Met the owners of Villa Sophia yesterday - resonated with his business principles

Every generation needs a revolution - an entrepreneurial revolution

Had a two hour meeting  or rather a kuwentuhan with the owner of Villa Sophia, a doctor a Philippine in gastroenterology.  He used to be the President of their association   He hails from Calapan Mindoro (where we happen to have business too).  He said that the business of his aunt, Divine Mercy pours profits into a foundation which helps people of Calapan

He says that his resort (and he wanted to acquire property for parking and events  -  800 sm of our property) is meant to make visitors happy.   Profit comes next, not the other way around.   

He is very meticulous on maintenance of the resort.    See the video

What is the size of food industry in the Philippines?

Every generation needs a revolution - an entrepreneurial revolution

It is a huge market but competition is brutal.  There is possibility of waste and spoilage.  Since there is no barrier to entry, every body can enter into the market and be a competitor.   Supply chain infrastructure can wreck havoc on the business as well as Acts of Nature like floods, typhoon earthquake, kotong policeman and the like.

I have seen presentation where a a multinational packaged food company sells $1billion worth or P50 billion a year   That was a decade ago;   maybe they are selling twice as much $2 billion worth.

A fastfood company sells about P200 billion worth annually. 

Would you like to be in this market?  

From PSA

From PSA

What is the revenue of the food industry in the Philippines?

Restaurants and mobile food service activities industry group contributed the largest share to the total revenue and total expense. The total revenue generated by the section amounted to PhP 556.62 billion in 2021, recording an increase of 4.1 percent from the PhP 534.53 billion total revenue in 2020.Oct 3, 2023

Why do investors still flock to retailing business despite thin margins and risks?

Every generation needs a revolution - an entrepreneurial revolution

One wonders at sudden surge in investment in retailing business.  There are Dali and Save branching out furiously aside from 7-11 and Alfa Mart.   I have former employee having a new retailing outlet and now putting up a second one.

We had a small grocery before but we excited this because of :  1.  paper thin margins.    2.  inventory shrinkage from shoplifting and inside theft.   3 stiff competition who undersell you.   Thats the strategy of a huge retailing firm, they undersell you at a loss and then  resume normal prices when you have closed.

Thats the same phenomenon say at USA where new civil rights embolden thieves and looters.   Thus retailers are leaving NYC. Chicago and San Francisco in droves.   

What do they see that we  dont?

Will you invest in retailing business

Dali Reports P1.88 billion loss  (Dali is discount retailer which is funded by ADB)  They are every where.  In our municipality, they have 3 outlets.