One of the Philippines’ most renowned brands in gaming and the cyber cafe industry has expanded into providing affordable study hubs and coworking spaces.
Fragster.com was among several media invited to take a tour of their TNC Study Hub along Padre Noval Street in the Philippines’ capital of Manila.
In an exclusive interview with Fragster.com, TNC CEO Eric Redulfin revealed that this has always been the plan for TNC ever since they started launching different ventures that combined gaming and other experiences, such as the upscale Highgrounds Cafe in Quezon City in 2017.
“This cafe should be for all ages,” Redulfin says, explaining the Highgrounds business model of a cyber cafe and restaurant in one. “For example, if a family brings a kid to a computer shop, the parents will get mad at their children. On the other hand, if you bring the parents to a UCC (coffee shop), your kid will get mad at you. So, I said, it’s impossible that there’s no market for all ages. So, we made Highgrounds.”
That Highgrounds site is still operational, and part of its space was also leased by venture-backed esports company Tier One Entertainment until it left the space in January 2023.
From then on, Redulfin and the TNC Group of Companies opened similar concepts: the Ground Zero Esports Bar and Cafe in 2018, and the TNC Premium Cafe in Morayta in 2020 – the latter of which was supposed to open on March 18, 2020.
However, this expansion careened to a halt due to the onslaught of the coronavirus pandemic.
“But that’s when we were already looking at where gaming should go. That’s why we are gaming and beyond,” Redulfin told Fragster in Filipino. “So, we are not just gaming. We are also providing a space for gamers. At the same time, if your partner or your family is not a gamer, they can enjoy it.”
And since the pandemic, technology had changed the way people utilized computers, and to some extent, accelerated the need for people to have their own devices – a trend that had also affected their core cyber cafe business, which was launched in 2007.
And the numbers don’t lie. TNC says that from a record high of 200 cyber cafes, only 30-35 are currently operational.
“One of the values of the TNC group of companies is to innovate,” Redulfin said. “So, we’re not steady. As long as there’s change, we try to innovate and adapt. Technology is our business, so we need to innovate. So, if there’s change, or if we’re the first ones to inject, that’s what I want to do. That’s my advocacy.”
The TNC P. Noval Study Hub facility offers rates of ₱60/hr, roughly converted to a little over US$1, and a ₱500 rate (roughly US$10-11) for a whole day’s usage: perfect for students, working professionals, and freelancers. The rates include fast Wi-Fi connectivity, unlimited coffee, and use of power outlets.
This is one of three branches plotted in strategic areas that are very close to universities and communities. Padre Noval street is just right beside one of the biggest universities in the Philippines: The University of Santo Tomas (UST), a university boasting of over 35,000 students in all levels from basic education up to graduate school.
The other one that’s already open was the supposed site of the TNC Premium Cafe in Morayta, Manila – another high-pedestrian area which encompasses the Far Eastern University or FEU. FEU Manila, the mothership of several FEU campuses across the country, boasts over 50,000 students – a big majority of which are enrolled in the main FEU Manila campus and the FEU Tech campus nearby.
The other one, under construction, is in the central Philippine city of Bacolod in Negros Occidental province. This location is also near a higher education institution: the University of St. La Salle in Bacolod, boasting of a 12,500+ enrollment.
Setting up a single TNC Study Hub in these highly-congested areas takes up to ₱12 million (US$205-206,000). Redulfin says, despite the huge initial investment, they try to make sure their rates are at par with their core market: students and young professionals.
“You can’t ask for a high rate. So, we’re trying to match it, and of course, you also need to have a good ambience. So, you’ll also invest, including the furniture. So, the investment is higher, but your market is also better. So far, based on its daily sales, we’re doing okay,” Redulfin opened up.
He adds, these study hubs will try to target bigger universities in the country. This is a hark back to TNC cyber cafes positioned in key areas in the country, known as being all-around computer shops which can either be a hub for gamers, a place to avail of basic services such as printing and scanning, and of course, readily available and fast internet access.
“Our requirement is that if there’s a study hub, there should be big universities because this concept can’t be done just anywhere. We need to be targeted. So now, my aim is to put La Salle (De La Salle University Manila), Ateneo (de Manila University),” Redulfin said.
The hope, Redulfin says, is that they will eventually get back to having more locations while also offering more study hubs in key areas in the country.
The target in the next three years, Redulfin says, is to get around 80 out 160 branches lost due to the pandemic, both in terms of study hubs and their core cyber cafe business – the latter being TNC’s bread and butter since it launched as TheNet.Com 17 years ago.
In the end, Redulfin says, they are looking at also opening up the opportunity for other Filipinos to invest in making technology, gaming spaces, and coworking more accessible to the young professional and student market.
“For me, one of my advocacies is to help people who want to do business,” Redulfin says. “It’s hard for you to monitor whether it’s profitable or not, right? Our Morayta branch has been working for almost a year. So, I looked at the profitability first. It’s easy to offer, especially since our brand is already known.But of course, it’s also hard because what we’re taking care of here is the integrity of the brand. So, we’re looking first whether it’s okay or not. If we see that it’s okay, then we can offer because those who want to do business, who don’t have time to invest, we can help them.”
Aside from these core business line of cyber cafes and new working spaces, the TNC Group operates professional esports teams in Mobile Legends: Bang Bang (TNC Pro Team) and their recently revived Dota 2 squad (TNC Predator), as well as running their own events and production arms.
The TNC group also has computer service stores, a digital marketing arm, a training center, as well as partnerships with global tech brands such as AMD, Predator, Gigabyte and Intel.
The Eco Round is Fragster.com’s monthly special focusing on the ups and downs of the business of esports, written by Paolo Barcelon, Fragster’s Manila-based esports editor and correspondent.
Photo Credits: TNC Group of Companies
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