Thursday, August 9, 2007
Moving out of the corporate world and into the less predictable world of business has shown Eduardo and Teresita Ngan Tian the strength of their partnership—be it in life or in business.
“My husband was the first to quit his job to start a business. Then I joined ultimately. I was hesitant in the beginning but he was able to grow it. He needed my help so I had to obey. It’s good na malakas ang loob nya, so I followed,” narrates Teresita.
It was a leap of faith but she has no regrets. She matched her husband’s entrepreneurial nerve with diligence, dynamism, and determination.
In 1986, they only had a simple food stall located along the busy street of Mendiola in Manila. Today, they manage a thriving pizza business recognized by distinguished award-giving bodies such as the Entrep 10 and Ernst and Young’s Entrepreneur of the Year Award.
Lots’a Pizza, a pizza take-out concept that filled the low-end market gap left by another pizza chain in the mid-90s, was born in 1996. As the company turns 11 this year, the number of outlets is nearing 100, of which 66 are franchised.
A unique product
Prior to opening their business, Eduardo and Teresita attended numerous Food Expos in Hongkong and the annual Pizza Expo in Las Vegas. They were convinced that the pizza industry is really big in the world. Choosing pizza over other food products came easy.
“Each pizza is unique. Mahirap gayahin (It’s difficult to imitate),” says Eduardo. Since no two pizzas are exactly alike in taste, new players have more freedom to establish their own brand of pizza.
The secret and most basic ingredient, Teresita says, is the crust. “All the toppings can be sourced from suppliers and are easily bought. Our crust was especially developed with the FIlipino’s taste buds in mind.”
Teresita took a one-week course on Pizza Technology at the American Institute of Baking in the United States, where she learned all the rudiments of dough making. “I didn’t know crust making is that special. Even before mixing the dough we need to look at, and balance three different temperatures,” she narrates.
But once you get your perfect crust, you can have fun with the toppings. “It’s like canvass. You can draw on it. Your base doesn’t have to be just tomato sauce. You can use other sauces, even chocolate then put fruits on top or create your own,” she enthuses. Lots’a Pizza has 10 pizza variants.
To address the needs of a quick serve pizza business, they developed a special parbaked crust. It allows them to save on time since it is already pre-baked. “The shelf life of our dough is about two weeks at room temperature. But in our stores, the dough should be sold within five days.”
Partners in business
In the first four years of business, the Ngan Tian’s concentrated on company-owned outlets wherein they experienced the highs and lows of business. They took pains to improve the product, establish market acceptability and perfect the systems in preparation for the next step. Franchising.
In the first two years, the Ngan Tians were highly selective of their franchisees. By the third and fourth year, the company experienced the highest growth.
“Right now, we are taking conservative steps again so we can monitor the growing number of franchise-owned outlets,” explains Teresita. “Relationships with franchisees are very different compared to operating on your own.”
Part of professionalizing their business was the construction of a state-of-the-art commissary to efficiently serve all outlets. “This building was a big challenge at that time. We had to make loans and also, put in our own money.”
Both Eduardo and Teresita are certified public accountants with more than a decade of work experience with the prestigious SGV behind them. As expected, they are very diligent in handling finances. Keeping good relations with finance institutions are important especially during periods of business growth and expansion.
“Banks should be there as partners. They are very cautious but some like Plantersbank, offer portfolio’s for SME’s. My advice for business-owners is to pay accounts on time. Always honor your checks,” shares Teresita.
On the product development side, Lots’a Pizza gets support from the expertise of their trusted suppliers. “We have big suppliers—
San Miguel Corporation, Purefoods, Hormel, Kraft and Del Monte—that lets us in their test kitchens and culinary centers. Most of the items that they supply are exclusively made for us,” she states.
Taking it easy
It’s a 24/7 job. But, with all the systems in place, Eduardo and Teresita can now mix work with pleasure. “There are peak seasons in our work. But when things are normal, I go shopping or to the spa and socialize. Sometimes I even go ballroom dancing,” says Teresita who is also the current chairman of the Association of Filipino Franchisers, Inc.
Her husband, on the other hand, finds time for golf and travelling. “You have to balance yourself mentally and physically if you want to be successful.”
Two of their children have decided to join the business, too. Annie manages company-owned outlets while Robert Francis is currently in charge of franchising. “I think we should involve them in the business to be able to have some continuity. Our children made the conscious decision to join the company,” states Eduardo.
The next step
With new blood in the company joining forces with experienced managers in the industry, Lots’a Pizza has its eyes set on expanding in Visayas and Mindanao.
“We are planning to expand within the next three years. We just need a master franchisee that has the financial capability to open 10 branches. If it pushes through, we will have to construct another commissary in that region,” says Eduardo.
While they are slowly releasing the operational details of business to professional managers, Eduardo and Teresita don’t see themselves retiring from work soon. Running your own business has its own rewards.
“It depends on our health. A busy mind also keeps you healthy. In business you don’t grow old, you become wiser,” Teresita ends the interview with a smile.