Building an Empire One Bowl at a Time: 5 Franchising Tips from Lugaw Queen

In the competitive world of food franchising, few stories stand out as much as that of Lugaw Queen, the brainchild of Sherwin and Beverly Aquino. This inspiring tale charts the rise of a business that started with only P1,100 in capital and grew into a thriving franchise system with multiple outlets across Luzon.

For aspiring entrepreneurs and seasoned business professionals interested in how to franchise your business successfully, Lugaw Queen represents a masterclass in resilience, innovation, and strategic franchisor thinking. Their journey showcases vital lessons on how to scale a business thoughtfully, foster franchisee success, and align operations with market needs—all while remaining true to core values.

Let’s delve into their story and explore 5 key franchising tips that any franchisor can learn from Lugaw Queen’s journey.

The Origin of Lugaw Queen

Lugaw Queen began in November 2007 in San Pablo, Laguna, born out of a dream that survived a string of failed ventures. With their last P1,100—originally set aside for the monthly electricity bill—Sherwin and Beverly Aquino opened a four-square-meter take-out counter selling affordable rice porridge with toppings starting at P10 per bowl.

Money was tight; their first porridge pot was paid in installments, and the rent for their modest shop was P200 per day. Yet the Aquinos’ resourcefulness and acute understanding of their target market—a cash-strapped C and D demographic—enabled them to keep costs low and deliver quality meals.

Their high-volume yet low-margin business model began to thrive. On peak days, some stores generate over 2,500 bowls sold and P50,000 in daily sales. Today, Lugaw Queen has expanded not just its menu but its footprint, evolving into a successful franchising brand with multiple locations across Luzon.

5 Pro Tips for Franchisors 

1. Adapt the Franchisor Mindset Early

One of the most transformative lessons for franchisors is to adopt a "franchisor mindset" from the outset. As your business begins to grow and branch out, you’re no longer just managing stores; you’re managing systems, people, and replication. Lugaw Queen’s strategy of slow, steady expansion placed emphasis on operational consistency and franchisee support—ensuring quality across outlets and fostering long-term success.

• Tip: Invest in solid operational procedures, training modules, and clear franchise agreements. This didn’t happen overnight for Lugaw Queen, but their strides in updating branding, store design, and operations have helped solidify their franchise identity.

2. Understand Your Market Deeply

Beverly acknowledged that her experience growing up in a financially challenged family helped her understand and empathize with her target customers. Lugaw Queen kept its prices affordable without compromising quality.

• Tip: As a franchisor, know your target consumers inside and out. This knowledge should drive product pricing, store design, and marketing strategies.

3. Ensure Operational Consistency

Consistency is key in franchising. Lugaw Queen relied on recipes and quality control standards that customers grew to love, thereby building a loyal customer base. Beverly Aquino’s philosophy was simple: “We really have to give what our customers want.”

• Tip: Standardize recipes, service protocols, and the overall experience across franchise locations. Consistency is what franchises sell—it’s what your brand stands for.

4. Position Your Brand for Growth

To accommodate future growth, Lugaw Queen updated its branding, operations, and store design, preparing for larger-scale expansion and multiple franchise units. This type of long-term thinking is key when learning how to franchise your business.

• Tip: Think ahead. Even successful brands require rebranding and operational updates to stay competitive. Evaluate every aspect of your system annually and innovate where necessary.

5. Offer Franchise Packages That Reflect Franchisee Needs

Lugaw Queen has affordable franchise packages for entrepreneurs with limited capital. This approach aligns with their roots and values, making franchising accessible to a broader market segment while expanding their footprint.

• Tip: As a franchisor, create diverse packages that cater to both large-scale investors and smaller entrepreneurs. Accessibility generates trust and loyalty—and ultimately, brand growth.

Educational Insights for Franchisors

The success story of Lugaw Queen provides a valuable roadmap for anyone wondering how to franchise their business effectively. The couple’s resilience and strategy bring to light two essential lessons:

1. Growing a franchise requires patience, meticulous planning, and alignment with your market.

2. As a franchisor, your success is tied directly to your franchisees’ success—support them, and your brand will thrive.

Moreover, franchisors should remember to transition into a franchisor mindset as soon as they decide to expand their business into a franchise system. This mindset shift enables clear focus on systems, scalability, and the creation of replicable business models. Lugaw Queen’s evolution highlights the importance of having an adaptable yet structured approach that balances growth with quality.

Reigning Supreme in Franchising

Lugaw Queen continues to reign supreme as a testament to entrepreneurial grit and smart franchising strategies. Franchisors across industries can take inspiration from Sherwin and Beverly Aquino’s journey, and incorporate proven methodologies into their ventures.

If you’re seeking ways on how to franchise your business, remember the lessons offered by Lugaw Queen: embrace the franchising mindset, focus on market understanding, prioritize consistency, plan for growth, and make franchising accessible to aspiring entrepreneurs. These strategies will not only help you scale but also sustain your success in the competitive franchising world.

Do you want to know if you’re ready to franchise your business? Take this free franchisability test or attend the “How to Franchise Your Business” seminar. Visit this link for more information.