Restaurant business

[Noylabmay]

Hello sa mga me restaurant po
paano nyo na decide ang menu?
and ikaw ba mismo ng formulate ng recipe?

[CityHunter]

Hi, sis (and bros.)

Share ko lang what my student went through in relation to this thread's topic. 

To answer the question of how things were decided sa menu ay it was based sa project study of what is within the budget and papatok sa area.  From there gumawa ng special na timpla to create that difference sa competition.

Another factor is the availability ng raw materials needed sa local market.  But most critical ay iyong cooking time as what they set up was an ihaw-ihaw type of resto.  So may waiting time from order to eating.

Connected pa rin sa resto trade ay ang most critical ay yun tao.  The issue yun student ko and sibling niya had a tiff (wherein the mother kumampi sa isa) which messed things up.  Ayun sinara na lang yun resto.  In another case a friend who was renting out space for their resto had to close shop dahil yun magkakapatid na may-ari nag-away rin.

[Noylabmay]

Hello po [textspeak!] nabanggit nyong gagawa ng special na timpla
me na hihire bang chef na ganun babayaran mo lang sa while during Process and Development ng recipe?

[CityHunter]

With regards sa special timpla it was more of her own recipe.  She was also curious about how others do theirs so experimented, etc.  Tulad lang how some reconstruct yun stuff they eat sa restos.  Like yun KFC Chicken version, etc.  But with some batch friends who opened their own resto ay they are paying royalty sa isang sikat na chef.  Medyo masakit sa bulsa but it does draw people.  Royalty fee kasi name niya rin gamit nila with their resto and not just the recipes, etc.

Wifey attended yun mga cooking classes rin and those are helpful but iba pa rin yun nag-aral ka formally if you want to.  But I've met someone who calls herself not a chef but as a cook.  Sayang I did not get to write down her name - client sa work so confidentiality is the norm.  What she was doing then was parang artista pero cook who gets to be invited to cook for restos and hotels abroad.  Its like a big thing and they post her name na siya yun special cook for that period.  Stopped na siya from doing that as mag-alaga na lang ng apo niya - yup, Pinay siya.

Going back sa timpla question, what my student did was indeed do her homework.  They tasted yun sa mga potential kalaban nila.  It, the resto, was starting okay as kahit bago pa lang may loyal customers na.  Yun lang napasukan ng gulo - the people factor in the equation

The others I can share are that when some were cutting corners ay it affected their very future in a big way.  Ewan why some would use questionable meat - sad experience at the old New Divisoria Mall.  Pero ang matindi was the really lack of proper management.  Ate at a fair resto during a sale sa SM Manila.  Nilalangaw sila kasi mahina sa marketing.  Mga katabi nila mahaba ang pila pero sa kanila halos empty.  As I've said lack of proper management - kasi yun manager walang ginawa kundi mag-text at usap sa celfone niya  

People.  Process.  Product.  Yun latter 2 pwede mo magawaan ng paraan if may issue pero yun una pinakamahirap ayusin and if sira na sa umpisa pa lang ay the other 2 of the equation also goes down the drain.

FYI.  There is a thread here on recipes like yun mga reconstructing popular food.  Iyon ang isang trip gawin ng student ko for her kids - so doing something better was within her skill levels na then. 

On the same topic but medyo iba was what I told my friend when he and his wife were thinking of venturing sa bagnet resto.  Told him alam mo lang kumain but you totally have no background in cooking that nor other resto skills kaya forget it.  Like have you determined how much you can make from this amount of raw material, etc.

Sa question mo how to decide on the menu ay what I advised my student (and agree naman rin siya with) was what was popular sa area.  Then sinamahan niya ng ilang stuff na pwede for kids like hotdogs, etc. - as I said she was doing most of this for her kids.  Kaya no-brainer na for her what to put sa menu more so target niya ay family - though the common walk-in sa resto nila then were mga mag-BF-GF.

I can't give you much input with regards sa cooking part ng resto.  All I know in that ay the kitchen must at least be properly equipped and has good access to where the eating area would be.  Na huwag magtipid and opt for house level equipment when it has to be commercial grade ang needed.  Na trash has to be properly managed else magka-issue both sa sanitation and fire.  Most of all important na may strong leader dahil sexual harassment and even yun mga pabida dahil malakas daw sila sa amo spoils a lot of things.  Yun sa inventory and accounting stuff I think sa ibang thread na iyon - though am going to test some inventory and accounting programs.

[CityHunter]

Core product - Chicken BBQ.  Its still ihaw-ihaw kasi its cooked by uling over a grill na pinasadya for it.  The product is blended sa bahay na dahil yun mga workers blatantly stated to her na type nila kopyahin.  The good thing about my student was she did not yet push the "yummy" factor ng timpla to the max.  Yun pasado but hindi pa yun masabi mo na the best.  So even if they figure out how it is blended ay "safe" pa rin.

The other stuff sa menu ay dahil nga family ang type na maging customers niya.  So may stuff for kids rin.  Self-service type and maganda sa area niya hindi maarte mga tao.  As in talagang they know and will self-serve themselves. 

[Noylabmay]

Thanks Mr. Ch so informative.
Ayoko ko rin ng may kasosyo kahit pa kapatid ko dahil  mahirap na at pag mumulan ng gulo di lang sa negosyo pati gulo sa pamilya.

Iniisip ko kase kung masyado mang expensive ang pag babayad ng royalty
e mag pirate ng mga "cook" sa kilalang resto na.

[CityHunter]

I suggest do what my student did.  Do your homework.  As in check out ano mga potential sa area ninyo plus what fits your budget.  Yes, madugo if you need to pay royalty, etc. though it has it plus sides.  For me why not check out yun thread here about those who tried and tested mga recipes.  Ang mahirap lang sa atin a lot needs to be adapted kasi mga principles na that works sa US o even HK can't be applied here.  One of which yun having a recipe easily available - dahil siguradong i-pirate.  Yes, you can likely have a lawyer draft a contract for that but as we all know anything na by paper rather than honor are 2 different things - in my opinion.

Madugo yun rental rin for the place.  Sa batchmates ko they had to hold the opening for 100 days dahil may hindi magandang history yun naupahan nila.  At 500k a month rental ay bumutas talaga sa bulsa nila.  Doing well naman na from what I know.

FYI.  Kaya kabado rin sila dahil yun isang batchmate ko na partner sa negosyo na iyon kamamatay lang ng wifey niya then.  Plus mga bata pa mga anak nila so its like too much of a risk.  And yes, you need to factor rin the history of the place if you want folks to come.  Marami na akong horror cases where dating club house siya, etc.

As for pirating a cook ay you can escape this clause naman sa karma by simply looking for those who want a new break.  Some naman finish contract na or simply left for good reasons.  For me kasi mahirap na kumuha ng pirated stuff as that person is likely honorable only to itself and to what money is offered.  As in can turn Judas at any moment given the chance and opportunity.

For me I would suggest you check out mga offered classes or if not at least mga online videos or such.  Try to practice those and get your friends and family to give a feedback.  Sa resto business its not just about the food but also sa ambiance.  I told my student isip niya mag quiz nights.  Para maiba naman than the normal gimmick.  Sadly they had to close shop na dahil nga sa sibling issues.

[otra_vez]

We don't have a brick and mortar (yet) but we do have a food truck. It took us over a year to research, develop our recipes, save and find funding to start the business. I say this-- there's only two of us doing the truck so it's a big, big tiring job. And even though we are only open 4 days a week, we work all week. On days that we serve food, we work about 15-17 hrs.

I agree with the suggestion-- do your research. Study the market and make sure that you're able to find your ingredients easily enough and cheaply enough. Also, consider the pricing of every item. Food service is a big investment especially if you're talking about an actual restaurant. Consider how many people you need to hire because again, andaming parts ng food service and you mess up one area and it all goes to the crapper. There's a lot of things to consider and work on. But for me, above everything, you have to love the food you're serving, you have to love making it and you have to be very good at it. Otherwise, you won't be able to push through the barriers.

[Noylabmay]

Thanks sa  lahat ng inputs . OFW po ako na pagod na sa abroad.
Currently building my passive income sa mga apartments para if I take the leap e mejo me masasandalan.

me mga hinahanda pakong business in connection with restaurant din.
Sa ngaion nag start pa lang ako ng feasibility studies para sa restaurant na itatayo
at mag aaral ng accounting at inventory para na rin sa business na un.

Sir CH yung sinasabi kong balak kong ipirata na cook e mga pinoy na nag wowork dito sa mga restaurant sa abroad na mababa lang ang kita aalukin ko lalo na yung nangangarap na umuwi na rin ng pinas para makasama na ang pamilya sa atin.. Masama pa rin po ba yung karma nun
salamat po sa insights hindi ko rin naisip ang Karma ng ganun..

[CityHunter]

As OFW ka so i-share ko rin yun idea ng isang nakilala ko na dinala niya sa MidEast.  Nagbukas sila ng isang resto sa MidEast na ang food concept ay yun mula rito.  Its a popular one but adjusted para pasok sa mga pwede lang sa Saudi.  They got Filipino cooks who wanted a chance rin to earn better.  So its not exactly pirated   Baliktad nga lang sa balak mo na

It was doing well naman but the problem, again, was the people factor.  When the local national realized the concept was really doing good ay doon na nagsimula to "eject" the Pinoy partners from the equation.  This is why yun "people" factor ang mapansin mo emphasized ko often - as ito yun napapansin ko why a business usually closes or ends in red.

Naghiwalay na lang sila sa partnership na iyon to begin a new one but the same thing happened muli.  They are planning a third venture but hindi na ako updated if it got pushed through - as wifey niya was recovering from cancer last we talked.  Good thing yun kids nila were all grown up and either have or starting their own na.

Try mo to find a copy ng E-Myth.  Its a good book to read.  Mag-share ako ng some lines about it once I could.  One na ma-share ko now na summary was may isang nagtayo ng bakeshop.  Mahusay siya mag-bake but the problem ay hindi siya marunong sa accounting, inventory and even PR.  So kahit masarap ang mga products niya ay hindi maganda ang situation ng bakeshop niya.  Kumuha siya ng assistant pero tulad ng mga iba rito sa Pinas ay instead of just the job na dapat niya i-perform ay naging all-around.  So na-burn out rin iyon and umalis. 

Another na maganda to watch for lessons yun TV series na The Profit.  Its about mga negosyong nalulugi na o lugi na sa US.  I know some stuff may likely be scripted but you can still get real lessons from that show.  Marami ka mapulot doon down to what you are to fill your menu with. 

Kung sa hands on na food business na experience ko mismo its only yun Vigan style longaniza dapat but did not push through with that as yun palengke sa area namin madaya.  I can't and will not be selling stuff na kung [textspeak!]-ano na ang hinalo just to make a fast buck.  And medyo mahal rin yun benta ng other essential ingredients namin to get that authentic Ilocano flavor kasi.  Maybe sa near future i-explore namin muli.  Yun time that we got the meat right ay kinapos sa other essentials to give it that Ilocano taste kaya matabang tuloy ang labas - ha ha.

From the business name, theme down to the menu and even overall ambiance ay important factors.  I may not know much about sa kitchen aspect as ang troubleshooting ko more of the overall and why may disharmony.  Ang advantage ko lang as I have no interest but to bring balance ay I get to discover yun real meat of the problem.  Yun nga lang depende na sa owner if they will act on my report or not.  Usually naman ay they work on it.

[CityHunter]

All I can add at this point ay remember yun madalas gamitin ni Pres. Reagan na statement, "trust but verify."  Its the one thing that I keep in mind dahil kahit suki mo sa palengke if may opportunity na kumita pa at your expense some - not all - will do so.  Ang masama nito ay syempre if hinayaan mo lang iyon ikaw rin ang talo as you will be serving questionable products.

Yun mga nagbebenta ng mga expired stuff mayroon pa rin iyan.  And yes I still see some buying those but ewan if for personal o commercial use na.  Nakaw na stuff mayroon rin.  Sa amin pa nga pati roll ng cake mayroon - roll lang ha.

What another friend did was partner with 2 chefs.  Ang introduction nila na maiba sila sa ibang catering - hindi resto - ay sushi.  But they also are able to produce others pero yun sushi nila ang parang signature dish nila na mag-set apart sa kanila sa ibang caterer.  I think you can apply this idea naman sa resto.  Yun lang bakit kapag yun popular dish madalas yun pa yun di that malasa.

Yun friend ko handles the marketing and sales while husband niya sa purchasing ng raw materials, etc.  That leaves yun chefs to handle yun food and preparation angle.  Both chefs also worked abroad and tulad ng idea mo simply wanted to stay here na lang to be with their families yet still be able to earn well.

What I do know for certain you will likely need to save up for at least a good service vehicle.  Mahirap kung puro arkila ka na lang to get your raw materials to and from the grocery not unless may good deal ka magawa so it gets delivered to your place.  So maliban sa training, materials, etc. you do need to figure out rin how best to bring your stuff from the market to your place.  A neighbor though is able to go about this easily - but its carinderia level ha not resto.  As malapit lang yun market and mas practical to simply go by tricycle than fuel and park pa yun sasakyan nila.  Makati area kasi iyon so alam mo naman mahigpit at mahal ang madale sa clamping o towing.

[CityHunter]

Add ko lang.  I support what sis otra_vez shared:

"But for me, above everything, you have to love the food you're serving, you have to love making it and you have to be very good at it. Otherwise, you won't be able to push through the barriers."

If what you are selling is something you won't even eat ay forget it.  And you should be able to connect with your product or else paano mo ibebenta sa iba iyan kung ikaw mismo do not believe in it.

And try not to promise more than what you can deliver.  It should be the opposite.  Na do not promise too much but deliver more than expected. 

On a different aspect but pasok pa rin sa topic of the thread ay lighting.  Bright lighting is suited for quick eats.  Yun warm lighting ideal iyan sa mga places where you want the customer (not client) to really savor the goodness of the food (and drinks.)  And often mapapansin mo na hindi so exposed to the diners ang CR. 

[Noylabmay]

Ang galing ng mga ideas 

[otra_vez]

Thanks sa  lahat ng inputs . OFW po ako na pagod na sa abroad.
Currently building my passive income sa mga apartments para if I take the leap e mejo me masasandalan.

I just have to add this and this applies to any business, not necessarily food service: You have to always have it in the back of your mind that the business will not be a success. At least not initially. So if you're going into any business thinking you're going to see profit immediately, then you will immediately lose heart.  It doesn't work that way. A lot of businesses don't survive their first year. So always just think of that.

Another thing-- I don't know what the requirements are in The Philippines but I still suggest that you and your employees take some food handling courses. For us, we had to pass health inspections and inspections by the local fire department. When it comes to handling food and organizing your inventory & kitchen, you can never be too safe or diligent. The other night we were watching old episodes of Kitchen Nightmares and it's just mind-boggling to us how some people can just operate knowing that their meats are spoiled, they have roaches and rats. It's so disgusting and irresponsible. You have to have that knowledge and sense of accountability when you're handling food.

And yes, learn at least basic bookkeeping and marketing. As for sourcing your ingredients, again, study it.I don't know how it is in The Philippines but ideally, if you have a commercial kitchen and storage then it's easier for you to buy your materials in bulk, which will help drop down your food cost. Maybe there are companies who are willing to deliver directly to your door.  Also, I don't know if we touched on this but it helps to have a real vision for your restaurant because that will dictate your menu, your decor and your approach to service.

[CityHunter]

Add ko pa.  If you are the kind who wants an animal o pet theme na resto make sure you really like the animals plus your staff does so too.  I've seen yun mga ganun here na totally ewan.  Ginawang some sorts of props pagkatapos kapag may toyo yun animals hindi alam ng staff ano ang gagawin. 

As sis otra_vez ang approach to this has to be as professional as one can be.  The major problem na which is keeping me (yet) ay yun unprofessionalism sa wet market plus the same sa potential customers sa area namin (Sampaloc, Manila kami.)  Sa aspect ng wet market ay yun nga kahit suki ka ay may iba pa rin na lolokohin ka.  From the rice to the ingredients iyon.  May mini stores rin naman here but the inventory is also in question.  Hindi lang minsan mayroon and minsan wala but also hindi lang minsan na nabutas na ng daga yet they still are selling it.  We have a long way to go   Sa usapang customers naman the folks in our area maswerte ka na if they will spend 50 pesos per head per meal.  Hindi rin lang minsan na may tumatakbo sa pagbayad per observation - as just as my student ako rin do my homework.  By math ay with that sort of numbers ay malabo na we will make profit after paying rent and the expenses.  Most who do open those have garages facing the main street (and have spilled to the streets na yun tables nila.)  Likely mag-aral na lang ako on the stock market muna - and mag-read ako ng mga input on that sa thread of that sort here sa GT.

OT: However, folks in our area are so into bisyo.  From sugal to alak and drugs kahit a few streets away lang ang bahay ni mayor.  Hindi ko na i-elaborate yun tokhang issue but the suspension of that did not do anyone good.  Going back sa issue - bisyo - ay though folks here mostly will make utang for their basic needs (medicine, food, etc.) ay they have money to burn kapag para sa bisyo nila.  Unfortunately hindi ako yun tao into that nor could stomach selling those - as I've said if you do not connect to your product ay forget it.

Yun Kitchen Nightmares recommended to me rin ng student ko.  Dami na palang season na iyon so need to make room for it pa - I have the habit to review episodes na alam ko may mapupulot ako on.  Try to find yun article ni Anthony Bourdain lalo na yun first one he made that set him sa path he is in now   Super informative kahit short lang yun article.

Ito from The E-Myth Revisited book:

Most of us have had the experience of being disappointed by someone in whom we have put our trust as a direct result of our indifference or lack of understanding or lack of skill or lack of attention.

And most of us learn eventually, if for no other reason than because we realize that we can't be everywhere at once, to trust again.

But trust can only take us so far.

Trust alone can set us up to repeat those same disappointing experiences.

Because true trust comes from knowing, not from blind faith.

And to know, one must understand.

And to understand, one must have an intimate awareness of what conditions are truly present.  What people know and what they don't.  What people do and what they don't.  What people want and what they don't.  How people do what they do and how people don't.  Who people are and who they aren't.

PS. Yun sa earlier post ko na they had to adjust yun menu to conform sa Saudi standards ay its one reason why they were not able to offer lumpiang hubad.  Kasi yun direct translation of that is bawal sa Saudi laws from what I was told  - kahit pa masarap yun food and mostly gulay naman ang laman.

TESDA or ask sa local mayor's office may offered courses on vocation and such.  Hindi ko sure if food handling is covered sa hotel and resto short course as took up reflexology that time.

On a different angle but still within the same topic ay isang headache ng mga owners I've talked with - resto o otherwise - ay yun attitude ng ilang applicants.  Plus the loyalty they exhibit.  Tulad nga ng sabi ko ay yun sa student ko blatantly said to her na kapag nalaman nila how she prepares her signature dish ay kokopyahin nila to use for their own.

On the theme of your resto critical iyon.  I've read this article ng isang rich wannabe na nag-flop yun French resto niya kasi hindi maka-connect yun mga customers sa look and even menu. 

Lest I forget ay yun attitude na here na ayaw mag-share ng table.  Unlike sa other countries where security is okay ay sa atin kahit 2 tao lang sa table for 4 or even more ay hindi iyan basta papayag mag-share.  And the habit to linger sa area.  Sa ibang bansa they eat quickly and quietly then alis na.  Sa atin its not so.

[Noylabmay]

Isa pang nakikita kong problem paano nga pla yong mga relative na gusto makisawsaw or maging empleyado mo?

Galing kami sa napakahirap na family ng husband ko and me mga kapatid kami na walang matatag na source of income. Balak ko kasing maging empleyado ay mga working student dahil galing din ako sa ganuong kalagayan.

Sa Pricing naman ng food paano nga pala kayo nag come up sa presyo?
Meron din bang short courses sa ganon? 

[CityHunter]

Sayang as may offered lecture on family business yun alumni school ko.  Did not get to attend it but will see if I could ask someone to share insights.  Pero sa pagkakaalam ko hindi naman always bawal.  You just need to lay the ground rules and make sure everyone sticks to it.  Easier said than done though.

Sa costing ng product ay I still need to research more.  All I know at this time is that how many slices can one have from the usual tomato, etc.  Na ano ang total cost then when computed lahat ng ingredients then factor ano yun patong para kumita.  I really should write all what I am learning down

Try to consider rin mga single parents.  I've met some owners who are quite happy with employing those and even mga disabled people.  Sa working students ay limited pa lang yun observations ko but sila often ang target ng mga ewan for sexual harassment, etc. if the owner is not "in touch" with how things are.

[lexi_girl]

First and foremost, sigurado ka na bang gusto mo ng restaurant business? Kase sa totoo lang masakit siya sa ulo. Profitable, yes, but it is a physically and mentally demanding job. Coz you'll encounter a lot of stuff from petty to big ones. Do you know how to deal with different kinds of people (employees, suppliers and customers)? Do you know how to cook and will you be hands-on?  Because this is really important lalo na if you're not gonna partner with a chef. That way, kahit layasan ka ni cook you can always train new ones. Hirap kase when the business is dependent on your cook, walang may ibang alam ng recipes kaya ang mangyayari lalaki ang ulo ni cook at magiging kampante with his work. Kaya pagnawala si cook, your business is threatened. So its either you learn how to cook or partner with a chef (as industrial partner so he'll oversee your operations). If you know how to cook, do you have a specialty dish or an heirloom recipe that you can cook really well? As in yung maipagmamalaki mo na masarap ha. Then you can build your menu around that dish, you also have to think on what will set you apart from the others. The big challenge is for the customer to come back and become a regular, that's why you gotta make it sure that your food is masarap! Hindi pwede yung "pwede na".

Me, im opposed to getting employees na kamag anak coz sometimes they tend to be kampante with their work unless you enforce strict house rules and they will really look up to you as the boss, then i guess its fine. I usually get employees na may malaking pangangailangan (single parents, breadwinner etc), i find that they are the most industrious coz of their need to work to sustain their families.

Best is to make a feasibility study / business plan first. This is to see if you have what it takes to have a sustainable business, i've seen a lot of restaurants and foodparks that are closing up shop lately.. learn from their weaknesses and mistakes.

There are short courses in tesda/negoskwela about how to put up different kinds of businesses, check them online, they might also help you in connecting with suppliers, if not, there is always google hehe. As for food sanitation (haccp), some culinary schools offer shortcourses as well.

Good luck!

[chubby_baby]

Good thing may gumawa ng ganitong thread and very helpful ang mga inputs nyo mga sis.
Anyway, balak din namin ng hubby ko na magtayo ng restaurant business in the future. May concept na sya sa theme at ambiance ng resto. Gumawa na rin sya ng estimate sa capital at feasibility study.
Sa ngayon, 2 years na kaming nag-iipon ng mga gamit na ilalagay namin sa resto. Unti-unti man pero we are getting there. Isa rin kasi sa mga expensive at mahirap i-source yung mga kailangang props para maging presentable at maganda ang ambiance ng lugar. Masakit sa bulsa kung isang bagsakan na gastos to.
By the way, I have some questions:

1.   Will it really be a BIG help kung mag-aaral pa ako ng culinary class para matutunan ang pag-formulate ng magiging menu namin? Alam ko there are other ways para matutunan ito like sa internet, Youtube, books and others, pero is it really worthy? May nakapagsabi sa amin nasa 6-figures din ang tuition para sa culinary class.

2.   For those who were able to run a resto in Metro Manila, saan nyo kinukuha ang inyong supplies especially meat, fish and vegetables?

3.   Ano ba normal multiplier nyo para sa food prices? Let?s say ang total cost to prepare one dish ay 100 pesos, ang serving cost should be x2 or around 200 pesos? Or multiply by 2.5?

[otra_vez]

Isa pang nakikita kong problem paano nga pla yong mga relative na gusto makisawsaw or maging empleyado mo?

Galing kami sa napakahirap na family ng husband ko and me mga kapatid kami na walang matatag na source of income. Balak ko kasing maging empleyado ay mga working student dahil galing din ako sa ganuong kalagayan.

Sa Pricing naman ng food paano nga pala kayo nag come up sa presyo?
Meron din bang short courses sa ganon?

We dealt with relatives trying to influence our decisions and I'm glad that we put a stop to it. There were some hurt feelings, of course. We welcome the support and ideas but ultimately, it's OUR business, not theirs. Kami huling salita. As for hiring relatives, I don't really recommend it for the actual kitchen work unless they have a background in this field. Puwede for managing the cash register siguro or as a host/ess.

As for pricing-- we keep our food cost to 30-35% and we add our state's sales tax.