Why ‘affordable luxury’ dining concepts are popular in emerging markets like the Philippines
Being an emerging market, consumers in the Philippines are price sensitive, that’s why most of Foodee GlobalConcepts’ brands are designed to be affordable.
The F&B group has been operating in the Philippines for more than three decades. Foodee Global Concepts has 15 brands in its portfolio and is operating more than 200 restaurants in the country.
Amongst their renowned establishments are IlaoIlao, a Spanish yoghurt brand, and the famous Michelin-starred Hawker Chan's Singaporean cuisine.
"We have Mesa, our Filipino brand, Tim Ho Wan, a Michelin-starred dim sum haven, Hawker Chan, serving Michelin-starred soy chicken from Singapore, and Kam’s Roast, a Michelin-starred Hong Kong-style roast meat specialist, just to name a few,” Eric Dee, Chief Operating Officer of Foodee Global Concepts said during a video interview with QSR Media.
Unlike fast-food restaurants, these brands are considered more expensive but a little less expensive than a full-service restaurant. Take Hawker Chan for example, which holds the title for being the cheapest Michelin-starred restaurant for as little as $3.
"The Philippines is an emerging market, and price sensitivity is key. Most of our brands are designed to be affordable. We focus on creating an experience that feels luxurious, from the ambience and aesthetics to the service, all whilst ensuring the affordability of the food itself. It's about providing a value proposition that resonates with our patrons,” Eric explained.When asked about the impact of these experiences on the company's growth strategies, Dee affirmed, "Absolutely. We are dedicated to being an affordable brand, with most of our
offerings priced at ₱300 ($5) or below. This commitment to value has played a pivotal role in our success."
For those eyeing the Philippine market, Eric Dee had valuable advice to share, "In the Philippines, it's a volume game. The price point is crucial and determines where you can establish your presence. Keep in mind that your pricing strategy will shape your growth opportunities."
As the interview concluded, Eric Dee extended his gratitude and invited viewers to explore Foodee Global Concepts' diverse range of restaurants, including Hawker Chan, llaollao, Pound, Bench Cafe, and Sunny's Cafe.