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    When good isn’t good enough
    TO STAY AHEAD, CHOWKING GETS BETTER THAN EXPECTED
     

    In many subtle ways, market leaders weave their idiosyncratic, cult-of-the-customer philosophy into day-to-day management. Their customer credos create for employees a sense of common destiny; a deep understanding of what they’re doing and why, and a sense of accomplishment. The delivery of customer value is a clear goal and can be used as an acid test for individual and collective success: Am I (are we) having an impact? Is my (our) work worth doing? Is there more important work for me (for us) to be doing?

    The powerful cult of the customer is a potent antidote to the poison spread by whiners and passive complainers. Market leaders don’t tolerate whimpers of “Ain’t it awful?” and grumbles like “This company is all screwed up,” or “If they’d only listened to me.”

    ‘Go for Gold’ Says Chowking president Raffy de la Rosa (center), “We have to be [really] on our toes. I mean, this test kitchen and training center will not be here if we are not keen on winning in those arena—delicious food, within consumer’s reach and making [it] consistently available in all Chowking stores all over the country.” --RHOY COBILLA

     

    So how do market leaders of whatever products and services stay ahead? They maintain the focus of their discipline and intensively compete with their own success. They work continuously and simultaneously to improve their operations and make it obsolete. They are operational excellence firms striving to reach entirely new benchmarks of price and hassle-free service. For every market leader, advances in value to customers are gained by tightening performance standards, reengineering work processes and upgrading competencies.

    For Chowking, an oriental-based fast food, sustained product leadership comes only from a deep commitment to breakthrough innovations. By giving consistent product quality and value for money, Chowking became the first fast food to attain P1 billion in sales revenues after only 10 years of operation. The provincial expansion was a natural decision in the light of Chowking’s advertising effort spilling over in many provincial cities, taking advantage of an already existing high awareness level and growth opportunities in these areas.

    Just look at the triumph of Chowking. “We count ourselves in the major players. In fact, the ranking now [in terms of sales] are Jollibee, Chowking, McDonald’s and Kentucky Fried Chicken. Chowking registered sales growth of P10.1 billion in 2007, from P1 billion nine years ago. Our international stores have contributed P1 million last year. Combine the two together, that’s our total sales,” claims Chowking president Raffy de la Rosa in a recent interview.

    What particularly distinguishes Chowking from other fast-food restaurant businesses is that its object of attention is not simply the transaction, but the customer. Management eyes not just the hard figures on ledgers but the soft comments from customers in measuring performance. “The ballgame here [in this market] is one who can offer the most affordable and value product, will have an edge. That’s why we are competing in prices,” de la Rosa points out.

    Achieving product quality with no errors is not only doable, but it’s a valuable competitive strategy. Chowking consistently strives to provide its market with product offering. Reaching that goal requires that it challenges itself in three ways: First, it must be creative. Second, it must commercialize its ideas quickly. To do so, all its business and management processes are engineered for speed. Third and most important, it must relentlessly pursue ways to leapfrog its own latest product or service. Chowking never stops for self-congratulatory; it is too busy raising the bar.

    “We have to be [really] on our toes. I mean, this test kitchen and training center will not be here if we are not keen on winning in those arena—delicious food, within consumer’s reach and making [it] consistently available in all Chowking stores all over the country,” de la Rosa adds.

    The other tremendous asset at Chowking is a motivated work force. The company has managed to accomplish what few other companies seem capable of: It has created a high-spirited attitude in people performing routinized work. Its approach has been to hire eager people with a lot of potential, train them to view excellent service as routine, and assemble them in teams to solve problems that lead to continuous improvement.

    The efficiency of the “Go for Gold” intensive training and certification program given to all Chowking cooks stems from a high degree of specialization to deliver on its brand promise of product quality and consistency. Each one is required to prepare more than 40 products according to Chowking’s gold standard specifications under the watchful eye of a master trainer. Cooks progress from one-star certificate to five-star certificate as their skill level improves. Cooks receive gold pins and certificates in recognition of their achievement.

    De la Rosa is proud of the fact that the “Go for Gold” training program was adjudged Best Workplace Practice at the 2006 Asian CSR Awards. According to him, the award affirms the certified cooks’ important role as the icon of brand Chowking.

    “Training helps people perform; performance boosts self-worth; a sense of worth builds employees’ loyalty to the team and customer,” he says. The benefits of this self-reinforcing approach to management show up in both happy employees and a robust set of profit figures.

    Chowking also invested heavily in developing modern automated processes that cut preparation time at the stores. It makes sure its vast network of 372 outlets nationwide is well-stocked by strategically locating its depots and commissaries in all of the three island groups in the country and in key cities abroad.

    “It helps a lot that we have a commissary, since it enables us to mass-produce products and translate the economy of scale to lower price,” de la Rosa notes. The company will open 70 more stores nationwide, totaling to 410 stores by the end of the year, with sales of about P11.5 billion. “Overseas, we will probably increase to about 40 percent,” he adds.

    Most of the product processing is done at the commissary level, and food is delivered to the stores, ready for final cooking. These efforts have been recognized by the National Meat Inspection Service, which gave Chowking’s Sucat commissary the most-coveted recognition as the “Best Meat Processing Plant” in the NCR in 2005. The award is a testament to the high quality standards the store adopts in all of its commissary operations.

    “We spend about P400 million a year on advertising,” de la Rosa says. Chowking used the stimulus response model in basic psychology in designing all its menu display boards, TVCs, print ads, billboard ads and other merchandising. It introduced the concept of “open kitchen” to exhibit how food is prepared and cooked right in the store, and how every Chowking store adheres to strict standards of cleanliness. Another innovation is through audio-piped-in Chowking Radio programming regularly plays plugs and entice in-store customer to come back for a visit or watch out for a new product about to be launched.

    Chowking stores eventually got more sophisticated as it shifts to the fifth-generation design found in Fort Global City, Madrigal (Alabang), Eastwood and Santa Ana. “Where before, Chowking image is close to fast food—well-lighted, plenty of reds, plastic chairs. Now with the fifth generation, we changed the plastic chairs into leather back chairs. We minimize the use of salmon yellow and red colors. We use more of the earthy colors [brown and mocca]. The lightning is softened. We improve the counter influenced by the iPod. Our menu board is now rectangular thin design,” de la Rosa explains.

    Chowking wants to be world-class, preeminent customer service, exceed expectations; and as de la Rosa constantly emphasizes, “We want to delight the customer. And we want it to be routine.”

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