FILIPINO restaurant Kuya J, owned and operated by Kuya J Holdings Group, Inc., is planning to enter the overseas market next year, with Singapore identified as the ideal location due to easier logistics, a company official said.
“Singapore is an ideal country in Asia. It’s easier on logistics in terms of importation… The importation in Singapore is more lenient compared to the others,” Carlo L. Fajardo, chief operations officer of the Kuya J group’s Franchise Division, told BusinessWorld on Tuesday on the sidelines of a media briefing.
Mr. Fajardo also said that most franchising offers come from the Middle East. However, the restaurant’s core product is pork, including the best-seller crispy pata.
“We’re looking at other alternative pork dishes. That’s why we don’t want to say we’ll go ahead with the Middle East. As long as we fine-tune the menu, that it’s appropriate for the Filipinos,” he said.
In the Philippines, Mr. Fajardo said the company is bullish on expansion. It expects to open two to three stores by the end of 2024 and is looking to expand 20 branches in 2025.
Currently, Kuya J has 86 branches nationwide, including the recently opened 218-square-meter branch at Robinsons Antipolo, which has a seating capacity of 64.
Don Edrain Tirol, the Kuya J group’s chief operating officer, said that Kuya J is financially healthy enough to fund its own expansion.
Kuya J currently has 15 franchised and 71 company-owned stores.
“We have the store, the store size, products, and the organization to back it up. Now we’re ready to expand because unlike before, we expanded rapidly, like one to 100 and then, there was a problem…,” Mr. Tirol said.
“You have to build a commissary right away, you have to build the organization right away. So now, it’s set, it’s ready,” he added.
He said that with an investment of P1.5 million, one can acquire a local franchise for a duration of 10 years.
In 2024, the capital expenditure (capex) per store reached P15 million, but a lower capex of P14 million is expected in 2025 due to the smaller format of stores.
Mr. Tirol said the company’s focus is to reduce the kitchen’s physical footprint to make it more efficient for the cooks.
When asked about the company’s initial public offering plans, Mr. Fajardo said that while it is not part of the immediate strategy, it remains a consideration for the long term.
In 2018, the Kuya J group announced its intention to go public once it reaches the 100-store mark. — Aubrey Rose A. Inosante
