A beverage stall that’s been a hit among Taiwanese school kids has inspired Ryan Oliver Tee to bring the concept to the Philippines. [Learn how to make money by targeting children and tweens here]
Thus in 2009, with a capital of a “little over half a million”, Tee opened Paopao Xiaochi near Xavier School in Greenhills, San Juan.
Paopao Xiaochi initially offered a variety of teas, including fruit tea and milk tea and taro milk, but because business was good, Tee expanded the store’s offering to include flavored snacks, noodles and rice toppings. This would also entail expanding the store’s premises to include a kitchen and a dining area.
“We located near Xavier School [because] that is where our target market is – the school children. Our actual window is only from 2 p.m. to 7. p.m, when the children are dismissed from school. But even with a short window, we are able to profit from the business,” Tee said. [See list of some best foreign franchises here]
The profit was so good that Tee was able to recoup his initial investments in nine months.
Although the store’s original concept targeted kids, Tee said they still had to do some adjustments to suit the Filipino children’s taste.
“We ‘Filipinized’ the teas,” Tee said, adding that constant product reinvention is a key to a successful venture in the food and beverage industry.
Although he credits hard work and dedication for his success, Tee believes that the product and location are big help in a business’ success.
Because people have been inquiring about the business, Tee opened Paopao Xiaochi for franchise For the first time, he also joined a food expo – the World Food Expo 2010. Café 88 Food Concept Corp. will be handling Paopao Xiaochi’s franchising. [Read WOFEX 2010 opens doors to public here]
“This is actually our first venture into franchising. We are looking at a lot of locations, mostly in areas near schools. But we have yet to decide if we will only have the flagship store in Greenhills and the rest as franchise or a mix of company-owned store and franchises,” Tee said, adding that they are studying their options to prevent territorial disputes between company-owned stores and franchises. [See five must-haves in franchising here]
The franchise package of Paopao Xiaochi costs P350,000 including the cart, the initial inventory, dispensers and the sealing machines.
“The business will actually be ready for launching once the cart is installed. As soon as you get your business permits ready, you can immediately start operating,” Tee said.
Based on the performance of his Xavier School store, Tee believes that payback period for a Paopao Xiaochi cart will be between six months and nine months. - Carlo P. Mallo
17 Gen. De jesus St. Corner Gen. Lim St.,
Barangay Little Baguio, San Juan City