Our client, a large USA based NYSE restaurant group, was looking to enter the Asia Pacific region with an initial partnership in the Philippines. Lacking knowledge of the region, they were concerned with choosing the best partner who would represent the concept and execute an aggressive store development plan, making the necessary local modifications to meet customer expectations.
Given our long term experience in this market, we were able to perform a full confidential due diligence exercise within two weeks involving:
The assignment involved the following:
Interviews with industry executives
Store visits to the partner’s existing concepts
Evaluation of the market potential for the concept with estimation of store counts
Necessary refinements to ensure acceptance by local customer
Competitive market franchise terms and conditions
We saw no major red flags and recommended that the client proceed with the partnership providing all concept positioning issues were resolved. The client subsequently reached agreement with the local partner and the first store successfully opened in Manila during Q1 2013.