Expanding franchises in South-East Asia

While franchisors continue to target New Zealand, the UK and the USA along with Singapore, Malaysia, China and Hong Kong, a new study by BIS Shrapnel suggests that the food service franchisors might benefit from staying focused on South East Asia.

“The size of the foodservice market in South East Asia represents a huge potential for food and beverage suppliers, and BIS Shrapnel anticipates the overall value of the market will grow by 4.5 per cent per annum over the next five years,” says project leader and business unit manager, Sissel Rosengren. “However, each individual market holds its own distinct growth possibilities as well as challenges, and we expect some individual markets will grow at a higher rate. ”BIS Shrapnel’s Foodservice Strategies in

South East Asia, 2006 to 2010 study estimates the combined foodservice market is worth US$25.6 billion at consumer prices. The value of the market in terms of total food and beverage purchases by foodservice operators is calculated at US$16.5 billion in 2006.

There are more than 1.1 million foodservice outlets in Singapore, Thailand, Malaysia, the Philippines, Vietnam and Indonesia, serving a total population of 482 million and a pool of 48 million tourists who visit the region each year.

“A large proportion of everyday meals are served by street stalls, in food courts and by low-end eateries or restaurants,” says Rosengren. “It is common to eat out for small snacks as well as breakfast, lunch and dinner. In Asia, a large percentage of households have very limited cooking facilities at home which also encourages eating out.”

For those wishing to expand internationally, it may be worthwhile to investigate Franchise Council of Australia is a not for profit membership organisation that is the peak body representing the franchising sector in Australia.