Vol. XXI, No. 156 [ Business World Online ]
Monday, March 10, 2008 | MANILA, PHILIPPINES
BY BERNARDETTE S. STO. DOMINGO, Reporter
Company President and Chief Operating Officer Virgilio G. Espeleta told BusinessWorld Julie’s is opening new outlets nationwide on top of 570 existing stores.
"There are a lot of opportunities. Our vision is to have Julie’s in every town in the Philippines. These new stores will mostly be franchised," he said.
Julie’s, established in 1981, is also setting its sights on overseas expansion in about five years. "That [expansion] is in the road map. We’re working on it. It’s not really a top priority right now but if the right opportunity comes along, we’re ready."
The company is looking at markets in Southeast Asia but Mr. Espeleta said Julie’s has also received a number of inquiries from the United States, particularly in cities with large Filipino communities.
Julie’s is targeting 10% growth this year, about the same level as last year, despite challenges in the bread industry.
"The industry is really challenged with the increase in flour prices and other raw materials such as sugar, oil, and shortening. Rental fees as well as power and labor costs are also increasing. Sadly, economic growth is not trickling down to the poor," Mr. Espeleta said.
Additional branches as well as the introduction of new products are expected to drive this year’s projected 10% growth.
Julie’s is also pushing through with plans to put up a centralized facility that will enable the bakeshop chain to offer more products, train personnel and improve overall operations.
"We’ve been here in Manila for the past seven years and looking at the next 10 to 15 years, one of the things we’re looking at is acquiring a property where we can put together our facilities, offices, warehouse, and training centers. We’re doing that this year," he said.
Julie’s is also planning to put up a baking school. "We are allocating around P40 to P50 million or more. Ideally, the facility should be about 2,000 square meters," Mr. Espeleta said.
Julie’s, the country’s largest bakeshop chain, started in Cebu. Established in 1981 with a capitalization of P10,000, the bakeshop was opened by Rodrigo and Julia Gandionco as a mom-and-pop type of business to augment the bread requirements of the family’s canteen business.
In 1999, Julie’s Franchise Corp. was organized to provide full management support to franchisees. The firm provides support in marketing, operations, construction, accounting, franchise development, and human resource development.
It has a fully operational laboratory, under a research and development department, to continuously improve on over 200 varieties of bread and other bakery products that respond to the needs of the market.
