The SumoSam Story: 5 Tips on How to Franchise Your Business

In the competitive world of the Philippine food industry, few brands have managed to scale as dynamically as SumoSam. What began in 2005 as a singular vision by founders Marvin Agustin, Raymond Magdaluyo, and Ricky Laudico has evolved into a powerhouse group with several outlets nationwide. Their journey offers a masterclass for any entrepreneur wondering how to franchise your business effectively.

The SumoSam Origin: Finding a Niche

SumoSam was born to address a then-untapped market: casual dining Japanese restaurants. Interestingly, the Japanese concept was somewhat accidental; it was the specific concept approved by mall management over other ideas presented by the partners. By combining Japanese cuisine with a touch of American influence—reflected even in its name—the brand carved out a unique identity that resonated with a broad audience.

Their growth from a single location in Shangri-La Mall to several branches nationwide was fueled by a decision to start franchising in 2012. This expansion strategy allowed them to reach new territories, particularly in Visayas and Mindanao.

5 Tips on How to Franchise Your Business

1. Identify and Build on Your Continuing Value

A critical strategy for long-term success is providing value that franchisees cannot easily replicate on their own. SumoSam achieves this through constant innovation and product development. By regularly observing international trends and introducing authentic yet accessible dishes, the franchisor ensures that franchisees remain dependent on the brand's creative leadership.

• Pro Tip: Focus on proprietary elements—such as unique recipes or specialized software—that make your business indispensable to your franchisees long after they’ve learned the basic operations.

2. Evolve to Meet Changing Market Demands

The environment for any business changes rapidly. SumoSam recognized that as customers get more options, the brand must evolve to stay relevant. This led the group to develop multiple concepts, ensuring they always have something fresh for the local market.

• Pro Tip: Don't let your early success make you stagnant; stay updated with the sensibilities of new generations, such as millennials, who now drive a significant portion of service industry consumption.

3. Know When to Make Tough Decisions

When considering how to franchise your business, you must be prepared to pivot. The SumoSam group demonstrated this by replacing underperforming concepts with new ones that better met market needs. They weren't afraid to "bump off" a brand if it no longer added value to the overall business model.

• Pro Tip: Establish clear metrics for success for every franchised unit or sub-brand; if a concept consistently fails to meet its goals, have a clear exit or replacement strategy in place.

4. Diversify Revenue Streams Through Multi-Branding

SumoSam eventually expanded its expertise beyond Japanese cuisine into Filipino and even international fare. This multi-brand approach allowed them to capture different market segments and create complementary business opportunities within their network.

• Pro Tip: As your business matures, explore how new business models or complementary brands can bring new momentum to your overall growth.

5. Bold Moves Drive Global Standards

To stay ahead of the competition, SumoSam made bold culinary moves by bringing foreign concepts to the Philippines, such as New York’s Wolfgang’s Steakhouse. This not only diversified their portfolio but also beefed up their internal teams with fresh talent and global perspectives.

• Pro Tip: While it is important to watch your competition, do not let them dictate your strategy; instead, focus on bold innovations that align with your long-term vision.

Win-Win-Win

Mastering the steps of how to franchise your business requires more than just a good product; it requires a commitment to building a win-win-win partnership for the franchisor, the franchisee, and the customer. SumoSam’s journey from a single mall outlet to an international group proves that with a clear vision and the right systems, exponential growth is possible.

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.