STAR Rtn. Joey Garcia: A Disruptive Innovation Entrepreneur

During these challenging times and in today's unstable business environment, flexibility and creativity are more crucial than ever for businesses to survive. The issue on every entrepreneur’s mind is how to get the business through the current crisis. There’s no stopping a determined entrepreneur like STAR Rtn. Joey Garcia who turned the pandemic into an opportunity to grow his businesses and keep his creative juices flow.

As the Executive Vice President and Chief Operating Officer of Rai Rai Ken Group, STAR Rtn. Joey creates and implements business strategies, as well as develop products and brands. What’s amazing is that he works not only for his business to succeed during this pandemic. Instead of fighting off tooth and nail with other restaurateurs, he collaborates with them, turning competition into “coopetition” for the industry to survive. More than that, he also shares his knowledge and expertise with MSMEs, believing that soon, there will be more entrepreneurs to provide employment in our country.

Find out in this interview how STAR Rtn. Joey has successfully expanded their family business, how they stay competitive during this time, and how he is making a difference in the industry. He also shares his thoughts on how the restaurant business can bounce back from this pandemic.

Rhea Vitto Tabora (RVT): When you were younger, what did you want to be?

Herbert Joey D. Garcia (JDG): When I was young, I wanted to be an architect or an artist because I was deeply in love with drawing and was very much interested in the arts and designs. Perhaps, this is why growing up and going to college, I fell in love with Marketing.

RVT: Have you landed your dream job/business or has your interest changed when you got older?

JDG: Yes, I think I have landed in my dream job/business since I already considered my career as my passion rather than of a job per se which gives you salary. I am fortunate to be working in our family business with my father as the patriarch. A good backtrack story about him is when he started as a dishwasher in a small Japanese restaurant in Manila in 1977, where he worked for 20 years. He then decided to put up Rairaiken when he resigned in 1992. In 2000, I joined the company as the Marketing Supervisor and introduced some marketing strategies to help my father in our ailing business since the Asian financial crisis hit us. Back then, 90% of our customers were Japanese nationals. We were struggling with how to keep our business afloat. Filipino market back then was not used to Japanese food, and we needed a strategy to introduce to Filipino customers what Japanese food is. Fortunately, in 2003, my father finally gave me the opportunity and chance to implement some business strategies that gave birth to the expansion of our business into a nationwide brand through franchising. We grew from four (4) stores to 25 branches all over the Philippines, and with that accomplishment, I earned the trust of my father and the rest of our company. At that time, I realized my career and interest in marketing and business had finally paid off.

RVT: What is your favorite thing about your career?

JDG: My business career is very diverse and what I love most is business development—when we face the challenge of launching a new product and brand, and we have to dig deeper into the psyche of the customers, not just simply diving into their needs and wants but understanding them on a behavioral level. Also, when our customers give us high approval rating and when they keep coming back, that kind of accomplishment fuels us to continue with our craft. I also get to travel to many places where our branches are located, and each of these destinations contributes to our understanding of our customers deeply. The food industry is highly competitive, and because of the pandemic, we, restaurateurs, became solid and collaborative work is now highly practiced. Competition became “coopetition”, and we come to share best practices and strategies for our industry to survive. Even before the pandemic, I usually mentor on the side, helping MSMEs—especially those into the food industry—believing in this advocacy that soon enough, there will be more entrepreneurs who will give more employment in our country.

RVT: What is Rai Rai Ken’s unique selling point?

JDG: Aside from being one of the pioneer brands of a Japanese restaurant in the Philippines, and aside from our high-quality products and authenticity, we pride ourselves on innovation and adoption to the taste palate of the Filipino customers. Even the Japanese nationals fall in love with Rairaiken’s original ramen such as Seafoods HotPot Ramen, Batchoy Ramen, and Garlic Chili Ramen. If you are used to Japanese food, there are standards, or the so-called Japan’s original. But Rairaiken Founder, my dad Benjamin Garcia—whose experience in Japanese cuisine dates back to the 70s—was able to make some twist and innovation to make our sauces, mixes and processes proprietary. Even up to this day, my father still supervises the production of our trade secrets in our commissary. Our products are affordably priced, somewhere in the middle of fine dining and fast food, we are in the fast-casual category. Even the design and feel of our restaurant are not intimidating, and you will come to enjoy both traditional and modern Japan at the same time.

RVT: What is your menu's star attraction? What makes it special?

JDG: Ramen - Seafoods Hot Pot Ramen, Batchoy Ramen, Garlic Chili Ramen, Rairaiken’s Original, Rairaiken Bento and other Bento/Teishoku, Chahan, Gyoza (original recipe), Gyudon and Donburi and Ippin Ryori. As mentioned, all our recipes are authentic but adjusted to the Filipino palate. One good example is our gyoza (potstickers) and best enjoyed with ramen dishes. Our gyoza is still prepared handmade, and the recipe goes back to the 70s. Up to this day, our gyoza is our best seller, alongside our Ramen.

RVT: What was the most innovative thing you have implemented in your business?

JDG: Aside from product development, I am also into brand development of Oishi Batchoi, Ramen Metro, Tokyo Joe, and Takara Place (Hotel and Events Venue). I call it disruptive innovation—instead of competing with an external competitor, I developed several other brands to disrupt my brand so I can keep up with the pressure until all brands complement each other. Business is not a continuous upslope trend, and sooner or later, it will reach the plateau or decline. But before it happens, we were able to make our brand relevant by developing sub-brands that will complement our business model. For example, in one location or mall, instead of having only one brand (Rairaiken), we added Oishi Batchoi and Tokyo Joe that serve other market segments. Also, in San Pedro Laguna, where we have our Japanese-themed hotel (Takara Place Hotel and Events Venue), Rairaiken is our main brand and caterer at the same time. We successfully transformed our brand from a restaurant to a full-line hospitality player. And soon, we can replicate this model to other locations all over the Philippines.

RVT: How do you stay competitive during these challenging times?

JDG: Make yourself obsolete. I realized many things about this pandemic and myself. Competition is tough but you should always think there will be better and brighter people compared to you. With this kind of mindset, you will strive to be better. This pandemic made me realize things I’ve learned and experienced in the past may not be relevant. Even before pandemic, I advocate this ideology of disruptive innovation through collaboration of knowledge and skills. This is the same ideology and strategy I used during these challenging times, when I was able to put up several companies and businesses even at the toughest time of the century. From an e-commerce business, web-based school, a webinar studio, a consultancy company, another franchising food business, and even expanding our core business of restaurant into another format that delivers multi-cuisine products. I must say this pandemic made me a better entrepreneur than before—an entrepreneur trying to create solutions not only for myself but for my people and ultimately for the customers. We want to make their life a little bit better, especially during this time of pandemic.

RVT: How do you think will the restaurant business bounce back from this pandemic?

JDG: Through brand relationship and relevance during the time of the pandemic. Restaurant business is one of the industries heavily affected by this pandemic—restrictions on dining capacity and stringent protocols should be followed, leading to more expenses in running the business. Plus, the fact that customers’ confidence in eating out declines substantially. The restaurant is all about the experience that you envelop around the food, and over time, you develop that relationship with your customers. Given the scenario now that you cannot do what you have been doing in the past, you have to be creative enough to extend the “experiential” moment to your customers even at the comfort of their houses. The fact that we, as social beings, long for social gatherings and events, restaurants will never be obsolete; but rather, it will just evolve. When this pandemic is over and vaccines are available, people will again gather in restaurants. As business players, we should offer something which will ensure their safety, and ultimately, serve their gastronomical cravings.

RVT: To what do you attribute your success?

JDG: There are many definitions of success, but for me, it's success when your passion and giftedness align, and you can do what you love (passion) with people you love. I am fortunate I have a boss/mentor who guided me on my entrepreneurial journey. As he would always tell me—character is very vital to your success; you can start your career at the bottom, but you will certainly succeed and be on top if you have the right character. Having respect, integrity, ability to communicate, coordinate and cooperate, and striving for excellence—a lot can be discussed about character and attitude, but one thing I remember most is the “word of honor” which my father emphasized to me—this, I never take for granted. When you promise something, always put your best to make it happen.

RVT: What inspired you to join the Rotary Club of Manila? How did the experience change your outlook in life?

JDG: My Dad is a Rotarian and joined in 2014. I’ve seen him enjoying his new advocacy. I wanted to join, but it is in San Pedro Laguna and my residence is in Makati. I am in constant search of an organization to join until I found JCI MAKATI. But I joined when I was already 37 years old, and fortunately became the president in the year 2020, during the pandemic. I thought my term would be the toughest—juggling between managing issues with life, business and organization is one heck of a job, but I was able to make it through. I am about to graduate from JCI since this organization allows a member until the age of 40. But in recent months, we are already in partnership with RCM for several projects, and I was dreaming of becoming a member of this prestigious organization, seeing it firsthand from my father and some of my friends in the industry whom I look up to—the likes of President Bobby Joseph and IPP Jackie Rodriguez. These are the few good men amongst the many members of Rotary whom I aspire to become someday. They are successful in their respective careers, family, and community. Selfless as they call them, inspirational and motivational despite all the struggles and setbacks that they have experienced in many years of their life.

RVT: How do you keep the creative juices flowing?

JDG: I make it a point to actively participate and I am always on the look for new craze in the market, involving myself in the process, keenly observing the MADs (missing, annoying, disappointing) experiences around me where I can develop a solution. As for the restaurant business and other businesses that I have, I regularly try out other products and services, trying to decipher or meticulously break down the processes, quality, executions and marketing around it, to understand how to do it better or differently. I also love welcoming suggestions from friends and competition, even trying to talk to customers on point on how else we can improve or offer them a better product or services. Another way for me to keep up with creative juices is utilizing mentoring and teaching. I believe if you teach and mentor, you are learning things twice, and learning never stops because you can also learn from others’ experiences, struggles and success.