Netopia Intenet Cafe - Market Leader and Innovator
By Carina Roncesvalles
Most Filipinos are well accustomed to the brands that they use that sometimes, they say the brand name first before the commodity that they need. In a sari-sari store, a buyer would ask for “Colgate” when he actually meant toothpaste. In the case of Internet cafes, Netopia has proven to be the “Colgate” in the market.
Starting with only four computers in its first branch in Katipunan Avenue using P100,000 initial capital, Netopia now has 180 branches, including four branches in Bangkok, Thailand. From this network of Internet cafes, 96 are company-owned while 84 are franchises.
Run by Digital Paradise Inc. (DPI) which is majority-owned by telecommunications giant Philippine Long Distance Telecommunications Company (PLDT), Netopi@ is undoubtedly the leader in the high-tech line of business.
Netopia is coined from the words network and utopia. Network is an interconnected system of computers and utopia is a place or state of ideal perfection. Thus, Netopia stands as an ideal place for computer networks – a Digital Paradise.
Patrick John G. Ricafort, DPI’s Assitant Vice President for Business Development and Franchise, said as a technology-based business, Netopia has tremendous potentials.
“In 2001, through the investments of PLDT, we started expansion activities, including franchising. In July of that year, we had our first franchise in SM Bacoor. In 2004, we had four branches in Thailand,” Ricafort said in an interview with Magnegosyo.com.
Franchising proved to be a successful expansion mode for the company.
“We entered franchising because we realized that the business model works. Netopia can go out and at the same time expand and build network through franchising. With franchising, we were able to address the logistics and management needs of the expanded business,” Ricafort said.
Netopia Franchise Package:
| Model | Workstation qty. | Franchise Fee | Royalty Fee | Estimated Investment | Renewal Fee |
| Premium | 30, up | P 300 k | 7% of gross on the 1st year; 8% on the 2nd year; 9% on the third |
Php 2.6 M or higher | P 100 k |
| Regular – A | 25 – 29 | P 225 k | 5%, 6%, 7% | Php 2.2 M | P 75 k |
| Regular – B | 20 – 24 | P 150 k | 4%, 5%, 6% | Php 1.8 M | P 50 k |
Source: www.netopia.ph
The franchise term of Netopia counts three years and is renewable. The Internet chain also allots 1% of gross sales for its advertising fund to further firm up its market presence and brand recall.
With the Filipinos becoming more and more Internet savvy each day, Netopia’s success has become unstoppable.
“I would say that the real explosion was in 2005. We were already rejuvinated at this time. In one month, we were opening 17 branches in the cities and also in the provinces. The ideal would be to be open up three branches in month, so it was difficult but we were able to achieve that. In 2005, I can say that our name is already known,” Ricafort said.
From a small private gaming room in Katipunan, Netopia transformed to include a structure of specific functions in preparation for stronger business activities.
“In 2006, we already had changes in the company structure for the construction, accounting, franchising, and other specific functions. We now have 180 branches. Next year, we are targetting, three new franchises every month,” Ricafort said.
Industry awards confirmed the success of Netopia. Some of the notable awards received by the company include: Most Oustanding Filipino Franchise 2005 from the Department of Trade and Industry (DTI) and Philippine Franchise Association (PFA); Family and Consumers Choice Award 2003; Best in Marketing Effort 2003 during the Second Filipino Franchise Show; and Most Promising Filipino Franchise Award 2002 also from DTI and PFA.
Ricafort noted that even if there are many Internet cafes on the streets of the metropolis, there are untapped business opportunities in the provinces. He added that there are also untapped value added services that the Internet business can offer.
“The mom and pop Internet cafes sell usage and they are already okay with that. But we see a lot of potential for our business so we continue to offer improvements. We may already be the barometer in the Internet business, but we are not yet satisfied. We are the leader in terms of the network and the established systm that we have but we believe that there is always the room for improvement,” Ricafort said.
He also noted that the competitive edge of Netopia lies in its unparalled system. “Every Juan de la Cruz can put up his own internet café, but we already have the business model that works which includes the billing system, technical support, better equipment at better pricing terms, warranties and guarantees, better DSL connection since we are backed by ePLDT, ready line-up of suppliers and contractors and established manual for operations. We adhere to strict standards of quality service.”
The company also banks on its Netopia Training Academy where personnel are prepared to handle various functions such as management, technical support, and billing. The academy conducts classroom-type training before assigning the personnel to branches.
The pursuit for excellence has earned Netopia the reputation of being the industry leader and innovator.
“We extend value-added services. In addition to selling usage, we offer desktop publishing, photo printing, scanning and CD burning services. We continue to develop our products and services. We tell our franchisees that we can offer more businesses to them through our nationwide network. Now, we conduct study groups and trainings for companies and schools in what we call ‘quiet rooms.’ We offer tutorials for free to teachers and students who may be poor but intelligent,” Ricafort said.
Netopia operates not just on the basis of the peso sign, but on the basis of humane heartbeat as well.
“We feel that we contribute to society by giving opportunities in accessing information through technology. This business not just about money. We believe that it is also part of our mandate to uplift the level of knowledge of our people, especially those who are bright but have no money to buy the facilities,” Ricafort said.
In the malls, “Where is Netopia?” may be the usual inquiry to the customer service personnel or to the security guard, rather than the simpler question of “Where is the Internet café?”
About Carina Roncesvalles: Carina Roncesvalles is a Journalism graduate from the University of the Philippines in Diliman. Carina has worked as a Reporter for BusinessWorld. She is nowworking as a full-time writer for a Makati-based public relations company.
14 Responses to “Netopia Intenet Cafe - Market Leader and Innovator”
RSS feed for comments on this post. TrackBack URI
[…] Netopia Intenet Cafe - Market Leader and Innovator […]
I am an engineer but due to low wage i resigned from my work. i want to start up a small business specifically a internet cafe,i want to locate it to our place becuase there is no internet cafe in here yet, the problem is we still have to landline connection in here, i mean the estimated distance from where the nearest landline connection is about 20 kilometers. can i still put up an interet cafe in my barangay? how?
i am thinking of pranchising a business either a water refilling station or an internet cafe. in enternet cafe the problem i a m thinking of is the place to put it up. coz i dont own a land which is good site for this business. will you be able to give me details of doing a pranchise for this internet cafe and how could i have a place for this please. i will really appreciate any comments and suggestions and advice for me. thank you very much.
my mom and i planning ot have a bus.., but i preffer franchising that is more convenient as a stater.. could you help me to think much wiser to what should start? where can i contact netopia to know more about franchising it? tnx in advance
hi can you please send me full details on starting a franchis with you?
Good day!
For Netopia franchise inquiries, you may email franchise@netopia.ph or call 6386742 (NETOPIA) loc 218.
Thanks.
hello, i was reading your comments and profile on netopia, very good article. ok, my question i guess would be what is the start up fee to set up a netopia cafe in manila, lets say robinson mall. i’m an american looking to relocate to the philippines. if you could please forward me some detailed information on your start up package, look forward to hearing from you. thank you
Hi,
It’s quite sure that this franchise are profitable no question with that, How about the ROI? how many months for a 20 to 25 sets of PC that my investment will return.
Please send me a full details/info about Netopia and can you assist your client franchisee on looking for a location to setup the shop?
Thanks
Nelson
hi can you give details about the activities that you have offer…
Allan
Hello,I am scheme to put up bus.i have to think for franchising i netopia,Can you send information regarding the enquires.
hi.. im a computer engr and i wanted to put up my own business. ever since i am very interested in computer shops. can you send me more details about netopia. your business is really growing fast. i want to start with the 20-24 workstations. do you also help to choose the place to put up the business? how about the ROI?
hi,i am thinking to set up an franchising internet cafe in our province,i read the profile, details about netopia so interesting,could you please send me your contact details..
Hi, Im much interested of putting an internet Cafe like this but the problem is the place that can easily locate for the people wants to use or access…also please email me the complete detail of franchising netopia
please send me the telephone number of the Netopia Internet Cafe in Gaisano Tabunok Mall, Talisay-Cebu City, Philippines..thanks, jeff