Cebu-based restaurant chain shifts focus to quality, not size

CEBU, Philippines - Despite the strong interest from concerned entrepreneurs wanting to get a franchise of Cebuano-owned restaurant brand Dong Juan, the company has to slow down its franchising offer to make way for a better and competitive system and services within the existing branches.

In an interview, restaurant owner Audrey Borja said that with the fast expansion of the brand with 18 outlets spread across the country, the business is taking serious attention on maintaining its quality, while competition in food and restaurant industry is getting tougher.

Owned by the Cebuano couple John and Audrey Borja, Dong Juan successfully gained followers and patrons not only in Cebu, but also in the highly competitive Metro Manila market.

The restaurant brand, which was started by the couple as a 10-seater small food outlet in Guadalupe (near the couple's house) in 2007, has now grown to 18 outlets, mostly managed by franchisees.

Audrey said Dong Juan serves popular to-die-for, foreign-inspired dishes like burgers, pasta and pizza but with a "timpla" (taste) that is Filipino. She added that the prices are "pocket-friendly."

According to Audrey, while the restaurant business is now becoming too competitive, Dong Juan continues to gain attention from the market, as well as from interested franchisees.

However, the company is determined to improve its internal operation system first, as well as to perfect its franchising offers.

Audrey admitted that together with her husband, they are still "neophyte" in handling bigger chain of outlets, although they are handed to trusted franchisees.

"We have to sustain our quality of food, and improve our operational and customer service," said Borja, stressing that taking in more franchisees may take for a while until the company will complete its internal system improvement program.

"The cuisine is very simple, and we make sure the ingredients are fresh. The spices are from Europe," said Borja, describing Dong Juan's secret to success that was achieved for only a short span of time.

Borja said the growth for casual dining in the Philippines is encouraging, although there are a lot of capitalists, including global brands that have already taken advantage of the growing market.

In order to compete with the giants, Borja said Dong Juan chain of restaurants will have to invest on strengthening its operations in order to draw confidence in competing head-on, while penetrating other potential areas in the country.

The young couple started the Dong Juan brand with a capital of P500,000 primarily to satisfy their common ground as "food lovers."

Today, Dong Juan has four outlets in Manila and has presence in Bohol, Dumaguete City, Cagayan de Oro City, Davao City, Pampanga, and soon on Boracay Island.

The company recently opened its company-owned outlet at the Cebu IT Park. —/JMD (FREEMAN)