, she said, keeping track of new trends is essential to sustain a continuous flow of loyal customers.
