Franchising

After 14 years of developing its products and brand, Tin Hao Dimsum is finally ready to open its doors to franchisees. Though there are already many stories about accidental entrepreneurs each with a unique combo of sometimes amusing, often amazing, details, and though Tin Hao Dimsum's is not exactly a tale, it is remarkable as well.

Soon their products, and most especially their siopao, started to gain popularity among patrons of different races in Vancouver. When the family decided to relocate to the Philippines in 1995, they decided to just concentrate on food manufacturing and wholesaling their siopao and siomai. That was when they established EST Dimsum Master Food Company, and shook hands to be the exclusive supplier for a major convenience store chain based in Metro Manila.

The thing with verbal agreements is, one has no way to make the other party honor the agreement. Suddenly, their business partner started getting from other suppliers, not honoring their "exclusivity clause" anymore. Without a major client to supply to, the Tans had to think hard about their next move if they were to continue doing business.

Bravely, they made their choice: they would go into retailing. Thus, in 2000, the family switched to retailing under their own brand, Tin Hao Dimsum, and established their first store in Star Mall, Mandaluyong City in 2001. In fact, they wanted to locate their store in other malls, but they were rejected because theirs was an unknown brand.

"Now we have 28 stores, going on 31 since we have just signed up for 3 more locations. We have also expanded our product lines to include five variants of rice meals, three kinds of siomai, five types of siopao, soup and black gulaman," the son Tyrone Tan, who officially came on board in 2008 as Business Development Officer, proudly shares. Prior to that, he had been providing inputs on the business even while he was still finishing his studies in Canada and while he held a job in China for two years. "We learned that the potential in retail is greater than just supplying, so we started to grow the business," Tyrone continues, well aware that the setback the business encountered with the convenience store chain proved to be a blessing in disguise.   

Based on their initial computation, Tyrone said the franchise package for a basic set up would cost around P315,000 inclusive of the franchise fee, equipment, and signage. Franchisees are expected to recoup their investments in 18 months or less.

Tin Hao expects to get about 10 to 15 franchisees per year. It will also continue putting up company-owned outlets. Right now, all the stores belong to the company. It is set to open 18 more branches before the year ends as the company already secured the lease agreements for these locations. Tan said they are thinking of just handing over some of these branches to future franchisees.

To support its rapid expansion, Tin Hao is also putting up another commissary that can supply the requirements of 50 more stores.

In the operations manual, Tan said the most important requirement for franchisees is they should be willing to go hands-on. "This is like self-employment with the addition of entrepreneurial spirit."

He said the business is already a proven concept in the Philippine market. The products, he added, are no longer considered a fad because they have been accepted as regular snacks for Filipinos.

"We have the type of food that are affordable, high quality and can really satisfy the hunger of the customers. We maintain a low price even if we don't use preservatives and extenders," he said. Also, only its buchi is deep-fried. All the other products are either steamed or simmered in soy sauce so they are healthy foods as well.

Tin Hao's main office is located at 3114 2nd St. V. Mapa, Sta. Mesa, Manila. It can be reached through (632) 715.9171 and www.tinhaodimsum.com.