Startup expands in PH

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    Spanish startup Jeff is rolling out more of its “business-in-a-box” concepts in the Philippines after a year of introducing its home-delivery laundry service in the country.

    Eloi Gomez, chief executive officer of Jeff, said in an email interview the company recently raised $21 million in a Series B financing that will fund the development of technological products for its global network of entrepreneurs, including its franchisees in the Philippines, its starting point in Asia.

    Jeff launched two more verticals in the country, Beauty Jeff salons and Fit Jeff fitness studios which it will aggressively roll out starting next year.

    “All these services are offered to consumers through an omnichannel ecosystem. This means the user can purchase our services through the website, the mobile app or in the physical store, “ Gomez said.

    Gomez said the franchise model allows an entrepreneur to take over a small territory around it, and for logistics and quality to be controlled to ensure quality and user experience are consistent.

    Depending on the size of a store in laundry, minimum investment for capital and infrastructure/hardware requirements could take between $25,000 to $35,000 for a size of 20 square meters (q.m.) for corners like malls to a full store of 40 to 60 sq.m. on the street or in an airport.

    Beauty Jeff has Beauty Jeff Lite, which is a beauty salon with three stations or a complete one with six stations which is about 50 sq.m. Fitness studios require 70 to 90 sq.m.

    According to Gomez, Jeff’s business model establishes a break even between six and eight months, “but it is the performance of each entrepreneur that plays a key role in reaching the breakeven point.”

    With Jeff Suite management system, the company is able see the performance of each franchisee in each country remotely. It also has a team in charge of giving all the necessary support to entrepreneurs.

    Gomez said Jeff is not just a chain of franchises.

    “Through our business-in-a-box, we offer entrepreneurs everything they need to start a successful business under the umbrella of our globally recognized brand. Through our holistic approach that includes technological business management and data intelligence tools, we empower entrepreneurs to launch their own business. They can choose from a range of business lines available under our brand in the Philippines: home-delivered laundry and dry cleaning, beauty and fitness services,” said Gomez.

    He said the Philippine economy is an attractive market due to its growing middle class.

    “This has substantially contributed to the growth of the service sector which is becoming more and more important,” Gomez said.

    Jeff stores that closed in March during the lockdown have reopened in May and recovered by June , with 17 percent more income than before the new coronavirus-disease 2019 pandemic.

    “Currently, our percentage of online orders is around 65 to 70 percent of the total. The number of orders in the country keeps growing due to our high retention rates and an increasing number of new customers, as well as the fact that we are offering great service with a quality rating of 4.8 out of 5,” Gomez added.

    Jeff has sold 80 Mr Jeff laundry franchises in the Philippines to date, with its laundry hubs operating in Metro Manila and in Sta. Rosa Laguna.

    Jeff is present in 40 markets with over 2,300 stores sold.