Financial Adviser: 5 Business Lessons Everyone Can Learn from the Founders of Brothers Burger

Feb 14, 2024

 

Brothers Burger is celebrating its 25th anniversary this year. “When we started, it was either Peninsula Hotel or Mcdonald’s,” one of the brothers says. “Wala pang in-between, so we were thinking, gawin natin yung quality ng Peninsula at close to the price of Mcdo. That’s the perfect niche.”

 

In the late 1990s, amidst the turbulent period of the Asian Financial Crisis, Martin and DJ Jose found themselves facing financial challenges. Martin was employed in real estate, while DJ worked as a stockbroker. Faced with the harsh economic climate, they sought new avenues to generate income.

 

When the brothers noticed an opportunity to establish a food stall adjacent to their family’s restaurant, Minggoy’s in Meralco Avenue, they enlisted the help of their brother Quito, who was working as a chef at the restaurant. Together, they envisioned a burger joint offering authentic beef burgers without frills.

 

In June 1999, amid the economic turmoil, the brothers boldly launched their first venture, Brothers Burger. In their humble beginnings, the brothers experimented with gourmet toppings, drawing inspiration from the burgers of their childhood growing up in the United States.

 

As word of mouth spread, Brothers Burger gained popularity, particularly among students from CRC (or the Center for Research and Communication, which was later renamed to the University of Asia and the Pacific), who became their loyal patrons. The brothers’ breakthrough came when Brothers Burger was featured on a TV show a few weeks after its launch, attracting a surge of customers lining up for their hamburgers.

 

The resounding success of Brothers Burger did not go unnoticed, as it attracted the management of Rockwell, who recognized their potential and offered them a prime location within the development. This opportunity marked a significant milestone for Brothers Burger in the early 2000s, leading to its expansion to 25 outlets over the next 15 years.

 

Today, as Brothers Burger celebrates its 25th anniversary, it stands not only as a renowned burger joint but also as a testament to the power of resilience, innovation, and unwavering dedication. As they continue to grow, their story serves as an inspiration for aspiring entrepreneurs.

In their pursuit of continuous innovation, the Jose brothers have diversified their portfolio by introducing a culinary concept offering Asian cuisine called Ninak, which has grown to 30 outlets.

How did the Jose brothers overcome the initial challenges when they were starting the business? What can we learn from their entrepreneurial journey, and how might we apply these lessons in our own endeavors?

Here are the five business lessons every entrepreneur can learn from the founders of Brothers Burger:

 

 

1| Learn how to rise above adversity and prosper in tough times

 

In the competitive landscape of business, the ability to thrive despite challenges is often synonymous with survival. Entrepreneurs who can adapt to market changes and overcome obstacles are more likely to endure in the long run.

 

Thriving despite challenges builds resilience. Resilient entrepreneurs are better equipped to handle future setbacks, crises, and disruptions. They have systems in place to bounce back quickly, and continue moving forward.

 

Despite the challenges posed by the Asian financial crisis, the Jose brothers refused to succumb to despair. Instead, they leveraged their skills and backgrounds to explore new opportunities in the food industry.

 

Despite skepticism, the brothers remained transformed setbacks into opportunities, experimenting with burger recipes and refining their menu based on customer feedback.

 

Their perseverance paid off when their establishment, Brothers Burger, gained popularity among students and locals, attracting crowds and earning recognition on television.

 

Moreover, their ability to adapt to changing circumstances and capitalize on unexpected opportunities further propelled their success. The invitation to open a branch in Rockwell marked a significant milestone, affirming the brothers’ resilience and business acumen.

 

By embracing challenges as opportunities for growth and refusing to be defined by setbacks, the Jose brothers transformed adversity into a catalyst for success.

 

“We started in 1999,” DJ Jose says. “I was a stockbroker and that was after the Asian financial crisis in 1997. My parents and I did not want to go back to the stock market. Nagkautang ako nun. Yung client ko nalugi, hindi nagbayad, sinalba ako ng tatay ko sa brokerage firm ko and then my brother naman, si Martin, sa real estate naman sya so patay ang negosyo.

 

“Sabi nila wag ka nang bumalik sa market, so that’s when my other brother, Quito, he’s a chef naman, sabi niya, ‘You know let’s put up a business,’ yung food, since we were into food during that time. We had Minggoy’s restaurant there owned by my lola, yung nasa Meralco avenue. Dun nagluluto si Quito.

 

“So there’s a small space there, mga 50 square meters lang katabi nung restaurant, so sinabi namin, ‘Kunin na lang namin yan. We will put up a burger place since we all studied in the States, we all knew burgers and loved burgers, di ba? Hindi namin alam kung anong klaseng burger pa pero ang gusto namin, for sure, was ihaw because when we were in the states iba pag summer dun, pag nandun yung mga kaibigan mo, nanonood kayo ng TV or whatever, you get together, you could have burgers or chicken.

 

“Yun yung iniisip namin na parang backyard grilling ng burgers and then saka na lang namin naisip na lagyan natin ng mga toppings na blue cheese, na cream cheese and bacon, because when we got that naman we all worked at Neiman Marcus in the states, si Quito was in the Epicure Department of Neiman Marcus. He was into everything gourmet, so iniisip namin ‘Bakit hindi natin subukan ito?’

 

“Of course, during the time, suntok sa buwan yun, because nobody really did gourmet burgers in the Philippines, let alone parang fast food setting pa. So we just played around with putting different toppings during the time our commissary was in my lola’s house. Dun ang R&D namin. Mga kaibigan namin dun pupunta kakain, tikim-tikim.

 

“It was really fun during that time. Parang kami naman, we didn’t know it was going to be a big hit. Until we opened, nung una nga parang wala pang tao eh. Wala pang tao until mga estudyante nagpupunta from CRC.

 

 

“There was a group of students from CRC who liked it. They tried it several times and then meron isang estudyante dun sinabi nya, ‘What are you going to do if I bring my whole block to have lunch in your restaurant? Sabi ko we will give you a Brothers Pounder.

 

“During that time, yung Brothers Pounder, dalawang half pound patty yun na malaki. Yun yung binigay namin sa kanya. Dinala nya yung batchmates nya sa CRC dun sa tindahan, napuno na yun. And then, through word of mouth, our friends would come. Dapat yun open kami from 10 a.m. to about nine in the evening lang pero since nagkakaron ng pila sa labas, parang extended hours until may tao. Hindi kami nagsasarado. There were lines, may traffic na sa labas, kami na nag-t1-traffic sa Meralco avenue during that time.”

 

“Saka nung time na yun, there was a TV show,” Quito says. “I think mga one month after pa lang, they featured us, and that weekend, dumami ang tao. Ang tindi, as in triple parking sa Meralco Avenue, nagiging one lane na lang so we were like, ‘Wow, from the week before na paano kaya tayo, ilan kelangan natin ibenta, it became super successful. Siguro yun nga, a month after we opened and after that show specifically, na every night bantay kami. Kami magbubukas, kami magsasara. Lahat kaming tatlo.

 

 

“Siguro mga three months after that, sinabi ko na dun sa mga tita ko and sa mommy ko, aalis na ko sa Minggoy’s because I’d like to help my siblings, my brothers, kaya nga naging name ng store, Brothers Burger. At that time ang laki ng salary ko dun sa kabila sa Minggoy’s, sabi ko focus na lang tayo dito.”

 

“I remember the management of Rockwell at that time,” DJ adds. “Nagpadala sila ng tao muna sa Brothers burger nang hindi namin alam dahil nagpapabili daw ng burger para sa ManCom nila, and then bigla na lang nag offer, sabi ‘Why don’t you open in Rockwell?’

 

“Sabi namin, ‘We submitted our application but we were denied.’ Sabi nila, ‘We will put up a structure for you guys in Rockwell.’ When we opened in Rockwell, that was the start na. Kaya may malaking utang na loob kami sa mga Lopez because they gave us a break in Rockwell.”

 

 

 

2| Know how to carve a niche between quality and affordability

 

Finding the sweet spot in the market space allows businesses to differentiate themselves from competitors. It enables them to carve out a unique position in the market by offering something that competitors may not be able to replicate easily.

 

Balancing quality and affordability helps businesses maximize the perceived value of their offerings. Customers are willing to pay a premium for products or services that offer high quality while remaining affordable. This allows businesses to optimize their pricing strategies and maximize revenue.

 

The Jose brothers strategically carved a niche between quality and affordability by drawing inspiration from observing the popularity of a burger stand at a Shell station during trips to Tagaytay.

 

They transformed the basic burger idea into a high-end offering, aiming for quality and innovation, despite initial skepticism about pricing. Positioning their product between high-end establishments like Peninsula Hotel Manila and more affordable options like McDonald’s, they sought to offer quality comparable to the former at a price closer to the latter.

 

Introducing pizza-style toppings and unique packaging, the brothers differentiated their burgers, offering customers customizable options and a distinct experience.

 

“Alam mo ang naging inspiration din namin kasi every time we drive to to the South, sa Tagaytay, pag dumadaan kami dun sa Shell station na may Hungry Hippo,” DJ says. “Pinipilahan yun lagi so kami parang, ‘Bakit hindi burger? Kaya natin gawin yun. That’s why we just toyed around with the burger idea and how to uplift it. Ginawa naming high end.

“Of course, madaming skeptic, yung tipong, ‘Uy ang mahal naman ng burger nyo, si McDonald nga ganito lang ang presyo.’ My lola was the number one skeptic, yung tipong, ‘ang mahal naman nyan.’ Pero kami we wanted to.  I guess suntok sa buwan talagang natyambahan namin maybe because we were exposed to high-end burgers in the States.”

“Also, when we started, it was either Peninsula or Mcdonald’s,” Quito says. “Wala pang in-between, so we were thinking gawin natin yung quality ng Peninsula at close to the price of Mcdo, so that’s the perfect niche na babanatan natin. Wala tayong kalaban masyado. And then we thought of parang pizza style, pwede kang pumili ng toppings mo. So ayun, we thought what would make it very different tapos yung molde namin takip ng Selecta, yung half gallon.

“Yung molde dun nilalagay, kukuha ng karne dun ilalagay natin. Half pound yun kada isa so lahat nun mano-mano ginagawa yun and ginamit namin mga helpers lang namin. Mga boy namin tinuruan ko lang, ‘O sige mag hairnet kayo, mag gloves kayo,’ pero lahat sila were just household help sa bahay namin.

“One time nga nakakatawa nun nagde-deliver truck na sa bahay ng lola ko. Nagtataka sila, ang lakas naman daw kumain ng pamilyang to, kasi truck na yung nagde-deliver so siguro mga eight months yun. Sabi ng lola ko, ‘Dito kayo gumawa. Wag kayong gagastos overhead.’

“Kami pa nagde-deliver personally. Kanya kanyang mga sasakyan may mga coolers lang kami we will deliver. I think even up to Rockwell, kami pa din nagde-deliver nun, pati change fund kami hawak nun, pupunta kami ng bangko papalitan namin. Everything was hands-on.”

“Kasi masaya. Actually, hindi pa, kasi trabaho nung time na yun. Parang nangtri-trip ka lang ng mga kaibigan mo. Magdadala sila ng mga CD. Play mo yung CD, may music. Tambayan, masaya until naging negosyo na kailangan mo ng mag-apply ng kung ano-ano.”

“In fact, nagkaroon na nga kami ng opisina,” Quito adds. “May stockroom. May HR na kami, accountant. My mom would help us already. Pasok na sya to make sure na yung pera secure. Alam mo naman yung magulang, pera ang importante. Baka waldasin ng mga anak eh di ba? She made sure, serious business na ‘to.”

 

3| Know to build a lasting brand and create a sustainable business model

 

Building a standout brand and developing a scalable company structure are integral components of sustainable growth and competitive advantage in today’s dynamic business landscape. They lay the foundation for long-term viability and profitability.

 

A strong brand presence serves as a powerful tool for marketing and communication, allowing the business to convey its unique selling propositions to its target audience. By establishing a scalable structure early on, a business can minimize operational bottlenecks, streamline decision-making processes, and enhance overall agility and responsiveness.

 

The Jose brothers carefully considered the brand’s name, opting for Brothers Burger to reflect their familial bond and commitment to quality.

 

Their decision to offer flame-grilled burgers, a healthier alternative to traditional griddle-cooked options, set them apart in the market. By introducing a half-pound burger, they innovated beyond the standard quarter-pound offerings, emphasizing quality over quantity.

 

The brothers’ use of oatmeal in their bread demonstrated their commitment to health-conscious choices, further distinguishing their brand. And their hands-on approach to customer service, including personalized interactions and engagement, fostered strong relationships with customers and fueled word-of-mouth marketing.

 

“Madami kaming naisip na kung ano-anong pangalan,” DJ says. “We were searching the internet din, America online pa ata nun. Tinitignan lang naming ano okay na pangalan and then sabi namin, ‘Brother na nga tayo, e di Brothers Burger na lang.”

“Ganun lang, tapos may flame,” adds Quito. “Actually may significance lahat yun. Number one, if the old logo had five flames, kami yun mommy ko, daddy ko, kaming tatlong magkapatid. May significance yun tapos yung ellipse na blue, that means solidarity. Sa mommy ko yun. Mommy ko mahilig sa mga ganon eh, magbigay ng kahulugan sa brand so that was my mom’s input.

“Yung flamed grilled, literally ihaw yan. Iniihaw yung burger. Yung regular kasi niluluto lang yan sa griddle. Iba ang inihaw. Iba ang lasa. Kaya nga kami nag-ihaw because we wanted to become a healthier alternative.

“So with that, we went to a designer na kaibigan din ni DJ so nag design sila ng logo na syempre its flame-grilled so kailangan may flame and then yung ellipse because yun nga it’s eternal unity namin as a family and then the words ‘Brothers Burger.’ Nung nagawa yun, everything fell into place. Yung costing namin basta sabi ko hindi yun ma-precise eh, basta sige gawa lang tayo nito and benta na natin.

“Gumawa kami ng half pound. It’s all beef. Makapal yung patty, saka wala pang gumagawa ng half pound. No one had a half pound patty. Yung regular dati quarter pounder lang, so kami one-half ang isa,pag nag-dalawa one pound na.

“Yung regular na burger yata nun mga P50, eh kami P120 pero one pound na better quality. Saka cooked-to-order ha. What we did was, once you order, saka pa lang ipapa-fire out sa kusina yun para iluto so medyo matagal sya minsan. Maghihintay ka.”

“Noon nga umabot ng isa at kalahating oras kasi ang dami talaga, ang daming customer,” DJ says. “Ang daming tao. Grabe yun and then of course marami ng komopya. Maraming komopya right in front of us. May nagbukas pa isang grupo, siguro mga two years after. Sobrang dami all over yung mga kumopya, tapos biglang naging flamed grilled burger na din sila.

“Pero yung time na yun, tayo lang gumagamit ng Oatmeal sa tinapay Oo, because we thought lagyan naman natin ng konting health aspect. Lagyan natin ng oatmeal para may fiber. Tignan mo ngayon ang dami na. Honestly, I think kami nag-umpisa nun.

 

“When we started the business, it gave me so much happiness, you know, dealing with people. I mean, I’ve always been an extrovert. I like talking to people. That’s why, nung ako yung nagkakaha, enjoy na enjoy ko yung nigi-greet ko yung mga customers, to talk to them, ask them how the burgers are, how they’re feeling, how their day went. Ganun ako eh.

“I like talking to people and it brought me so much excitement. But then of course, iba yung excitement ng stock market. Parang sugal yun eh, pero eto medyo chill, mas chill, mas relaxed. At the same time, it gave me a lot of fulfillment. Sobra. Excited kang pumasok, pag-uwi mo pagod na pagod ka, pero may high ka pa rin. You go home, we would tell our our mother and our grandmother how the day went. Pupunta pa sila na naka-duster na sila, kasama driver dadaan sa Brothers Burger sa gabi bago matulog para lang makita nila, ‘Ang galing magnegosyo ng mga anak ko ah, kumikita na.’”

“Meron isang friend si Mommy at that time na VP ng isang multinational company and sinabi nya na, ‘Tutulungan ko na kayo structure yung company nyo,’” Quito says. “Sabi nya ano ba yung goals nyo? Nung una nga sinabi commissary, sabi ko ano yun? Sabi nya kailangan ma-standardize nyo lahat ng sauces nyo and patty-making.”

“So we put up a commissary,” DJ says. “Lahat yan internally generated. Walang utang. The banks were literally calling us offering us loans. During that time, ayaw namin. Hindi kami naniniwala kasi sa utang eh.

“Si Martin, sya yung visionary. Siya yung business development and construction. Mabusisi yun. Si Quito ang cook, and ako more of PR and of course, finance so perfect fit kaming lahat.

“Kaming lahat pag nag-plano, usap tayong lahat. Magaling mom ko. Entrepreneur sya eh. Alam nya yung ilalagay na sistema para lang matulungan kami. Ngayon as much as possible, hands-off na sya pero minsan pasundot sundot lang meron pa rin input.”

4| Know how to innovate menus and pioneer dining experiences

 

Creating unique dining experiences through innovative menus sets a restaurant apart from its competitors in a crowded market. With so many dining options available, offering something distinct and memorable can attract customers and foster loyalty.

 

Innovative menus allow restaurants to cater to changing consumer preferences. Customers are more likely to share their memorable dining experiences with friends and on social media, expanding the restaurant’s reach organically.

 

The Jose brothers introduced a range of culinary offerings that were previously unavailable in the market. During that time, onion rings, skin-on fries, cheese steak sandwiches, and various sauces like horseradish and wasabi mayo were not commonly found.

 

Drawing from classic culinary pairings like steak and horseradish, they infused creativity into their menu selections.

 

Despite initial skepticism, innovations like blue cheese on burgers and wasabi mayo with crispy fish became hits, displaying the brothers’ ability to push culinary boundaries and challenge traditional norms.

 

Despite the dominance of burgers in their sales, the brothers also successfully introduced the Lamb Burger, a personal favorite of their mother, further showcasing their commitment to offering unique and memorable dining experiences.

 

“Nung time na yun walang nagbebenta ng onion rings,” Quito says.
“Walang nagbebenta. Ours was handcut onion rings. Nung time na yun, number one, no one was selling skin on fries. Walang nagbebenta na french fries na may balat. Wala din nagbebenta ng cheese steak sandwich nung time na yun, so it’s basically a steak sandwich with cream cheese and garlic topping.

“Walang rin nagbebenta ng horseradish sauce, wasabi mayo, yung mga ganon. Yung sandwich namin na seafood, yung crispy fish. Wala ring nagbebenta ng dip so it’s basically sauces na ginagawa ng chef nilalagay for daily use.

“Classic pairings yan eh: steak and horse radish that’s always in common or horseradish and prime rib, so lahat ng natural pairing lang nilagay ko.

“Yung blue cheese, wala rin nagbebenta nun. Di nga alam ng staff namin kung ano yun eh. Imagine ilalagay mo sa burger? It was a hit. Wasabi mayo, yung crispy fish walang gumagawa nun so there were a lot of firsts and a lot of pioneering stuff na wala kaming kapareho.

“I went to a culinary school, the California Culinary Academy, so I was trained to be a classical French chef so lahat ito, it’s just basic knowledge of a chef that you pair together, that goes well all the time. So yung evolution nya is, imbes sa steak, sa burger namin ipinatong and yung onion rings, sabi ko gawa tayo, homemade handcut onion rings, dinidip yun tapos yung milkshakes namin, three scoops of ice cream. Yung mga cookies naming malalaki na homemade rin. Everything was homemade.

“And siguro mga eight months after, meron na kaming pesto. Nung time na yun, walang nagbebenta ng pasta na pesto, Pomodoro with meatballs at that price level ha. Parang nung time na yun P110 pesos lang yata, pero yung quality nung pesto is restaurant quality.

“Yung Pomodoro with meatballs the same so marami syang mga first for that market segment na wala kang kapareho. Nung time na yun, confident kami na sige hindi naman araw-araw burgers ang kayang kainin ng tao so meron kaming mga additional items but siguro  90 percent of the time, burger talaga yung binibili ng tao. May isang unique na product pa kami binebenta nun. That was the Lamb Burger. Walang nagbebenta nun. Yan kasi paborito ng nanay namin.”

 

5| Know how to uphold ethical standards in a competitive market

 

Ethical practices help build a positive reputation for the business. Consumers prefer to engage with companies they perceive as honest and trustworthy.

 

Ethical practices also contribute to the long-term success of a business. While unethical shortcuts might yield short-term gains, they can lead to long-term damage, including legal issues, loss of customers, and damaged reputation.

 

The Jose brothers exemplified a steadfast commitment to ethical standards and integrity. Despite the inherent challenges of balancing kindness with firmness, the brothers understood the necessity of striking such a balance.

 

They recognized that while kindness fosters goodwill, excessive niceness could sometimes invite exploitation. Moreover, they resisted the temptation of allowing financial success to dictate their values, mindful of not letting money control their actions or define their character.

 

Rooted in principles of respect and fairness, they adhered to a philosophy of treating others with dignity, regardless of the competitive environment. Even when faced with rivals who resorted to underhanded tactics, the Jose brothers chose to uphold their ethical principles.

 

“Sometimes being too nice can be detrimental to your business,” DJ says. “Kami lahat, lesson namin yan kasi minsan pag mabait ka masyado eh, tina-take advantage ka, yun kasi yung in-instill ng mga magulang namin samin eh. Huwag kayong manggulang ng tao. Your word, your name is your honor.

 

“We are always told, alagaan nyo ang pangalan nyo, but sometimes, come to think of it, being too nice hindi pwede sa business. You have to strike a balance. You’ve got to be shrewd. Sometimes you’ve got to be firm. I guess ganon kami pinalaki ng mga magulang namin. Yung tipong kung sisirain mo lang pangalan namin, wag na tayo mag-negosyo. So we realized that parang minsan hindi pwede pera-pera lang.

 

“Saka sinasabi rin ng mom ko yung kagandahan ng ginawa mo babalik samin yan,” Quito says. “Lagi kasi yun ang sinasabi nya, na wag kayong mag aagrabyado ng tao. It made sense pero ngayon, if we run it differently, we would be more strict.”

 

“My mom would always tell us na don’t let money control you because sometimes too much money will change you,” DJ adds. “Eto kumikita ka nga pero don’t let it define who you are. Sometimes we are too nice to a fault, but then again, laging sinasabi ng mom ko babalik din sa ‘yo yan. Ganon sya eh. Yun din yung in-instill ng daddy ko sa amin. Pangalan nyo, importante yan.

 

“When you shake somebody’s hand, you mean it, that’s your word. That’s your contract. Pag sinabi mong yes done. Done yun. We were brought up that way.

 

“I remember growing up. Of course we went to, you know, private schools with affluent people. Ang sinasabi nga lang ng mom ko dati is kung hindi mo kayang sabayan sa gastusan mga kasama mo, wag ka sumama, because hindi kita papayagan maging free loader. You spend pero spend within your means. Kung di mo kaya wag kang sumama. Kung di mo kayang bayaran ng cash ibig you can’t afford it.”

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