A KISS away
August 1, 2005 | 12:00am
Larry Lagdameo used to work for only two hours a day. At the end of those two hours, selling fish balls in a Diliman location, he had P2,000 in his pocket.
Today, Lagdameo is a director of KISS King of Balls, Inc., which has 300 outlets selling fish and squid balls, kikiam, and other easy to prepare street food.
"I learned the operational aspects of the business from Larry. What I did was to commercialize fish ball vending and standardize the cart model with aluminum sidings and plastic glass covers," said president Melchor Flores, who used to work for the Philippine master franchisee of two well-known American brands.
The company directly and indirectly employs 500 from diverse social groups and callings. The number is expected to go up when the company grows to 400 outlets by end-2006.
KISS was registered with the Securities and Exchange Commission in 2000 with a paid-up capital of P5,000. Initial working capital, including the carts and the small commissary, totaled P150,000.
The first two carts were located at EDSA Central.
"The rights for the space cost P100,000 but a friend from way back gave it to me on a pay-as-you-can basis. The first-day sales of one outlet was P4,000," said Flores. "Shortly after, we began receiving franchising inquiries. We opened our third outlet and first franchised store three months after."
By end-2000, the company had 43 stores, growing by another 50 in 2001; 100 in 2002, 50 in 2003, and another 50 in 2004. This year, the target is 50 new stores.
KISS outlets are located in malls and supermarkets as well as schools and hospitals. It is also located in several MRT stations. Of the company’s 300 outlets, 70% are based in Metro Manila.
"The investment package for a franchise is P150,000, with an estimated payback of six to eight months. Even my former bosses have become franchisees. In their case, we manage the outlets for them," said Flores.
From the start, KISS entered into a strategic partnership with a frozen seafoods exporter.
"There is practically no human intervention in my partner’s automated operations. Equally important is the quality of products produced. Our squid balls, for example, is 80% cuttlefish. Most of the commercial squid balls sold in markets are made up of 20% fish and 80% flour," said Flores.
The company’s management is basically made up of Flores’ former colleagues in the fast food business. For the crew of franchisees, the company entertains applicants daily at its head office.
"We strive to develop humility, wisdom, strength, a virtuous heart in every employee. Our most important task is to develop people who will enjoy their work," said Flores.
For the past two years, the company has been regularly shipping inventory to its franchisee based in Abu Dhabi. There are ongoing exploratory talks with a group that owns a grocery chain in the United States.
"While we want to be a strong Philippine brand competing in the global arena, we are not keen on the Asian market. There are just too many different tastes and preferences to deal with. We would rather develop the Middle East market where seafoods are the most acceptable food items," said Flores.
Today, Lagdameo is a director of KISS King of Balls, Inc., which has 300 outlets selling fish and squid balls, kikiam, and other easy to prepare street food.
"I learned the operational aspects of the business from Larry. What I did was to commercialize fish ball vending and standardize the cart model with aluminum sidings and plastic glass covers," said president Melchor Flores, who used to work for the Philippine master franchisee of two well-known American brands.
The company directly and indirectly employs 500 from diverse social groups and callings. The number is expected to go up when the company grows to 400 outlets by end-2006.
The first two carts were located at EDSA Central.
"The rights for the space cost P100,000 but a friend from way back gave it to me on a pay-as-you-can basis. The first-day sales of one outlet was P4,000," said Flores. "Shortly after, we began receiving franchising inquiries. We opened our third outlet and first franchised store three months after."
By end-2000, the company had 43 stores, growing by another 50 in 2001; 100 in 2002, 50 in 2003, and another 50 in 2004. This year, the target is 50 new stores.
KISS outlets are located in malls and supermarkets as well as schools and hospitals. It is also located in several MRT stations. Of the company’s 300 outlets, 70% are based in Metro Manila.
"The investment package for a franchise is P150,000, with an estimated payback of six to eight months. Even my former bosses have become franchisees. In their case, we manage the outlets for them," said Flores.
"There is practically no human intervention in my partner’s automated operations. Equally important is the quality of products produced. Our squid balls, for example, is 80% cuttlefish. Most of the commercial squid balls sold in markets are made up of 20% fish and 80% flour," said Flores.
The company’s management is basically made up of Flores’ former colleagues in the fast food business. For the crew of franchisees, the company entertains applicants daily at its head office.
"We strive to develop humility, wisdom, strength, a virtuous heart in every employee. Our most important task is to develop people who will enjoy their work," said Flores.
"While we want to be a strong Philippine brand competing in the global arena, we are not keen on the Asian market. There are just too many different tastes and preferences to deal with. We would rather develop the Middle East market where seafoods are the most acceptable food items," said Flores.
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