Here’s One Cebu Restaurant Who Is Nailing It On Social Media

Posted on September 7, 2015 by Stephen Jagger

Editors Note: This post was written by Kyjean Tomboc. She will be contributing to the PayrollHero blog from time to time.

Whether you own a small diner or manage a large chain of restaurants, social media presence these days is the norm rather than an exception. This should not be a surprise, given that recent figures by Forbes reveal that a whopping 81 percent of the people they surveyed indicated that social media posts by family and peers influenced their purchase decisions.

Restaurants who opt not to embrace social media marketing will be surprised to find out that they still have a social media presence after all. Diners will inevitably tweet, post photos on Facebook or Instagram, and talk about their experience on Yelp.

To get ahead of the pack, a restaurant’s marketing team should do more than just create a Facebook account and wait for people to like their page. For social media to work on a restaurant’s favor, these two components are crucial – creating a unique brand voice and using this voice to create a dialogue, rather than a monologue, with your customers.

It’s all about engagement and being consistent with it!

Brique’s Modern Kitchen, a newcomer in Cebu’s dining scene, is one restaurant whose social media presence is a perfect example of what it means to be truly social in social media.

Distinct Brand Voice

Brique’s Modern Kitchen is not difficult to miss if you pass by Salinas Drive in Lahug. The same could be said of its social media presence. On its Instagram, the restaurant describes itself as a:

A Cebu based restaurant offering modern cuisine with a rustic touch. Brique is the perfect place to have good food in a relaxing atmosphere.

See what the folks at Brique’s did? In the first sentence, they identified what Brique aims to offer. Next, they highlighted what diners can expect when they visit the restaurant. This is a brilliant example of using social media as a medium to not just talk about what you do but also showcase what your customers can expect from your restaurant.

Exclusive Offers

Brique’s recently celebrated their first year milestone through a free entree of your choice if you share a photo with the #BriqueTurns1 hashtag on Instagram. Offers that are limited to certain social media platforms is one good way to sustain engagement with your followers.

Responsive to Customer Comments

Did we mention that Brique’s replies to each customer comment on their Facebook page? Whether it’s a positive or negative review from a diner, a quick response from the staff sends the message that a restaurant is genuinely concern of its patrons and the quality of the food they serve.

Kick-Ass Multimedia

Aside from high-quality photographs of items in their menu, real diners (not stock photos), and restaurant interiors, Brique’s has a chock-full of kick-ass videos in their Facebook page.

With storytelling as one of the core principles of digital marketing, Brique’s multimedia content are tools that help the brand show its human side and capture its audience’s attention. Stunning visual content elicits emotions and these emotions, in turn, influence purchasing decisions.

Brique’s Modern Kitchen is just one of the restaurants in Cebu who is optimizing social media for their benefit. What other restaurants are using similar social media strategies? Your opinions matter to us and we’d love to hear your thoughts in the comments below!

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Changes to Singapore Employment Act – Issue Itemised Payslips and Key Employment Terms to Employees

Posted on September 5, 2015 by Stephen Jagger

As we noted back in April, Singapore will be requiring all employees to issue itemised payslips to all employees by April 2016.

From Singapore Ministry of Manpower:

From 1st April 2016, employers will be required to issue itemised payslips and Key Employment Terms (KETs) to their employees. This will enable employees to better understand their regular salary components, as well as employment terms and benefits. This will also help employers prevent misunderstandings and minimise disputes at the workplace. For more details on the requirements, you may refer to www.mom.gov.sg/ea-amendments.
Employers can find resources and guidance to help them implement the changes here: http://www.mom.gov.sg/ea-assistance.

Singapore Payslips

Restaurant / Retail Executive: Claudine Chan-Cobankiat, Kichitora of Tokyo and Qrius

Posted on September 3, 2015 by Stephen Jagger

Introducing Claudine Chan-Cobankiat, Managing Director of Kichitora of Tokyo a 3 location restaurant chain as well as Qrius a small retail chain in the Philippines.

1. You are in both, restaurants and retail – can you tell us a bit more about them?

Yes, we have Kichitora of Tokyo – a ramen chain from Japan with 3 branches at the 2F SM Megamall Atrium, 2F Glorietta 5 and 4F Bonifacio Central Square. Our ramens are differentiated from all competitors because we use pure chicken broth – it not only tastes good but is also good for your health. We also just recently opened our one-off concept called Hajime at the G/F Edades Tower, Rockwell, which focuses on crossover cuisine.

For retail, I manage a small retail store called Qrius. It started as a fun project for me and my sister, Charlene, who now lives in New York. The concept involves sourcing products that we use everyday that comes with added functionality. For example, we are the distributors of Zing Anything, a company that creates water bottles with the added functionality of infusing your water with fruits and herbs. We have 2 locations at the 3F Powerplant Mall, and 4F SM Mega Fashion Hall.

2. When it comes to choosing locations, how do you do it? (mall? street level? foot traffic? what do you think about?)

We generally choose based on current mall success, meaning there is established foot traffic. Street level is usually better but if upper floors have a good enough attraction and easy access, we consider it too (for example, cinema levels). Another important consideration is access to parking and access during rain.

3. Will you ever take a sub-par location, if it is in an area you want to be in? or will you wait for the right spot?

We’ve learned to wait for the right spot unless it’s a ridiculously good deal.

4. At what point did the number of stores change how the business is run? I have been told, 1 or 2 stores is ok, but 3+ requires a different management approach, systems, procedures, etc. What was the tipping point?

Yes, you are right. 3 stores was the tipping point for Kichitora as well. Specifically, we had to implement more strict reporting systems. We had to create quality controls teams and overall field operations managers to make sure everything is how it should be and management is informed.

5. What challenges do you have operating retail business in the Philippines?

To us, it’s always been with manpower and inventory. There are many systems that can minimize human error or theft, but as the saying goes, if there’s a will, there’s a way. As with any business, having the right team to achieve your goal is essential.

6. How do you come up with names for your stores?

It has always been based on inspiration or we just think of something that defines the brand in one word.

7. From an HR point of view, what do you do that is unique when it comes to hiring, retaining and growing your workforce?

Usually in our industry, it is considered normal for work to simply be a stepping stone for the staff towards other opportunities. At our companies, we try our best to instill a sense of home and growth as best we can. In short, if you are good, we want to keep you.

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Changi’s Terminal 4: A Traveler’s Escapade

Posted on September 2, 2015 by Pragya Gupta

singapore airport restaurants Singapore’s Changi Airport is building its fourth terminal which is scheduled to open in 2017. Terminal 4, now 70% complete, will see 16 million passengers through the year. That’s an estimated total of 82 million passengers once T4 operates in full swing. We are super excited to see what Changi has in store for us, considering Terminals 1-3 have movie theaters, a butterfly garden, a 4 storey tall slide (a.k.a the tallest slide in Singapore) and who knows what else.

T4 will be a two storey building and 190, 000 square meters: the size of around 27 football pitches. This S$1.82 billion project is not just exciting for passengers. It is a massive opportunity for retailers and F&B outlets as well. With 17,000 square meters floor space devoted solely towards retail, there is plenty to look forward to. Changi has announced that the retail space will offer the most innovative design, offering customers a differentiated shopping experience.

In fact, everything about Terminal 4 is about giving commuters an enhanced experience at the airport. It starts with increasing productivity through its FAST@Changi concept. Fast And Seamless Travel (FAST) will reduce the need for manpower and increase the speed of check-in and immigration procedures. To facilitate this, Changi will have self check-in, self baggage tagging and automated baggage drop terminals. Facial recognition and biometric technology will reduce the number of security guards employed for manual visual checks at multiple checkpoints. If we haven’t said it enough before, here is another example of how technology is reducing the need for labour, saving time and money, all in one go.

Imagine entering an airport and walking straight to your gate without having to constantly pull out your boarding pass and passport to clear security checkpoints. Or if you’re anything like me, imagine all the extra time you’ve now got at duty free stores because you took just a couple of minutes checking in!

This is exactly what retail and F&B outlets are looking forward to. The FAST concept gets 16 million passengers through the doors of Terminal 4. It also gives these passengers more time on the retail floor to shop and dine. While designing the new concept, Changi switched on its ridiculously client focused side and implemented recommendations from the public on the theme. The design shows off Singapore’s local culture and heritage. The Peranakan-inspired storefront facades are just an example of what the walk – through concept at T4 will look like.

With a year and a half left till T4 opens, we know the retail space is dedicated to 80 outlets. It is still too early to tell which brands will be occupying the space. The amount of traffic that these stores will face in the initial period depends on the number of airlines that T4 will service. Changi has announced 6 airlines that will have access to T4: Cathay Pacific, AirAsia Berhad, Thai AirAsia, Indonesia AirAsia, Vietnam Airlines and Korean Air. In the year 2014, these 6 airlines added a total of 7 million passengers to the airport. A few more airlines will join these 6, resulting in an estimated 10 million passengers in the first year of operations. We’re looking forward to more updates on T4 and will keep you updated about the retail and F&B world inside T4!

Getting to Know Cebu’s Carbon Market

Posted on August 31, 2015 by Stephen Jagger

Editors Note: This post was written by Kyjean Tomboc. She will be contributing to the PayrollHero blog from time to time.

Before air conditioned supermarkets, food specialty stores, and weekend farmers’ markets came into fashion in Cebu City, there were three major food-shopping destinations that locals from all walks of life trooped into on a regularly basis. You wake up at 3 in the morning and march down to Pasil for the freshest seafood of the day. You head to Tabo-an if you want to stock up on sun-dried fish and squid. And then there’s Carbon, the mother of all wet markets dotted throughout the city, where every produce and wares imaginable can be found.

A Quick Lesson in History

The Treaty of Paris in 1898 resulted to Spain’s cession of the Philippines to the Americans. This development led to the establishment of a railway system in Cebu (yes, there used to be one!) in the 1900s which went as far as Danao to the north and Argao to the south of the island. Coal, one of the major products transported via the railway line, was mainly unloaded in the site where a large portion of the Carbon Market stands today. Hence, the area earned its name Carbon which the locals that time used to refer to coal.

More than a hundred years later, you will not find large deposits of coal in this portion of downtown Cebu but all manner of produce – from what’s available the whole year ‘round displayed in all their glory on the asphalt road to interesting gourmet finds that are only accessible if you’re bold enough to enter dark alleys.

Carbon Market Today

The allure of Carbon Market has to do with how everything you can buy from here is cheap. Unbelievably cheap. For the most part, there is no middle man. Vendors either pay low rent or simply find a tiny space in the middle of the market and simply stay there until they’re done for the day.

In October 2010, Joel Binamira, owner of Zubuchon and the Market Man behind the popular Market Manila blog surveyed his readers of the top 12 produce they purchase regularly and asked them to post the total amount they’ve spent on the same set of items. He also asked for the local market or grocery where they bought the produce to be included in their answers. From 34 different shops and markets spanning the country’s main cities, the lowest amount spent for the 12-item list was at Cebu’s Carbon Market.

The market has an interesting personality as the people who populate it, majority of which are from neighboring towns and provinces who settled in the peripheries of the market with their makeshift homes. Many of these settlers have also found a living within the market itself.

Like the mishmash of regional culture among its vendors and the people who call it their home, Carbon is equal parts lively, chaotic, and brimming with a hodgepodge of wares to offer – from fresh produce delivered straight from Mantalongon, Dalaguete (Cebu’s Little Baguio) to ukay-ukay to fighting cocks.

Making Your Way to Cebu’s Carbon Market Like a Pro

Cebu, Philippines Navigating Cebu City’s mother of all wet markets can be tricky and intimidating for the uninitiated. This guide is not going to tell you where to find the freshest and cheapest kilo of mangoes in the market nor reveal how much a kilo of pork tenderloins will typically cost when you buy from there. We will leave the mini-discoveries to you! We will, however, provide tips and hacks that are guaranteed to help you become a Carbon Market pro!

The market is open 24/7 yet the best time of the day to shop is either early morning or late in the evenings. At around these times, most of the stores in the area are closed for business, giving vendors a chance to occupy the store’s front portion and display their goods. On weekends, you’ll find out that most of these vendors are farmers from the countryside, selling their backyard produce. At one point, we found pomegranates sold at 3 pesos a piece back when it was in season. We scoured supermarkets around the same time but not a piece of pomegranate was seen.

Ask and ye shall find! It’s easy to assume that the items on display are the only ones being sold. It’s an entirely different story at the Carbon market though. Say you’re looking for itlog bisaya (free-range eggs)? Often, these rare finds are hidden in some basket or wrapped in paper and are rewarded to those who asked for it.

The market is notorious for pickpockets. While the local government has made serious efforts to reduce thievery in the area, it pays to be always on guard. Dress down and leave those pretty little blings at home.

A designated parking spot is available. However, it could get filled to capacity during rush hour and weekends. Many find parking a few blocks away from the market and simply walk their way into the crowd and vendors.

Think before you haggle. While it’s okay to haggle, particularly if you’re buying in bulk, most of the vendors are only trying to make an honest living. The prices are already cheap, so why haggle?

Think of it as a treasure hunt rather than a usual day in the market. Rare finds such as kesong puti (white cheese) carefully wrapped in banana leaves, free range eggs, turmeric, and herbs such as cilantro, coriander, and thyme are typically associated with gourmet food shops or specialty stores. They are, however, can be found at the Carbon Market if you’re willing to delve deeper into the market’s dark (often damp) underbelly. Hint: only one vendor is known to sell kesong puti in the market on weekdays!

Find a local who has considerable experience navigating the market to accompany you on your first visit.

Given the bargain prices of high-quality produce, it’s no wonder that the Carbon Market continues to attract shoppers of all stripes – from housewives on a tight weekly budget to restaurant owners looking for food purveyors. Stop by at the market when you can!

Have you been to this side of the city recently? We’d love to hear about your Carbon Market experience!

Want to learn more about the restaurant industry in the Philippines? Download our free Philippine Knowledge Kit, full of market analysis for restaurant owners.

Recap: Singapore Chinese Chamber of Commerce SME Conference

Posted on August 22, 2015 by Stephen Jagger

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I had the honour to speak at the Singapore Chinese Chamber of Commerce event the other day at Suntec City in the heart of Singapore. This annual event organized by the chamber is the largest conference for SMEs with over 5000 registered attendees.

Singapore Chinese Chamber of Commerce The theme for the conference was “The new SME. Think Creatively. Act Innovatively”. The concept was all about helping Singapore’s small and medium enterprises think outside the box when it comes to their challenges. Singapore’s SME sector has challenges around finding and retaining talent, growing outside the country and using technology to take businesses to the next level.

The session I was a part of was broken down with four speakers and then a panel session with a question and answer period moderated by Mr. Stephen Lim the CEO of SQL View and involving questions from the audience.

The first speaker up was Dr. Christopher Holmes, the Managing Director of IDC Insights Asia Pacific. Christopher opened the day with his talk titled “Digitization: Disruptor and Transformer” that included stats about where SMEs are going and how technology is changing the face of business.

Next up was Jenny Jang, the Manager of International Business Development for Jiransoft. Jenny’s talk, “Internet of Things, Jiransoft’s Perspective” was all about the internet of things and how devices are getting smarter and smarter. Interestingly, her slides predicted that we are all on our way to carrying around 7 connected smart devices. (think Apple Watch, iPhone, Kindle, Laptop, etc)

Unlocking value through an Innovation Ecosystem I was up next with the simple task of telling my story. Myself and my business partner Michael Stephenson has been in business together since 2000 and our journey has seen us start four businesses, selling two of them and brought us to the Philippines, Singapore and into the payroll space. The point of my story was to showcase how thinking outside the box can push you on unexpected journeys and I included a bit about my wife’s accidental business and how she has embraced change.

Wrapping up the speaking section of the day was Mr. Law Chee Keong, Director for Apigee. Chee Keong’s talk, titled “Unlocking value through an Innovation Ecosystem” wrapped up the 3 previous talks with more stats about the future, how the internet of things would continue to change our lives and how SMEs can and need to think about what their businesses will look like in the future.

To wrap up, Stephen Lim, myself and the three other speakers sat down on the stage to take some questions and chat about SMEs.

The day finished off with a VIP dinner at the Singapore flyer hosted by the owner of the flyer, Mr. Wu Hsioh Kwang and the President of the Singapore Chinese Chamber of Commence Mr. Thomas Chua Kee Seng. As part of the dinner, we were treated to a showing of 47 Hill Street, “a show that brings SCCCI history to life, a true reflection on Singapore’s history”. It is worth checking out and gives some great background on the founding of Singapore and the chamber.

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Retail Executive: Joey Qua, CEO, Collezione-c2.com

Posted on August 11, 2015 by Stephen Jagger

Introducing Joey Qua, CEO, Collezione-c2.com with 25 branches nationwide and a growing restaurant business.

1. Can you tell us more about your background in retail?
We started Collezione C2 15 years ago with one branch in Festival Mall Alabang. Collezione C2 is a second generation brand that I started back in 2000 after coming back from my studies and work in the U.S.

The original Collezione (C1) was established by my father 43 years ago (est. 1972) when he saw the need to develop a local label (of polo shirts) in order fulfil the needs of the Philippine market that had a severe shortage in supply of quality clothing during that time due to heightened import and travel restrictions because of Martial Law.

Today, Collezione C2 has grown to 25 branches nationwide. It exists side by side with the mother brand Collezione (C1) which is the more classic and conservative label, designed to cater to a more mature set of customers and sold in department stores only – while on the other hand, Collezione C2 which is the more hip and modern label, caters to the younger segment of the market and is sold only in free standing stores in the different malls around the country.

2. Your clothes are pretty famous, even the President wears them, how did that come about?
Collezione C2’s design DNA is based on three tenets: Fashion, Arts and Nationalism….. and because we were able to create a very unique and iconic polo shirt with the Philippine map design back in 2008, a lot of Filipinos embraced the design concept and felt a deep sense of patriotism and love of country along with it. Being the President of the Philippines, President Noynoy shares the same deep love and patriotism for our nation just like our brand, and he decided to start wearing our shirts during less formal occasions. And of course, we are very happy, honored and grateful to him for doing so – he shares the same passion for love of country as we do.

3. How many retail stores do you have?
Collezione C2 currently has 25 free standing stores in the different malls nationwide.

4. How do you decide on a location? (mall, street level, etc)
As many retail experts would say: Location, Location, Location is the key to the success of a store….. Which I strongly believe in – unfortunately, there is so much competition in today’s retail landscape that a retailer will just have to make do with what is available and make certain compromises and adjustments in order to make the store location work – even if it is far from being in a prime location. We have a team in our organization that scouts the area of the given space at different times of the day and of the week, and we also study the different retail brands beside and across from the location being offered to us, we make our own internal calculations if the foot traffic and retail sales from the different stores around the site reconciles. And if the numbers look good and promising, then we sign on the dotted line with our retail partners, which are the mall operators. At the end of the day, we want to establish a ‘win-win’ formula between us retailers and the mall operators because at the end of the day, our success is their success as well, and vice versa.

5. At what point did the number of locations change how the business is run?
For us, after 12 to 15 branches, we had to seriously consider re-organizing the company and adding more departments to address the growth of the business. For one, we had to switch our POS system at the frontend and the software systems at the backend to accommodate a bigger volume of sales and inventory. Moreover, we also had to upgrade our people in terms of job experience, skill-set quality, and manpower requirements. We simply outgrew the system at our 12^thto 15^th branch.

6. What was the tipping point for you?
When you reach a certain sales volume, and your backend is not equipped to handle it, then disorganization and inefficiency will surface in your day-to-day operations and chaos will likely ensue – so before that even happens, you should have the foresight to have your backend ready to address the rise in demand of the business.

7. What does the ASEAN integration mean for your business?
2 things, opportunity and competition – you just have to step up to the plate and take your business to the next level or you will end up irrelevant if you do not innovate fast enough to meet the demands of a more intense competitive environment.

8. What are the benefits of operating in the Philippines? downsides?
For one, we are experiencing a growth in the economy and population…. there is a growing middle-class which means disposable income is on the rise, which gives retailers the opportunity to serve deeper pockets. The downside is that the barriers to entry for the retail sector is being lifted at an accelerated pace right now – there are just so many retail brands out there, whether global or regional, that have been aggressively coming here and expanding in our shores which make the local brands like us have to deal with a plethora of competition for both market share and retail space.

9. You are involved in restaurants now, how did that come about?
It’s always good to spread your investments or business interests in different sectors or industries, especially now that the competition is getting stiffer and stiffer in retail…… diversifying and spreading the risk is more like it.

9. What is different from the restaurant business to the retail business in the Philippines?
I believe it’s somewhat the same….. both businesses involve people management, products and services. But of course the differences will be in the creative concept and business model.

10. Do you think about locations differently for restaurants?
We go about it the same way, it’s just that the criteria that we set is different for clothing retail than for the restaurant business. If it meets certain criteria then we proceed with the build.

11. What is next for you in your retail/restaurant businesses?
For clothing retail, we are more discerning and selective with our expansion plans since we are at 25 stores already, for the restaurant business, we are much more aggressive because we have a few stores open and a couple in the pipeline and we feel that there is more room for growth in this sector.

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How Technology is Disrupting Traditional Wait Staff

Posted on July 31, 2015 by Pragya Gupta

We recently did a post on restaurant technology in Singapore where we spoke about how restaurants are adopting technology to deal with the labour crunch. Apps like TradeGecko are helping companies manage inventory, Chope automates the concept of reserving tables and Perx is redefining loyalty cards in the form of an app. Restaurants like Shin Minori and Coastes are adapting to the changing environment by using electronic menus instead of waiters who take orders from customers.

Shin Minori

This restaurant, known for its Japanese buffet, introduced its eMenu in August 2014. Tablets on every table allow customers to order sushi dishes from the buffet. The idea was to reduce waiting time for dishes. emenu__1438286009_50.140.175.122 On a busy day, this is especially helpful because no time is wasted on waiters who are busy with other tables. Customers can order as they please and take their time deciding what they want to eat. By using eMenus, the restaurant has reduced labour costs by keeping only food runners to serve food.

Shin Minori also used the introduction of their new eMenus along with a brand new ala-carte buffet menu as marketing tools to rope in customers. And it worked. Food bloggers who reviewed Shin Minori were impressed with the ease of ordering and even mentioned the eMenus on their blogs.

Coastes

Coastes, another restaurant in Singapore, has taken ordering food to the next level. With a neat app, that runs on both Android and iOS, customers can log in their credit card details and order food. Cashless payment options remove the hassle of waiters running back and forth with checks. Only food runners are required to deliver food to customers. The entire system is faster, simpler and more cost efficient.

Coastes and Shin Minori are a few among many restaurants that are bringing down costs by installing electronic menus. Fish and Co is another restaurant chain across Singapore that uses iPads on every table so that customers can order food instantly.

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Restaurant Executive: Carlo Buenaflor, CEO Bigg’s, Inc.

Posted on July 27, 2015 by Stephen Jagger

Introducing Carlo Buenaflor, the CEO of Bigg’s, Inc. Carlo operates 15 restaurants in the Bicol area of the Philippines and is the honorary consul of Spain in the Bicol Region of the Philippines.

We took a moment to chat with Carlo about operating his restaurants in a province of the Philippines and where he sees his brand going next.

1. You are the CEO of Bigg’s and ¿Que Pasa? – can you tell me a bit more about each brand?
Yes, we have 14 Bigg’s Diner in different locations throughout Southern Luzon and a new brand called ¿Que Pasa? with 1 outlet located in Naga City. Bigg’s Diner is a 31 year old brand that serves fried chicken, burgers and several dishes of Filipino and American comfort food. ¿Que Pasa? serves Bicolano Colonial Cuisine which is a mix of Bicolano and Spanish flavors. Although it’s only a few months old, it is already creating waves in social media because of its fresh take on barbecue.

2. ¿Que Pasa? – sounds exciting, can you tell us a bit more about how the brand came about, what you did to understand your communities needs, etc?
We realized that the millennial market is constantly looking for something new where they have control over their dining experience. At ¿Que Pasa?, they can choose their meat, sidings and rice options and be in a dining environment that celebrates colonial art and history. The location of ¿Que Pasa? is in a historical district of Naga where a well preserved century old archway is part of the restaurant architecture. ¿Que Pasa? has made Spanish cuisine accessible to the millennial market and has made it cool.

3. You operate your restaurants in a province of the Philippines (not a large city), what challenges come with that?
The challenges with operating multiple stores in the province are logistical and operations support. Our furthest store from our commissary is 10 hours away. There are a lot opportunities in the province because big brands normally neglect it which leaves a vacuum. Visiting and monitoring store operations in this kind of set up is tough.

4. What technology do you use in your businesses?
We have POS systems installed in all our stores but unfortunately they are not linked to our head office yet. We don’t have any loyalty system in place yet but it is a big consideration as we move forward.

5. How do you decide on a location? (mall? street level? stand alone business?)
There is no rule of thumb for locations. This process remains to be the most challenging as we decide to grow. Malls don’t assure the business success they once gave. The market is constantly shifting and we have to be ahead of that. The cost to build a store is very expensive so we can’t afford poorly chosen sites. The best indicator for successful locations is the presence of our industry peers.

6. At what point did the number of locations change how the business is run? I have been told, 1 or 2 locations is ok, but 3+ requires a different management approach, systems, procedures, etc. What was the tipping point for you?
Absolutely, I think anyone can run a successful 1 restaurant operation. 2 may be stretching it without a solid system and support groups in place. 3 would definitely be the tipping point. A different structure, mindset and management approach is certainly needed for a multiple outlet set up. Product, service quality and consistency become very challenging at this point. Only a few restaurant chains succeed beyond this critical point.

7. What is next for Biggs and Que Pasa?
Growth. We would like to see ¿Que Pasa? in every city in the Philippines.

8. anything else to add?
As a brand grows, the common mistake of an entrepreneur is that they get too engrossed with fixing the system and playing catch up with the growing demands of a growing business that they lose sight of the future of the business which should be their primary responsibility. Entrepreneurs should invest in good systems ahead of the growth curve of their business. A smart investment in a good inventory, distribution, accounting and payroll system will go a long way and save you a lot of money and time.

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Creative Destruction in the F&B Industry

Posted on July 16, 2015 by Pragya Gupta

Creative Destruction in the F&B Industry Creative destruction, a term coined by the economist Joseph Schumpeter in 1942, is the concept of “incessant product and process innovation mechanism by which new production units replace outdated ones.” Schumpeter says that disruption is an important part of capitalism because it increases productivity.

As the term suggests, creative destruction isn’t a particularly comfortable concept, especially for those who are on the wrong side of it. The invention of the steam engine led to the creative destruction of travel by horses. The invention of automobiles led to the creative destruction of travel by steam engines. It’s an inevitable result of innovation which can make complete industries obsolete, and take thousands of jobs along with it. The positive outcome is that it creates new industries and redefines jobs within them.

So where is all of this going? McDonald’s recently announced its plan to install self ordering kiosks, thereby reducing manpower in their outlets. It’s not the only company to make a move towards automation. Chili’s Grill and Bar has made a move towards self ordering tablets. Restaurants in the US find automation a way to improve productivity.

There already exists a machine that creates 360 gourmet hamburgers in an hour. The entire machine could replace any human making burgers in the kitchen. According to this report, McDonald’s could fund the development of a burger making machine and see a one year return on investment. There are many reasons why companies are moving towards automating their processes.

In the United States, a big reason for this is the growing cost of labour. Currently, the minimum wage in the US is $7.25 per hour. For a few years now, workers in the F&B industry have protested that this number is far too low for it to be sustainable. They say that the reasonable wage floor should be at $15 per hour. LA recently passed legislation for $15 per hour.

The result of this is that fast food franchises are finding it increasingly difficult to cope with the labour costs. The alternative is to automate. Mundane and repetitive tasks can be done by smart machines. Jobs where human interaction is required, like serving food, can be taken up by people. Another reason why automation makes sense is that it’s more efficient and faster. Queues are shorter, human errors are less common, if not completely erased.

You can see parallels in the F&B industry between the US and countries like Japan and Singapore. On the one hand, labour costs are increasing in the US, forcing companies to automate. On the other hand, Japan and Singapore are facing a labour crunch often due to unwillingness of the countries’ citizens to participate in this industry, leading these countries to automate as well. The story is the same, where labour as a factor of production is being replaced by machines that can do the same work and produce better results. And this is where creative destruction fits in.

What does this mean for the F&B industry? Restaurant technology will develop and will facilitate automation. The hamburger machine by Momentum Machines, Inc is just the beginning in the back-end of a restaurant. POS systems, self ordering kiosks, cloud based scheduling applications and online reservation websites are taking over the work of regular staff in a restaurant. An entire ecosystem of automation surrounding retail and F&B already exists but what will trigger the momentum of creative destruction is the lack of a sustainable solution to the problem of increasing costs: in this case, the cost of labour.