What Has Supply Chain Got to Do with Siomai House?. . . Everything!!!!

courtesy of BernaBest Food Products, Inc.

During a Food Franchising Expo at the World Trade Center in Manila, I met Mr. Amgelo Esquivel, the Sales Manager of BernaBest Food Products Incs, owners of the  Siomai House franchise, the Number One Siomai (Chinese Pork Dimsum) Foodcart  in the country with about 400 outlets throughout the country.  They are present in every major Mall and there were times that they reportedly stopped accepting Franchise applications as they could not supply the needs of their existing outlets.

As we toured together the different food cart concepts on display, I asked him how to choose a Franchise.  And this is what he said, "Before deciding on a franchise, ask them (the franchisor) about their Supply Chain (structure).  Many franchisors have started offering food cart franchises without taking into account how the product will reach the franchisees or worse, they disregard the Supply Chain altogether and let the franchisee absorb the cost of picking-up the products from the franchisor's place every day.

Here is the simple Supply Chain of Siomai House:

A Siomai House Foodcart courtesy of Berna Best Food Products Inc.

1.  To ensure consistent Quality and Supply, Siomai House imported the best Japanese Siomai-making machines (costing a couple of million pesos) and they have about 6 of them;

2.  Mr Esquivel claims to be one of the biggest consumer of shrimp for the siomia dimsums as well as for pork among the siomai foodcart franchisors;

3.  To order, the franchisees simply send an SMS (text) their orders to Siomai House and deposit their payments thru Banco de Oro (the country's largest back with the most branches and they are open on Sundays);

4.  Upon receipt of the franchisee's order and verification of deposit made, Siomai House will deliver the products direct to the franchisee's outlet.

5.  To better serve their franchisees, their main Commissary is in North of Manila with a depot in Tarlac in Northern Luzon.


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