EverythingOnline.ph: Net Cafe Franchise in a Box?

I was going to blog this over at PTB the other day but Mon beat me to it.

I went out on a coffee at Starbucks 6750 Thursday evening when I noticed some party happening just beside it. We went out to check on it and found the launching of EverythingOnline.PH (EOL). It was a bit dark and the people at the booth didn’t noticed us when we where poking around. I was actually interested in this out-of-the-box solution they were talking about.

Anyway, they had the URL printed there so I checked on it when I got home only to be greeted by a 403 page. It turns out that they had their URL on SSL — which means you can only view it via HTTPS and not HTTP (they’ve fixed this now).

When they tell you it’s cheap, it means you don’t have to pay anything upfront for the franchise fee. The franchise fee is on a monthly basis ranging from Php700USD 12INR 1,011EUR 11CNY 87 for 2 PCs to just over Php2,000USD 34INR 2,889EUR 32CNY 248 for around 5 to 10 stations. And they add that they will be the one shouldering the monthly PLDT myDSL connection.

The catch, you ask? Their PCs cost a whooping Php35,000USD 596INR 50,561EUR 568CNY 4,344 each.

No way. A decent PC for internet browsing and online gaming is just around Php18,000USD 307INR 26,003EUR 292CNY 2,234 if you buy it straight from the distributors. What makes EOL’s PC that expensive are the add-ons like OS license, billing software and stuff. However, the PC packages are bundled with chairs and tables but you can get them cheap anyway (Php1,000USD 17INR 1,445EUR 16CNY 124 – php1,500USD 26INR 2,167EUR 24CNY 186).

I’m not sure if it’s really worth it but most people who can’t afford a Netopia franchise do it on their own. The additional Php10,000USD 170INR 14,446EUR 162CNY 1,241 charge per PC package might not seem too expensive if you are buying 2 or 3 of them. However, if you want to put up your own internet cafe, you won’t earn a dime with just 2 or 3. You’ll need to have around 10 to 15 stations in order to get some ROI within a year (if you’re lucky enough).

It’s been long since I wanted to put up my own net cafe business but I was studying the figures and one won’t cut it easily in this mushrooming industry. What more with the competitive pricing? There’s one around in the corner charging as low as Php8USD 0.14INR 12EUR 0.13CNY 0.99/hour for pre-paid members.

[tags]internet cafe, broadband, business, entrepreneur, financing, franchise[/tags]

Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

https://www.yugatech.com

13 Comments

kzap says:

19 years ago

they should use .com.ph
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ashkael says:

19 years ago

i’m actually interested in opening an internet cafe near my place of residence, and i’m much more inclined in opening a franchise rather than opening up on my own just to avoid all the hassles invovled in it…Netopia is a bit too costly for a internet cafe, while EOL is offering a more tempting piece of cake…or is it still wise to open up an internet cafe on your own? any thoughts?
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Eddie says:

19 years ago

I was an owner of Internet Cafe back year 2001. Unfortunately, it last only 4 years. I have 10 units that time. This kind of business is full of competition. And if you’re just renting the place, you soon be loosing all your capital. I have to accept that I’m a looser. I close my internet cafÃ© last year due to bankruptcy. In the first 1 year of operation, it was quite well and earning. But soon after, many internet cafÃ© came out everywhere. My renting place was so good simply because just a few meters away from AMA computer school. That time, DSL was not yet introduce in the market, and I’m using a dial-up connection. Telephone, Electric, Renting bills was the most headaches of this business. As of this time; that everything gone too high. I don’t think this kind of business can survive. As of EOL is concern, I think you can’t loose that much like me. For those who are interested, I’m not discouraging anyone. Before you enter this kind of business, think trice. I don’t want anyone to follow my footstep who just loose their hard earn money. I’m still bit lucky because I’m working abroad and at least earning. My wife was the one managing our internet cafÃ© for all the years of operation.
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Abe Olandres says:

19 years ago

A lot of factions actually but the number one thing is always LOCATION. That will dictate your traffic/customer, the price point, the operating hours, etc.
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classylady says:

19 years ago

Internet cafe business is going down the drain! This is if the players continue to employ price war as marketing scheme.
Can we invoke the intervention of Internet Cafe Association of the Philippines (ICAP) to put a stop on the bleeding of the business.
To Yuga, I agree with you about the factor on right location. As I have expereinced, I opened and established the first internet cafe business at our location, but sharing the same experience that of Eddie’s, in less than a year, many internet cafes came out eveywhere serving a limited number of subdivision residents and students.
So, Askael, if you’re still interested to venture into this business….. my business is up for sale
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ige says:

18 years ago

in partnership of EOL with SMART, PLDT, WINDOWS and RED FOX, why ask for more if everything is alredy given. think wisely, OS and online games are installed and liscenced. a lot of cafe are actually closed already because of piracy.

everything is legal and documented.

in EOL, invest and be blessed.
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pia says:

18 years ago

If you want to see what pldt-eol is offering visit our site. http://www.mypad.net/IC+/how.htm
We’ve made it easier for entreps to get in d icafe franchise busns. the package already has training for busns management and basic troubleshooting plus a lot more.
if u’ve questions/inquiries email me at p****@****.***
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januz says:

17 years ago

Don’t go for everthingonline. I did a franchise on their mobile plus. Since october 2006 they did not even loaded to my account the supposed 500 monthly load. I even contacted their VP Mr. Nato Aghero and all he did was just gave promises. I have been paying them religiously with the exact amount but they did not stick to their word. If we sum up that 500 load that EOL did not give it would be amounted to 7,500. This is what EOL owes me! My payment will end this April 2009. I don’t think I can take this anymore. Their support sucks! I am going to call up NBI for this.
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januz says:

17 years ago

Could you guys help me out about this? I am from cebu and their cebu office closed a year ago. Their office is now in manila. It’s pasig I think. Where should I go for this complaint? What government agency could help me?
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Michelle says:

16 years ago

I am a franchise owner of everything online and i got a headache with everything online equipments and after sale services. The repair took them 2-3months or even more before they return the defective parts of the computer. I wander how to earn if i lost alot of time due to unproductive & not functioning computer units?
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Michelle says:

16 years ago

I am a franchise owner of everything online and i got a headache with everything online equipments and after sale services. The repair took them 2-3months before they return the defective parts of the computer. I wander how to earn if i lost alot of time due to unproductive & not functioning computer units?
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Michelle says:

16 years ago

I am a franchise owner of everything online and i got a headache with everything online equipments and after sale services. The repair took them 2-3months before they return the defective parts of the computer. I wander how to earn if i lost alot of time due to unproductive & not functioning computer units? I decided not to pay the royalties anymore..i even cannot locate their office here. They closed their office without notice to us. I was surprise when i decided to dropby to their office to complain but the office was closed already. I could not find the agent also.
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uell says:

15 years ago

this internet cafe business is totally a bluff, believe me I worked for this company, it’s been years, how come this name is still not that famous in Metro Manila..
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