From Island Souvenirs to no frills hotels

By: Irene R. Sino Cruz
Inquirer Visayas  
12:42 am | Sunday, August 28th, 2011

JAY Aldeguer, president and CEO Islands Stay Hotels.
CDN PHOTO/TONEE DESPOJO

CEBU CITY – Nineteen years ago, Jay Aldeguer set up a T-shirt business, Islands Souvenirs, with an initial capital of P200,000, and his venture has gone a long way since then.

Today, Aldeguer has invested into another tourism-related venture, Islands Stay Hotels (ISH), a value-chic hotel chain that would tap the market for no-frills accommodation. He has poured in about P35 million.

“It’s a similar concept to low-cost airlines finding that meals on the plane are one of the more practical things to do away with, in turn, passing the savings to the customer,” says Aldeguer, chief executive officer of the Islands Group.

The hotel project is in the group’s five-year plan to boost the country’s tourism industry.
Aldeguer sees a demand for ISH as accommodations in Cebu are either the luxury and business hotels, or the lower-end inns and pension houses.

It has two branches – one just across from the Cebu Business Park on Archbishop Reyes and the second along Marina Mall near the Mactan Cebu International Airport.

The Archbishop Reyes branch has 15 rooms while the Mactan branch has 20, but Aldeguer plans to increase the number to 50 and 60, respectively. The target is actually 300 rooms in the next two years.

For Cebu alone, Aldeguer says ISH target 10 locations in the next 10 years.

Lower


Although priced lower than most hotels and resorts, the rooms in the centrally located ISH outlets offer quality beds and linens, rain showers, flat screen TV sets and free wireless broadband access.

Aldeguer may be on the right track. During their dry runs, the two hotels registered an 85 percent average occupancy rate and a walk-in rate of 50 percent, which, he says, was well beyond industry standards.

Islands Stay Hotels rooms are categorized as small, medium, large and extra large.

For its uptown Cebu branch the rates are P950 for small; P1,450 for medium; P1,950 for large and P2,150 for extra large.

For its Mactan branch, the room rates are P850 (starting September) for small, a promo rate of P950 for medium for one person and additional P500 and P300 for each succeeding extra person and P1,650 for large.

Filling the gaps

JAY ALDEGUER, president and CEO Islands Stay
Hotels (3rd from right) and his staff of Islands Stay
Hotels Cebu City. CDN PHOTO/TONEE DESPOJO

The small and medium rooms are good for one person only. Large and extra large rooms are good for two people only. Extra persons will be charged P300 upon check-in.

Islands Souvenir now has 90 outlets, including stand-alone stores, department stores and those run by distributors, spread all over the Philippines.

While it has become a success, Aldeguer has found himself deeper in the tourism industry, noting gaps, especially in tourism services, that should be addressed. He considers the gaps as business opportunities and must be filled so the Philippines can become a premier destination in the Asia-Pacific region.

Islands & More

In 2006, Aldeguer established Islands & More, a retail business catering to tourists and with shops located in hotels and airport terminals. The concept revolves around a one-stop, travel essentials store offering products minus the high mark-ups common in hotels and resorts.

Islands & More now has 12 stores and three franchise areas – Baguio City, City of Vigan in Ilocos Sur, and Camarines Sur.

Islands Banca Cruises


Two years later, he invested in Islands Banca Cruises (IBC), which addresses the question of what else to do in Cebu aside from going to the beach or on historical tours. His initial capital was at P3 million, while his total investment has reached P5 million.

Just like Islands Souvenirs, IBC helped set the standards for boats offering island hopping tours. Other boats had been confronted with safety issues as these were not being regulated by the government.

During peak season, IBC and its fleet of 12 bancas could not accommodate all their clients, so the company decided to enter into arrangements with other boat owners.

“We fix their boats, have our own crew man these. During the peak season, we outsource eight to 10 boats,” Aldeguer says. The boat owners get a share of the revenues.

IBC has become successful that other businesses offering similar services have emerged. Aldeguer now wants IBC to be replicated in other areas, such as Boracay and Bohol. “We are looking for strategic partners,” he says.

Market needs

Just recently, IBC signed a franchise agreement in Davao with Sea-T Leisure Group of Kirby Te, Aldeguer reveals.

Apart from island-hopping, the company will be offering another product – a romantic cruise at the Cebu-Mactan channel.

The unstoppable Aldeguer has yet set his sights on another tourism-related business, Talima Adventure and Waterpark, on Olango Island in Lapu-Lapu City.

“I wanted to develop a new destination in Cebu,” he says. He places his investment in Talima at P8 million to P10 million.

The place features a giant inflatable slide, water trampolines and water rollers. A greater part of the P100 entrance fee per visitor is donated to the Talima Marine Sanctuary.

Talima had projected a turnout of 150 people on a weekend, but on the next, it drew 500. Bad weather, though, had forced the cancellation of trips to Olango.

For those interested in going into a tourism-related business, Aldeguer shares this advice: “Now is the good time to go into business because we are at the crossroads, where there are so many new demands and needs in travel. Whoever recognizes that will be in good company.”

Metrobank faces BSP sanction

By: Michelle V. Remo
Philippine Daily Inquirer
4:26 am | Friday, August 26th, 2011

The Bangko Sentral ng Pilipinas (BSP) is set to decide on sanctions to be imposed on Metropolitan Bank & Trust Co. after one of its branches allegedly engaged in unsafe and unsound practice that led to over P60 million in losses for one of its corporate clients.

The Office of Special Investigations (OSI) of the BSP said that Metrobank failed to exercise diligence in its dealings with oil importer Zhenron Corp. which filed an administrative complaint earlier this year against the bank.

In its ruling, penned by legal officer Cristina Colico, the central bank’s OSI said Metrobank violated rules on safe and sound banking practices. It turned over the case to the central bank’s Supervised Banks Complaints and Evaluation Group, which shall decide on the penalties to be imposed.

OSI said that concerned officials of Metrobank “violated their duty to exercise meticulous care and extraordinary diligence” on the bank’s dealings with Zhenron.

In another development, four officials of Metrobank were charged with estafa for taking a total of P10.3 million from Brent International School Manila as fees for an alleged $17.1 million loan to the latter that never materialized.

In a sworn complaint filed with the city prosecutor of Biñan, Laguna, Brent’s finance director Edna Ballesteros named Metrobank president Antonio Abacan; senior vice president Eligio Labog, Jr.; senior vice manager Godofredo Cruz and account officer Arlene Ordoñez.

The P10.3 million was allegedly for the upfront fee, documentary stamp tax and other fees for the loan. The bank, however, did not release the loan, prompting Brent to seek the return of the P10.3 million from Metrobank.

Reacting to the complaint, Metro-bank said the criminal complaint had no factual and legal basis.

“In the bank’s over 48 years of operation, Metrobank has been consistently committed in providing service with integrity, placing the highest premium on transparency with the best interest of its stakeholders in mind,” the bank said.

In the earlier complaint, Zhenron, which is owned by couple Maureen and Seiichi Hori, said Metrobank took more than P60 million from the company, consisting of about P31 million from its peso deposit account and about P31 million worth of insurance policies by falsely claiming that Zhenron had unpaid interest obligations.

In 2009, Zhenron secured five trust receipts, which are forms of loans for importers, worth about P700 million.

Zhenron claimed that before the loans matured, it had instructed Metrobank to take over its dollar time deposits with the bank worth P700 million as payment.

But the complainant said Metrobank made it appear that Zhenron asked for extensions of the maturities of the loans. Loan extensions are charged interests. Thus, by 2010, the interest on the loan had ballooned.

Metrobank was contacted for comment, but has not yet given its side as of press time.

Phone giant hikes stake in BPO firm

Philippine Daily Inquirer
9:32 pm | Friday, August 26th, 2011 

The technology unit of network giant Philippine Long Distance Telephone Co. (PLDT) has upped its stake in a business process outsourcing (BPO) firm that specializes in high value back office services.

In a disclosure, PLDT said wholly-owned unit ePLDT Inc. had agreed to buy out its partner Quantium Solutions International Pte. Ltd. (QSI) in ePDS Inc.

The PLDT subsidiary currently owns 50 percent of ePDS Inc., while QSI and DataPost Pte. Ltd. own 20 percent and 30 percent, respectively.

The BPO specializes in data formatting and printing, automated intelligent mail processing, manual letter-shopping, data archiving and document management solutions.

Under the deed of sale signed on Wednesday, ePLDT will acquire about 17 of QSI’s stake in ePDS.  QSI would sell its remaining 3 percent stake in the BPO firm to DataPost.

“The completion of the purchase transactions is expected to take place in the third quarter of 2011,” PLDT corporate secretary Lourdes Rausa-Chan said in a disclosure.

“Upon completion, QSI will cease to be a shareholder of (ePDS Inc.),” said ePLDT, which in turn will end up with a 67-percent stake in the BPO firm. DataPost will hold the balance of 33 percent.

Officially set up in June 2003, ePDS unified the expertise of these three companies in IT, printing and mail enveloping outsourcing services and mail distribution to gain a superior position in providing total customer communication solutions.

ePLDT, a wholly owned subsidiary of the Philippine Long Distance Telephone Company (PLDT), is the principal corporate vehicle of the PLDT Group’s information and communications technology (ICT) assets and investments, focused on enabling ICT infrastructure services which would drive Internet applications, IP-based services and multimedia content delivery to consumers and business worldwide.

In the meantime, DataPost Pte. Ltd. is a subsidiary of Singapore’s SingPost, the largest postal service provider in Asia.   Paolo G. Montecillo

Puregold sets IPO schedule; listing to be on Oct. 5

Philippine Daily Inquirer  
9:29 pm | Friday, August 26th, 2011

Supermarket chain Puregold Price Club Inc. will price and launch on Sept. 21 an initial public offering that it hopes could raise up to P12.4 billion for its expansion.

The Philippine Stock Exchange approved the offering, only the second Philippine IPO this year, involving the sale of as much as 600 million common shares at up to P18 per share.

The company has set aside 90 million shares for a greenshoe option.

The shares to be offered represent 34.5 percent of Puregold’s issued and outstanding capital stock after the IPO.

The offer will close on Sept. 29, with listing set for Oct. 5.

The IPO, which follows the $52-million share sale by Megawide Construction Corp. in February, was originally set for March but was delayed due to volatile market conditions.

HSBC and UBS AG are international lead managers, while BDO Capital & Investment Corp. and First Metro Investment Corp. are the domestic lead managers for the share sale.

The company is bullish about the prospects of its IPO and believes that the “false” allegation that it is engaged in smuggling will not harm the interest of its potential investors.

Asked in a briefing on Friday for reaction on concerns that the controversy might affect the offering, Puregold president Leonardo Dayao said, “I don’t think so.”

“We are offering (the shares) based on merit,” he said, citing the  favorable growth prospects of the company.

Earlier, Puregold denied allegations that it had engaged in smuggling, saying it had been observing legal and aboveboard procedures in all its transactions over the years.

Dayao said Puregold, which currently has 72 stores operating nationwide, was aiming at increasing its branch network to 100 stores after the IPO.

It intends to put up 25 more stores next year and another 25 in 2013.

Dayao said proceeds from the IPO would be used for the expansion of the branch network this year.

Dayao said Puregold was also optimistic about its expansion plans, saying there was much room in the economy to accommodate more supermarkets given the rising demand of a growing population.

He also said many areas in the country still lacked supermarkets and were relying mainly on sari-sari stores to meet the demands of their population.

Puregold is planning to expand to Davao, Rizal, Cavite, Bataan, Pangasinan, Baguio, Ilocos Norte, Cebu City, Tarlac City, La Union and Albay.

In a congressional hearing on smuggling earlier, Puregold was accused of engaging in the illegal activity. A legislator accused finance and customs officials of giving protection to Puregold.

Dayao said the company strongly denied the allegations, and that these should not harm the company’s IPO plans and growth prospects given that the claims were not substantiated. Michelle V. Remo

Supermarket operator eyes P12.4-B IPO

August 21, 2011, 8:00am

MANILA, Philippines — Supermarket chain Puregold Price Club Inc. could raise up to P12.42 billion in a delayed initial public offering, 14 percent higher than originally planned, its preliminary IPO prospectus showed.

Puregold, which operates 72 stores across the country, plans to sell up to 600 million common shares at up to P18 each, with another 90 million shares allotted for a greenshoe option.

The maximum offer price was lifted from P16 in IPO plans announced late last year, while the offer size was reduced from 700 million shares.

Puregold said the offer, which will account for 34.5 percent of its issued and outstanding capital stock after the IPO, consists of up to 500 million new shares and up to 100 million shares from selling shareholders.

It gave no timing for the IPO, although issue manager BDO Capital & Investment Corp. has told local media the company was looking for a listing before the end of the year.

The IPO was originally set for launch in March but was delayed due to market conditions.

HSBC and UBS AG have been appointed as international lead managers, while BDO Capital & Investment Corp and First Metro Investment Corp are the domestic lead managers for the share sale. There has only been one Philippine IPO so far this year.

Megawide Construction Corp raised $52 million through a share sale about six months ago.
Local conglomerate San Miguel Corp's power unit, SMC Global Power Holdings Corp, is looking to raise $500 million via an IPO this year.

It has not yet filed a prospectus for the offer. (Reuters)

Boosting technopreneurship in the Philippines

August 21, 2011, 8:00am

MANILA, Philippines — The government is pushing technology-based entrepreneurship or technopreneurship as a measure to ease the unemployment problem as well as improve the lives of young Filipinos. Technopreneurship is a promising venture in the Philippines as several companies are reportedly being set up to make money out of technology, particularly in the field of information and communications technology.

In the Philippines, setting up a business on the Web requires less resources. The country has creative and skilled people. The government is assisting budding technopreneurs, by equipping them with both technical and business skills. It is creating a nurturing environment to help them create their own sources of income. 

The Technical Education and Skills Development Authority (TESDA) is making technopreneurship a significant part of its program to boost Technical Vocational Education and Training (TVET). Major reforms are being pursued towards making TVET more relevant, more efficient, and more accessible, especially to the youth. Young people need an environment conducive to learning and creative thinking, opportunities to harness their potentials, and greater access to new technologies through responsive voc-tech education and training.

TESDA, in collaboration with the Mindanao Technical Vocational Education and Training (MinTVET), has identified Mindanao as the future hub of technopreneurs in the Philippines. The Mindanao TVET roadmap until 2015 outlines strategic responses to current and future challenges in the region. TESDA and MinTVET continue to produce technopreneurs among their graduates, paving the path of opportunities to seek their own means of livelihood.

The power of the Internet and modern breakthroughs in information technology and communications are today being enjoyed by small technopreneurs. However, their success still hinges in much part from initiatives by government, the academe, and the business sector. It is hoped that they will continue to support each other towards the flowering of technopreneurship in the country.

Biz Buzz: Major acquisition looms

By: the staff
Philippine Daily Inquirer  
11:27 pm | Tuesday, August 16th, 2011


Power-based conglomerate San Miguel Corp. has executed the sale of P13 billion worth of shares in Manila Electric Co. equivalent to a 5.2 percent interest in the power distributor (out of SMC’s 27 percent) to food unit San Miguel Pure Foods Co. About 59 million shares were sold by the parent to the subsidiary at P220 a share versus SMC’s effective acquisition cost of P100 each (including interest from the Government Service Insurance System). PureFoods, however, bought the shares in Meralco at a discount to market price (closing price was P256.80 on Tuesday).

Industry sources said SMC was using the balance sheet of PureFoods (which earlier announced plans to venture into high-yield businesses outside food) to raise money in preparation for a major offshore acquisition. The conglomerate has looked at something in Australia but it seems that it no longer needs to look too far away from the region. And that’s a big hint right there.—Doris C. Dumlao

More DBP ‘spin’

Development Bank of the Philippines (DBP) on Tuesday reported a net income of P1.74 billion in the first half of the year. Hooray! Good, right? It did, after all, achieve what the bank called a “realization rate” of 46.47 percent of its 2011 net income target of P3.7 billion.

But hang on a second. Is the bank trying to spin its way out of a bind once more?
Apparently, a simple Google search is enough to demolish the angle being offered by the new guys running the bank.

During the same period last year, DBP had actually earned a staggering P2.83 billion (this representing a 34-percent increase over the previous year’s figure).

So taking this into account, maybe the correct way to write the news about the government financial institution’s first-half performance would be: “DBP’s first-half income drops 38 percent.”

According to the bank’s official line, the decline can be explained by the deferred provisioning the bank had made toward the end of the year. The bank, they said, had set up provisions to strengthen its balance sheet further.

It also blamed “thinning spreads” and the need to set up more provisioning to further strengthen its balance sheet. Okay.

Another bank insider repeated an alternative view, however: “The performance this year is suffering because everyone here is so focused on internal probes. Morale is low and no one’s doing anything productive.” OK, that sounds plausible.—Daxim L. Lucas

Ad changes

Faced with the prospect of towering competition (“monopolistic” is how they describe it) from a merged PLDT-Digitel entity, Globe Telecom Inc. is shaking up how it does things, big time.

The advertising industry is abuzz with news that the Ayala-controlled telecommunications firms is about to ditch its 15-year relationship with industry giant Universal McCann in the hope of revitalizing its image. True? Well, not completely.

According to a ranking Globe official, the company was merely “reviewing” the “media side” (i.e. the firm in charge of placing out ads) of its advertising business to determine which of the many agencies out there is best suited for its needs.

“The ‘creatives’ business will remain with McCann,” he said.

The deal is a lucrative one, of course, given that Globe has a multibillion-peso advertising budget each year.

And speaking of advertising… has anyone noticed that there seems to be a new advertising war between PLDT-Smart and Globe? The former, especially, has been very aggressive of late, at one time taking out eight full-page ads in a single broadsheet on a single day.

“More importantly, their advertising and product offerings seem to look more and more like ours,” chuckled the Globe official. “We’re not [mad]. We’re flattered.”—Daxim L. Lucas

Hotel casino betting

Something is brewing in Gatchalian-led Waterfront Philippines Inc. as the hotel firm’s share price has risen this month in increasing volume. Somebody is accumulating its shares, leading some stock pundits to think there may be a merger-and-acquisition play. After all, WPI’s share price is trading below book value and its hotels have gaming space. Unlike Resorts World across from NAIA 3, though, it only hosts the casinos operated by the state-owned Philippine Amusement and Gaming Corp.

With the gaming regulator now tightening on requirements for soon-to-be-built privately run casinos, could buying into existing casino-hotels be the next best thing? Could WPI indeed be a hostile takeover target? Two prominent names—both with existing licenses to set up shop in the soon-to-rise entertainment complex Pagcor City along Manila Bay—have been floated as potential “suitors.”

“Unfounded rumors,” however, is how a spokesperson from the Gatchalians described these. “We are not in talks with anybody. No, we’re not selling.”—Doris C. Dumlao

Tektite rebidding

No taker was there when the bidding for the Tektite office property of the Philippine Stock Exchange was closed late Monday (after a second deadline extension). As such, the PSE is now planning a new round of bidding and if this still fails, the PSE will start considering options on negotiated sale for the property in Ortigas Center.

The property has a total floor area of 4,754.72 square meters—put on the auction block for a minimum price of P45,000 a square meter exclusive of value-added tax. It covers three floors and 21 parking slots.

Developer Philippine Realty and Holdings Corp., which donated the property to the local bourse, has the right to match the best offer to be submitted to PSE but has yet to indicate interest to exercise this option.—Doris C. Dumlao

Get business alerts and a preview of Biz Buzz the evening before it comes out. Text ON INQ BUSINESS to 4467 (P2.50/alert).

SMC buys Exxon’s Malaysia units

Esso acquisition estimated to cost $600M

By: Doris C. Dumlao
Philippine Daily Inquirer
11:39 pm | Wednesday, August 17th, 2011

OVERSEAS EXPANSION. San Miguel Corp., now an energy-based conglomerate, is expanding overseas outside of its traditional business, buying a controlling stake in at least three Malaysian subsidiaries of Exxon Mobil involved in oil refining and distribution.

Diversifying San Miguel Corp. has expanded its footprint in the regional oil industry with an agreement to acquire the downstream petroleum businesses of American multinational oil and gas company Exxon Mobil Corp. for about $600 million.

Industry sources privy to the transaction said SMC had finalized a deal to buy a controlling stake in at least three Malaysian subsidiaries of Exxon Mobil involved in oil refining and distribution.

The purchase was concluded following a bidding process that had taken place in the last two months.

It is a deal seen directly benefiting SMC’s oil refining unit Petron Corp. as Exxon, through subsidiary Esso Malaysia Berhad, has a refinery in Port Dickson that processes an average of 45,000 barrels of crude oil per day. It also manages a major portion of ExxonMobil’s network of 560 Esso and Mobil service stations in Malaysia.

Exxon Mobil is the parent company of Esso and Mobil Malaysia and also owns a 65-percent stake in Esso Malaysia Bhd which is listed on the Bursa Malaysia.

“It gives SMC a bigger retail footprint in the region,” one source said, adding that San Miguel was also attracted to Esso because of the high grade and capability of its oil refining plant.

Although Malaysia itself has a population equivalent to only about a third of the Philippines’ 100 million people, the retail market in Malaysia consumes much more than in the Philippines, the source explained.

Petron earlier announced a $1.8-billion (roughly P81-billion) investment to further upgrade its 180,000-barrel-a-day oil refinery. This Refinery Expansion Project (RMP-2) to be completed in 2014 was cited as a strategic project not only for the oil company but also for the whole country because it would help lessen the Philippines’ dependence on fuel imports.

The project is also seen insulating the country from potential supply disruptions, given the turmoil now affecting some major oil-producing countries in the Middle East and North Africa.

With this deal, Malaysia will thus be a key market to Petron’s RMP-2 project.
“It will add to the market that Petron can serve once its refinery upgrade is finished,” the source said.

Petron is the biggest oil refiner and retailer in the Philippines.

It won’t be SMC’s first time to set up shop in Malaysia as the conglomerate has presence in the packaging business. However, it’s the first time that SMC—which has transformed itself from a food and beverage—to an energy-based conglomerate—is expanding overseas outside of its traditional business.

Making a Splash felt around the world

By: Tina Arceo-Dumlao
Philippine Daily Inquirer
9:02 pm | Saturday, August 13th, 2011

ROLANDO and Rosalinda Hortaleza

Splash Corp., the leading personal care product manufacturer in the Philippines, is running out of goals to accomplish in the Philippines.

It is already the biggest in its sector and is making aggressive moves to grab market share in other markets, such as the food sector through its recent acquisition of 80 percent of Barrio Manufacturing Corp. for over P472 million, and direct selling through Splash Direct Selling.

But then, there’s the rest of the world, and that’s where Splash Corporation management headed by Rolando B. Hortaleza is turning its more of its attention and resources to, mindful of the immense growth opportunities that other markets offer companies brave enough to venture outside their home court.

Hortaleza, chairman and CEO of Splash Corp., tells SundayBiz in an interview in Splash’s new corporate headquarters in the Bonifacio Global City that he believes that Splash is ready to conquer more foreign shores because it has extensive experience operating in a highly competitive market such as the Philippines.

He adds that the presence of millions of Filipinos working and living overseas provides Splash, who made famous the Skinwhite line of whitening products, a ready market for personal care products, packaged Filipino food and nutritional supplements.

Going abroad, Hortaleza says, is the next step in the evolution of the billion-peso company that he and his wife, Rosalinda, started together 20 years ago.

“We already have the economies of scale and we have the technology to continuously develop new products, not just here but also for abroad,” says Hortaleza, “We are looking into distributing personal care products as well as food and home care products.”

Hortaleza stresses that some enterprising entrepreneurs have actually been distributing Splash products in other markets, such as the Middle East and the United States where there are huge OFW or immigrant Filipino populations.

But now that the company is seeing the bright expansion prospects for itself, Splash is taking the overseas markets more seriously to see how it can take advantage of the markets rapidly opening up to accommodate high quality yet affordable products.

According to Hortaleza, Splash will not have a uniform expansion approach as each country presents different challenges and opportunities. Markets are also different, thus the strategy is to enter each market with different sets of products.

The way it will enter these markets will also be dictated by legal and market structures. It may, for example, consider forging joint ventures with local firms in some countries to get its feet wet. In others, it may go ahead and put up a wholly owned subsidiary and take on the growth challenge alone.

Hortaleza also says that while Splash is taking on a more aggressive approach, its appetite is also tempered by the knowledge that expanding overseas is something new for the company that has earned its revenues almost exclusively from sales in the Philippines.

“We realize that this is something really new to us, but we are optimistic,” he says.

Going for Splash is its long experience in the manufacturing and retail sector in the Philippines as well as distribution relationships forged over the past 20 years. As it shifts from personal care manufacturing to the fast moving consumer goods business, it is confident that it has what it takes to make it just as big in other countries.

Splash products, particularly the best-selling whitening and hair care products, are currently available in Southeast Asia, Middle East and Africa.

Hortaleza says that by bringing Splash to other countries, it contributes to the campaign to show the world how globally competitive the Philippines really is.

When student trainees take over the frontline

By: Ma. Esther Salcedo-Posadas - Contributor
Philippine Daily Inquirer
8:56 pm | Saturday, August 13th, 2011 

THE WORLD recession has put bottom line pressure on many restaurants to cut costs, that includes hiring student trainees instead of full time employees. Photo by Ma. Esther Salcedo-Posadas, Contributor

In case you’ve been dining out lately, you may have noticed what seems like a growing trend among restaurants to use student trainees in dealing with guests, i.e. order taking, food delivery, practically everything that a waiter is expected to do.  In the past, you may find a sprinkling of such trainees, like perhaps one or two at the most.  More recently, it sometimes appears that most of the servers are trainees – at least in certain restaurants that appear to be cutting manpower costs.

In general terms, the frontline is defined as the portion of the work force that deals directly with clients.  It is also a critical point because many guests decide not to return based on their initial experience with the frontline.  Thus, it may be safe to assume that anyone thrown into the customer pit should at least have had some proper training.

At least based on initial observations, it appears that many student trainees haven’t had the benefit of adequate indoctrination and are instead prematurely exposed to guests where they learn through trial and error, at the cost of the customer’s time and patience.  From a consumer marketing perspective, such an approach is totally detrimental to the restaurant’s image and brand, most especially when needs are not addressed promptly.  The long-term consequences may not be worth the short-term savings.

Of course, this is not to say that student trainees cannot be expected to show up in the frontline.  On the contrary, a company with well-established training systems should aim to mold their apprentices to eventually handle some customer interface.  But putting them in front of customers without adequate guidance is another story and reflects on the company’s values and priorities.

It is also worthy of note that students work in companies with a completely different mindset from those personnel who are hired full time.  As their title implies, students pursue work opportunities in order to learn and gain knowledge, not necessarily pledge their loyalty to the company since most assignments are short-term.  Add to that is the fact that most trainees receive a small allowance instead of a full salary.  In terms of incentive, a long-term horizon may not even be in consideration.

On the other hand, those who pursue restaurant work full time have more reason to focus on the job since their whole livelihood may be at stake.  Also, full time employees are subject to performance evaluation and other factors that will impact their whole careers.
 
They are also paid more.

Thus, comparing student trainees versus full time workers is like choosing between garlic and onions.  The whole restaurant dining experience ultimately depends on how the customer service dish is planned, prepared, cooked, and served.

Feedback at www.joyposadas.blogspot.com

Family-owned business in Batangas turns 25, gives back to loyal customers

INQUIRER.net
12:56 am | Friday, August 12th, 2011 

Leading the festivities of the supermarket’s silver anniversary are sisters Carlene Go-Sy and Cheryl Anne Go, who both serve as vice presidents of Citimart to continue their parents’ legacy of service.

MANILA, Philippines—In the thriving city of Batangas, a family-owned business has become the household name in providing various consumer goods: Citimart. The 25-year old enterprise has been successfully providing Batangueños with groceries, clothing, food, medicines, photo-printing services and even start-up capital for small businesses. With five branches located strategically all over the city and a branch in Oriental Mindoro, Citimart is unrivaled in providing topnotch retail experience in the Southern Tagalog region.

On its silver anniversary celebration, Citimart paid tribute to its loyal patrons through fun activities held recently at the Citimart Bay City Mall on Burgos Street. The lively crowd was treated to free samplings and cool prizes courtesy of Citimart’s suppliers, while hunky actor Derek Ramsay made a surprise appearance that doubled the excitement of the eager crowd.

“We feel very happy for accomplishing 25 years of service in the business,” said Carlene Go-Sy, Citimart vice president for marketing. “Not all companies are able to attain such a feat, which is why we are very thankful to all the Batangueños who helped us along the way. Our silver anniversary celebration will be all about them, about how we can give back and continue making them a part of our growing family.”

Retail stalwart in the making


Citimart traces its roots to humble beginnings. On June 6, 1986, enterprising couple Felie and Carlito Go put up a simple store to answer the needs of Batangueños. Established along Rizal Avenue, the first Citimart supermarket – known today as Citimart Shop-On – was born.

Not only did Citimart provide the people with their basic needs, it also helped Batangas City’s retail industry flourish by pioneering the self-service format of supermarkets, just like how it’s done in Manila. Prior to this, Batangueño shoppers had to tell the store staff what they needed so it could be procured for them. But with the self-service concept, they were able to take their time shopping and better scrutinize their choices.

The pride of Batangas lives on


Ask Batangueños today and they will have different stories about Citimart being part of their everyday lives. From being the go-to establishment for grocery, clothing, medicine and food, serving as major landmarks in key areas, to being the place where families and friends can spend time together, Citimart has come a long way from its inception 25 years ago.

Currently, their plans revolve around the development and continuous improvement of their services to offer Batangueños a more comprehensive shopping experience.

“We have two types of customers who frequent Citimart, the end-buyers and the wholesalers,” Carlene said. “For them, we will continue offering the best prices to help them get their money’s worth. We will also begin to offer fresh produce as well so that they no longer need to go to the wet market, as Citimart will be their one-stop shop. And finally, we will continue to listen to their suggestions so that we can give them the best service that they deserve—from one Batangueño to another.”

With Citimart’s nonstop dedication and culture of innovation, customers can continue to look forward to more service and shopping milestones that will make their lives easier. (advt)


From the Citimart grocery, the company branched out to include other products and services such as the Citimart Department Store, Citimart Photo, Citimart Drug and Citibaker.