Although food franchises remain one of the most popular business ventures in the Philippines, certain considerations and standards must be met to ensure success in this very competitive industry.

Tess Ngan Tian, president of Lots’a Pizza, one of the country’s most promising franchise brands, said the food business is one of the more riskier concepts as it deals with feeding people. “If you are not careful, you can get into a lot of trouble. The food industry is a very delicate business venture that one must approach with caution,” Ngan Tian told the

To have a thriving food business, Ngan Tian shared  five pitfalls to avoid:

1. Safety issues

The delicate nature of the food industry is quite obvious as a case of food poisoning can ruin the chances of your business to succeed and also shut down your business.  “You will have added expenses from your clients if you are not careful in handling the food, and you will also face problems with the health authorities,” Ngan Tian said.

2. No copycats

Undoubtedly, you are just one of the million people thinking of going into the food business and your concept may turn out to be just like one of theirs. It is prudent, therefore, to think of something new and something fresh. 


3. Inconsistency and unreliability

“Good manufacturing practices must be put in place at the production area. It  [is bad business practice if the product changes ] everyday, the costumer might get confused,” Ngan Tian said. “And service must always be on time.” Consistency is an essential factor in the food industry. From the size, the shape, color, and taste, your products must be consistent at all times.

4. Dangerous and hazardous workplace

Besides making certain that your products are safe for consumption, you must also  ensure that your service personnel are  always safe. An insurance policy for accidents in the workplace is recommended. 

“Especially if the business has delivery services, safety nets must be put in place to ensure the safety of your people,” Ngan Tian said.


5. Pilferage and losing money 

“It is very easy to lose in the food industry, aside from pilferage, you have to make sure that you are actually having a profit from what you are selling,” Ngan Tian said. A detailed costing of the inputs and overhead costs will be helpful in tracking your expenses and determining the business’ profitability. 


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