Cebu-based Julie’s Bakeshop, the country’s largest chain of community bakeries, has pared down the number of franchises they are going to approve this year from 80 to 50 outlets only given the global financial crisis and the saturation level of community bakeshop in some parts of the country.

Jose Enrico R. Gandionco, chief executive officer of Julie’s Franchise Corp., told reporters the additional outlets are expected to come mainly from the Luzon area. So far, there are 200 Julie’s bakeries in the Visayas, 300 in Luzon and 100 in Mindanao.

“We would be happy if we can open 50 outlets this year from our original target of 80,” Gandionco said. The slowdown in the expansion on the number of outlets is largely due to the impact of the current financial crisis. There is also the issue of saturation in some areas where community bakeshops are sprouting.

The additional 50 outlets would bring the company’s total outlets to 650 by end of the year and help boost the projected growth for the year of 5 to 7 percent.

According to Gandionco, sales have been adversely affected in the first half of the year that they posted a negative 5 to 7 percent gross revenue growth.

Gandionco, however, said that sales are starting to pick up in the second half that may enable them to end up the year on a positive 5 to 7 percent growth. “2008 was not really bad but 2009 is not doing well. But we have a good feeling we will end up the year in the positive,” Gandionco said. The company posted 5 to 7 percent growth last year.

Of the existing 600 Julie’s bakeries nationwide, only two outlets are company but 35 percent of these outlets are owned by relatives and the others are pure franchises. A Julie’s franchise costs P2.5 million, all in.

Julie’s caters to the small and medium scale market.