Ministop’s new ‘creative’ business seen to boost profits
June 29th, 2009 by ministopphilippinesAfter opening its 250th store, Ministop pulls all the stops in becoming the fastest growing convenience store chain in the country today. In line with the company’s aggressive stance, Ministop recently introduced a new and attractive business package dubbed the Creative Lease, designed to encourage more prospective business partners to start their own, or add a new store to their existing Ministop operations.
“RCSI is presently in the expansion mode and through the Creative Lease business agreement, we hope to open more Ministop stores while giving our business partners a new option on how they can grow with us,” stated Robinsons Convenience Stores, Inc (RCSI) deputy general manager Paul H. Darroca.
Aside from the newly-added Creative Lease, Ministop offers two other leasing options namely, the Standard Lease and the Master Lease packages. Under the Standard Lease agreement, the business partner shoulders land and building rental, and hires a store manager to look after the store’s daily operations.
The Master Lease Package, on the other hand, stipulates that business partners render full time, hands-on work in the store for 10 years (the standard contract duration) preventing them from opening another outlet even if they can already afford a new one. However, RCSI takes care of land and building rental.
Creative Lease combines a number of key characteristics of both the Standard and Master Lease packages. Patterned after an existing model in Japan where the Ministop franchise originated, the Creative Lease is primarily targeted at existing Master Lease business partners who have become successful in their current store operations. To date, most of Ministop outlets operate under the Master Lease business agreement.
The Creative Lease offers more leg room for business partners to increase their productivity. Just like the Standard Lease, it allows business partners to hire a store manager. This way, there is no need for business partners to work full time and they can manage to run multiple outlets at the same time.
The Creative Lease package also makes it easier for RCSI to penetrate the Makati and Ortigas commercial districts. The high cost of rent in these areas often prevents business partners from opening stores in these highly competitive locations. Under Creative Lease, RCSI shoulders the monthly rental expenses, thus, giving potential and existing business partners on Standard Lease the opportunity to break through in these prime commercial districts at a lower cost.
The introduction of the Creative Lease business package hopes to boost the number of Ministop stores in the Philippines while increasing the profitability of RCSI and its business partners. “We are projecting to open 100 stores annually and without these business packages, it can be quite difficult,” Darroca declared.
In addition to the 250 Ministop outlets, 35 stores are now under construction. RCSI is also looking at the possibility opening more provincial outlets, reaching as far as Nueva Ecija, Cabanatuan, Tarlac, Dagupan, Lucena, and perhaps, Baguio. Today, Ministop provincial outlets operate in Batangas, Pampanga and Bataan.
For more information on Ministop business opportunities, interested parties may get in touch with the Ministop Business Group at 637-9956;637-9957; (0922) 878-0628; and (0922) 878-0629 or send us an email at business@ministop.com.ph.
