Leslie Corp., a Paranaque City-based food manufacturer and exporter, saw significant revenue growth in its latest venture–BBQ Bob on the back of an affordable franchising model in the third quarter of 2020 despite the pandemic.
The privately-owned company behind fast-food chain Minute Burger and snack food brands Clover Chips, Cheezy Corn Crunch, and Farmer John Premium Potato Chips decided to open BBQ Bob for franchising in the third quarter to make it closer to communities where taking delicious and affordable food home became the biggest dining trend in 2020.
Leslie Corp., established in 1960, already employs thousands of Filipinos in its modern manufacturing plants and more than 600 Minute Burger stores across the country. Minute Burger, the leading "buy 1, take 1" burger brand, has been operational since 1982.
While Leslie opened BBQ Bob in 2012, it was in 2020 that the brand took off when it adopted the same franchising model behind the success of Minute Burger.
Small-store format
Although known for its small-store format, BBQ Bob had a bid idea–that taking safe and delicious food home to families should be affordable. Its delivery business also helped a lot of customers.
Ferdinand Obuyes, senior sales area manager of Leslie Corp., says that as of September 2020, BBQ Bob already surpassed the sales in 2019 which was already considered a good year for growth.
"From June to September alone, we saw a 20-percent increase in sales across our stores, in spite of the restrictions," Obuyes says in an e-mail interview.
Obuyes has been with Leslie Corp. for 11 years, beginning as a sales area manager with Minute Burger.
Prior to this, he worked with other fast-food brands. He has 21 years of experience working in food service, fast food and restaurant operations.
On what makes BBQ Bob different, he says the brand focuses on helping hard-working parents provide great meals for their families, "so they spend more quality time with their loved ones around the dinner table and less time worrying about preparing the food".
"BBQ Bob not only features essential products, but we cater to an essential part of the Filipino culture–family. Having our own families to support and provide for, we at BBQ Bob believe that providing great food for our family shouldn’t have to be stressful or expensive. Our customers are able to get more than just great BBQ from us. They are able to serve their family really good food at a price that doesn’t stretch the wallet too thin, and in that way, show their loved ones that they care for them," he says.
BBQ Bob also launched its Ulam product line last year. "What truly sets us apart from other brands is our experience, expertise and our sharp focus on product quality. We bring our experience from over 35 in the foodservice industry manufacturing and producing quality meat products for Minute Burger and our expertise operating take-out stores," says Obuyes.
"We take our meat and food quality and safety very seriously. We have found a way to consistently serve BBQ and ulam that is always soft and juicy, with a very short preparation time at the store so our customers are sure it’s freshly prepared as well shortly before they order," he says.
BBQ beginning
In 2012, BBQ Bob initially opened three stores following a restaurant-style dine-in concept in Davao City and two more in Cavite. In 2015, it decided to consolidate their stores and their management in Manila to give a better focus by following the template of sister brand Minute Burger.
In 2018, after multiple trials with branding and business models, BBQ Bob began to see progress. The latest pivot enabled them to capture a market that was both sustainable and profitable.
In 2020, it viewed the pandemic as a challenge to surpass. March and April were tough months to weather, but Leslie Corp worked tirelessly to streamline store efficiencies and found an edge—leverage on its deep expertise of the operations team from their sister brand supporting their system.
By October 2020, the team passed several milestones, including the opening of its first franchised store with a new franchisee from the Minute Burger network. It maintained a positive growth since the lockdowns eased and surpassed their pre-pandemic sales and profit. By the fourth quarter of 2020, BBQ Bob had six stores.
Growth strategy
Obuyes says while the pandemic hit the country, BBQ Bob had to make sure its foundations were stable.
"We ensured that we were still able to deliver good and reliable service. We made sure that our customers knew we were open, and that they could depend on us, even with the lockdowns and restrictions. The team behind BBQ Bob was very responsive to day-to-day changes early in the lockdowns, and they made sure our stores were efficiently managed," he says.
He says the brand understood where its sales were coming from and capitalized on those channels. "We were very quick to add delivery as an option to improve sales where possible, although we see the return of our walk-in customers with the improvement of consumer confidence," says Obuyes.
Obuyes says while the brand saw a contraction of sales and lost money in the first two months of the lockdown, it did not cut corners nor did it cut costs with the product.
"We maintained the high standards of product quality, and it paid off when customers realized the value we offered was superior to our competitors," he says.
Obuyes says the brand is looking forward to the economy recovering in 2021 or once consumer public confidence is restored with the help of Covid-19 vaccines.
"With every crisis, we believe there is opportunity to be found. We see a prime opportunity to expand into and saturate Metro Manila, Cavite and Laguna to take advantage of the center of control and market awareness that we have established so far in those areas.
Franchising model
Obuyes says that through franchising, "we bring our experience from Minute Burger to the franchise system of BBQ Bob".
He says BBQ Bob franchisees can look forward to a return on investments in 18 to 24 months, the same as in sister brand Minute Burger.
"We may be the 'new brand' on the block, but we are definitely bringing with us a lot more experience and expertise through decades of working in the industry of food service and franchising," says Obuyes.
BBQ Bob announced its franchising offer in the third quarter and immediately welcomed two new franchisees in October and November.
The brand is looking at nationwide expansion through franchising. "We currently have a limited time promotion to celebrate the start of our franchising journey. Our initial investment is around P115,000 and it includes franchise fees for two stores, initial payments for site processing, and application and documentation processing," he says.
"Once a store opens, it’s fully supported by a dedicated sales team that works with franchisees to learn the business, its operations and how to best grow the store to maximize its potential and, eventually, to open a new store within the area to expand the franchisee’s portfolio within the first 12 months with us," he says.
Store development costs such as construction depend on the location while the store layout and design are discussed with the business development team after the site is approved and secured.
Based on standard designs, the estimated cost of store construction is around P14,000 per square meter.
"Our model works best when a franchisee is able to oversee more stores. The ideal number that we’ve learned from our experience growing Minute Burger with franchisees is three stores, although we’re confident that the system is simple and easy to scale to five or more stores for a good entrepreneur," he says.
BBQ Bob is now prioritizing franchisees who wish to open stores in Metro Manila, Cavite, and Laguna, with more areas to be added in 2021.
"We strongly believe that in a crisis such as this, especially when the customer is also affected financially and emotionally, it is very important to keep delivering great products and service. In the short term, it looks to be an expensive strategy; however, in the long term, we definitely see the value and benefit of taking care of customers’ needs first," he says.
"One of the other major factors for our success during this crisis can also be attributed to the team behind the brand, as well as to the grit and perseverance of our new franchisees who still chose to trust us with their franchise opportunity in spite of the current situation. We are appreciative and grateful for the combined efforts that helped us rise above the pandemic," says Obuyes.
