CEBU-BASED San Jose Bakeshop has increased the prices of its specialty breads by 10 percent while retaining the prices of its basic breads to cope with the rising raw material cost.
Jojo Tiongko Jr., president of San Jose Bakeshop, said they opted to hike only the specialty breads like sliced breads, mamon and other packed items to cushion the impact of price adjustments brought about by the government’s implementation of the Tax Reform for Acceleration and Inclusion (Train) law early this year.
With this, Tiongko said this will not affect the products mostly availed of by the mainstream consumers like pandesal.
“There’s a significant increase of raw materials and the buying pattern has changed,” he said.
Besides the high cost of raw materials, Tiongko observed many small bakeshops have closed shop because of the high cost of doing business and tougher competition.
“In this industry, you can’t survive if you don’t have a strong distribution system,” he said.
He also hinted that even the closure of Ong Kin King may affect the local baking industry, particularly the micro and small players, as it may affect the supply of baking ingredients.
Moreover, the crackdown against “tambay” or loiterers by the government and the implementation of curfew time has also negatively affected sales in bakeshops, especially those operating 24 hours, daily, Tiongko noted.
“People are no longer going out these days,” he said.
Bakeshops are considered traditional hangout places for most Filipinos. A conversation over bread and a beverage is a common scenario in any bakeshop.
But amid the skyrocketing prices of basic goods, San Jose Bakeshop remains optimistic of their growth this year.
Tiongko announced they are eyeing to close 2018 with 40 branches.
It plans to spend P300 million for the opening of eight small outlets that will generate at least 24 jobs.
Tiongko said these small outlets will mark the bakeshop’s entry into malls. It will sell celebration cakes and other specialty products in a food cart format to compete with the national brands.
“We will be 20 percent cheaper than them,” he said.
San Jose Bakeshop currently has 32 branches all over Metro Cebu employing about 350 regular workers, 80 of whom are bakers.
Yesterday, the company forged an exclusive partnership with Selecta to better serve the needs of its growing clients.
Tiongko said their exclusive partnership with Selecta, which corners 75 percent of the country’s ice cream market, is a serious commitment to elevate customer experience despite the evolving consumer buying behavior.
Moreover, the family business aims to grow 10 percent this year.
“I think breads would be one of the last things that will go. In times of crisis or prosperity, bread is bread. It’s a commodity,” he said.
San Jose Bakeshop was established in 1983.