Secrets of Food Millionaires by casey goh

Secrets of Food Millionaires Phua Wen Yi Published By

RANK BOOKS www.rankbooks.com

First Published 2009 Published and distributed by: Rank Books Blk 1002 Toa Payoh Ind Pk #07-1423 Singapore 319074 Tel: 65-62508180 Fax: 65-62506191 Website: www.rankbooks.com Email: admin@rankbooks.com ISBN 978–981–08–2002–2 Copyright © Rank Books Cover Design and Typeset: Rank Books All Rights Reserved. No part of this publication may be reproduced or copied in any form or by any means - graphic, electronic or mechanical, including photocopying, recording, taping or information retrieval systems - without the written permission of Rank Books. Conditions of Sale: This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser. While every reasonable care is taken to ensure the accuracy of information printed, no responsibility can be accepted for any loss or inconvenience caused by any error or omission.

Printed in Singapore

To my parents, for having supported me in my dual loves of food & writing

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Acknowledgements First of all, I must thank the seven F&B companies who agreed to participate in this book, and for the information and photos they provided. More specifically, I thank their respective CEOs, directors, and/or founders for sharing their valuable time and experiences during my interviews with them. They are, in order of equal importance: Daniel Tay (Bakerzin), Ip Yiu Tung (Crystal Jade Culinary Concepts Holding), Wolfgang Lapper (Esmirada Group of Restaurants), Pengene Lee (Jollibean Foods), Angelo Sanelli and Michael Hadley (Michelangelo’s Restaurant Group), Tony Seow (Purple Sage), and Ueki Kiyoshi (Waraku Holdings). Without them, this book would not have come to be. Next, I also thank SPRING Singapore for the information they provided (see Chapter 10), and Chow Tat Kong, SPRING Singapore’s Group Director of Industry Development, for having made time for an interview. Of course, I can’t forget to thank KC Goh of Rank Books for his part in this endeavor. I’m also grateful to everyone who helped in whatever way in the making of this book, including certain staff members of the above-mentioned organizations; regretfully, your names are too many to mention, but you know who you are.

Contents Introduction

Part I: Secrets of F&B Businesses Revealed Bakerzin Crystal Jade Culinary Concepts Holding Esmirada Group of Restaurants Jollibean Foods Michelangeloâ&#x20AC;&#x2122;s Group of Restaurants Purple Sage Waraku Holdings Outlets List

1 29 59 93 123 157 191 221

239 248 259 270

Part II: More Ingredients for Success Getting in Touch with Food F&B Business Types and Concepts The Helping Hand of SPRING Singapore Conclusion: The Making of a Food Millionaire

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Introduction It isn’t easy running a business, much less a food business, where the market is competitive and continually evolving. New food outlets are constantly springing up ... and folding. Yet, Singapore’s food and beverage (F&B) industry is one hot sector. I can’t count the number of times someone revealed their dream was to start a café – that seems to be the most in thing in F&B, at least amongst those in their twenties or thirties, even though Singapore is already swimming with the likes of Starbucks and Coffee Bean. Due to this huge interest in F&B, this book, Secrets of Food Millionaires, was born. Whatever your interest in the F&B industry – whether you’re an aspiring entrepreneur, someone just looking for insights into the industry, or someone hoping to improve and grow your existing business – this is the book for you. While this isn’t a manual to starting an F&B business, within these pages lie many secrets to unlocking the path for you to become a food millionaire.

I want to be a food millionaire ... But how? The first secret I’ll share is the hard truth: Most F&B start-ups fail. Some may never take off, while a few may flourish for a short span of time, perhaps even making a name for themselves, only to suddenly plunge into the realm of the has-beens. Such has-beens include those companies that once ran chains of bubble tea outlets. Bubble tea is an excellent example of a fad whose bubble went pop. Although bubble tea outlets remain on the market in Singapore, they no longer represent major chains, and bubble tea is regarded as any other regular drink. Hence, if you don’t want to be a has-been, you’d best avoid running your business solely on a fad; alternatively, you can make your quick million and be ready for an abrupt exit. However, for the purposes of this book, let’s assume you don’t want to be any kind of has-been. So now that we’ve established the F&B industry can be a pit of quicksand for many, how can you tip the odds in your favor? One of the best ways to learn is to learn from others.

In Secrets of Food Millionaires, I’ll first present, in Part I of this book, feature stories of seven established F&B companies in Singapore: Bakerzin, Crystal Jade Culinary Concept Holdings, Esmirada Group of Restaurants, Jollibean Foods, Michelangelo’s Group of Restaurants, Purple Sage, and Waraku Holdings. In choosing the businesses to feature, various criteria were considered. First, they had to have been started in Singapore; franchises don’t qualify. Some other criteria included the length of time the companies have been in business, their number of outlets, general reputation, and food quality. Another major consideration was to present feature stories not only informative but also interesting. In addition, my goal was to provide a varied perspective. Hence, I didn’t focus solely on F&B operations with the greatest number of outlets or best food. Due to the size and diversity of the F&B industry, however, I’ve focused on those businesses with a direct retail/consumer presence, excluding food and drink manufacturers, among others. Each featured company, with their various concepts, offers different insights into the world of F&B. The feature stories were written based on interviews with each company’s respective managing director, CEO, or founder and information obtained from the companies. No money exchanged hands. These companies, each of whom has reaped their share of awards and recognition, have shared their experiences so you can learn from them. In each feature’s Taste It! section, you can get a “look” and “taste” of the food. Keep in mind, however, my aim was not to critique the food, and my tasting experience may also be very different from yours. While the featured companies may not be the biggest, each is outstanding in their own way and has made their mark, thus qualifying them as food millionaires. Through reading these insider stories, you can share the experiences and wisdom of those who have already walked the path. Though the featured companies differ in their business concepts and have their individual ways of doing business, all share one thing in common – a goal of excellence. Be inspired by how they have triumphed over various trials and challenges to reach greater heights. Following the feature stories, I’ve included, in Part II of this book, three additional chapters to round up your food millionaire reading experience. First, I’ll guide you in getting in touch with the food around you, to open your eyes to observe, to smell and taste all sorts of food, and engage in self-study to learn about what goes into making various foods. Next, I’ll help you in deciding what products you’d like to sell and what sort of F&B business you may be suited for. Would you like to run a restaurant or kiosk outlet? Perhaps retail is not for you and you’d like to go into manufacturing. Or perhaps you think it’s too difficult to establish your own unique

concept and franchising is your best route to becoming a food millionaire. On the other hand, if you are already running an existing food business, you may decide to take it in a new direction. Finally, in the last chapter, I’ll give you an overall perspective of the Singapore F&B industry, its growth and some trends, and also discuss how local F&B businesses can obtain help from third parties such as SPRING Singapore. As a government agency, SPRING Singapore aims to promote business and industry growth and competitiveness, to spur innovation, and help various small and medium enterprises (SMEs) further develop to gain greater business opportunities. This chapter was written based on information provided by SPRING Singapore and an interview with their Group Director of Industry Development, Mr Chow Tat Kong. I hope you’ll find the information within helpful in your voyage to developing a successful food millionaire business. By picking up this book, Secrets of Food Millionaires, you’ve taken your first step toward establishing your F&B golden goose. Kudos to you. Now, read on, for within each of the feature stories and chapters that follow are secrets waiting for you to discover.

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Part I Secrets of F&B Businesses Revealed

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Secrets of Food Millionaires

Bakerzin

Secrets of Food Millionaires

A master of desserts Across Singapore and various parts of the world, little dessert havens are sprouting. Called Bakerzin, it’s a chain of casual dining cafés specializing in desserts. Though the word “baker” is part of its name, Bakerzin isn’t just a bakery. In accompaniment to its staple of delectable treats, each Bakerzin café also offers a range of beverages, from coffee and tea to soft drinks and juice, as well as complete meals. If you’re hungry, you’ll find yourself spoilt for choice with Bakerzin’s soups and salads, bruschetta and sandwiches, pasta and pizza, and more. But the most thrilling thing about Bakerzin – and I’ll say it again – is the D-word ... DESSERTS.

Secrets ofBakerzin Food Millionaires

Daniel Tay the man who served us Bakerzin You could say Daniel grew up in the right environment. In the eighties and nineties, his father, Tay Yam Choong, ran the Seng Choong Confectionery located in Marine Parade, Singapore. Thus, Daniel spent his youthful years helping out in the confectionery. From handling sales and cashiering, Daniel progressed to baking when he was 1 . It was then that his father sent him to the UFM International Baking Institute in Bangkok, Thailand, where he picked up his core skills in baking science and pastry making. At the onset of the course, Daniel – once a fashion design major at La Salle – didn’t yet feel a love for baking. He was mostly just excited at the prospect of traveling overseas. However, once he began the six-week course in 1 88, he discovered his flair. That was the turning point in his life. Although Daniel loved design and drawing, he found he was much more talented in baking. “I did things in days or weeks that people would take months to learn.” For those of you who don’t have a flair for cooking or baking, take heart. “Having talent is not good enough to run a successful business,” Daniel said. “You need more than talent to run a business.” As proof of this, the food and beverage industry boasts numerous topnotch businesses that aren’t run by chefs.

Daniel Tay

Secrets of Food Millionaires

beyond talent ... sweating it out Before starting his business, Daniel paid his dues. He spent a month in expensive Paris, serving as free labor in a renowned restaurant, Fauchon. Although he only did simple things, he got a good feel of the organization and learned what quality meant. For eight years after, he traveled back and forth to attend various classes in France, and occasionally, also Japan. While he’s more influenced by the French, it’s because of his experience with the Japanese that he has one or two Japanese cakes – and he’s known for it. Still, he pointed out: “Now the world is all around. Everybody goes everywhere, so the influence is no longer very French or Japanese, but international.” Just taking classes alone is no substitute for real world, practical experiences. Daniel spent a year with Pokka Corporation, which hired him to start their Rive Gauche Patisserie. In building the patisserie from scratch, Daniel learned invaluable lessons. As he worked with the general manager, he gained an understanding of accounting, profit and loss (P&L) principles, and how to calculate the break-even point. Following Rive Gauche, Daniel joined Bengawan Solo as a production manager. Despite enjoying his jobs, Daniel found he was just not cut out to be an employee. Ideas keep flowing into his head non-stop, so much so he can’t just stand still and do what someone else wants him to do. He’s got to do his own thing.

if you fall, just stand up again At age 25, Daniel started his first business, Dan & Allen’s Patisserie Pte Ltd. Unlike the Bakerzin story, Dan & Allen’s didn’t fare well. To start off, it was too high an investment – a million dollars to operate from a huge factory, doing mostly wholesale. Instead of doing retail and starting small, his partner wanted to start off big. For the size they were aspiring to operate at, they were undercapitalized. Daniel found he had to rely on his friends for support. “If you’re depending on friends,” he said, “it’s the last thing you want to be in.” In this hardest time of his life, he almost became bankrupt. From this bad experience, however, he learned the importance of managing cash flow. He advised, “Don’t be too ambitious or try to control too many things.”

Secrets ofBakerzin Food Millionaires

After failure, some people might wallow in depression or give up, but after his first venture failed, Daniel pushed on without taking a single break. He joined Les Amis as a pastry chef. There, he was given the opportunity to make desserts, such as soufflés. Since pastry was the last thing to be served, he also got the chance to help out in some cooking, so along the way, he picked up techniques and gained an understanding of how to cook. While he was still at Les Amis, he baked cakes at home to sell to his personal network. This helped him pay off his personal debts. A year after joining Les Amis, he quit and went back into business full-time. The memory of failure didn’t loom in Daniel’s head. He was totally undaunted. After all, he’d once taken a three million dollar loan for Dan & Allen’s Patisserie. So what was the low-cost few thousand dollars in rental that it took to start Bakerzin (then known as Baker’s Inn)? With his fledgling Baker’s Inn, he had only two staff and drove his own delivery van. In comparison, he had little to lose. And hence, we can now taste Daniel’s creations in his ever growing number of Bakerzin outlets around Singapore and the world.

Thinking Big creating a brand & adapting to grow Daniel’s goal is to see, in his lifetime, a thousand Bakerzin outlets around the world. “Every time I do something,” he said, “I know I’m going to do it big. It’s not me to stay small.” Since the beginning, Bakerzin’s business involved both wholesale and retail of cakes and bread. Although he has always been thinking big, Daniel’s vision has changed. No longer does Bakerzin do just wholesale and retail of cakes and bread; since 2000, they became an up-market dining café that also serves drinks and meals. At the same time, Baker’s Inn became Bakerzin. That was a practical decision. In order to trademark his brand name around the world, Daniel had to abandon the previous generic name. Branding is ever so important.

Secrets of Food Millionaires

When entering overseas markets, the ability to adapt is key. Sometimes, upon studying a different market, Daniel may see a need to simplify things, change a few menu items, and the way some things are done.

innovative thinking for new concepts and themes Danielâ&#x20AC;&#x2122;s innovative and adaptive thinking has also led to the creation of new concepts within his casual dining cafĂŠ chain. In mid-2008, Bakerzin opened in UE Square, incorporating two new concepts: Bakerzin Kids and Bakerzin Quickie Bar.

Bakerzin Kids at UE Square in Singapore

Bakerzin Kids represents Danielâ&#x20AC;&#x2122;s desire to attract families to Bakerzin by offering children a place they can not only eat at, but also interact with other children and even learn about cooking and baking. Workshops with various themes are available for children of two age groups: four to six, and seven to 12, at $42 per child. In these workshops, the young ones will have a chance to play at being little chefs while 8

Secrets ofBakerzin Food Millionaires

picking up basic kitchen skills, from simple cooking and baking to learning about food safety and good habits of hygiene. To set parents’ minds at ease, every workshop will have child-minders in addition to an instructor. At the end of every workshop session, every child will receive a Bakerzin chef hat, apron, badge, certificate, recipe sheet, and also a framed photo of themselves in their little chef ’s attire. While the children are exploring new skills in the kids’ section, their parents can lounge within Bakerzin and enjoy the regular range of drinks, desserts, and food. With its cheery colors and child-themed furnishings, the Bakerzin Kids’ section is also an apt venue for children’s birthday parties. A kids’ menu, tailored specially to young appetites, offers various favorites such as macaroni and cheese, scrambled eggs with sausage, and pancakes with maple syrup. Also on sale is a distinctive assortment of children’s birthday cakes. As the name suggests, Bakerzin’s Quickie Bar is targeted at those wanting a quick bite to go. Beyond the original dazzling array of cakes and desserts laid out within Bakerzin’s glass displays, other foods, such as sandwiches and salads, are also available. These include traditional favorites like beef pastrami sandwich and more innovative creations like kimchi cream cheese sandwich. In addition, customers may order the soup-of-the day or pick up freshly baked items, such as croissants, Danish pastries, and pies. As an additional convenience to nearby customers, Bakerzin offers items from the Quickie Bar for delivery to offices within a radius of 10-minutes’ walk.

growing pains ... nurture your staff, strategize, and create structure Despite the fact that Daniel has always headed in the direction of franchising and going worldwide, he finds staying small has its share of privileges. “Now I’m feeling the pain. It’s a lot of responsibility, taking care of people.” For instance, if he sees potential in staff but fails to nurture them, they’ll leave. One major challenge he faced was finance. Every company needs funds and good cash flow to grow. Since he’s been through the worst though, his challenges in Bakerzin were comparatively nothing; he just took it slow. To all aspiring food entrepreneurs, he has this advice: “You need to get your finance right first, and not the other way around. Apart from having enough money, making sure you know where the money goes is very important.”

Secrets of Food Millionaires

Another huge concern for Bakerzin, as well as other food companies trying to grow big, lay in controlling quality. Serving good quality food in one or two outlets is easy; but to serve the same good quality food in 10 to 100 outlets needs planning. You need to build a strong team and system to produce and maintain quality. For a big operation to work, a business also needs solid strategies and structure so it can run like clockwork.

numbers are more important than art Having once been a fashion design student keen on drawing, Daniel has an artistic bent. However, if something just looks beautiful but doesn’t sell in huge numbers, it won’t do your business much good. “Unlike in the past when I was very art driven,” he said, “I’m now very number focused. Numbers tell many stories about how my business is doing. Art must convert into revenue.” Some people may have the misconception that stylish products make money. Style alone isn’t enough. It can give you fame and fortune, but not necessarily the most revenue. In the F&B business, you need products that are easy to make and for which you don’t need an award-winning chef to duplicate. To make something most beautiful often saps time. Time is cost. The essential question is: How can we do more in less time? Art is good, but it must be combined with business. “I want to be like Apple,” Daniel declared, “not Picasso, which people can’t afford to buy.” Apple is commonly viewed as stylish and hip with their innovative yet easy-touse quality products. While Apple may not sell the cheapest consumer electronic products on the market, sales of the iPod, and even the newer iPhone, have left their competitors seeing green and scrambling to come up with similar competing products. In the same way, at Bakerzin, Daniel wants to produce beautiful desserts that, coupled with both simplicity and quality, sell in numbers. Art is good, but it must be simplified.

Secrets of Food Millionaires

Bakerzin Around the World

Bakerzin at VivoCity, Singapore

Bakerzin Kids at UE Square, Singapor e

Bakerzin in Shanghai, China

Indonesia Bakerzin in Jakarta,

Bakerzin at UE Square, Singapore

Bakerzin at Paragon, Singapore

Secrets of Food Millionaires

Forging Ahead everyone’s your competitor In the F&B business, Daniel isn’t much bothered about similar competition. Anybody and everybody is his competitor, because they’re all after the same dollar. He explained that people don’t allocate a dollar to one category of food, and 50 cents to another category of food. A dollar isn’t split. If, for instance, a doughnut tastes bad, people will skip spending their dollar on the doughnut and perhaps buy a soft drink instead. Bakerzin isn’t just a cake shop. Bakerzin is also competing against the major café chains. Even hawker centers pose a threat to Bakerzin’s business, as the numerous small stalls sell cheap and good food.

don’t fuss over secret recipes As for Bakerzin’s so-called direct competitors, Daniel welcomes them. Having more players in the market leads to more awareness, which will create a vicious cycle that spurs the market’s growth. Even if people, such as ex-staff, copy his cakes or use his recipes, he feels only pride. “Wow,” he thinks, “my cakes are out there.” Since Bakerzin has multiple product offerings and constantly innovates, Daniel isn’t worried about losing a few recipes. If, on the other hand, he sold only apple strudel, then maybe he’d worry about keeping his recipe secret. In this current industry, recipes are no longer important to most chefs. That is an olden notion. “Now being innovative is successful,” Daniel said, “to be in line with the game and keep ahead of the game.” Knowing what generates money for the company is extremely crucial. Not only does Daniel not fuss over any secret recipes, his willingness to share is best illustrated by the Feb 2008 publication of his very own cookbook, Just Desserts and other baked treats. In this cookbook, the secrets to many of Bakerzin’s best-loved desserts are exposed. Through detailed descriptions, instructions, and clear pictures, readers get to learn about baking techniques and equipment usage, in addition to making basic doughs and pastries, and fancier desserts, such as soufflés and panna cotta. To Daniel, the time and labor he invested in putting together this cookbook 12

Secrets ofBakerzin Food Millionaires

was well worth it. As he said, “I hope that with these Bakerzin recipes, the joys of baking can spread far and wide.”

know your offering In every F&B business, you should always weigh the pros and cons and decide what’s your offering. Daniel thinks about what he wants to talk about first, second, third ... and what he doesn’t want to talk about. Bakerzin’s focus is on desserts, however, dessert is the last thing people eat. Other restaurants, such as Chinese restaurants, also sell desserts at the end of a meal. Thus, Daniel came up with other offerings to entice people. Bakerzin’s food menu is extensive. Specially for men who don’t care for pasta, Daniel created meat dishes. While desserts take a long time to make and bear a high cost, many consumers aren’t willing to pay a premium price. Hence, there was a need for Bakerzin to seek other avenues for increasing revenue. It is important to strategize the menu, just as it’s important how people feel. Understanding this, Daniel saw the need to provide an environment conducive to chitchat; he isn’t just selling food, but also ambience and an experience.

create your own and innovate At Bakerzin, Daniel believes they should make almost everything themselves. Beyond cakes and bread and meals, they make their own ice cream and sorbets too. Through this, Bakerzin has full control over the quality of everything they serve, which also enables them to constantly innovate and refresh their menu offerings. On a yearly basis, Bakerzin launches new products and a new menu. In March, which is typically a low period, new cakes are launched to tempt taste buds. And in July, they come up with a new menu. Some products, such as mooncakes, are seasonal. In order to provide their franchisees overseas with the new information, they’ve got to work fast. Some new products may take just an hour to come up with, while others may take months. From conception of an idea to the launch, they have only six months.

Secrets of Food Millionaires

Despite Daniel’s policy of constant innovation, he realistically pointed out, “Marketing is hard. It’s interesting to conceptualize newness, but new and unique is hard to sell in the market. The majority of consumers may not quite be ready. Interesting things don’t really sell; they’re just there for show.” Hence, Bakerzin has a staple of mainstream products. Of the process of innovation, Daniel described, “It’s a very complex situation, where in my mind I have to toy with everything.” In the past, it was more about his likes, but now he tries to take himself out of the key role and listen to what others like. It’s not just about producing one noodle dish and selling it. It must be accepted by the masses.

cater to your target market Cheesecake was Daniel’s first creation. He wanted to make a cheesecake that was light, not heavy, that people could eat one and a half pieces, not two. His concept is that he doesn’t want people to feel full after having just one piece. One and a half is almost like two. He aims for people to share their desserts, and eat more dessert. Daniel’s concept works well for his typically weight-conscious target market of women between the ages of 25 and 45, who make up 70 to 80 percent of his customers. For this group, he also came up with the idea of dessert tapas. Often, Daniel’s ideas come from his travels. His range of dessert tapas is one example. The idea came to him when he was in Spain and saw the tapas there. Many women like to share their desserts, so with dessert tapas, they can get a taste of several small desserts. Currently, no one else in Singapore offers anything similar. It’s hard to manage that kind of variety in an outlet, but Bakerzin succeeds. Daniel puts in a lot of his chef know-how to make sure he can make things happen, offering variety that doesn’t take too much work to prepare. “Being a chef is a plus point,” Daniel admitted, “but it’s not this that makes it successful.” He believes in creating things different.

Secrets ofBakerzin Food Millionaires

A wide range of desserts: Bakerzin’s macaroons come in 16 ﬂavors

maintain high standards and quality Bakerzin isn’t just about innovation, but also high standards and controlled quality. Having a central kitchen helps ensure the food Bakerzin serves doesn’t vary in quality from outlet to outlet. At Bakerzin’s central kitchen, which is split into two levels, strict hygiene is observed. HACCP (Hazard Analysis and Critical Control Points) procedures have been implemented. Visitors and office staff must don disposable facemasks, hairnets, and shoe nets before entering. At the newer, lower level central kitchen, there’s even an air shower room to blow dust off your clothes. As Bakerzin’s cakes are transported the world over, they need to have a long shelf life. A large blast freezer with two doors on either side – one for incoming food, the other for outgoing food – is used to induce rapid freezing of cakes. The use of a blast freezer in contrast to a regular freezer is the crux to producing quality frozen food. Blast 15

Secrets of Food Millionaires

freezing quickly chills food to as low as -40˚C, while regular freezing is so slow it may take hours or even over a day for the center of a cake to solidify. Although extremely expensive, blast freezing produces quality products with increased shelf lives. When a Bakerzin cake arrives at an overseas outlet, it tastes just the same as when it was made at the central kitchen.

reward loyal customers A business doesn’t just need to attract new customers, but also retain current customers. Like many other food retailers, Bakerzin rewards loyal customers with a membership program. In order to qualify, customers must spend $300 within three months. The membership card, called “Pure Indulgence”, entitles the cardholder to 10 percent discount with a $10 minimum purchase, and 20 percent discount during his or her birthday month. In addition to the discounts, Bakerzin points are accumulated with each purchase and may be redeemed for food and drinks. “We focus on our customers a lot to make sure we give them our value,” Daniel said.

increase brand awareness Some founders of successful businesses may shy away from publicity, but not Daniel. He realizes the importance of enhancing brand awareness. Hence, he agrees to many interviews, which enables more people to read about him, and he also thinks of ways to do things easily and differently. His aim is to say this: “It’s out of the norm, yet I can reach out to big groups of people.” To Daniel, “Everything is about branding.” This includes even his policy of serving Evian at a dollar a bottle instead of tap water. Many people complain about this, and a few may even boycott Bakerzin because of this. However, personally, I think it’s not healthy to drink chemical-laden tap water, so Daniel’s really doing a service to the otherwise unwitting public.

Secrets ofBakerzin Food Millionaires

The Bakerzin Franchise not a straight road It’s not a straight and easy road to grow your business through franchising. Overseas markets may seem golden, but hidden difficulties lurk. Typical difficulties involve documentation, legal issues, and the ensuing red tape, which may slow down the whole process. In addition, local markets have their own peculiarities. Although Bakerzin serves the same desserts in all the overseas outlets as their Singapore outlets, the range of savory foods differs, not only in the menu items, but also the food is tailored to local tastes, and hence, different ingredients and seasonings may be used in some of the dishes. Examples of items on Bakerzin’s menu in China and Indonesia are oxtail fried rice, classic oxtail soup, and even oxtail pizza. Bakerzin also welcomes menu suggestions from their franchisees, subject to approval.

Bakerzin in Indonesia

who should apply For franchising to succeed, one of the most crucial factors is to pick the right franchisees. When someone submits a franchise application to Bakerzin, the first question Daniel asks is: “Is this person a Bakerzin type?” 1

Secrets of Food Millionaires

What, then, is a “Bakerzin type”? Daniel and his team will scrutinize the applicant’s business plan and interview him or her to determine this. It is essential to understand an applicant’s background. A potential franchisee needs to have enough money and the right network to make it work. Some other issues Bakerzin has are: Does the applicant have a passion for food, or is he or she merely concerned about making a profit? After obtaining the franchise, will the applicant alter the recipes in order to churn out cheaper products? Franchisees don’t need to be skillful, as Bakerzin will provide them the skill. What Bakerzin needs is to have the franchisee’s input about their particular market, as different countries have their own peculiarities. With regards to franchising, Bakerzin’s bottom line is that franchisees need to make money. As Daniel put it, “If you try to find ways and means of helping them make money, but they don’t, then the franchising scheme is not successful.”

the advantages of becoming a Bakerzin franchisee Those interested in entering this industry need to put in the infrastructure, which requires the same amount of capital that it would take for one to start a franchise operation. The crucial determining factor is whether you get it right or wrong. With the high level of investment typically needed, you need to get it right from day one. For those who don’t want to go through the hard and sometimes hazardous process of learning, Bakerzin will pass on their knowledge and skills. “Franchising is part of the knowledge-based economy,” Daniel said. “It involves passing knowledge to a third party.” At the same time, to protect themselves, Bakerzin has to hang on to their intellectual property. “We’ve got to listen to what our franchisees’ needs are, and go from there.”

taking the franchising route For companies wanting to start a franchising scheme, Daniel advised, “You have to hire someone who knows about this business, like a consultant. Trademarking is very dangerous.” Hence, if you’re hiring a consultant, you’ve got to be sure of his or her track record. 18

Secrets ofBakerzin Food Millionaires

Ingredients to Success When asked what are the essential ingredients to achieve success in the food industry, Daniel had but two words: “Good food.” But what about companies with multiple outlets that sell food some might describe as less than the best? Daniel doesn’t think any company sets out to sell inferior food. “Those that don’t sell good food run a concept. They try to do good food, but maybe their execution is not right. Their plan may be good, but the execution at the store level or chef level is not executed as well as it’s planned.” This then boils down to the implementation of the right strategy, standards, and control of quality.

reaping the rewards As of July 2008, Bakerzin has six outlets in Singapore, with more scheduled to open later in the year. Bakerzin is also fast growing in their overseas operations. Currently, Indonesia and Malaysia each are home to six Bakerzin outlets, while China’s first outlet is located in Shanghai. While Daniel is a chef of excellence who has won multiple awards, his rewards come not just from these physical awards. Having started Bakerzin from scratch with his partners as a homegrown brand from Singapore and painstakingly built it up, Daniel feels a distinct pride to see his brand overseas. To attain international recognition is yet another form of reward. This is why, despite however Bakerzin has evolved over the years, one thing has not changed: Daniel aspires to open 1000 outlets in his lifetime.

Awards & Recognition Daniel Tay received the Gold Medal at the World Pastry Cup 1 held in Singapore, was named the Inniskillin Icewine Pastry Chef of the Year at the 2001 World Gourmet Summit Awards of Excellence, and subsequently received nominations in the same category from 2002 to 200 . 1

Secrets of Food Millionaires

Taste It! Bakerzin Aglio Olio Spaghetti Assam Prawns with Rice Otah Bruschetta Varlhona Chocolate with Marshmallow Chocolate Souﬄé Warm Chocolate Cake Crème Brulee Cookies & Cream Cheesecake Bloom Ice Cream Coupe Cheesecake Ice Cream

Secrets ofBakerzin Food Millionaires

Bakerzin, VivoCity At Bakerzin’s VivoCity outlet, repeated floral motifs paint a fresh, inviting picture. Red flowers on thin stalks against a white wall greet you by the doorway, while frosted white flowers pattern the outer glass windows. As you step in, the long glass covered counter to your left catches your eye with its near uncountable rows of desserts – all sorts of tempting cakes and tarts, chocolate éclairs and Danish pastries, and over 15 flavors of macaroons in colors as bright as pink, yellow, and blue. If you were to try every single dessert, it would take you days or even weeks. This really is a little dessert haven. Bakerzin’s VivoCity outlet bears the same re-branded look as their Millenia Walk outlet. A play of colors is all around, from the hanging orange petal-shaped lamps to the curtain of red tassels decorating the long glass window. The food is just as colorful. One of Bakerzin’s classic dishes, Aglio Olio Spaghetti, is colored by the vivid red of whole chili padi and the green of fresh parsley. The spaghetti is well infused with the taste of olive oil, garlic, and chili. Aglio Olio Spaghetti

Secrets of Food Millionaires

After years of selling Western food, Bakerzin now has local, Just Like Home dishes on their menu. It was CEO and founder, Daniel Tayâ&#x20AC;&#x2122;s desire to share with his guests the homecooked food he loves. One example is the Assam Prawns with Rice Rice, which comes with a thick red gravy and just the right tangy mix of tamarind and pineapple. Another local-inspired non-dessert dish is the Otah Bruschetta. A large square piece of ciabatta bread spread with reddish-orange fish otah is baked to a crisp and sprinkled with spring onion. Though the otah is but a thin layer, every bite is bursting with flavor. Assam Prawns with Rice

Otah Bruschetta

Secrets ofBakerzin Food Millionaires

Bakerzin also offers a wide range of beverages. Hot chocolate lovers should try the Valrhona Chocolate with Marshmallow. A cup of steaming hot chocolate made with quality Valrhona chocolate comes with a giant marshmallow floating atop it, and four more cocoa-dusted marshmallows stacked by the side of the plate. It doesn’t just look pretty. The hot chocolate is smooth and rich and thick.

Valrhona Chocolate with Marshmallow

Soufflés can normally only be found in French restaurants, but you can enjoy it at Bakerzin. Freshly baked with a 15-minute waiting time, the Chocolate Souﬄé has a crisp crust strewn with a crunchy caramelized almond topping. A fine example of yin and yang in food, its crunchy top makes a wonderful contrast to its soft, fluffy interior, while the pale yellow coffee-infused ice cream that accompanies it counters light with dark, cold with hot. More important, the soufflé has a rich chocolate taste.

Chocolate Souﬄé

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Another popular chocolate dessert is the Warm Chocolate Cake, served with a scoop of vanilla ice cream and decorated with a circle of strawberry sauce and fresh fruit. Its molten core is reminiscent of pure melted chocolate! Bakerzin’s dessert tapas are perfect for anyone who wants to sample a few desserts. The small servings in delightful little glasses and saucers whet your taste buds without being filling. One person can easily finish three tapas. An excellent start is the crème brulee with its golden caramelized crust and soft creamy custard, or shots of ice cream and sorbet.

Warm Chocolate Cake

At Bakerzin, you can find both regular cheesecakes and cheesecake ice creams, such as Cookies and Cream Cheesecake, Bloom Ice Cream,, and Coupe Cheesecake Ice Cream. The cheesecake ice creams taste just like cheesecake, but aren’t as heavy. I’ll make a general comment on Bakerzin’s ice creams ... They’re not too sweet, smooth and creamy without being too rich, and fairly soft. Most notably, the ice cream isn’t icy or

Cookies & Cream Cheesecake

Secrets ofBakerzin Food Millionaires

too gummy. Partly due to the low gum content, however, it melts fast. Be careful if you’re digging into an ice cream tapa in its petite glass. It’ll flow out the rim! To conclude, Bakerzin’s menu well reflects their specialty, with the desserts listed first. They truly are a master of desserts.

Coupe Cheesecake Ice Cream

Short Secrets to Bakerzin’s Success sweat it out In every business venture, you’ve got to put in the hard work to make it a success. Daniel Tay paid his dues by going through much arduous training, which included going through courses and apprenticeships, as well as working for others. Through this, he gained the SECRET No. 1 knowledge and experience he needed to start his own business. Once you start your business, however, the real hard work begins. Unless you’ve got pockets deep enough to hire a professional management team in addition to a complete team of operational staff, you will need to roll up your sleeves to get both the big and small things done, especially in the F&B industry. 25

Secrets of Bakerzin Food Millionaires

if you fail, don’t give up SECRET No. 2

One failure or even a few failures do not spell a lifetime of failure. If you fail, look back upon your past experiences as a time of learning and pick yourself up to start anew, just as Daniel did.

build your brand Branding is an important aspect of a business. This starts with your business name, which should be one that’s easy for others to pronounce and remember, and that you will be able to trademark around the world. SECRET No. 3 This is why the former Baker’s Inn became Bakerzin. To create better brand awareness, you’ve also got to make your brand name seen and heard. This can be achieved through a number of ways, such as advertising, or better yet, free publicity through granting interviews and food reviews.

adapt to grow SECRET No. 4

Change is the only constant in this world, hence, you have to adapt if you want to survive and grow. For instance, customer preferences will change over time, foreign markets may require a different product mix, and your needs may change too. Bakerzin is constantly adapting, such as with their addition of Bakerzin Kids and Bakerzin Quickie Bar.

numbers are more important than art SECRET No. 5

Rather than how beautiful or stylish your product is, how much you sell, whether in terms of number of pieces or revenue, is more important. Don’t let yourself get over-engrossed in producing the perfect product. Consider what your customers really want. 26

Secrets of Food Millionaires

know your offering

SECRET No. 6

You should always know what your offering is. Although Bakerzin’s main offering is dessert, they are also selling ambience and experience. And since dessert is the last item in a meal, Bakerzin realized they could draw in customers by also offering meals.

create your own and innovate

SECRET No. 7

By making practically everything themselves, almost everything Bakerzin serves is unique to their outlets. If there’s something you really like at Bakerzin, there won’t be anywhere else you can get it. And it’s only through innovation that you can create more of your own products.

cater to your target market

SECRET No. 8

Bakerzin created a range of dessert tapas to cater to their largest group of customers – women, who are typically weight-conscious and like to eat and share small desserts. The first step to catering to your target market is to know who your main customers are and what their preferences are.

maintain high standards

SECRET No. 9

Through having a central kitchen, strict hygiene standards, and the use of expensive equipment, such as the blast freezer, Bakerzin ensures the food they serve doesn’t vary in quality. Although not every company can afford expensive procedures especially during the startup stage, you should take every step within your means to maintain the quality of your food.

Secrets ofBakerzin Food Millionaires

reward loyal customers

SECRET No. 10

To retain and reward loyal customers, Bakerzin offers a membership program. With the membership card, customers are entitled to discounts subject to minimum purchase amounts, and also redemption of free food and drinks based on a points system.

franchisees must make money For a franchising scheme to be successful, the franchisee must make money. To help ensure this, Bakerzin screens all their potential franchisees. For SECRET No. 11 starters, a franchisee needs to have the financial capital and right network to make the franchise a success. Also, the franchisee must have the same commitment to quality that Bakerzin has, and not be someone who will compromise on quality by changing recipes in order to reap a bigger profit margin. Anyone who wants to start a franchise scheme or take up a franchise needs to keep all this in mind.

Secrets of Food Millionaires

Crystal Jade Culinary Concepts Holding 29

Secrets of Food Millionaires

Serving fine Chinese cuisine all over Asia

From the sun-dappled island shores of Singapore, Crystal Jade has spread its wings and soared afar, delivering to various parts of Asia its renowned Chinese cuisine, from exquisite Cantonese and Teochew delicacies, to Shanghainese and Sichuan favorites, and more. It says a lot that Crystal Jade has successfully upheld its reputation for fine food in China and Hong Kong, the very birthplace of Chinese cuisine. With over a dozen culinary concepts and over 80 outlets, and growing, Crystal Jade starts off as a specialist in authentic Chinese Cantonese cuisine.

Secrets of Food Millionaires Crystal Jade Culinary Concepts Holding

Crystal Jade’s Diversiﬁed Concepts In Singapore, Crystal Jade has 40 outlets. Their various concepts include fine dining as well as casual dining. For the former, there’s Crystal Jade Palace Restaurant (Cantonese), Crystal Jade Golden Palace (Cantonese and Teochew), and Crystal Jade Dining IN (modern Cantonese). Crystal Jade doesn’t forget the families and casual diners. For them, there’s Crystal Jade Restaurant, followed by Crystal Jade Kitchen (Hong Kong-styled Cantonese), Crystal Jade Shanghai Restaurant (Shanghainese), Crystal Jade Dining Place (Cantonese), and Crystal Jade La Mian Xiao Long Bao (Shanghainese). If you think that sounds like too many names to remember, take note: this is just in Singapore alone. Although Crystal Jade’s core business is in Chinese cuisine, new-concept outlets are opened whenever the opportunity is spotted. One such is Crystal Jade My Bread, which currently comprises 10 bakery outlets and two bakery cafés. A few specialty restaurants further deviate from the Chinese-theme. An example, from Singapore, is Crystal Jade Korean Ginseng Chicken & BBQ Restaurant. While Korean food is still Asian, more startlingly, Crystal Jade has begun branching into Western cuisine. In Jakarta, A Presto by Crystal Jade is a boutique tapas café started in Oct 2007, while in Kuala Lumpur, chic and casual Western food is served in Amuleto by Crystal Jade, opened in April 2008. But be it Asian or Western, fine dining or casual, Crystal Jade aims at serving food only of the highest quality.

A Presto by Crystal Jade outlet

Secrets Millionaires Secrets of of Food Millionaires

Crystal Jade’s Humble Beginnings It was in 1991 when Crystal Jade’s first restaurant opened in Cairnhill Hotel. With over 4000 square feet, it was a medium-sized fine dining Cantonese restaurant. They employed expensive managers and chefs, but although the food was excellent, business was poor. There was barely a lunch crowd, and only in the evening was there an acceptable number of guests. The poor location was largely to blame. Due to the high costs and lack of business volume, the new business couldn’t be sustained. In 1992, with grave losses mounting, Mr Ip Yiu Tung from Hong Kong was approached to save the restaurant. Back then, the thought of venturing into the food industry had never occurred to him. His business experience lay in a totally different area: clock and watch manufacturing, a business he’d been operating since 1984. Despite this, he didn’t balk. Through investing a large sum of money into Crystal Jade, he became the largest shareholder. During those initial days, Mr Ip had never dreamed Crystal Jade would become the successful and ubiquitous chain of restaurants it now is. With the newly injected funds, as well as the new direction Mr Ip provided as Chairman, Crystal Jade managed to expand. Crystal Jade Kitchen was opened at Isetan Scotts (Shaw House) along Orchard Road. Instead of fine dining, this second restaurant served Hong Kong Cantonese fare such as dim sum, barbecued meats, porridge, and noodles in a casual dining environment. Next, Crystal Jade Palace opened in Ngee Ann City and became the flagship shop. Business flourished in these two new restaurants. Crystal Jade had now become a profitable business, and with further fund injections, they expanded further.

why Crystal Jade branched from fine dining to casual dining In fine dining, only a select group of people can afford to pay for it. Since the market for fine dining was small and it had thus far proven unprofitable, Crystal Jade decided 32

Secrets of Food Millionaires Crystal Jade Culinary Concepts Holding

to target a larger and more popular market, and hence, Crystal Jade Kitchen, a casual dining restaurant, was born. The décor in Crystal Jade Kitchen was simpler, and the spacing between tables less generous. In addition, there was less focus on high-caliber chefs and customer care, thereby lowering costs. Despite all this, Crystal Jade maintained their food quality. Although Hong Kong-styled Cantonese cuisine was still served, the dishes were limited to popular foods that were more affordable, rather than costly shark’s fin or abalone. With this new concept to liberate them, Crystal Jade’s woes were soon history. Mr Ip Yiu Tung, Chairman of Crystal Jade

The Rationale Behind Diversity Never did Mr Ip have a vision of expanding Crystal Jade to so many outlets, let alone so rapidly. Whenever they made a profit and spotted an opportunity, they’d inject more funds into the business and expand. For instance, Crystal Jade’s bread concept began as a takeaway counter at Takashimaya in Singapore’s Ngee Ann City shopping center. Sales proved to be brisk. Hence, Crystal Jade realized the potential of their bread concept and expanded on it, increasing the scale of their operation by opening a full Crystal Jade My Bread outlet. This has since become a multiple-outlet concept, which has also spread to Bangkok and Jakarta.