Second generation entreps do well minus mom and dad
THESE successful new-generation leaders do not try to mimic their elders, but use the inspiration of their parents to further ventures of their own.
Alexander Scott Tan, 29, and his sister Tanya Linda, 27, got their names from their parents Alexander, the president of Scottland Holdings and his wife Linda, the co-founder and managing director.
This umbrella company covers such high-profile lifestyle businesses as The Spa Wellness, a chain of upscale day spas, BonChon Chicken and Cav Wine Shop-Café (with other partners).
Both managing directors in the family firm, Scott and Tanya created their own fates by pursuing their passions that have been translated into business.
Scott established the successful BonChon Chicken, a Korean-style chicken chain. Tanya, helped expand The Spa brand into a holistic concept that includes cosmetic dermatology with establishment of Skin Inc. and Barre3 fitness studio.
The siblings look up to their parents as role models in business, and learned the balance of immersion and delegation of responsibilities and values at work.
Quick-service resto
Scott was an economics major at St. Mary’s in California when he would fly to New York and visit one of his favorite restaurants, BonChon Chicken, the food chain that popularized the spicy fried chicken trend.
The New York Times has written many articles on its merits: the spicy, crunchy, non-greasy crust and the “addictive seasoning and moist meat.”
When he came home, Scott dutifully worked for his father’s garments manufacturing business while he also studied the kitchen operations in Cav.
He realized that entre-preneurship and food were his calling. He went to Korea to convince the principals that BonChon would be a big hit in his country and showed the family company’s Cav restaurant profile. Scott then went to New York for training.
Last year, the Philippines became the first country to operate a franchise outside of the United States. Although BonChon in the States is more of a yuppie bar, Scott envisioned the Philippine version as a quick-service restaurant with quality food at affordable prices, targeting families and office workers.
“I didn’t want it to be a drinking hangout although we serve alcohol for people who want beer with their chicken wings,” he says.
He observes that the trend among the fast-food franchises has been to upgrade their ambience. With his design team, he created BonChon’s signature look: white brick walls, sculptural, curvilinear ceiling and red digital menu.
“My brand is the newest restaurant chain that is hip. Although it’s global, it caters to local tastes. Everything is exactly the same as abroad,” he maintains.
While Importing chicken is cheaper; Scott chose to support the local industry for its quality. People are attracted to the value meals such as a P145 plate of four pieces of chicken, rice and a drink and fish tacos for P75.
The Korean principals also gave Scott a free hand in introducing dishes that would appeal to the local market such as the best selling chapchae, a Korean noodle dish. In Lent, he launched the fish with its distinctive BonChon crispness that has become a staple fare.
Scott lost some 20 lbs cooking for the first branches in Ayala Triangle Gardens and Greenbelt 1. Responding to the increasing demand, he built a commissary and trained his culinary team.
His management style was influenced by his stint as a financial adviser in Corporate America. The managers were very democratic in their interactions with the subordinates. He applies that work ethic with his staff although he also demands the best from them.
In one year, BonChon has witnessed double digit-growth and opened 12 stores, with the Katipunan branch as the most profitable outlet.
Meanwhile, he anticipated other dining outlets would set up their own Korean-style chicken.
“They can copy how it’s cooked but not how it tastes. Our ingredients are imported from Korea,” says Scott.
Scott is bullish about opening more stores next year as the chain will offer franchising. His dream is to make Bon Chon Philippines a major player in the food industry.
Three-in-one
Tanya is taking over the wellness business while her mother is slowly letting go.
A frequent traveler, Linda Tan enjoyed spas because of the restorative effect of the ambience that she brought the concept to the Philippines. Tanya was barely in her teens when The Spa Wellness opened in 1996.
After acquiring a degree in finance from Santa Clara University in California, Tanya worked for Merrill Lynch. Before the recession hit America, Tanya received a call from her father asking her to help in the family business.
A fitness enthusiast, Tanya followed her instincts by researching on a new workout that would succeed in the Philippines.
She chanced upon Barre3, a workout that combined Pilates, yoga and ballet barre exercises and contacted the founder Sadie Lincoln in Portland, Oregon.
Tanya persuaded Lincoln to do business in the Philippines by showing The Spa’s business profile with its seven branches and website. She then spent three weeks with the master trainer.
In 2009, the first studio outside of Oregon opened at The Spa at the Fort, the flagship branch in Bonifacio High Street.
It has since developed a cult following from Manila’s social set and weekend athletes who take to Barre3 for cross training.
Tan attributes its success to social media, word of mouth and the free trial classes where first-timers end up buying the full package.
Focus group discussions revealed that the market was looking for a place where wellness and beauty were accessible.
In 2010, Tanya (with her mother’s guidance) launched Skin Inc. at The Spa at The Fort. It was a natural development from pampering to include dermatological services provided by accredited doctors and non-invasive skin-tightening and body contouring using US-FDA approved machines.
Under Tanya’s leadership, The Spa at The Fort became a one-stop shop for exercising, pampering and rejuvenation.
Tanya says some men are still embarrassed to be seen in multi-aesthetic centers for their facials or botox. However, The Spa’s set-up augured well with them.
“People will think that they’re just going to the spa,” she says.
Future
Tanya says The Spa has been experiencing significant double-digit growth. She attributes it to competent managers, e-commerce which brings in new clients and a bullish sales team that comes up with marketing tacks. During the 15th anniversary of The Spa Wellness, it introduced membership packages which offered perks such as discounts from partner establishments and freebies. Most of the people who availed of the one-year membership were expats.
The opening of two more branches also contributed to the growth. As the customer gets more demanding, the future is to open smaller spas that have suites with their own jacuzzis and showers than have large spas with communal rooms.
Tanya adds spas have become part of the 21st century lifestyle as an antidote to stress.
On the business profitability, she explains, “The price is not cheap because it’s high end. (Customers say) the quality of service is worth it.”
Despite their success, Scott and Tanya have remained humble, owing this virtue the training of their parents. Tanya adds that Richard Uy, Scottholdings’ EVP, coaches her when the Tans travel abroad.
The family succession has a bright future as they both maintain an attitude of learning. Says Scott, “When I make mistakes, I stand up to correct them.”
Tanya explains, “If you’ve set a goal; like what you’re doing and hire good people, it never feels like work.”
