The Binalot story all wrapped up
By Nathalie M. Tomada (The Philippine Star) Updated June 10, 2012 12:00
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The president of Binalot Fiesta Foods, Inc., the innovative food
business that serves Filipino dishes wrapped in banana leaves, is
teaching his three girls – aged 11, eight and five – that there are many
ways of handling money rather than just spending it.
This is apart from making them open bank accounts, encouraging
entrepreneurial habits by letting them participate in a Kiddopreneur
Bazaar and exposing them to the work that he loves.
"You have to start them young," is his advice to parents when it comes
to cultivating financial literacy and nurturing the entrepreneurial
spirit among children.
Rommel is just employing the things he learned when he was growing up.
After all, if not for his childhood training, he wouldn't have built
Binalot, which now has 41 branches in Metro Manila and some key areas in
Luzon.
"I come from a very entrepreneurial family. Our family business is
actually automotive. My dad would expose us to the business at a very
young age. He would bring us to banks when he had appointments. We would
just be there beside him, observing how he would talk to the people from
the banks, or how he would talk with the customers. This was when we
were around seven or eight years old and well into our teens. Those were
our bonding sessions with our father," Rommel, whose father is into
manufacturing wrangler-type jeeps while his mother runs a school in
Malabon, tells STARweek.
"My dad never showed us na mahirap magtrabaho. Ang daddy ko, never ko
narining mahirap magtrabaho. Enjoy siya, he likes what he is doing, and
it rubbed off on me. Since I opened Binalot, I've been enjoying it ever
since," Rommel adds.
"It was very normal for us to (go into) business. My dad really
encouraged it. It was not classroom teaching; it was just exposure. It
was really the training."
When his father would arrive home from trips overseas, he would buy them
toys, but out of the 10 pieces, Rommel would be instructed to get only
one for himself, and to sell the rest.
Since Rommel's classes were in the afternoon, he would be in school
during the morning session just so he could sell the stuff.
"But I realized it wasn't the money that was motivating me. It was the
interaction. I enjoyed selling. I enjoyed talking to the customers. I
liked selling to kids who were older than me," he shares.
In college, he and his older brother dabbled in other entrepreneurial
pursuits, including a t-shirt selling and printing business, coming up
with prints like "I Survived the Coup D' Etat" (this was during the Cory
Aquino presidency) which became a hit in other universities and with
orders even coming all the way from Cebu.
After graduating from De La Salle University with a marketing management
degree, upon the suggestion of his father, he worked in the car industry
to gain experience. From his first job, he also developed discipline as
he had Japanese bosses.
After a couple of years, he returned to the family business. But with
his father's business already doing very well and with everything in
place, he found himself with a lot of free time on his hands, so what to do?
He suggested to his like-minded older brother that they venture into the
food business. "When we were kids, we had a little farm in Cavite, and
we got the idea from my mom – binabalot niya ang pagkain namin ng dahon
ng saging (she wrapped our food in banana leaves). So Binalot was
inspired by nostalgic childhood memories."
With a capital of P50,000, they started in Makati in 1996 – a "guerilla
operation" where they simply distributed flyers, and people would order.
Then they opened their first outlet on Jupiter street, offering delivery
service.
The business turned out to be a success, with Binalot selling 500 meals
per day.
However, the 1997 Asian financial crisis came crashing in, and their
business was not spared.
When they were on the verge of closing shop, an offer for a food court
space came from Shangri-La Plaza.
"I thought, let's go for gold, if it works out, then good; if not, then
we will close." It worked.
From that food court space, they were emboldened to branch out into
other malls.
In 2004, Binalot finally began franchising. This was when the business
really started to flourish, with the "food court phase" transitioning to
the "full-dining set-up."
Binalot now boasts of 41 branches, selling an average of 200 meals a day
per store – and counting.
"Organically, we are growing," he says. "We opened in the provinces
already. What we are trying to do right now is to sell more provincial
franchises. We are granting area franchises now with a minimum of three
stores. We also have a company supervising scheme which is best for
OFWs. You invest your money, and we will manage the stores for them. In
terms of franchise package, I think we have one of the most affordable
franchises in the industry, with an all-in package ranging from P2
million to P2.5 million, inclusive of franchise fee, construction,
training, manuals, use of materials, etc."
But what Rommel is particularly proud of are the advocacies of Binalot.
In 2006, when typhoon "Milenyo" struck the country, their supply of
banana leaves in Luzon got wiped out. "That's when we went straight to
the source, the farmers, and we found them in Nagcarlan, Laguna."
Binalot organized a community there, and right now, around 30 families
are supported by their project.
"We realized that even if you're a small company, you can still have
corporate social responsibility. You can help others, and it's also
helping your business," he says.
With that, Binalot has become a poster child for the Small Medium
Enterprise Corporate Social Responsibility (SME-CSR), receiving national
and international recognition from the UPS Global Small Business
contest, Entrepreneur Magazine, Anvil Awards, Bid Challenge Philippines
and the Asian Forum on Corporate Social Responsibility last year.
Binalot is steadily increasing its CSR, which is closely tied up with
where the company is expanding. They have projects in Zambales with an
Aeta community and also with a women's group in Legazpi, Albay.
Environment is another strong advocacy. In 2009, when "Ondoy" devastated
the country, they realized, after serving hot meals to the typhoon
victims, that they have to consciously promote biodegradable packaging
and to imbibe other green practices in the way they run their business.
Of course, Binalot has long been a step ahead by packaging their food in
banana leaves and not in plastic or non-biodegradable containers.
This is not entirely unique to the Philippines, as people in Thailand,
Malaysia and Indonesia also pack some of their foods with banana leaves,
but it is only in the Philippines that it is done fastfood-style. Rommel
is proud to have introduced a food business that has created an
atmosphere that makes any diner truly feel that he is eating in the
Philippines.
"I think we should be proud of this legacy (wrapping food in banana
leaves). It's fresh, it's eco-friendly, and do you know that banana
leaves have anti-bacterial properties? That's why some disinfectants
have banana fibers. So, food is more fresh when they are wrapped in
banana leaves," Rommel says.
When asked for tips for budding entrepreneurs, he shares, "I always say
that a good decision done quickly is better than a great decision done
slowly. Meaning to say, if the idea is good enough, try it out already.
Don't wait anymore, kasi minsan 'pag analysis parati, yun yung problema.
Work with the resources you have. Huwag kang sumugal ng di mo kaya."
Rommel says that he is grateful for all the challenges that were thrown
his way, otherwise he wouldn't have the opportunities to better his
business.
"With the financial crisis, we were able to enter the food court.
Because of Milenyo, we were able to establish our communities. Because
of Ondoy, we realized we had to promote the environment. With Binalot, I
realized that what doesn't kill you makes you stronger – really. Trials
and challenges, you really just have to learn from them."
Passionate as he is about business, Rommel realizes business should not
consume all of one's time, one's life. For him, his family takes
priority. When he brings his kids to work, it's not just the early
training he's after, but also the father-and-child bonding that it
affords, just like what his parents did with him.
"Business is like a rubber ball," he muses. "If it falls, it bounces
back. But family is really more important. It's like a crystal ball, if
it falls, it breaks apart. So what I'm saying is, business should be a
tool to improve family life and the community."
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