Starting a tapsilogan business in the Philippines can be a tasty way to earn money with little cash upfront.
You can kick off your own 24/7 silog joint for as low as PHP50,000 pesos, depending on your target market.
Ready to serve up some mouthwatering tapsilog? Let's cook up a plan to get your business sizzling!
Why start a tapsilog business?
Tapsilog holds a special place in Filipino culture.
This iconic breakfast combo brings together three key elements: tapa (cured beef meet), sinangag (garlic fried rice), and itlog (egg).
Tapsilog is, plainly speaking, comfort in a plate. Whether you're a student, office worker, or jeepney driver, this meal gives you the energy to start your day.
So why should you start a tapsilogan?
How to set up your tapsilog business
Setting up your Tapsilogan involves careful planning, securing necessary permits, finding a prime location, and acquiring essential equipment.
Getting these things right can help you become more profitable.
Create a business plan
Start with a solid business plan. Outline how you aim to run and manage your food business.
Include details such as your business name, target market, menu offerings, pricing strategy, and projected costs. Don’t forget to identify your unique selling point, too—maybe it’s a secret recipe, a homemade marinade, or a special promo for students or jeepney drivers.
Next, figure out your target market. Are you aiming for students, office workers, or late-night snackers?
List your startup costs, including expenses like rent, utilities, initial stock, and equipment. And don't forget staff wages!
Detail your marketing strategies and budget for advertising.
Finally, clear financial projections can help you determine your break-even point and expected profitability.
A well-laid plan can guide you through the startup phase and help you secure any needed funding. Additionally, it can help you avoid unwanted surprises down the road.
Read our guide on how to start a business plan for more information.
Satisfy business requirements
Before you fire up the grill, make sure your business is legal. Make sure you obtain the following permits:
- Barangay Business Permit
- Mayor's Permit
- Department of Trade and Industry (DTI) Permit
- Bureau of Internal Revenue (BIR) Certificate of Registration
- Health and Sanitary permit
- Fire safety permit
Additionally, make sure you have a Tax Identification Number (TIN) as this is a basic requirement when obtaining the abovementioned permits.
Scout for the perfect location
The location of your silogan can significantly impact your success. Ensure your location is visible and easily accessible to attract more customers.
Look for high-traffic areas in dense neighborhoods, particularly in places frequented by office workers and students. A spot near bus or jeepney stops can also be lucrative.
When scouting for locations, observe the foot traffic at different times to gauge peak hours.
Be mindful of rental costs as well, a good location can still be offset by very high rent.
Acquire the necessary supplies and equipment needed
Invest in essential equipment such as a stove, refrigerator, rice cooker, and freezer. Utensils and containers for food storage are also important.
Pro tip: List everything you need, from big appliances to small items like measuring cups and ladles. The cost of small items will still add up, so keep those receipts for accurate recording.
Here's a list of some necessary equipment and supplies:
Quality equipment might be costly initially, but it can prevent frequent repairs and replacements. Keep spares for essential items to avoid downtime.
Find suppliers for your ingredients
Look for reliable suppliers who can provide fresh ingredients daily. Maybe you can partner with beef sellers in your local palengke to get first dibs on beef?
You can do the same thing with vegetables, rice, and other ingredients.
Design your menu
To create a profitable and appealing tapsilog menu, you must carefully select your silog variants, establish effective cost and price strategies, and offer something unique to entice customers.
Select your silog variants
Your tapsilog menu should include a variety of popular silog combinations to cater to different tastes.
While your place is called a tapsilogan, it's very rare to find a silogan that only offers tapsilog. It's best to offer Longsilog (longganisa), Tocilog (tocino), and even Bangsilog (bangus) for a varied menu.
Credit: meryendangpinoymakban
You can also offer silog meals with pork chop or chicken for those looking for something different.
Make sure each item has a distinct flavor profile to keep your customers coming back for more.
Determine costing and pricing strategies
Accurately costing your menu items is essential for maintaining profitability.
Start by calculating the cost of ingredients for each silog meal. Include the costs of rice, eggs, meat, and any additional condiments.
Add labor and overhead costs such as gas and electricity.
From this total, determine a competitive price that covers your costs and provides a fair profit margin. Typically, a 20-30% profit margin is a good target.
Here's an example computation for pricing a tapsilog meal:
Cost of ingredients:
- Rice: ₱5
- Eggs: ₱7
- Tapa (meat): ₱30
- Condiments (sauce, etc.): ₱3
Total Ingredient Cost: ₱5 + ₱7 + ₱30 + ₱3 = ₱45
Labor and overhead costs:
- Labor Cost (per meal): ₱15
- Overhead (gas, electricity, etc.): ₱5
Total Labor and Overhead Cost: ₱15 + ₱5 = ₱20
Total cost of meal:
- ₱45 (ingredients) + ₱20 (labor and overhead) = ₱65
Desired profit margin:
- Target Profit Margin: 25%
- Profit Amount: 25% of ₱65 = 0.25 × ₱70 = ₱16.25
Selling price:
- Selling Price: Total Cost + Profit Amount = ₱65 + ₱16.25 = ₱81.25
Final selling price:
To keep it competitive, you might round the price to ₱85 or ₱90 when finalizing your menu price.
Adjust the price as needed based on market conditions and competitor pricing to stay competitive and profitable.
Offer something unique (Unique Value Proposition or UVP)
To differentiate your eatery from competitors, have something unique to offer.
For instance, you could experiment with different marinades for your tapa, like a honey-sriracha blend or a calamansi marinade for a zesty twist.
Another idea is to provide a wider selection of side dishes or offer breakfast meals all day.
Protip: Allow your customers to mix and match their silog components. For example, allowing your patrons to get tocilog plus longanissa as add-on meat will make your food join more attractive.
Additionally, make sure your menu design is visually appealing and easy to read. You can use services like Canva for customizable silog menu templates to streamline this process.
Market your business
Marketing your silogan business requires both online and offline efforts. Through the use of social media and implementing effective offline tactics, you can attract more customers and boost sales.
Harness the power of social media
Promoting your business using social media platforms like Facebook, Instagram, and TikTok is almost a must in this day and age.
Post regular updates about your food joint, including daily specials, new menu items, and customer reviews. High-quality images and engaging captions can make your posts more appealing.
Engage with your audience by responding to comments and messages.
You can also run targeted ads to reach potential customers in your area.
Protip: Partner with local food bloggers or influencers to create buzz around your business. A small promo or giveaway can go a long way in getting more likes and shares.
Offline promotion tactics
Offline promotion is just as important. Here are some offline marketing tactics you can try:
Pro-tip: keep your ear out for any local events like UPLB's February Fair or UP Diliman's UP Fair. Popular food stalls here can earn six digits in just a week's time.
Maintain efficient operations
Running a tapsilogan business successfully requires attention to food safety, cost management, and effective staff training.
Food safety and sanitation
Keeping your restaurant clean isn't just about checking boxes - it's also about ensuring every customer feels safe and eager to return.
How to manage ongoing expenses
To keep overhead costs low, consider the following:
To manage these ongoing expenses efficiently, you can use technology to automate your record-keeping.
Utilize software that tracks your costs and highlights areas where you can save money. This will be handy when planning your budget and adjusting your menu prices
Hiring and training staff
Hiring the right people and training them well is key to maintaining efficient operations.
When you hire, look for candidates who are reliable and have a basic understanding of food preparation and hygiene.
Once hired, a thorough training program is necessary.
Teach them the specific cooking styles, cleanliness standards, and customer service skills necessary for your eatery.
It’s also important to brief your staff about the Social Security System (SSS), PhilHealth contributions and other employee benefits they’re entitled to. This will ensure you're safe from labor (DOLE) issues.
(True) story time: A popular local food joint near a university had to temporarily close for an "internal investigation" after multiple female college students posted on social media about inappropriate behavior from the staff. The allegations ranged from being leered at to staff paying street vendors to pester female customers for their Facebook profiles.
While nothing has been proven yet, this goes to show that proper etiquette and customer service training is absolutely important even for small-time silogans.
Tapsilogan franchises in The Philippines
You want to put up your own tapsi business, but don't have the time nor expertise to pull it off?
A good alternative to starting from scratch is purchasing a franchise instead. Here are some pros and cons of franchising a silogan:
Pros
Cons
Here are a few different franchises you can check out:
Disclaimer: We are not affiliate with any of the franchises above.
A tapsilogan can be a lucrative business if done right.
With the right strategy, a tapsilogan can be a profitable business in today's food market. Embrace the unique flavors and cultural appeal of tapsilog to attract customers.
Start implementing these strategies today to turn your culinary passion into a profitable venture!
