The increasing number of investors entering Davao is one great manifestation of the city’s economic growth. The Southern Philippine capital has actually been noted worldwide as one of the most promising places in the country in which to start a business.
With the construction of various infrastructures that are meant to make life and business more comfortable for residents, local and foreign investors are getting attracted to the idea of setting up shop here.
Those who are in the food business are especially interested in Davao, considering that it is an industry that is faring very well in this part of the country.
Considering the possibility of starting a business while living in Davao City is a good idea, if only for the fact that Davaoenos adore food, especially when it comes with ingenuity. If you’re wondering how to open a restaurant business in Davao, it shouldn’t be too different from any other type of business you may plan to put up – important factors must be considered such as location, natural and human resources, target market and budget among others.In terms of location, one must bear accessibility in mind. Choose a place where there are more potential customers or clients, such as those within the proximity of malls, universities, parks, churches and other crowded areas. You have the option to either rent your space or buy it.
Commercial rentals in Davao are cost-effective, costing roughly from Php 300 to Php 1,500 per square meter, depending on size and location.
Commercial spaces inside malls are normally more expensive than those in small, commercial buildings. If you want to buy your own lot where you can build your restaurant, real estate price for commercial land costs around Php 2,500 to Php 35,000 per square meter, again, depending on location.
Another thing to consider are the natural and human resources needed to keep your business going. Natural resources pertain to things you will be needing for your menu, and you will rarely find this a problem as agricultural products like fruits and vegetables and other basic commodities are generally cheap in Davao City. However, you must be keen enough when shopping for these products, making sure you go after quality and safety of the food you will be serving in your restaurant.
Human resources, on the other hand, involve your restaurant business’ staff. It is expected of you as a business owner to provide them the required salaries and benefits as mandated by the government.
Davao City’s minimum wage with COLA or Cost of Living Allowance for people employed in retail and service business ranges from Php 248 to Php 250 pesos per day, and that applies to business establishments that have an estimated population of more than 10 employees. For business establishments with less than 10 employees, the government-mandated minimum is Php 217 to Php 219 pesos per day.
It is good to collect more tips on opening a restaurant business in Davao as they can serve as a guide while you take those steps and set things up. Most successful entrepreneurs would suggest that you must focus on a specific target market, whether it is composed of students, families, young adults, adults, workers and others.
It pays to have a target clientele so you can keep your mind focused on their needs in terms of business planning, marketing and distribution. Most importantly, you must make sure that your plans fit your budget to avoid financial trouble. Plus, with a proven strategy, a restaurant business in Davao will surely be a big hit.