Franchising

“Every town should have a Tapa King,” asserts Pablo “Jun” Hicban, operations manager of the 24-year-old company. It’s not an arrogant boast or an aggressive stance, however. It’s simply part of the core philosophy that Tapa King’s expansion strategy.

The family-run Tapa King began in 1987, in one unassuming location on Gallardo Street in Makati City. For 10 years, it grew carefully and methodically, without franchises. A decade later, though, they saw merit in broadening their horizons.

“In 1997, we started to franchise,” Hicban recounts. “At the time, franchising wasn’t really a booming system yet. As the market got bigger and we had more stores, we really had to add more people to our restaurant support group. When we restructured in ‘97, we started awarding franchises, and by that time we were really overseeing everything.”

The company has very strict quality and image controls. They’re meant to help maintain standards, however, and not to unnecessarily constrain franchisees. Hicban underscores the value of responsible franchise management: “Each franchise has a different market, and they all have their own ideas about how to run the business. When you’re the franchisor, however, you also have to control them. You have to make them realize why they got the franchise in the first place. ‘Here’s the system,’ you tell them, and they have to follow, since it’s tried and tested. But if they have suggestions, we implement them if they’re good. We’re open that way.”

Given the company’s strong recall and customer loyalty, they’re definitely doing something right. Success and solid market share come from well-established basics, and Tapa King has that down to a very effective (and commensurately palate-satisfying) science.

With Tapa King’s steady growth, the company has had more opportunities to spread its community-hangout feel. Each location is carefully tailored to meet the expectations of its local market, delivering exactly the kind of ambience and service that best suits the potential clientele.

Some locations look different from others, but there’s a unifying image that is central to the brand, and every few years the stores renovate to keep up with the changing market. This is the foundation for their continuing strategy of keeping customers loyal via excellent products and a welcoming atmosphere.

With its brand recall, over 30 stores open and more plans for the future, Tapa King is one of the most successful family enterprises in the country. “One of our visions is to expand, regionally and globally,” Hicban outlines. “In the Philippines, we’ve already expanded in the provinces. We’ve also opened in Singapore. In less than nine months, the franchisee opened three there. He’s asking for three more there, and he also plans to open in another country. We also have applicants in the Middle East and Hong Kong,” he adds.

With frequent reevaluation and restructuring to meet market demands and expectations, Tapa King eschews cookie-cutter franchising while maintaining the same standards it set for itself in the beginning. This commitment to excellence and market relevance is what has seen the company through 25 successful years.

Tapa King Franchise
Franchise fee: P500,000
Total Investment: P4 million to P5 million
Estimated Payback Period: 24 to 36 months

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