October 24, 2012

• Filipino's entrepreneurial spirit, key to success of convenience stores

  Events

  

  Two new Ministop convenience stores opened in Cebu yesterday, one along Escario St. and another along Fuente-Osmeña. Looks like the opening of the 7-11 stores in Cebu has also triggered the opening of other 24-hour convenience stores, whose primary market would be the contact center workers, who work the night shifts.

  Both brands, 7-11 and Ministop, have been operating in Luzon for a while, decades even, but somehow they are starting to realize that the capital is already too crowded and that its time to expand their business in Cebu, which is said to be the gateway to the south.

  According to Ministop's country president Rowena Sarte (Ministop is a Japanese brand, by the way), the reason why it took them a long time to finally decide in setting up shop in Cebu is because they needed a commissary or a distribution center, and that, apparently entails a lot of investment. That is why, to make sure that their investment in Cebu would be worth it, they plan to build at least 60 stores in the next five years, 15 of which will be built within the year, and all of which are franchise stores.

  Sarte pointed out that unlike other convenience shops, Ministop offers freshly cooked meals, which makes the commissary even more necessary.

  

  "Our stocks are delivered fresh to our stores daily," she said, adding that she hopes that after Cebu, other shops outside Luzon will also be opening. She revealed that after six months, they will be opening shop in locations like Davao City and in Panay Island.

  By the end of the year, Sarte hopes that there will be 400 Ministop stores all over the country. Currently, there are 300 plus shops in the Philippines. Its biggest market is in Japan where there are around 2,000 shops, followed by South Korea with around 1,700 shops. Ministop also has franchises in Vietnam and China.

  She said that the growth of their company is due to the Filipino's desire to be independent, to be entrepreneurs rather than be content with being employees.

  Sarte added that investment for a franchise would range from P3 to 4 million pesos (roughly around USD72,000 to USD96,618), depending on the location of the store. The investment would already include the interiors and exteriors of the shop, as well as the content of the shop. Return of investment is expected after 3 to 4 years.

  Ministop is a franchising company, and is a joint venture between the Robinsons Group, Mitsubushi Corp. (Japan), and Ministop Ltd. (Japan).

   

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