https://josiahgo.

com/qa-with-french-baker-founder-johnlu-koa-on-innovation/

Q&A with French Baker Founder Johnlu Koa on

Innovation

 Josiah Go March 16, 2018 1

Johnlu Koa is the Founder & CEO of The French Baker Inc and Lartizan. He brought in Chatime from Taiwan
in 2010 as the Philippine franchisee. He is also responsible for the success of VAN LAACK, a mono-brand
European chain of men’s and ladies’ clothing. He is currently director for government relations of
PHILBAKING. He completed his BSBA and MBA degrees, with honors, from UP Diliman and taught
marketing in the same university for 15 years from 1989-95. His company, The French Baker, won the Agora
Award in 1994 as the “Marketing Company of the Year”. In 1997 he received his TOYM award for
Entrepreneurship. In 2005, he received the second highest recognition given by Ernst & Young as the
country’s “Emerging Master Entrepreneur”. He is an advocate and active mentor of GoNegosyo since its
founding in 2005. He is also a trained artisan baker with more than 20 years of experience. He is steeped into
the traditional art and science of French baking and is well versed on the use of ancient grains. He shares his
insights about innovation.

Q1: How did you come up with the name ‘The French Baker’?

A: I’ve been a Francophile ever since I visited Paris in the early 80’s. Since France has become synonymous
with the fine arts, culture, haute cuisine as well as haute couture, I wanted a brand that could be associated with
those traits and eventually create a desirable image for my new business, hence The French Baker. Another
reason was that I wanted to achieve a quick and automatic brand recall. I wanted to be first in the category of
“French bakery-cafe” in the Philippines. I knew it would be challenging and I needed a brand that must be
unambiguous.

Q2: French Baker was launched in 1989 with many innovations– onsite baking of breads in malls
normally available only in hotels, no preservatives, premium price and no media advertising. What was
the inspiration behind these?

A: At that time, It wasn’t difficult to imagine that customers would easily be captivated by the sight of freshly-
baked breads being baked inside our stores. With exciting new breads like baguettes, croissants and Danish
pastries, we inadvertently created what would become an emerging new category in the QSR called “French
bakery-cafe” that we continue to dominate up to today.

I was inspired by my first backpacking trip to Europe in 1985 where I saw first-hand how consumers were
willing to queue up several times a day for freshly-baked breads in several Parisian boulangeries. That image
stuck to my mind until 1989 when SM malls offered me a lease space that allowed me to execute a fresh
bakery-cafe concept which was to become my first FRENCH BAKER store .

Q3: What are the keys to success in launching an innovation?

A: For me it’s always been about timing and being ahead of the pack. In time “Me-Too’s” tend to fall short of
market expectation especially about being better than the original. I’ve seen a lot of these in our industry. In
fact many have challenged The FRENCH BAKER in the past and have given up. Another key to success is the
organization’s ability to continue innovating in order to keep up with the times. In the late 80s The FRENCH
BAKER was all about freshness by launching its half-price sale half an hour before closing time. Images of
wiped out bread shelves soon created news and word-of-mouth advertising that quickly spread around the
metro that at The FRENCH BAKER, absolutely nothing was left behind for sale the following day, hence
genuine freshness. In the 90s it was about “all-natural” baking without the use of chemical preservatives which
industrial breads sold in supermarkets couldn’t do without due to their customers’ preference for long product
shelf life of at least 7 days. In the 2000s it was about introducing several of the world’s favorite breads like
ciabatta, english muffins, scones, belgian waffles, bagels, german pretzels etc. In the 2010s it’s about artisanal
baking and the use of natural yeast or sourdough. Soon it will be about gluten-free baking to serve the needs of
gluten-insensitive individuals and others whose diets call for it.

Q4: What are the mistakes you wish you did not commit in French Baker?

A: It’s very difficult to say which mistakes I wish I hadn’t made because the same mistakes in the past had
enabled me to pick up new learnings and insights in order to obtain the level of success which I presently
enjoy. If ever there should be one mentioned, It would probably be certain projects that veered away from my
core competency, believing that my partners would be the ones to carry the cudgels for me in terms of product
and market-related strategies.

Q5: You have been active in your bakers’ association, what has been your proudest contribution?

A: In 2010, we put up PHILBAKING, an association of medium-to-large bakeries that supplied mostly to

supermarket chains and convenient stores in order to address the skyrocketing flour prices affecting our
industry sales. Our association is composed of 9 members namely: Classic Bakers, Creative Bakers (Walter),
The French Baker, Gardenia Bakeries, Julie’s Bakeshop, Marby, MLM (Fortune), Tiffany and Uncle George.
In 2006, under the leadership of our first President, Jun Umali of Gardenia Bakeries, our association approved
my proposal of creating a generic bread called PINOY TASTY. This idea was subsequently adopted by DTI,
believing that a quality and affordable loaf bread like this would be a boon to Filipino consumers nationwide.
Looking back, there were 3 key factors that made it successful: 1) a generic plastic bag that was used by all
member-bakeries drove down the cost of packaging, 2) one common recipe that was shared by all members
allowed for reduced raw material cost. The recipe uses locally-blended wheat flour, less sugar, less vegetable
fat, washed (brown) sugar instead of expensive refined white sugar, and 3) the cooperation of supermarket
chains in lowering their mark up in support of DTI’s objectives. This was a triple win situation that continues
up to this day. Since it’s introduction in 2006 at P36 per loaf, it’s retail price hasn’t changed much!

Q6: You franchised Chatime from Taiwan in 2010. Why didn’t you create your own brand?

A: In 2010, I saw the emergence of a new specialty drink category in taiwanese-based bubble tea products. I
felt that while our group was very qualified to create our own, we didn’t have the luxury of time to develop
and product-test our own version. Time was of the essence to be able to launch a new brand immediately.
Together with my nephews and nieces who were in their early and late 20’s then, we launched CHATIME in
2011. Today with over 70 stores and counting, we plan to reach 100 by year end.
Q7: You are also into the luxury Men’s fashion business. Can you share some of your insights?

A: Since I’ve been accompanying my wife Marilou to her fashion buying in Europe for many years now, I
realized that there was a dearth of better value-for-money and quality men’s clothing in the Philippines. When
I stumbled upon VAN LAACK (Est. Berlin 1881) through the same circle of colleagues and friends running
Escada in Germany, I immediately realized the immense potential of the brand. After a few months of
preparation, we brought it into the Philippines in 2012. The brand specializes in luxury men’s shirts and ladies’
blouses in Germany. It’s reputation has never been tarnished despite the passage of time. Trivia has it that even
our national hero, Dr. Jose Rizal, wore VAN LAACK during his stay in Germany! Since then, it’s been the
brand for royalty and statesmen. Presently, I’m so excited with the prospect of being able to do men’s made-to-
measure (MTM) suits and blazers soon, in addition to the shirts which we already have. Fabrics made of Super
130’s wool and cashmere made by Loro Piana find it’s way to almost all of its suits, jackets and pants. With an
added fashion business on the side, I find my involvement here very enriching and in many ways supportive of
the strategic marketing thinking of my main line which is in retail bakery.

https://www.philretailers.com/the-french-baker-celebrates-25th-year-in-the-philippines/

The French Baker celebrates 25th

year in the Philippines
Source: Retail In Asia | Wed, 2014-11-12 06:00

The French Baker, a pioneering store concept in the Philippines offering

European style breads in the mass market, recently celebrated its 25th
anniversary.

Johnlu G. Koa, Founder and CEO of The French Baker

“It was in 1985 when I travelled to Europe for the first time that I fell in love
with Paris and her baked goodies. Since then I’ve dreamt of doing the same so
that I can impart a similar experience in the Philippines,” shared Johnlu G. Koa,
professor turned entrepreneur, and now Founder and CEO of The French Baker.

Koa is also the first Filipino entrepreneur in the history of Asia-Pacific

Entrepreneurship Awards (APEA) to be recognized in the Outstanding Category.

Opening its first branch at the SM City North Edsa in 1989, The French Baker
began as a startup selling French-inspired breads and pastries such as
baguettes, croissants, sourdough and tarts alongside local favorites like pan de
sal and ensaymada, until it expanded into a casual dine-in that also offers
soups, salads, pasta and pizza.

It was the first establishment to introduce European-style breads and pastries in

the Philippine market, and the first to employ the nightly half-price sale to
ensure the freshness of baked goods to be sold the next day.

Today, The French Baker has 52 branches all over the country, and has
expanded to include The French Baker “Salon de The” edition.

https://enterpriseasia.org/apea/philippines/awards/ph-2014/johnlu-g-koa/

OJohnlu sees his role as a change maker, introducing

new concepts and ideas that further bolstered the
Baking industry. In 2009, he introduced the idea of
creating a “national bread”.
  The French Baker
 FOOD & BEVERAGE

 2F Unit 6 108 E. Rodriguez Ave. Brgy. Bagumbayan, Quezon City, Philippines 1110
 (632) 781 9810

  www.thefrenchbaker.com

Here’s a business success story of a professor -turned entrepreneur whose company The French
Baker recently turned 25 this year. He is the Founder and the CEO of the company since its
inception. Johnlu Koa entered the business college of the University of the Philippines (U.P.) in
1975 and graduated with honors cum laude. In 1984, he graduated from the MBA program of the
same college, landing among the “Top 10 MBA graduates” of that year.
As a student, Johnlu was an active leader. His management skills and popularity won him the
presidency of the U.P. Junior Marketing Association from 1978-79. The same organization won
the “Most Outstanding Student Organization” in 1979.
As a young business graduate, Johnlu saw the opportunity of helping his alma mater by
accepting a teaching position as full- time Instructor. His area was in corporate strategy and
Marketing. He began his teaching career at 22 year old and ended it at the age of 37; thereby
serving the U.P. for 15 years. In between, he was appointed College Secretary, a prestigious
position that was accorded him when he was just 26 years old. He began teaching in the MBA
program upon graduation from the U.P. MBA School at the age of 27.
Johnlu is a doer, believing that he must always manage “by example”. He is a self- taught baker
who constantly took baking seminars in Europe and U.S. After returning from a two-month
back-packing tour of Europe in 1985, Johnlu vividly remembered his travel experiences
especially the traditional French artisanal bakeries that line the left bank of the Seine River in
Paris. In 1989, after seeing the business opportunities resulting from the positive change of
government from Marcos to Cory Aquino, and the improving business climate, he ventured into
French Baking by establishing “The French Baker” brand in Manila. His positive mindset drove
him to expand his business beyond the expectations of many despite several coup attempts to
topple down the Cory Aquino Presidency. What he did was an application of the “Blue Ocean”
strategy where he entered an uncontested market space by being the first in his own category. He
created a “French bakery-café and restaurant” which in 1989 was totally unheard of. His huge
success was manifested in the opening of several stores in rapid succession within the SM
Supermalls chain. From a merely startup in 1989, French Baker today is pitted alongside the big
food chains in prestigious shopping malls over the Philippines.
Today French Baker enjoys the dominant market share when it comes to the French Bakery-café
category, despite competition from foreign brands over the last 25 years. He says that he is the
“chief marketing officer” responsible for building his brand over time. He is a very hands-on
baker- entrepreneur, personally looking after new product development of French Baker.
The French Baker has over 2500 personnel in 52 bakeries spread over the 3 major islands of the
Philippines: Luzon, Visayas and Mindanao. In 2013, total sales turnover reached Php 930
Million. In 2014, he hopes to achieve the one billion mark.
His company and himself have been multi- awarded by professional and industry organizations.
For himself, he was recipient of the three most coveted awards, namely: TOYM (Ten
Outstanding Young Men) of the Philippines in 1996; the Ernst & Young Entrepreneur of the
Year (EoY) “Emerging Master Entrepreneur” of 2005; and in 1994, the Agora Award for
“Company of the Year” given by the Philippine Marketing Association.
Johnlu sees his role as a change maker, introducing new concepts and ideas that further bolstered
the Baking industry. In 2009, he introduced the idea of creating a “national bread” by convincing
government (through the Department of Trade and Industry) and private sector (through the
Philippine Baking Industry Group). This was accepted and eventually implemented. His vision
was to come up with a staple bread that could be made affordable to the masses of the Filipino
people. Together with his colleagues in the association, he came up with a common recipe that
minimized the cost of ingredients and cost of packaging materials. Bakeries who joined the
program were allowed to participate in baking this national bread, provided that they stick to: 1)
common recipe and processing method to ensure quality; 2) common price, which is at least 10%
lower than market; and 3) common packaging material. In less than 5 years, industry sales of this
national bread already reached 12% of total bread sales in the Philippines. Such uncommon
approach, once again, earned him the admiration of many.

Johnlu Koa loves his Country, the Philippines very much. As a young instructor in 1986, he
risked life and limb to actively participate in the movement to oust the Marcos Presidency.
Together with his colleagues at the University of the Philippines, he was head of the business
group which raised cash to fund the “civil disobedience campaign” staged by the UP Academic
Community to bring down the Marcos government. Being Chinese-Filipino, he considers himself
a Filipino, first and foremost. After the fall of Marcos, Johnlu volunteered actively in the new
government’s thrust to save tourism assets all over the country. He signed up for the “task force:
tourism” and went all over the country to verify the existence of assets and interview caretakers
of those asses (like hotels, resorts, museums, palace, etc.) and channel the information to
Malacanang (central government) in Manila.
He is a favorite motivational guest speaker of many organizations both civic and academic, often
being invited to talk about entrepreneurship and in some cases, baking technology. He never
charged professional fees for these speaking engagements. When given, he automatically
endorses the payment to his charities, the Red Cross, Philippine General Hospital (PGH)
Foundation and the Tzu Chi Buddhist Foundation in the Philippines.

His motto in business is “under-promise but over-deliver” when it comes to product value and
customer service. On a daily basis, he could still be seen bussing tables, baking with his bakers
and chatting with his dining or bakery customers. He says that this constantly reminded him of
his early beginnings. He wants to be always in touch with the market. On the marketing side
which is his favorite business subject, he advises fellow entrepreneurs to constantly “focus and
differentiate” on their core competency.

Johnlu has always believed that the Philippines will one day improve economically. In 1981, he
did not leave the Country when he had the chance to do so. He decided to stay behind when
many among his classmates had left for the U.S. to take up their masters. His Vision is to see the
Philippines prosper in the new economy (digital) by encouraging fellow entrepreneurs to take his
path less travelled. His Mission is to serve as an icon of SME business success story in the
Country. He joined the GONEGOSYO movement of the Philippine Center for Entrepreneurship,
serving as speaker and donor in many fora around the country promoting entrepreneurial
business education and entrepreneurial skills building. His Hopes are for an enlightened
government and people who can transcend domestic bickering and focus on poverty elimination
through economic development all over the country.

https://www.businessnews.com.ph/4-business-tips-from-the-founder-of-the-french-baker-
20190224/

By 1989, 9 years after he began his bakery in that small apartment, he received invitation to open
an outlet at the then-recently opened SM City North Edsa — The French Baker was born. Set in
the largest mall in the country at the time, Koa's bakery shop would become a popular hangout.

Today, nearly 30 years after that first mall outlet, The French Baker now has 63 outlets all over
the Philippines, employing more than 600 people!

On Entrepreneur PH, Koa shares 4 business tips based on his success story.

Find a Unique Niche Market

It is easy to be tempted to just copy a concept from other successful businesses in hopes that you
can replicate their success and also make it big. While that might work, Koa believes it is better
to find your own niche market. Learn to be different from the crowd ~ and build your business
from there.

While it might involved more work as you have to build a customer base from scratch, the
rewards are great. Because you created a niche market, you don't have competition there.
Location is the Key!

Finding the right location is the key to success, but you have to study your market and your
potential competition.

According to Koa, the right location for the product or service must identify the target market.
When scouting for a mall spot, The French Baker has specific targets.

“ We don't want to be located beside an inasal (concept) for example because the people who eat
there don’t come to us. We also dont want to be in the same location with no-name brands unless
they are extraordinarily good,” Koa shared.

Turn Your Idea into Reality

You could have the best ideas in the world, but if you do nothing to make these a reality, then
those will remain nothing. For Koa, it is best to turn your idea into reality.

Of course, that's easier said than done, and would involve a lot of money if you do want to start a
business but a ‘well-thought-out strategy’ could help you start that business and grow it.

Customers Don't Just Buy Products, They Also Buy

Experience

Koa shared that people don't just buy the products they are selling, but also the experience.

So, you have to make sure that you provide a better experience for your customers to enjoy ~ and
it is
something that would make them come back for more, not just the delicious food you've got to
offer.

https://www.manilatimes.net/2014/12/13/weekly/the-sunday-times/phs-homegrown-french-
baker-turns-25/148550/

Silver history
Opening its first branch at the SM City North Edsa in 1989, The French Baker began as a startup
selling French-inspired breads and pastries such as baguettes, croissants, sourdough and tarts
alongside local favorites like pan de sal and ensaymada, until it expanded into a casual dine-in
that also offers soups, salads, pasta and pizza.

It prides itself as the first establishment to introduce European-style breads and pastries in the
Philippine market, and the first to employ the nightly half-price sale to ensure the freshness of
baked goods to be sold the next day.
JOHNLU KOA
CHIEF EXECUTIVE OFFICER, THE FRENCH BAKER, INC.
DIRECTOR, TEABROS CORPORATION (CHATIME PHILIPPINE FRANCHISEE)

As a professor of marketing at UP Diliman, Johnlu Koa discovered in his marketing research that
of all restaurant segments, there was a lack of French-inspired bakery restaurants in the mid-
1980s.

It was also at that time that Johnlu was traveling to Paris, which he considers the most beautiful
city in the world, every year. There, he was entranced by its world-class restaurants and bakeries,
and trained with chefs, bakers and le boulangers.

With that, he thought of bringing in a taste of Paris – baguettes, croissants, and ciabattas – to the
Philippines, and opened the first French Baker outlet at the Annex in SM City North EDSA in
1989.

While The French Baker started out as a bakery café serving sandwiches and pasta, as well as its
signature breads, a visit from SM Founder Henry Sy, Sr. gave Johnlu a priceless business
perspective.

“One day, Tatang Sy dropped by and told me, ‘I think you will have a great future if you were to
do fast food,’” recalls Johnlu. “He meant not just concentrating on breakfast and meriendafare,
but food all day for Filipinos who would eat 3 to 5 times a day.”

And as they say, “the rest is history. In 6 months’ time, I was given a second store, a third store
after 8 months, and a fourth and fifth store after 15 months. I was really lucky SM gave me that
special moment to build my first shop at SM City North EDSA.”

Today, thanks to The French Baker, the average Filipino now enjoys a wider variety of bread and
pastries, chocolates, pralines and French macarons, as well as savory dishes and meals. After
more than 25 years, The French Baker now has 63 branches spread all over the country.

In its 25th year, The French Baker evolved from a bakery into a full dine-in restaurant with The
French Baker Salon de Thé, bringing in world-class teas, sweets, pastries, and savory dishes in
delightful Parisienne interiors.

“SM is really very special to me because Tatang Henry Sy was close to my late father when they
were in their teens,” says Johnlu. But beyond that, “over the past three decades, working with
SM has been a situation wherein they understand me, I empathize with them, and we give each
other room to adjust in a day-to-day basis, as well as in new projects and everything else.”

Johnlu and The French Baker have received many awards and citations over the years: the Agora
Award for the Marketing Company of the Year in 1994, the Ten Outstanding Young Men
(TOYM) Award in 1996 for Business Management/Entrepreneurship, the Emerging Master
Entrepreneur of the Year by Ernst and Young in 2005, and The Asia Pacific Entrepreneurship
Award (Outstanding Category) given by the Enterprise Asia Organization of Malaysia in 2014.
BUSINESS LESSONS FROM JOHNLU KOA
On The French Baker:
“I try to bring in my own experiences from abroad to The French Baker, and I think our clients
can be assured that what we give you is the standard of Paris, the standard of Europe. Our
ingredients – our coffee, chocolates, our butter – are sourced from the best of the world. And we
make sure that our interiors, our flatware, our silverware, and furniture enhance the Parisienne
experience.”

On Working with SM:

“Business is like our children. As you grow, you learn how to walk, then you walk fast, and you
think you’re good. Then you’ll walk faster, then you run, and then you trip, you fall, you bruise
up, you get up, and then you learn to walk smarter. All these 29 years with SM has been a very
rewarding experience for the business and myself.”

https://news.abs-cbn.com/ancx/food-drink/features/09/03/19/still-baking-at-30-how-johnlu-koa-
sold-french-breads-to-a-generation-raised-on-pandesal

Still baking at 30: How Johnlu Koa sold French breads to a generation raised on pandesal
Back in the 1980s, when hardly anyone was buying baguettes and croissants, one Filipino-
Chinese marketing professor struck it big with The French Baker. Thirty years later, this
homegrown brand continues to thrive amidst the competition.
Nana Ozaeta | Sep 03 2019

While The French Baker has always sat squarely within the middle market, with outlets spread
across the Philippines from Baguio to Davao, Koa is adamant about providing a premium
experience to his customers, no matter the income level. That’s why the choice of Sta. Lucia East
Grand Mall in Cainta, Rizal was an especially apt location for ANCX’s sit-down interview with
the man.

This branch shows off The French Baker’s “new look,” a sign that, after 30 years in business,
and despite the onslaught of competitors, especially from overseas, the brand has managed to
keep up with the times. While the store has retained its familiar bright, cheerful look, and always
bustling vibe, we couldn’t help but notice the many new touches introduced to upgrade the
customer experience. Think neutral tones, plush banquettes and upholstered seating, with brick
walls decorated with framed pictures of scenes from some of Koa’s favorite European
destinations, some of them taken by Koa himself.
The store now has a separate espresso counter featuring exclusive Piacetto coffee, plus a display
case up front inviting customers to pick their own breads and pastries. The baking area remains
out in the open where customers can see all day long, bakers prepping, rolling, shaping dough for
baking, with Koa getting in on the action as well.

Thirty years ago, Koa opened his first The French Baker store in the still new SM City (now SM
City North EDSA), melding his baking background (his family already owned a baking business)
and his academic know-how. He sat down for an animated discussion about how he took the leap
with an as-yet untested concept and where he sees it going in the future.

How did you start The French Baker?

I was bound for post-graduate studies. I got a grant from British Council, any school in the U.K.
for one year. That was in 1987. Then somewhere along the way, I got a call from SM saying that
they’re going to open SM North EDSA, a mall like Ayala, naks. Ako naman student of
marketing, sabi ko, oh my God, differentiated mall, that would be fun because you don’t have to
drive so far to experience what is Ayala, Makati. Then it made me think, they said you try to
come and see what you can do. So I said, hopia at saka siopao hindi pang mall, hindi kikitain
yun. I realized it will not be good enough.

What made you think the market was ready for European breads?
Reverse brain drain. Professionals were coming back to serve under Cory… I started with just
one thought, a new market is emerging. Markets that brought home with them needs, wants as a
result of their exile during the Marcos years. How do you serve them well? How could you serve
them better? … I was the first to serve preservative-free bread. I was the first to introduce whole-
grain, whole-wheat breads. I was the first to introduce breads with very low sugar because in the
1980s, everything had to be sweet and sweeter… I did what nobody else could do, face
uncertainty with low level of experience, low level of knowledge, with only one belief: that I was
young, I was willing to suffer, and that I had marketing education from the best business school
in the country. And that I could do what I taught. All the long years of teaching would have been
meaningless if I could not apply what I learned.

Did people initially accept you as someone who could bake the French way?
The first problem I encountered was an outright rejection by the SEC saying that the words
“French Baker” are, in their words, parang niloloko mo. Because I am not French, there’s a
deception… Ako naman Mr. Don’t Give Up. That time nag drive ako ng Corolla, nagdala ako ng
baguette ko sa FDA (Food and Drug Administration). I said, attorney kayo na po maghusga. Do
you think I would be deceiving if you allow me to make these types of bread that you can only
find in Westin Philippine Plaza? He comes up to me, he says, “Hijo, you have a point. I will
endorse you and good luck.”… Nung nakita niya yung product, there is no deception
whatsoever.

Competition in your category has always been fierce. How have you managed to thrive?
To have survived 30 years is testament to my ability to look at market threats and opportunities,
assess them well, and come up with a business model to address those needs and/or those threats.
I’ve done this in the mall, big time. When the big brands came in, I came up with my own brand.
What was my brand? Lartizan.

What is the idea behind Lartizan, as different from The French Baker?
I used sourdough as the platform to declare the bread of Lartizan… I had to re-orient my
thinking. What’s the difference between my two brands? The French Baker is all about quick,
fast, modern in a setting where people wanted hot, fresh, and good enough. Then I realized there
is a market for Makati that felt that, that’s not good enough. Kumbaga sa wine, may wine na
wine, at wine na may vintage.
So when I heard that Paul and Eric Kayser (both French bread brands) were coming in, I realized
that the market wanted more… The brand image is in many ways affected by your cult
following. Ang kulto ko ay hindi mga Louis Vuitton, Hermes, Gucci, Chanel. Then we opened
Lartizan.

What is the main difference about today’s market compared to 30 years ago?
I still believe the core product must be excellent. I still believe in the 4 P’s of marketing (product,
price, place, promotion). I still believe that people look for value for money on a daily basis. I
still believe that people may change, but the change is only because they don’t have time. In the
old days of the 80s, when we had time to drive, Makati to Cubao was actually under ten minutes.
That was 30 years ago. But today, if people have the choice, they would still want to go to the
wet market. They would still want to pick up their fresh bread. They would still want to see the
baker on a daily basis to pick up their pandesal. But we don’t have that luxury of time, we all
suffer from time famine.

What innovations have you introduced as a response to these changes?

Research has consistently shown us that people are empowered: they want convenience, they
want quick, and they want easy. That’s why we did e-menu. This is to empower the educated. I
don’t want to use the word masa, but the educated consumer who is forever searching for the
better, better, better. To now say that, hey I’m empowered because when I ask the question: How
does an asado roll look like? Oh it looks like this pala. How does the coffee look like? Oh, they
don’t serve it pala in cup, they serve it in porcelain. And there’s a little history about the coffee.
And then how do I pay? I’ll go there, I don’t have to talk to the guy, I just wave my phone, and
they can pick up the payment.

Looking back on 30 years, what are you most proud about?

I bring to the market all my collection of 30 years of moving around Europe, America, and the
world. I know the market like I know myself. We’re forever looking for the better value, the
better product, and the better location. So much so that we enslave ourselves. Talk about it, think
about it, experiment about it, do mistakes about it, in order to create a product, and of course
distinctly. When they come in, they should feel good that this is not, definitely not an import. But
it’s a homegrown product that can fight any import, anywhere in the world!

https://www.kalibrr.com/advice/2016/08/meet-johnlu-koa-the-man-behind-french-baker-lartizan-
chatime-ph

Meet the Man Behind The French Baker, Lartizan, and Chatime PH
August 9, 2016

It's not often that you know what you're going to do fresh out of school. Try as they might, your
professors will give you all kinds of career and "real world" advice that is only partially
applicable applicable to the situations you will find yourself in. Do I look for a job right away?
Pursue further studies? Travel and find your calling? Start a business? Here's a man who did all
of that and found his footing and turned it all into an empire. Learn a thing or two from the man
behind the French Baker, Lartizan, and Chatime PH, Johnlu Koa.
Where did you go to school and what did you study?
"I was Xavier all the way then I studied Business Administration in UP."
What is your view on the importance of school?
"I’m quite old school. I still believe theres no such thing as being self-taught; somewhere along
the way, meron, but you need to know the basic skills—reading writing, arithmetic. I believe that
schooling isn't just what the book says but it’s being related to humanity, how to compete, and
harmonise with your situation. School is not just exams and passing one level, it’s also about
being recognised and earning a milestone and network. After finishing with one batch, you are
entitled to that network who might come in handy in the future."

"High school was all about team building— learning how to compete and how to retaliate against
challenges. It set the foundations. In college, I studied business administration with a major in
marketing in UP so the course, the subject, the professors, my batchmates, and the environment
had a great effect on me."
What was the plan post-graduation?
"After graduation in 1979, I wanted to pay the university back so I worked as a professor
teaching business administration. A year later, I enrolled to get an MBA while teaching and
opened Honey Bread, an industrial bakery and supplier. It’s not easy juggling all of that so for
two years, I slept in the bakery. My office was right next to my bedroom and as long as I had a
good air conditioner, I was alright. It made sense to do this because I could relate my course to
my business."

The French Baker was born

"I wasn’t interested in baking from the get-go. My parents always wanted to put up a bakery so
when I finished school, I offered my parents the chance to realize a dream. My teaching was
paying for my MBA and Honey Bread allowed me to start a savings fund." "Honey Bread was
supplying bread for sale in malls and when SM North Edsa was opening, I saw an opportunity
and took it. Back then, in 1989, there was less competition so I found my niche in retail baking
quickly. Baking is like medicine, there are several fields so when I had made enough money, I
went to Paris and it changed my life. I decided to specialize in French baking and the French
Baker was born." "This was probably my biggest break but starting the French Baker wasn't
easy. My marketing background helped me to get the ball rolling and I worked out a strategy. I
had to make the most out of what I had and do it in a way that people would find it unique,
interesting, and most of all, worth buying. The product and concept of the French Baker were
from Europe so at the time, there was nothing like it locally. I saw my shot and took it."

"One of the most challenging things was growth and competition. It was difficult to set a new
industry model and dealing with competitors who would adopt my model then try to outdo me. I
was leading in French baking but soon enough, Korean baking brands became my new
competition. Operations were growing so there was a lot of tech involved and because people
come and go, it became a problem to to have to teach and re-teach them how to do things. When
I was hiring people, it was important for them to have the basic skills but the worth of their
employment for me was what they spent in baking school."
Lartizan, TFB Salon de The, Chatime, and what's next
"In the last 26 years, we’ve accomplished much to be proud of. We’ve won awards and branched
out with Lartizan and the French Baker Salon de The, a tea salon. We also won the bid for the
Philippine franchising of Chatime."

"Chatime came in at the height of the tea craze and luckily, it stayed. It was a project that I didn't
have the luxury of time to develop. I saw the brand in Taiwan and it was doing international
expansion. Out of 100+ applicants to franchise from the Philippines, they chose me. I offered the
opportunity to three of my nephews and we’ve been partners ever since. Our success is attributed
to our steadfast and obstinate adherence to quality; we resisted all temptation for quick payback
and it all paid off."
Words of wisdom for jobseekers
"Given my own experience, I spent the first 15 years I spent my career as a formally employed
person. Money was never an important part. Job content was the most interesting part. I knew I
had to research and synthesize the lesson plan for students. I had to work a lot. I knew the pay off
was that I would learn and it would stay with me for the rest of my life. UP paid little, but it was
such an enriching environment where the calibre of people were just so worth it to have lunch
with or whatever. Look at the job content and when you enter, search for mentors, good and
effective ones. Never mind their tempers. It’s not about you, but your learning."

"Underpromise and overdeliver. That has always been my guiding principle. Instead of arriving
at 8:00, show up at 7:30.No if’s or but’s just super duper all the way. With anything you do in
life, come in with a banquet."

https://lifestyle.inquirer.net/170606/french-baker-at-25-success-in-taking-risks/

Setting trends

In his youth he would accompany his mother, Cristina, to the market, where he learned to select
quality produce and learn to smell fresh meat and fish. In the process, he would catch vendors
cheating their customers.

For 15 years Koa helped run his mother’s restaurant, Yummy House, at the New Frontier
Arcade in Cubao. But when the franchise owners of an American fast-food brand became
interested in the restaurant’s location, the landlord booted out Yummy House on the grounds that
it was producing the same old comfort foods such as mami, barbecue, pancit palabok and kare-
kare and thus could not expand its market.

“They said we had nothing more to show,” Koa recalled. “After I took my MBA, I realized I
didn’t go to UP for nothing. I thought about the brand story, differentiation and USP (unique
selling proposition). It taught me a lesson that you must always have something new to offer.”

He said the experience goaded him to open French Baker, the first Parisian-style bakery-café in
the country in 1999. His dictum is that in doing something, one should take the road less
traveled, not the easier path.
As a baker, he set trends— from selling wholesale he went into retail. For 10 years he ran a
successful bread line, Honeybread, which was sold at supermarkets.

In the late 1990s, on the invitation of his former classmate, Herbert Sy who handled SM
supermarkets, Koa started leasing space at SM City North Edsa Annex. It was the first food
outlet that didn’t have any glass enclosure so that the breads would lure the customers.

He also brought in state-of-the-art baking technology, introduced espresso, gelatos, French-style

breads, Italian foccacias and ciabattas, New York bagels and German pretzels. Those specialty
breads, which used to be available only in hotels, could be had by the masses at lower prices.

“Nobody wanted to learn the French way of baking which entails 16 hours of fermentation,”
Koa said.

He said that even after 25 years, people keep coming back to his stores.

“What differentiates us is the quality of our butter and the amount of care we put in mixing the
dough,” Koa explained.

Moreover, the market was given an alternative to rice-and-viand combos with the introduction
of French Baker’s hot sandwiches, lasagna and pizza, and soup served in a bread bowl.

On the prodding of a customer who asked if the unsold breads could be given for 50-percent off,
Koa started the trend of selling breads at a discounted price toward closing hours.

Without denting the wallet

Koa said he decided to level up French Baker to Salon de Thé (tea salon) to provide diners a
cozy date place without denting the wallet.

The bestseller is the quiche with the side salad priced at P195. It is soft, tender custard with a
smooth, creamy texture and fillings of broccoli, spinach, chicken, mushroom and cheeses.

The chicken basket, good for two at P450, is marinated overnight in brine and seasoned with
herbs de Provence.

One can also share a creamy pasta with truffle oil or shrimps and tomatoes for P325.

The golden spareribs, juicy and filling at P350, are braised and smothered in a smoky sauce.

While the regular French Baker pizza is a generous mix of cheeses, meats and toppings on a
thick, puffy and chewy crust, the Salon de Thé version is regally thin and crisp with a lively
tomato paste.

The taco salad pizza, meanwhile, is smothered with standard ingredients of ground beef,
cabbage, cheese, beans and jalapeño peppers.
Koa boasted the authenticity of the macarons, which is derived from the method of French pastry
chef Pierre Hermé. His commissary has adopted macaronage, the delicate French method of
folding in dry ingredients into the egg white.

The lemon lavender has a crisp meringue crust with grooves and a rich meringue center. The
flavor of lavender petals bursts in the tongue.

Then there are the raspberry and orange ganache variants. The matcha or green tea cake with
matching macarons is a fusion of Eastern and Western flavors.

Koa has learned over a hundred bread and pastry recipes from baking schools and suppliers. His
bread business has expanded in different markets.

He has established Quick Bread, which supplies various establishments and Globake, which
offers wholesale breads. Soon he will be selling ready-to-cook meals.

He sees the future in Globake. “My vision is to feed urban dwellers,” Koa said. “Luxury will no
longer be the way we know it. The next generation will define wealth by having their own condo
unit and gadgets. But they have to eat; they can’t survive on pizza alone.”

Koa is again taking the road less traveled, planning for nutritious convenience foods for the
market that has no time to shop.

“It’s not going to cost you more than going to a fast-food joint,” he assured.