The Indonesian kebab chain, Kebab Turki Baba Rafi, is planning to expand its operations in the Philippines by investing $1 million for opening an additional 50 outlets.
The kebab chain has been operating in the country since 2013; but according to it president Hendy Setiono the operations until now has been only the testing period, a market trial with opening of 14 outlets, all in Metro Manila situated near universities and inside malls.
But now, “we believe the Philippine market is our huge Asean market outside Indonesia,” he said.
Announcing the expansion plan at the MAP CEO conference 2016 in Makati City on Monday, Setiono later told reporters that Baba Rafi is aiming to take advantage of the growth opportunities present in the robust Philippine economy.
One of the 50 new stores planned will open in Zamboango this year as first store outside Manila and as the 15th in the network.
He said the group decided to open its first provincial store in Zamboanga because it believes the market there is great where mostly its product consumption targeting both Muslim and the general public. “That will make our product more acceptable in the southern part of Philippines,” he noted.
Besides the 50 directly owned outlets, the company will franchise 50 additional outlets to licensees across the archipelago within the following three years, Setiono said.
“Our target is to open more than 100 outlets across Philippine regions. Hopefully by the next three years, we can achieve that. We have a very aggressive target. Hopefully, we could fulfill more job opportunity,” he said.
“The Philippines is a very attractive market where middle group of income is here, rising of the youth generation, especially the 100 million population of the Philippines. Having that in one package, we are optimistic that the Philippines will be a great market for Asean,” Setiono said.
The Baba Rafi president said the Philippines is its third largest market after Indonesia and Malaysia. He hopes that with the establishment of the 100 stores, the Philippine venture may move up as the group’s second largest market.
With plans to also franchise outlets, Setiono said it would cost at least $15,000 or about P698,000 to franchise a Kebab Turki Baba Rafi store. This franchise deal would include facilities for outlets, equipment, location, operator training, recruitment, SOP, and supply of raw materials.
Kebab Turki Baba Rafi is the largest kebab food chain in the world with more than 1,200 outlets in Indonesia, Malaysia, Philippines, China, Sri Lanka, Singapore, Brunei, and Netherlands.
Aside from its existing markets, Setiono said the group is also scouting for other expansion areas, particularly entering the Vietnam market this year.