How to Choose the Perfect Location for Your Franchise Store in the Philippines (2025 Guide)

Choosing the right location can make or break your franchise business. The same brand can thrive in one area and struggle in another — not because of the product, but because of where it operates. In this guide, we’ll break down how to choose the best location for different food-and-beverage franchise types — from mall kiosks to cafés to drive-thru outlets — and explain how Pondo Pinoy’s franchise financing program (covering up to 50% of start-up costs) can help you secure the right spot faster.

Rachelle May
October 20, 2025
Business How-Tos

Why location drives your ROI and breakeven

Location influences three critical numbers:

  1. Revenue potential – More foot or vehicle traffic usually means higher sales.

  2. Operating costs – Premium sites mean higher rent, but often lower marketing spend because customers already come to you.

  3. Capital requirements – Good sites demand deposits, fit-outs, and early lease payments, affecting cashflow and payback time.

Most experts suggest keeping rent at 5–10% of gross sales for healthy margins. Go higher, and your profitability can erode fast.

Data snapshot: food business opportunities in 2025

  • Mall traffic remains strong. SM Supermalls logged 5.2 million daily visitors in 2024, up 6% from 2023 (BusinessWorld, 2025).

  • F&B keeps expanding. The Philippine foodservice market is valued at US $18.4 billion in 2025, growing at roughly 14–15% per year (Mordor Intelligence, 2025).

  • Franchising remains dominant. Food brands account for nearly 68% of all franchises nationwide (FranchiseDetailsPH, 2024).

Those figures confirm what every entrepreneur feels — the appetite for food businesses in the Philippines is still rising. The challenge is finding where to set up.

Choosing by franchise category

 1. Food cart / kiosk / mall stall

Best for: High foot traffic, low overhead, quick service.

Ideal spots:

  • Mall food courts or corridors

  • University belts (e.g., UST, UP Diliman, FEU)

  • MRT/LRT stations and jeepney terminals

  • Public or night markets

Pros:

  • Instant visibility and built-in customer base.

  • Small staff and space = lower labor & utility costs.

Cons:

  • Rent per square meter in top malls can be steep.

  • Strict mall hours and high competition.

ROI snapshot (example):

  • Sales ≈ ₱300,000 per month

  • Rent ≈ ₱24,000 (8%)

  • Prime cost ≈ ₱180,000 (60%)

  • Net ≈ ₱26,000 → breakeven in ~11 months on a ₱300K setup.

Outside-mall carts might earn less (₱180K sales/month) but also cost half to start, giving a similar payback.
Conclusion: Mall kiosks offer volume and branding power — but margins depend on rent control and steady flow.

 2. Café / coffee shop / bakery

Best for: Communities, remote workers, and social meet-ups.

Ideal spots:

  • Office districts (Makati, BGC, Ortigas)

  • Mixed-use estates (Alabang, Eastwood)

  • Near coworking spaces or universities

Pros:

  • Repeat, loyal customers; social-media visibility.

  • Strong upselling potential (per visit revenue).

Cons:

  • Higher capital due to interiors and equipment.

  • Rent + utilities can reach 10% of sales.

Tip: Evaluate seats per hour utilization — two full turns per peak hour can double revenue without adding space.

 3. Drive-thru / quick-service restaurant (QSR)

Best for: Highways and suburban growth corridors.

Ideal spots:

  • City outskirts (Cavite, Laguna, Bulacan, Batangas)

  • Gas stations & commuter routes

  • Near schools and subdivisions

Pros:

  • High sales/hour potential; less mall dependency.

  • Rising demand for drive-thru convenience among Filipinos.

Cons:

  • Larger lot and construction costs.

  • Needs permits and traffic flow engineering.

When designed well, drive-thru units can hit ROI within 2–3 years thanks to higher ticket sizes and repeat traffic.

Regional hot spots to consider

Region / City

Why it works

Ideal Franchise Types

Metro Manila

Highest population density and spending power, but highest rents too.

Flagship cafés, mall kiosks, premium brands

Cavite / Laguna / Bulacan / Batangas

Suburban boom, car-heavy population.

Drive-thru, neighbourhood cafés

Secondary cities and suburbs often offer better rent-to-sales ratios, meaning faster breakeven with manageable competition.

Checklist before signing a lease

 ✅ Do 3 foot-traffic counts (weekday lunch, weekend afternoon, evening).
✅ Check demographics (age + income profile).
✅ Map competitors and anchors (cinema, supermarket, school).
✅ Confirm rent structure (base vs percentage rent + CAM).
✅ Verify permits, utilities, and fit-out rules.
✅ Model rent as % of sales ≤ 10%.
✅ Estimate breakeven months and needed working capital.

Financing your ideal site with Pondo Pinoy

The perfect location often requires upfront payments — security deposits, fit-outs, and several months of rent.
With Pondo Pinoy’s Franchise Financing Program, you can fund up to 50% of your start-up costs, including:

  • Franchise fee and initial equipment

  • Leasehold improvements / renovations

  • Signage and store branding

  • First 3–6 months of rent or working capital

This lets you secure premium locations early, invest in better store visibility, and manage your cashflow while growing faster.

👉 Apply for a Pondo Pinoy Franchise Loan here
 or contact our team for a quick pre-assessment and personalized repayment plan.