Roasted Food Chains Brush Crisis Aside

BusinessWorld Online:

Roasted food chains Andok’s Litson Corp. and Reyes Barbeque will continue expansion their plans this year, confident that the economic gloom would not curb people’s desire to eat out.

In a telephone interview, Andok’s Litson President Leonardo M. Javier, Jr. said the firm will franchise 40 dine-in outlets and 100 take-out stores, which cost P9.9 million and P2.5 million, respectively. He declined to say how many company-owned branches would be opened.

“In the hierarchy of basic needs of food, clothing and shelter, the first is usually the last to go during an economic crisis,” he said, noting that demand for food would always be there due to the steady growth of the population.

Mr. Javier said Andok’s Litson would aim to retain growth in sales and profits.

The firm’s most recent audited financial statements showed that revenues jumped by over four-fifths to P505.61 million in 2007, while net income went up to P6.29 million from P3.4 million in 2006.

Officials of main competitor Baliwag Lechon Manok, Inc. declined requests for an interview.

Mr. Javier said the prevailing economic conditions provide opportunities even for those who have lost jobs, as they could start their own businesses or consider franchising, which reduces the risks of failure with a tested business model.

He said the company would try to open the first Andok’s stores in Mindanao next year, after improving quality and the service of franchise operations.

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