(Rommel's story always reminds me that the simplest concepts are those that succeed.)
Published in Business Mirror
Having fun and making money are two things that Rommel Juan can mix quite easily.
Even during his college years, he was able to cash in on his fun ideas to make a quick buck. So when he opened Binalot and called it the “pambansang tsibugan,” he knew people would come in to sample the food and bask in its humor.
Binalot started as a food delivery service in 1996, when Rommel, then 24 years old, decided to embark on the business “for fun” and “because I had extra time in my hands.” Until then, Rommel was involved in the family’s automotive business, handling sales and marketing.
The decision to go into business was not surprising. Rommel comes from an entrepreneurial family, “where we discuss business each waking moment.” Pacita Juan, the genius behind the Figaro Coffee chain, is an aunt. Even when he was in grade four, Rommel was peddling stickers to his classmates. He was, however, not really money-savvy. In fact, he was a mere “agent” of his brothers, who financed the sticker business, and who could only scratch their heads when Rommel’s collections would fall short of sales. “Money didn’t turn me on. I did those things for the interaction with people. I didn’t even know how to count change,” he recalled.
Rommel says he set up Binalot “as a creative outlet.” He was into cartoons, comic books and always did the flyers and ads of their family business. “I’m really corny. I say things like what’s wrong, polo barong? What’s the matter, peanut butter? Binalot is really an extension of me.”
Rommel confesses that he didn’t know much about the food business when he started Binalot in 1996. He didn’t know how to cook, and had to ask the help of a family friend, Aileen Anastacio, in creating the dishes. Initially, Binalot was limited to food deliveries. “Ako mismo ang naglalako,” he related. Business was good. Then the Asian crisis struck, and the next thing Rommel knew, his sukis in the offices were all gone as many companies closed down. He was already mulling closing down the business, when, in act of divine intervention, Shangri-La Mall offered him space in its food court.
Though unsure of its prospects, Rommel grabbed the opportunity. “I said this is make or break for me, but I won’t fall in love with the idea (of the business). If it wouldn’t take off, then Ie would not hesitate to just close down the entire thing.”
Binalot’s opening day performance decided the company’s fate. “On the first day, there was the longest line I have ever seen,” he recalled. It was obvious. “This was our second lease on life.”
Binalot’s offerings of rice topped with Filipino favorites, served with achara (pickled papaya), tomatoes and salted eggs, all wrapped in banana leaves, became an instant hit with the lunch crowd who have obviously had enough of burgers and spaghetti. Binalot’s menu consisted of tried and true Pinoy favorites such as adobo, tapa, bangus, bistek, tocino and longganisa. Its humorous names – bistek walastik and adobonanza -- also became a hit with the crowd.
Encouraged by his initial success, Rommel opened more Binalot outlets in mall food courts. Unlike the food delivery business, he says, “sales are steadier in retail, and it is much more easier to plan for.”
As business grew, Rommel explored new business possibilities. “When we reached six stores, I realized that we actually had a brand.” However, he also recognized that his responsibilities were mounting. “I realized, marami na tao ko, hindi na laro ito. This boy playing has lives depending on him.”
To better take stock of things, he took up a Masters in Entrepreneurship at the Asian Institute of Management. This allowed him to have “a bigger outlook.” For the first time, he “saw the forest” which was just as well, because as he himself declares, “I am all about branding.”
Following this, Rommel ventured into franchising. First, he had to make sure that the business was replicable and that its systems were robust enough to be transplanted elsewhere.
In 2003, Binalot opened its first franchise outlet in Intramuros. This step, he said, was pivotal to Binalot’s growth. The franchise route allowed Binalot “to grow exponentially.” Today, Binalot has 30 outlets and Rommel is confident it would surpass 40 outlets within the year.
Rommel says Binalot’s success is rooted in the efforts of its people. “I keep it enjoyable for all our people,” he says, not hesitating to ask them “are you still having fun?” during their one-on-one performance reviews. He likewise makes sure that his people are empowered so they become more accountable for their actions.
Binalot is heavily invested in training its people. At the same time, it makes sure it treats its people well and pays the minimum wage. Rommel admits that “people management is the hardest part of running a company” and makes sure he is attuned to their needs and thoughts.
As a result, he is able to count his peole as his steady allies. “I bring my people together to help.” In fact, Binalot has its own corporate social responsibility (CSR) program, which it calls the “dangal at hanapbuhay para sa nayon” (dahon) program. Under this program, Binalot has commissioned a community from the Southern Tagalog region to provide it with a steady stock of banana leaves. The program has allowed erstwhile idle women to make as much as P200/day. The Binalot staff derives obvious pride from the knowledge that they are able to help many families.
Of course, Rommel recognizes his role in growing the Binalot brand. “The key success factor was that I loved it. I have the passion for it, which means I never had to work a day in my life.” //
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