Duty Free PHL seeks higher profits by trimming staff

THE DUTY-FREE Philippines Corp. is seeking to streamline its organization in an effort to trim costs, and increase its profits.

This was disclosed by DFPC Chief Operating Officer Vicente Pelagio A. Angala to select media on Thursday, while expounding on the aim of the government corporation to be a leaner organization.

At present, he said, DFPC has some 800 employees, which includes sales staff at its malls, airport kiosks, and branches nationwide. Asked how many employees may be trimmed by the reorganization, Angala declined to say, but added, “let’s put it this way, we can work with half the number,” or about 400 employees.

He intimated that the salaries of the employees impact on the bottomline of the company, and it may be possible for its malls and outlets to operate with just a sales manager or a cashier, but the concessionaires themselves will hire their own sales force and support staff.

He said the reorganization “will be done in phases” so as not to disrupt the operations of the corporation, an attached agency of the Department of Tourism (DOT).

The new Luxe Duty Free outlet of DFPC at the Mall of Asia complex is targetting the mainland Chinese market. (Image courtesy DOT)

For the year ending December 31, 2016, personal services reached some P470.4 million, accounting for 24 percent of total operating expenses that year. No audited financial statements have been made available for the years 2017 and 2018.

Earlier, Angala said the DFPC is targetting to hit some $220 million (P11.66 billion) in sales this year,  just 1.4 percent higher than the $217 million (P11.5 billion) generated in 2018. While no figures were available yet for 2018, the corporation netted a profit of P179 million in 2017, up 9 percent from the P164 million earned in 2016.

He is hoping the opening of the new Luxe Duty Free outlet at the Mall of Asia complex, which targets the mainland Chinese tourists in the country, along with new stores in provincial airports such as in Puerto Princesa and Panglao Island, will help boost the sales of the corporation.

Meanwhile, in its thrust to help increase the income of small and medium-sized enterprises as well as local farmers, DFPC recently added homegrown brands to its online shopping web site.

Three months after the online shopping web site was launched, customers can choose from over 150 products, from perfumes and cosmetics, liquor, toys, confectionaries and now export-quality Filipino brands.

“For three decades, Duty Free Philippines has been known to be the haven of luxury and imported goods. That is still true but we want to also emphasize the importance of enabling our local entrepreneur,” said Angala.

Some of the local products available at www.dutyfreephilippines.ph are Just Fruit manufactured in Metro Manila; Kick-start Coffee of Silang, Cavite; Malagos Chocalates of Davao; Risa Chocolates of Las Piñas City; Tanay Hills Coffee of Rizal; and VuQo Premium vodka of Caloocan City.

Angala added that all 54 local brands available at all Duty free stores will be available online before the end of the year.

To shop online, customers need to provide their flight details. Items will be prepared and customers could pick them up at the airport.

Each passenger is allowed to buy up to $1,000 worth of items, 48 hours upon arrival.

At the Luxe outlet, the Filipiniana section currently featuring items from the SM Mall’s Kultura section will be slowly replaced by the premium export-quality consumer products, liquor, and furniture crafted by Filipino artisans.

Overseas Filipino workers and balikbayans (returning Filipinos) can shop up to 15 days from date of arrival. The shopping privilege is further extended to 30 days during the Christmas season (for those arriving from November 15 to January 15 the following year).

Senior citizens and persons with disabilities have an extended privilege of shopping up to 365 days from the date of their arrival in the country.

Under the Tourism Act of 2009, 50 percent of the revenue of DFPC is remitted to the DOT for tourism-development projects

*Originally published in the BusinessMirror, April 4, 2019.

Hooters in Manila

The ‘real’ Hooters opens at Mall of Asia
By Ma. Stella F. Arnaldo
Special to BusinessMirror

“THE owl is landing at the Mall of Asia on April 28.”

Kaz Endo, managing director and partner of Paradise Wings LLP, a Guam-based company that owns the Hooters franchise for Guam and Asia, including the Philippines, was referring to the owl logo of the popular US restaurant chain. The Hooters logo is known worldwide as it is printed on the tight-fitting, white, spandex, sleeveless shirts of the restaurant’s buxomy wait staff.

“We are currently finishing up our plans for the grand opening, and let me just say it’ll be a blast! [There will be] live bands, free giveaways and, of course, everyone will finally be able to try our world-famous Hooters chicken wings and burgers,” said Endo in an e-mail to the BusinessMirror.

A “special VIP party” will also be held on April 26, with only select guests invited, according to the restaurant executive.

He said about $1 million will be invested to open the first outlet of Hooters right outside the Mall of Asia (MOA), reputed to be the largest mall in Asia which is owned and operated by the SM Group of Filipino-Chinese taipan Henry Sy. “Our restaurant is part of the restaurant row at San Miguel by the Bay. We are located at Building ‘D’ and have plenty of parking space in front of us, so our guests will find it very convenient to come for lunch and dinner.”

He said the originally-planned location for the restaurant at The Fort Entertainment Strip ran into some snags so the company decided to push forward with the MOA site. “We hit some delays with The Fort that was unfortunate, but we have since resolved them. When MOA became a green light, we proceeded with our plans to open it first. In hindsight, the delay at The Fort was fortunate as we have since changed our design ideas for the interiors.” The restaurant at The Fort was supposed to have opened in February. (See “Coming soon at The Fort: Hooters,” BusinessMirror, November 6, 2007.)

Hooters at the MOA is approximately 350 square meters, “but if you add the outdoor area, it becomes about 100 sqm larger,” Endo said. He said the entire area has a total seating capacity for 250 people.

Over 100 staff will be employed at the MOA site, including at least 50 female waitstaff. “We worked with MTV recently to do a ‘recruitment’ party and we will continue to work with local marketers to cast our Hooters girls,” he said.

Since news of Hooters opening in Manila was published in this paper, Filipino bloggers have been spreading the word about the restaurant’s opening. Some also wondered if the restaurant will also come out with a Hooters calendar like its US outlets.

Endo said the company is “considering” publishing a calendar and a magazine for its Filipino customers by 2009.

He added that Hooters Girls from the US will be flying into town during the first three weeks of operation at the MOA, “as they will be here as guests to help train and observe our local talent.”

Meanwhile, Endo said the company is aware of the fake Hooters restaurant along Diosdado Macapagal Avenue in Pasay City, which calls itself “Hooters Sports Bar and Restaurant”. He said: “Without going into detail at this time, I will just say that Hooters of America and the principles of that specific operation are currently in a legal dispute over trademark and concept infringment. Meanwhile, as the only authorized official franchisee of the Hooters brand, I encourage all customers who are curious about our restaurant concept to visit us soon! Hooters is a family-friendly environment with great food, casual atmosphere, and of course, Manila’s coldest beers!”

The fake Hooters sports bar uses a tarsier as its logo, but its large eyes are also positioned as the two “O”’s of its name, much like the real Hooters brand’s owl logo.