The Philippine Online Chronicles

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There are bakeshops and bakeshops everywhere, and then there is the French Baker.

Johnlu Koa’s bakeshop cum cafe has been at the top of the bakery industry for 18 years and is expected to remain a market leader for the years to come.

French Baker has become the brand of choice because it has a complete line of freshly-baked, nutritious, delicious and consistent quality authentic French and European breads (as well as local ones).

“I wanted to create a new concept, a new store category in the … fast food industry. “ He then did what nobody else was doing: He introduced French baking and eventually offered an alternative bakery-cum-café lifestyle dining in Manila.”

From UP ISSI/SERDEF’s Dreamer’s , Doers Risk-takers Part 4, here are lessons both newbie and existing entrepreneurs can pick up from the Filipino “French Baker.”

 

Start-up

Johnlu Koa was in a predicament when he began the bakeshop. “I had no culinary degree, neither did I attend any cooking school. I worked on the business in a rather roundabout way. I relied on consultants and baking experts for the production function while I did the marketing part.”

He continues: “I graduated with a bachelor’s degree in business and hold an MBA from the UP Diliman. I then taught at the College of Business for 15 years. I also operated a neighborhood bakery. These helped prepare me for French Baker.”

He muses: “I was young, daring and single then and I also loved to travel. The antique looking bakeries I found on … the left bank of Paris fascinated me. I eventually realized there was no one doing French baking in the Philippines.

He relates the birth pangs prior to the growth of the business: “Every spare moment I had from work, I’d be in the bakery. I trained myself. I read recipe books, researched, cooked, baked. I was a self-taught baker. It was years later I decided to take technical training. I guess I turned out to be such a fine chef I was conferred Honorary Chef by CCA.”

The first French Baker was an 89-sq m bakeshop with a small dine-in area in SM City North EDSA. The location was ideal at that time because it was newly built and was catering to an upscale neighborhood.

He raised two million pesos in start-up capital. Personally incapable of putting together the initial investment, he relied on his family’s financial support to start up the venture.

Positioning strategy

From the very start Johnlu has been clear where to carve his market niche.

“French Baker appeals to shoppers and is positioned to those who do their regular dining and food purchasing in malls and supermarkets. By going to our shops, customers can experience freshness by smelling, tasting and seeing breads baked several times a day right before their eyes. Its casual dining ambience allows customers to consume the bakery products right on the premises.|

French Baker has always been intended to cater to mall shoppers, 70 per cent of which are female.

Johnlu’s pride has found its market niche in a fairly large crowd aged from 6 to 60. They are the diners who prefer sweet, salty, semi-sweet sandwiches and cuisines and all kinds of mouth-watering breads.”

“We are famous for our chicken ala king, soup in bread bowl, and steak sandwich. Each of these is special because it combines bread with something else.”

There is so much on the menu and the French Baker meets the challenge of uniformity and consistency of quality in all its products. Even the handling of the food items indicates a firm grasp of customer service. The restaurant uses paper or plastic ware only for take-away orders. Dining flatware made or stainless steel or porcelain is used. Newer shops are equipped with toilet facilities with five-star amenities.

 

French Bakers serves only purified water to its customers. “Serving purified water for free to anyone who desires to drink from our fountain is my way of saying thank you for their many years of patronage.”

At closing time, long queues would be forming by the various shops for half-price bread. Johnlu remembers how this started: There was this customer who asked him what he did with excess inventory. Ever the professor, he answered by asking her what she thought he should do with it. When she hinted she wouldn’t mind buying a lot of bread at 50 per cent off, Johnlu immediately implemented the idea.

Johnlu spends minimally on advertising. He believes that consumer testimonial through word of mouth is the best form of promotion.

An edge in human resources

At French Backer, training is a continuous activity. In recruiting personnel, attitude of the applicant is critical. Its business hinges on selling bakery products which, in turn, provide excellent service to customers. Good personal attitude is the foundation for further training in customer relations.

The company provides a competitive compensation package. It has put together a results-based compensation package for chefs and bakers. Key employees have been sent to train in Europe to enhance their baking skills and observe food retailing trends.

Many of the employees are high school graduates or college undergrads . He would rather hire them “fresh” from school in order to give them a solid foundation, not only on skills development but also on attitude and character formation.

Fair trade

One position he holds dear in his corporate heart is the practice of fair trade. He initiated the launch of the Pinoy pandesal in response to the call of the Department of Trade and Industry for a more affordable pandesal.

Johnlu also makes sure every French Baker outlet practices recycling of non-biodegradable materials used in the processing or packaging of brads and other goodies. He plans to sell used flour bags to producers who will convert them into utility bags. A customer using the converted bag will get a rebate. This will reduce the use of plastic bags.

Sustaining his market niche

Eighteen years at the top of the industry, Johnlu has seen competitors come and go. Meanwhile, he has distilled the strengths that have allowed his company to defend its position against tough competition.

To Johnlu, every aspiring entrepreneur should have seven basic traits to succeed in business.

First, commit yourself to the undertaking. Stick to the original plan. Do not be distracted by shifting to other things especially when you hit on a rough spot.

Second, develop an organization capable of growing with you. And you will grow because people want more from you and you have earned the respect of the market.

Third, maintain lose contact with people who can inspire and keep you in the right track.

Fourth, manage your life well. Your business will remain enjoyable and exciting at all times. You have to control the pace of your work, the intensity of exertion and your destiny. Don’t create calamities that will compete for your time and money.

Fifth, keep yourself updated. Make it a habit to get into relevant training programs, to travel, meet new people. Don’t worry about the costs of the effort. Instead, look at the appreciation in value in the future.

Sixth, be thankful for your blessings. Don’t forget to pay back society. Be generous not only with your resources but also your ideas.

Seventh, no matter how successful a business has become, it should not take competitive threats lightly. Being overconfident will prevent the organization to move on to the next level of growth.

Photos: from the French Baker online

The Small Enterprises Research and Development Foundation (SERDEF) is a resource hub for micro, small and medium enterprises in the Philippines.  For more small business features, starting-your-business how-to's, growing-your-business strategies, entrepreneurship success stories, and business news, visit the SERDEF website at www.serdef.org.