Hap Chan—yes, that restaurant that spelled its name in several different ways—is getting its act together. Chinese cuisine has been part and parcel of Filipino cooking since the first Chinese immigrants arrived in the country. And while Chinese-style food can be cooked at home or bought anywhere, people still search for authenticity.

Known for employing Hong Kong chefs, Hap Chan tried to satisfy the growing demand for Chinese food by aggressively expanding through franchising. “The old management started franchising back in 1997 but was quite hesitant to go full-blown, and they lacked funding. So when we took over in 2009, we created, innovated a franchising system that is more acceptable,” says John Sy, franchisee-turned-president of Hap Chan Trading and Management.

Alongside the new system comes the development of three restaurant categories: tea house with 20 items and 98-peso rice meals; restaurant, a bigger version of the tea house serving complete meals; and seafood restaurant, which is even bigger than the restaurant, and offers fresh seafood as its main fare. According to Jane Jalandoni, Hap Chan’s franchising and business development head, the three types of Hap Chan eateries were created to make the cost of investment of franchisees more affordable. It was not entirely smooth sailing when the new management took over the brand. “Bringing down cost of investment is difficult,” he says.

At present, the company has 16 franchised branches owned by individuals coming from various professions and age groups. With 29 outlets and 10 new stores to open this year including one in Boracay, Hap Chan intends to reach 50 stores by 2012. “The brand is long overdue for expansion. Last year we targeted 10 stores but we built 12,” says Jalandoni.

“We want to continue bringing real Cantonese food to masses. It’s like bringing Hong Kong to the Philippines,” explains Sy.

Hap Chan Franchise
Franchise Fee: P700,000 to P1.5 million
Renewal Fee: 50 percent of franchise fee of renewal year
Total Investment: P3 million to P10 million
Website: www.newhapchan.com

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