ZAGU FRANCHISE: GOOD OR BAD INVESTMENT?

[jumptheshark]

I'm planning on getting a Zagu franchise, but my friends said that it's a bad investment coz the zagu thing is just a hype that will last for 6 months tops.

what do you think?

[BadGiRL]

hmmm..how much ang franchise fee?

[hansel]

Originally posted by jumptheshark:
I'm planning on getting a Zagu franchise, but my friends said that it's a bad investment coz the zagu thing is just a hype that will last for 6 months tops.

what do you think?

its possible for that to happen, like potato corner. if the fee isnt too high, its worth the risk. how much ba?

[zimdude]

do people go to ZAGU (and not the competition) due to the name?

what is their advantage over the other "pearl shakes?" do they have a secret recipe or source of ingredients?

[This message has been edited by zimdude (edited 08-12-2000).]

[wax]

i think this will just be a fad. and besides, i heard the franchise fee is around P200k, that's too much! there are a lot of other pearl shake stores out there and i believe they only have one supplier for their ingredients. if you want to put up somethin like zagu, don't franchise, make your own but add a little distinct feature on your product.

[Ira]

Regarding the fad thing, I think Zagu's pretty hot commodity right now, and in the future, there will probably be less customers, but my feeling is that it will not go bankrupt the way nonedible fads often do, unless there's a Zagu stall in every corner of Metro Manila. Refreshments and food items, if good, will always sell.

[Andrew Coo]

I think it is a real bad idea getting the franchise. The powder for the drink will be out in the market soon. The powder which originated in Taiwan is now locally made by local manufacturers.

Beware of the FAD... Do not waste your money...

[This message has been edited by Andrew Coo (edited 08-15-2000).]

[ginoledesma]

It's a craze right now, but like all other crazes, how long will it last? That we can never be sure of.

If you think you can get a good ROI within 6 months, then why not? :)

[hansel]

Originally posted by wax:
i heard the franchise fee is around P200k

P200k is not that big for a 'hot' product. i think its worth the risk. ill take it if you wont. :)

[Mulder12]

Edibly speaking, hindi ako nasasarapan sa Zagu, its too bland, hindi nila napapalabas yung true flavor ng mga flavors, and their pearls arent that well, yummy.

I choose yung Shago, located sa basement sa SM Megamall. Hindi ito plugging ha. I just happen to have compared it. I havent tried yung Orbits. Is it any good?

[Ira]

If you found Zagu bland, Orbitz is even worse.

[Yoshi]

Considering how the latest Zagu stall just outside Ateneo sells, I'd say go for it! You might get an ROI in a month.

Regarding the imminent availability of the flavored powder in the market, I think that would not have such an adverse effect on the demand for Zagu. The effort it would still take to actually make the drink at home would still deter people from buying the powder as an alternative to buying the drink.

[This message has been edited by Yoshi (edited 08-17-2000).]

[KuyaDanny]

Not all businesses have to be forever. If this turns out to be a fad, you must judge for yourself how long it has to remain a fad for you to at least make back your investment. If you think such a period is acceptable, then go for it.

[ginoledesma]

I find Zagu and all other "cultured pearls"… ordinary.

[JUNXB102]

Originally posted by BadGiRL:
hmmm..how much ang franchise fee?

Franchise fee for a Zagu outlet is P250,000.00. You have to submit some sort of a proposal for your location, they'll have to approved it first before proceeding. I'm not sure if the P250k covers all operating expenses though. If not, then that's a little high for me...

[YutaNyo]

Its just a fad. No chance of adding new product lines. Better put your money somewhere else.

[Apostle]

It's like the Shawarma fever, trust me...

[PinaTigaS]

if you're planning on a long term franchise, siguro malabong investment and zagu. pero if you have many options and there are many ways out (ur not stuck with zagu and you can come out to other franchise as well), eh di go

[maxe]

well if you wanna get a franchise of zagu better act now cause it will take you a year to have a franchise because of the 1500 applicants.those zagu outlets are forecasting 1200 cups a day and you can get your roi in a month or two.i've attended the orientation.

[Irradiate]

Originally posted by hansel:
P200k is not that big for a 'hot' product. i think its worth the risk. ill take it if you wont. :)



actually it's P250k plus 100k as a working capital. it's actually a good idea if you ask me. yes, it is a fad but by the time it's passe you would have earned big bucks (based on zagu success stories...17-22 days ROI) their mark-up is about 30-40%, which is WAAAAY good!

[Irradiate]

[QUOTE]Originally posted by zimdude:
[B]do people go to ZAGU (and not the competition) due to the name?

yup. it's actually made of the same ingredients. but THEY SAY it tastes better. don't really agree with that. they're all the same.

[NoisyCricket]

A friend of mine sent this through e-mail. I don't know how true it is. It may be a smear campaign for all I know. But better safe than sorry.

Subject: SagoAdditives

Slow Down with . . ..those Sago drinks w/c is beginning to be just a fad nowadays. Sure it's tasty and refreshing but if you'd know what they're made of, then you'll probably think thrice before touching that stuff. Notice the institutional packed colored powder that they scoop up straight to the blenders? they are mixed with crushed ice to meet the consistency of a creamy sherbet. These assorted powder are shipped by some unknown food processor from the bowels of Taiwan and delivered here for consumption.

Briefly, the ff are some of the toxic chemicals that constitute these powdered preparations:

-Aramanth (banned in the US 1976)
-Tartrazine
-Oranjeel S (banned in Norway)
-Borax
-Indigo Carmine
-FD & C Blue No 2 dye
-FD & C Red No 2 dye
-Benzoic Acid
-Canthaxanthin (banned in Australia)
-Salicylic Acid
-Formaldehyde
-Sulfites

The above partial list of highly toxic chemicals are harmful enough to cause the ff effects to adults, pregnant women and children:

-Birth defects
-Edema of lips, tounge
-Tinhgling of the mouth
-Rash
-Hyperacidity
-Periorbial swelling
-Conjunctivial irritation
-Headache
-Cancer
-Asthmatic attack
-nausea & vomiting
-abdominal pain
-eczema
-high blood pressure
-breathing problems
-diarrhea

Hi BFAD, where do we go from here?? These data were obtained from very reliable sources:

-Office of the Phil Trade Attache, Taipei;
-Association of Meat Processors of the Phil.;
-Reputable chemists in the academe;
-Philippine Cancer Society
-Cancer Incidence and Mortality Report by The American Cancer Society, New England Div

Hmmmn.. what do you think?

[GREEN ARCHER]

hello to all people who wanted to go to the Franchise of ZAGU!

HWAG NALANG!

WHY?

1. THIS IS JUST A FAD.
Remember before when we had the Shawarma? aba! lahat ng tao, nagsigaya na magtayo ng mga stores ng Shawarma! SOON, LAHAT NG MGA TAO, SHAWA NA!

2. Franchise is now worth 200,000 pesos. Before, nong hindi pa siya kilala, 75,000 lang to 80,000.

3. If you will be selling per small plastic cups at 45 pesos cost, you should maintain the number of customers to 300 - 350 a day buying SMALL CUPS AS IN ARAW ARAW! WALANG EXCEPTIONS FROM MONDAY TO SUNDAY!
Bakit? meron bang sira na hindi nagsasawa na uminom ng Sago???

4. Granting you were able to achieve 300-350 a day, you will able to achieve ROI in 3 years. THAT IS KUNG ARAW ARAW KANG MAY 300-350 CUSTOMERS IN 365 DAYS IN 3 YEARS!

5. malapit na ang decline ng ZAGU ngayon!

6. IT HAS A LIFE SPAN OF ONLY 2-3 YEARS and nasa peak na siya. malapit na mag decline ang market.

KAYA HUWAG NALANG!!!
;)

[DeGu]

I have applied to be a franchisee of Zagu more than two weeks ago and until now, they haven't replied to me? Is this really their way of treating their future investors? My funds are very much available and I am willing to sign whatever contract there is to get it started. Anyone posted same application to Zagu and never heard from them? Maybe, there's just too mujch applicants ha? Similar to long lines and 45 minutes leadtime to get your pearl shake.

what do you think?

[KuyaDanny]

Maybe there are too few investors at this time. The last time I heard, Zagu was processing franchisees in batches of 50. You might get a callback when their pending pile reaches 50 or more.

[DeGu]

Perhaps....Hope when I get my turn, Zagu would still be a click. You know how these pearl shakes are, they're like mushrooms and you don't know when they're gonna die. Business is all about timing and honestly, I've been looking around for other ideas. You have any to recommend? My initial capital is around 500k.

[zimdude]

:cool: *happy*phantom* :cool:

:cool: brownpau :cool:

Fare thee well...

[KuyaDanny]

zimdude, how did your post end up here?

[zimdude]

i was reading this thread before heading off to Written Word... I'm not sure if I posted it here by mistake or software error... :|

[wAgKaNgMaKuLiT]

:lol:


ligaw na post.



.



:D :D :D

[Johnny Quantum]

So, you've got 500k and is interested in a business...maybe something Zagu... food is always a good choice... or maybe an interner cafe and make sure you place it near a school or that part of the mall with heavy traffic...

I've seen too many places copying Zagu... Orbitz, Shagu, Sagoogle, blah blah blah...

How about coffee? Figaro? or Coffee Experience maybe?

...just some ideas off the top of my head...

[Rambus]

which would u franchise? (http://www.pinoyexchange.com/forums/showthread.php3?threadid=10372)

You might want to look at his thread.

[Rambus]

You might also want to look at this:

Which is the best fast food outlet to franchise? (http://www.pinoyexchange.com/forums/showthread.php3?threadid=10514)

[DeGu]

I finally received the CALL from Zagu? My appointment will be tomorrow at their office. Hope it turns out well. Anyway, I'll take note of all your suggestions.

[YouGoGirl]

DeGu,
I was wondering what happened to your application at Zagu. Were you able to get your franchise? I also applied 3 months ago and sent 3 location maps. no word....

[DeGu]

Yes, I did attend the orientation. There were around 50 people who attended. It's a generic orientation - all you need to know to be a franchisee of ZAGU. But official processing would only start once you have an approved location. Without it, they wouldn't even transact with you.

So I proposed 2 sites for their review, that was a month ago but never heard from them yet.

I am actually tempted to just set-up my own pearl shake business - my own concept i mean.

It's just taking too long and my funds are just dead in the water.

[leira]

Zagu people said that it really takes long cos a lot of people are applying. We've been waiting for three months now and to think that the franchiser's our friend also. I guess you really need to be patient if you want to own a Zagu. If you think you could make it on your own (without the Zagu name), then go try it out. One benefit of this would be the lower cost since you won't be paying for the francise fee anymore. :)

[DeGu]

Honestly, I am willing to wait. I really think this would last for the next 5 years or more - depends on their marketing strategy.

Since Zagu is all over Metro Mnaila, I am also considering to put up on the provinces, less competition. My wife is from Baliwag Bulacan and I am submitting a letter of intent for them to inspect my location.

Anyway, hope you get yours too. If you need a partner, just let me know. I am open to just be an investor if in case I don't get my own location.