Four Tips for Franchisors: Potato Corner’s Winning Formula

In 1992, four friends – Jose Magsaysay Jr., Jorge Wieneke, Danny Bermejo, and Ricky Montelibano – pooled together PHP 150,000 to start a humble food kiosk at SM Megamall. Their goal? Turn French fries into an irresistible snack that would capture the hearts (and taste buds) of customers. Little did they know that this simple vision would grow into Potato Corner, a global franchise boasting well over a thousand branches across various countries.

From its humble beginnings to its rise as a success story in the franchising world, Potato Corner exemplifies how businesses can expand through franchising while staying true to their brand identity. Its journey offers invaluable lessons for franchisors. Here’s a look at the highlights of their story, as well as actionable strategies on how to franchise your business and scale it up like they did.

Potato Corner’s Formula for Worldwide Success

Potato Corner’s fan base initially blossomed with its simple yet brilliant product: freshly cooked, flavored French fries in cheese, barbecue, sour cream, and other savory options. What started as a novelty snack turned into a household name by consistently appealing to its target audience—young people and families. 

Thanks to its simplicity, affordable franchise model, and innovative marketing strategies, Potato Corner weathered economic storms and emerged stronger, expanding domestically and internationally.

Key Milestones:

• Resilience in Challenges: Despite the Asian Financial Crisis in 1998, which reduced their store numbers from 120 to 40, Potato Corner embraced innovation and focus, carving its way back to success.

• Growth Through Simplicity: About 75% of Potato Corner’s stores operate as kiosks—a format that is cost-effective and easy to run for franchisees.

• Global Expansion: From the Philippines to the United States, Indonesia, and beyond, Potato Corner inspires confidence in franchising as a tool for scaling businesses worldwide.

Four Tips for Franchisors: Lessons from Potato Corner

Here’s what other business owners and aspiring franchisors can learn from Potato Corner’s rise to success:

1. Start Simple and Stay Focused

Potato Corner’s product offering—a kiosk selling flavored fries—is remarkably straightforward. This simplicity allowed them to replicate their format with minimal complications. While new products like mojos and potato chips have been introduced over time, the brand’s focus on its core product, French fries, remains unwavering.

• Action Step: Identify and refine your business's core offering. Keep operations streamlined, especially in the early stages of franchising. Simplicity not only ensures consistency across locations—it also attracts potential franchisees who want a concept that’s easy to execute.

2. Build Loyalty Early

Co-founder Jose Magsaysay Jr. once shared that Potato Corner strategically marketed itself to children. Why? “Build the relationship while the market is still young because once you get them, they are yours for life,” Magsaysay explains. Several franchisees in the Philippines and abroad started out as young customers who fell in love with the brand.

• Action Step: Build your brand with a long-term perspective. Focus on creating positive, memorable experiences for your target market early on. This kind of brand loyalty often leads to a “full-circle” effect, where devoted customers grow into franchise advocates—or even franchisees.

3. Adaptability is Key

One of Potato Corner’s defining traits is its ability to adapt during challenging times. When the Asian Financial Crisis hit, the brand scaled back store operations but never wavered in its commitment to quality and growth. Later, it expanded offerings to include in-line stores, accommodating consumers’ shifting preferences while keeping kiosks as the foundation of its operations.

• Action Step: Prepare your franchise model to flex and pivot as market conditions change. Periodically assess franchise formats and explore alternative models to keep up with trends, but always stay aligned with your core brand identity.

4. Master the Art of Affordability

Potato Corner’s kiosk franchise model is designed to be affordable for franchisees, making it accessible to aspiring entrepreneurs. This affordability, paired with its proven performance, made the brand attractive and helped fuel its rapid expansion.

• Action Step: When designing your franchise system, be mindful of the investment needed by franchisees. Provide a model that balances affordability with revenue-generating potential. Your franchise opportunity should be competitive and aspirational but achievable for your target franchise partner.

A Global Brand, Built Through Franchising

Potato Corner’s success story illustrates the power of combining a simple product and scalable concept with a solid franchising strategy. By focusing on simplicity, staying true to its roots, and maintaining adaptability, Potato Corner has paved the way for its franchisees to succeed alongside the brand.

If you’re a business owner wondering how to franchise your business, Potato Corner offers the perfect example to inspire your journey. Start simple, focus on the customer, be adaptable, and always consider the needs of your franchisees. Who knows—your business might just be the next global franchising success story.

The Pursuit of Growth

The remarkable journey of Potato Corner reminds us that success in franchising requires not only a great product but also a well-thought-out strategy. As you pursue your franchising goals, remember that growth isn’t just about numbers; it’s about building meaningful connections with your customers, partners, and community.

Let Potato Corner’s story inspire you to dream big and take the first step toward creating a franchise system that resonates with your vision. Why not make today the day you unlock your business’s potential?

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.