Cebu dimsum company eyes Manila expansion

Following 2012’s robust retail industry growth fueled by the continued growth in the outsourcing, tourism and remittances, Cebu-based food retail chain Harbour City Dimsum House Co., Inc. (HCDHCI) targets to add two to three Dimsum Break outlets in Metro Manila starting this year.

In an interview last week, HCDHCI marketing manager Steven Kokseng said  that they opened their first outlet in Metro Manila in SM CityNorth Edsa in October last year and that they target to add two to three more outlets in the next five years.

“While the retail industry in Cebu continues to be robust, the competition has also gone stiffer especially with the entrance of many brands from Manila and other parts of the country all opening shops in Cebu. We felt that it is the right time to also explore outside of Cebu and we have chosen to start in Metro Manila,” said Kokseng.

First Outlet

According to Kokseng, the SM North Edsa was in the northern border of Metro Manila which was a transition point of many people who have jobs in Metro Manila but lived in the north.

“We will bank on the high foot traffic of the mall which is about 800,000 average daily. In fact, since we opened in October last year, we have been getting good sales performance,” said Kokseng.

Optimal

In Cebu, HCDHCI has a total of 15 food chain outlets under their three brands. This includes one Ding Qua Qua outlet, three Harbour City outlets and 11 Dimsum Break outlets strategically spread all over Metro Cebu.

Kokseng said that their existing branches in Cebu is enough for the Cebuano market for now which he said has not expanded robustly in the last year despite the continued growth in the consumption.

Franchising

“Our Dimsum Break brand is the fastest growing brand in our group that is why we decided to carry the brand first for our expansions. It is also easier to franchise which is a strategy we will be implementing for the expansion,” said Kokseng.

According to Kokseng, they officially introduced Dimsum Break for franchising in July last year during the Franchising Expo in Manila and they have been getting inquiries already.

“We are targeting a minimum of 150 square meters area for a store and a franchising fee of P7.5 million to P8.5 million.

The company has already setup a commissary and a holding facility in a building in Quezon City which will produce all the requirements of their future outlets in the area and oversea operations.

VisMin Expansion

Kokseng said that they also hope to launch their franchising offers in the Visayas and Mindanao area later this year or early next year.

“We are very bullish with our brand and we know the huge potential in the Metro Manila area however we don’t want to limit ourselves there so VisMin area should likely follow,” said Kokseng.

In VisMin, Kokseng said that they are looking at Iloilo, Bacolod, Dumaguete, Tagbilaran, Cagayan de Oro, General Santos City, and Davao for their expansion.