Manuel S. Enverga University Foundation Inc.

Lucena City

Interview with an Entrepreneur:

Mr. Teofilo Castro of Doughboy's Cafe and Bakeshop

Presented by: Ma. Rhodora U. Andaya Carlo Magno Castro Annalyn Pena Ruth Joy Rolloqui Violeta Salapare

Submitted to: Dean Paz Bobadilla Entrepreneurship and Enterprise Development

February 04, 2012

Historical Background
The name Doughboy's is originally derived from the popular bakeshop of Raffles hotel in Singapore. Mr. Castro named it as such because the first suggested name which is 'Breadline' is already used or existed in Palawan. Dough represents the mixture of flour, shortenings, and leavening agent in making bread, while boy means the worker or maker. Doughboys Caf & Bakeshop has been in the business for about eight years after realizing the need for producing their own bread to have sufficient supply for their mini carinderia. It started with one oven, 100 pieces plantsa, slicer, one mixer and three workers. Doughboys bakery started its operation in 2002 with cookies, cakes, pastries and other bakery products being produced in a small bakery at the front of Mr. Castros residence in Mogpog. Later in 2003, Doughboys penetrated the town of Boac and established the Doughboys Caf and Bakeshop at Del Mundo St., Malusak, Boac. From then on, the demand for their product continues to increase and had gained its popularity in the whole town. In fact, nationally-known food companies such as Greenwich and Jollibee became their biggest consumers of burger buns and pizza crusts during summer season when these companies put their outlets during the Moriones Festival in the province. At present, Doughboy's Cafe and Bakeshop expands its product range to veggie breads, processed meat and personalized cakes.

Organizational Structure

Interview Questions and Answers:

1. What inspired you to start this business? How and where did you get this idea for a business? What need did you see? Way back in 1993, after I returned from my two years work in Taiwan, my wife urged me to start a small cafeteria serving the ordinary goto, pancit, spaghetti and ihaw-ihaw. With a meager capital, we started this eatery business concentrating on tricycle drivers and students as its target customers. My wife used to buy buns from a bakeshop four blocks away from our home. Unfortunately it was during Saturdays and Sundays that this bakeshop didnt have operation, hence we would not have buns to serve our customer. It was then that the idea came to my wifes mind, telling me and encouraging me to open a bakery solely to produce our own buns as well as other breads to our customer, so they would not go to other eateries, hence to satisfy their needs. Using the ground floor of our house, improving its interior by repainting it, putting a division to identify the kitchen area separate from the would be bakery, and presto, we had a place for the bakeshop. With additional capital, we purchased all the needed materials to operate the bakeshop, starting with one oven, 100 pieces plantsa or bread sheet, a mixer etc. with two hired workers. After applying for business permit to operate and other requirements of DTI and BIR were satisfied, we began the bakery business. As the bakery business grows, we unfortunately put the eatery business aside. Much time and attention was needed in the bakery, hence our efforts to save the eatery business was futile. 2. What makes your business different from the others? What makes this business stand out from the rest? We make sure that the breads we produce are tastier, cleaner, and the prices are affordable. With these qualities, the name of our bakery became known to local consumers and neighboring establishments. Also with the expertise of our hired bakers, considering their knowledge and skills in making different breads, this added points to us to compete with existing bakeries in town. We made sure also that the production area, packaging area and the store are always clean and sanitized so that when customers come, they could see that we follow good manufacturing practices. We also implement policies like wearing hairnets, aprons, and work shoes to our workers. Added to this, we require them not to smoke inside the working areas. The place used to be our eatery before is the display area where all the finished products of different breads are arranged and stored. The good service of the store salesladies, the quick response to the customers needs, and the good quality of the products gained recognition, trust and approval of the clients, hence all these make our bakery stand out.

3. Who are your customers? Like what is stated, our customers are mostly the same when we had our former eatery business -- the tricycle drivers, students and the workers of the government offices and schools. Our customers readily grow in number. Even when we closed our eatery business, our door for the bakery business opens to the same group of clients that need our products. 4. How has your market changed in the past few years? How has your business changed to keep pace? At the middle part of 2004, we opened our cake and pastry business because at that time, Carlo Castro, our second son, had just graduated in College with a degree in Hotel and Restaurant Management and he was really into it. Asserting and encouraging him that he can do it, the cake business became an added attraction to the bakeshop. We started with birthday cakes and other simple cakes needed for a party plus personalized cakes needed for wedding, Christening, Christmas and other occasions with improved quality. When our daughter married, the first wedding cake with fondant icing was made in her honor. Apparently, as this was displayed in the reception area, it caught the attention of the viewing guests, friends and relatives. In 2004, another luck knocked at our door when my wifes friend, an owner of a stall business, offered one door for us to rent. We grabbed that opportunity as we are eyeing for expansion. Hence, in that same year, we opened Doughboys Caf & Bakeshop in Boac, the Capital of Marinduque. To make our newly opened caf competitive, we made some renovations and modifications in the interior; the workers are in uniform with proper hair restraints; and are fit to work provided that they have health clearances. Because of these qualities, again the store gained the expected acceptance and trust of the growing clients. Believing that we must not stop to what we already have, we made sure that our workers are experts in their own way and aware of the requirements in food service. We added workers for the cake area. A skilled baker, one assistant and one helper comprise the unit. 5. How did you finance the business? What are your marketing strategies for this business, especially on the start-up stage? The most difficult part of starting a business is searching for capital and the will to do it. These two must go hand in hand to make the business succeed. A little capital from our personal savings and loans plus the will power will determine the success or failure of a business. And these are the principles that we embrace and apply in our business. In 2006, my wife agreed to purchase additional cake chillers with a capital coming from our savings, for the purpose of providing good and appealing display of refrigerator cakes for the customers to view and be happy to buy.

Marketing strategies need to be applied whenever necessary. In the start up stage, seeing ourselves in a bakery business, we realized the need to become more competitive. One marketing strategy we applied is acquiring appropriate packaging format and labeling for our products especially during peak seasons like Christmas, New Year and Fiestas when high competition occurs. Fortunately, our products are still the ones trusted by the buying public. 6. What was the biggest problem that you encountered in your business, so far, and how did you handle it? Problems are always part of the business, particularly the money aspect. In so far as the business is concerned, there is a strong desire to expand and be on top. One can only do this by improving the products, in packaging for example. Packaging alone cost hundreds of thousands but it is necessary for a product to have a real identity which will make it very different from the others. To attain this, there is a need to apply for a funding assistance from government agencies like DOST or DTI. 7. What have been some of your failures or mistakes in running the business and what have you learned from them? Our failures are minor. This is related to hiring of workers. Some of them are too old in the trade and some of them are too young. Those who are old could not easily adopt changes in work schedules and added volume of work resulting to limited product output. Those who are too young are still inexperienced, and are always making complaints whenever reminded of their jobs. To solve these problems, we have a general meeting once in a month to inspire them, bring to their attentions the concerns of the business, reminding them of their duties and responsibilities, the productivity aspect of the business and at the same time improving the employer employee relationship. Having encountered different attitudes or behaviors of workers is a little bit crucial on the part of the management. Because of these individual differences, our bakery business is sometimes affected. The increased volumes of the products are sometimes not addressed by the workers because of absence, tardiness or sudden family problem. To address these things, there is a stricter application of discipline particularly in work attendance. In the Cake Area, there is a required submission of daily accomplishment report. In the Bakery Area there are listed menus assigned to each Master Baker to comply and be checked after being accomplished. With this strategy, the management has an overview on how the workers do their job to accommodate the growing demands of our bakery products. Also, the management has an overview of how the raw materials are utilized for a day needed for the weekly inventory. 8. What are the most crucial things you have done to grow your business? What systems have you used to automate your business to give you more time

for business planning and development? To expand this business and with the technical assistance granted by DOST MIMAROPA, the management could now proceed to improving the packaging of the products and to introduce more additional products to the market. Aside from the improvement of the packaging and introduction of new product range, the management also has plans of system automation in product reservation, marketing, automated log in of employees, product costing, and for inventory purposes. 9. What are your expectations for the future with regards to the business? Expectations with regards to bakery business are always there. In our case, we are positive that our business will continue to grow hence we shall do what we can address to improve our products. 10. What lessons do you give to the other entrepreneurs? As an entrepreneur, there is a need to focus on your business. Whatever it is that you venture in, be sure you know exactly how you will run it. You must know the needs to accomplish what are expected to improve your products. In every business venture you must have complete knowledge and skills to manage it. Also, have a strong will power to succeed, to be more competitive and to take risks. Take additional studies to improve your craft.