 Hello friends, thank you so much for joining us today with Lennard one of our community members sharing with us How she started her ghost kitchen operation? So thank you. Thank you so much for coming on board Why don't you tell us a little bit more about yourself? Okay, oh, my name is Leonard and I am one of the co-owner of Pozina Leonardo's But overall I am the person behind it back. I created the the cloud kitchen two years ago already That but the time it went on and off because I'm still working as an IT specialist back then And I just operate it during my off from work. So what I do is At first I operated it as a mobile eatery mobile eatery is like when you go on park and then you put on some pants and Cook the food in there and have some friends with you and put the food and then serve it to the people and then In the later part since then my schedule was actually getting busier. I Actually started to find some applications that do concierge real time So there you can actually book some riders and then deliver the food on different houses That will be ordered online from their social media platform but then last year 2019 I got sick from lupus and I have to go back in the province and Restart my own life and journey. So During the pandemic season, I was like thinking how can I restart the business? This is something that will actually, you know, help me and also my family during the pandemic my brother also lost his job during the pandemic season and then my I have a single season father that we also need to take care of so There's this application that actually called me and Since I was familiar with some applications delivery applications. I knew that there are some royalties There are some expenses that I have to pay like omissions something like that but then since this Delivery services are pioneering in my current location right now. Where are you now? We I first there is what we call city and province here in the Philippines So before I was in the city now. I was on the province location. So which is my hometown and this application service is actually pioneering there are three of them One of them is already prestigious the second one is their name We have Mangan PH We also have Groover delivery and we also have Order Mall This tree actually Has different scenarios actually the Mangan PH. They are the pioneer one They are the first one to exist on delivery services during the province. So the demand on her Contract is different versus the two So there are tears of commission, right? Right? What's the commission like? Do you mind me asking? The inclusive contract ranges from 8% to 10% that's it. Do they do the delivery? Yes, they include the delivery Wow, you know in North America, they charge anywhere from 20 to 30 percent The highest percentage actually is 20 percent for the prestigious application like Mangan and If you were in the city, there are different You know, there are different empires of Delivery services would especially for food like food panda grab food Lala food This are the ones that has royalties and commission and if ever you make No sales in a day, you still need to pay them for royalties There are some some applications that are like that. So I'm a little bit confused So what you're saying is the app that you joined right now charges you only 8 to 10 percent of the Sales that you make which is great. Yeah, but then they also charge a royalty. Is that how it works? For the current location I have right now, there's no royalty Gotcha, but what you are going to the city? Yes with a higher for speech Applications, they are the ones charging royalties whether wow Or not, how much is royalties like how how is the royalties based on is it like a fee a flat fee? for some it's a flat fee, but for some it's a Percentage something that right, you know the Exact rate, but the one that I tried to apply with when I was still in the city They are charging 12% for month 12% plus royalties is what they're charging and the royalties. You don't really know how much Yeah, I really don't know right right gotcha. So I guess that's because they have much more demand and and higher Hard costs and everything to right? Yeah, yeah, but you know what 8 to 10 percent you're very I guess it's different in Asia Because like it's such a high volume city and for them it makes sense for them to go with lower percentage, but have much more People within these ghost kitchens now. Tell me more about your operations. What is it that you sell? Oh I actually felt um For the colors is Spanish and Asian food pardon, so Spanish Asian and Well, what kind of foods like tell me tell me some of the dishes I'm gonna be We have the Character day, this is peanuts do in a suit. Okay middle or and What I do is the traditional ones then I also have the original What is that tell me you got described make us one it's make us pay you for it I This is actually a very authentic dish it is made of eardrums and the seasick means just knock on something power and you have to drink it with ear and Yeah, so the eardrums are actually Boiled and then it is grilled and then it was cut into very small pieces and it was Made tasty with some sour acidic sauces Is this your drum or beef? It's more on pork pork. Great. Gotcha. Wow offer It's supposed to be called like for some it does called spaghetti meatballs Yeah, but for me, I made some specialized sauce for dad and my my best sellers are actually the chicken wings I named them after Spanish names and the sauces are made from scratch and Formulated by me as well. Wow Yeah, all of it are formulated and I I don't like to sell the secret but The best secret I have there is cooking it with love with my with my sister because we are the ones cooking as well Beautiful, that's awesome. That's amazing. And how long have you been operating this? It's been like three four months No, this is just the second month the second month How was your how was your first experience jumping into a cloud kitchen like this? Like was it difficult? Was this scary like I know because you have people and your family to take care of Yeah, actually at first Because I have experience working in a fast food industry when I was still in high school So this I guess I have acquired the discipline on moving faster Indication for that thing and then I was also working as a part-time food writer before so Some of the information in the kitchen are just disseminated to me and I guess that is part of the learning but When you get into the operation, it's really great Um, I didn't expect that the first month will be a blast like what I did is just you know operate the Social media tell them that we're operating but then there is a problem that happens to the Application that supposedly servicing us So they become delay on the launch like I they said let's say it's August 10 Supposedly the operation but they told me that August 10 They will be servicing us but it got delayed a week or a couple of weeks before we get them So we have to deliver the food by ourselves to the customers. Oh, wow What we do is cook on the same day and then deliver it. It's very exhausting Well, actually, what before we go there? I'm wow, I'm super impressed Tell me more about like the startup cost like where's your kitchen like I like was it difficult to find the kitchen? What were you scared with this concept? Um, actually it's where Aisha and my mom is loves to collect, you know kitchen wares So since she died Years ago, we inherited all of her all of her kitchen tools and Her kitchen is actually lay around 10 square meter and we have to prepare a long table there That worrying we can put in all the prepared Prepared in prepared ingredients and then we also have space for chairs that for for other materials that we need to put in like Placing the dishes that we need to wash in our place there and then we also use the dining table We have a rectangular dining table and we use that for the preparation of orders and packaging of orders So what you're saying is that you can operate the ghost kitchen out of your own home? Is that yeah? Yes? Wow, is that a norm? Is that what they allowed? I'm hearing the Philippines. We need licenses actually if you are going to operate an online kitchen So you can so you can operate from home. Yes, all you have to do is just apply for a license Yes, but you have to follow the protocols of the government Like the safety protocols the sanitation everything because they will check it. Oh, so they'll send someone to come to your home and check Yes, that's right. Oh, wow, but you know, that's amazing You save on rent and you see on percentages and you just get tons of orders And your drivers will go to your home your home and come pick up the food and deliver it to your customers That's right. Yeah, but I still made a mistake I'm telling you because I never thought that the business will have me make more sales and get advertisements from friends and family members that Encourage other customers to comment. So I have to call people to help us wash dishes I have also people to actually help us cook and chop and other things and also the drivers I have I have expand on-call riders because during the pandemic season some people Hey, I need to earn extra income. Oh, your mind is give us some On-call deliveries and we will do it for you And then what I did is actually give them the delivery charge and then give them 5% commission on From my sales. So at least they they will be encouraged to advertise as well the business Wow, you're smart But then the mistake is I never seen this overhead expenses So what I have what happened is that I made a lot of sales, but the money that comes in to the profit is, you know Before we even go there tell me more about what is a blast like how much Let's if you're comfortable sharing maybe like American dollars, how much were you able to make in terms of revenues? Roughly roughly is okay. I don't want to pry into all your secrets I'm made like around wait a moment. Do I have to convert it? I think it'd be easier for our listeners Yeah, that'd be good. Oh, yeah, it wouldn't it wouldn't even be in relation to actually how many orders? Oh That's for my first month. We had like sold a 105 item a hundred and five I guess that's that's really good for a first-month operation And we had like around 22 customers, but the repeat customers are not Contended that mmm We have customers already on first month and then this journey of the second month We are facing a economic difficulty right now in the Philippines. There's the costing went up high Economically, so I I have to adjust as well the prices on my on my end, right? So so when you say costing you're talking about ingredient costs, right? Yes, okay, you know what? I'm gonna let you off. I'm not gonna pry into your secrets of how much you made But you know what over a hundred orders for a first-month operation. I Congratulations, you know, like when you have the have the courage to actually go ahead and try this out and go through the Whole process, you know what thumbs up to you I think it's great and and it's amazing that you're able to kind of come come back to our group and And to continue to share your wealth of knowledge and your experience with us to motivate and inspire the people I think that's very something to be Applaud on Now, okay, you talked about your one of your biggest mistakes that we talked a little bit about Was your cost of goods sold the ingredient cost because you're like our profits were like nah Not that great. Tell me more. Yeah, because I know that you have to increase your price. You said that Economically like the ingredients and everything went up, right? Tell me more about that Actually at the moment that is my struggle, but What's the struggle? The increase of right Because yeah the increase is actually I didn't follow actually the the really high price because I still take a look at my competitions Because when you're doing a cloud kitchen, you have to identify the target market the target people Who are the people that you really want to have to be buying from you, right? I love that. I love it. You're one of the smart ones This this is this is so crazy is you are you are not you are Online you're doing it online. You are not going there outside because the pandemic is crazy And you are scared of COVID your presence online has to be so strong and for you to be so strong You have to make a target and what are the locations of these people, right? And what do they do? What what is their budget for their meals as well? So that's why I observe my competitors And how they sell their price and I realize that they're doing it between two two times 2.5 and 2.2 or what do you mean 2.2.5 and 3 what is that? 200% 200% first 250% and 300% they most let's say Let's say one product is let's say the chicken The the capital is let's say around 200 So they multiply the capital 200% or 200 right, right, right. So so you're saying cost times three cost times two is is what it you're doing Yeah, so you follow suit and you study your competitors. You're you're amazing. I think that's really smart of you as a first-time Restaurantier you're following all the best practice rules and how where did you did you go to business school? Where did you learn all these? No, I didn't um, I actually had my mom operate a cafe before when we were young And I just usually hear her about it That I have to be an observant something like that And my stepdad was an accounting and he's he at first at the first month. He was just doubting be like I Think there's something going wrong with your pricing because I think the overheads are not included And I was like so I'm in denial because it's my first time Yeah, so when I started the daily cash flow, I I actually take a look at everything that I am spending and then what is coming in and then the capital I am I separated it as well and I realized oh my god. My dad is so correct. I Have missed all of this opportunity to know Right, so you didn't factor in your overhead costs as to part of your costing of the your your goods and your product Gotcha, gotcha. It's okay. You know what? It's a learning process. You you figured it out very fast It's only been a month, right? So great stuff. Like it. That's that's what my dad told me too Because he said at least you realize it in a month or else your business will go down and you will be crying You know, that's what a lot of my clients state and students They go through is the fact that they in the books they feel like they're making a lot of revenue Okay, they're making yeah thousands of revenue It's like whoa money is coming in that's amazing and then at the end of the month a lot of expenses come in and they're like How come my bank account is not as much as I thought it would be and then next month rose around and they're like Okay, you know what keep running it running or long and and the revenue keeps coming in and expense keeps going out And it seems like that. They're still kind of in this hamster wheel Like how come after a year of doing all the hard work. I'm still not making money like in books It feels like I'm making like 25% but my bank is like 5% it's crazy Yeah, yeah, so great stuff on on doing your calculations finding out so soon Yeah, and actually one thing that I also realized for the expenses. I spent a lot of money on legalities From the first month, but all of this money came from the profit already of the business Which is that's why I was thinking why my expenses are so high And then I just realized that there are so many documents that I have to follow and comply with that I used the money of the of the business already for that to be compliant Gotcha. No, that's that's amazing like and thank you for sharing this story because I think a lot of our listeners can be Inspired and see exactly what you've gone through and actually learn because every time I always preach about know your customers know your customers know your customers And and that's something that I always have to tell people and people are always going back down to the idea I mean ideas are great, but then if you don't know who your customers are Difficult, right? So that's right for shame that yeah, actually I made notes for that Action for me marketing and we are a very teaches job on doing the business Where the cloud kitchen is you are only doing it online and there's less interaction outside You have to make the online presence very interactive by reaching the community and as well as your branding Without losing it, I mean, you know people will think that the brand is the logo or things like that, right? And you have mentioned that in one of your video, but it's not it's it's like the same as the restaurant that is existing basically It's the ambience. It's the way you approach them. So Yeah, what I learned first is you have to know who is your Customer you have to know the location you have to know the food products that is trendy for them and If ever it's not trendy how you will sell the food product to them that will not appear as a Selling but instead it will appear like you're the brand for that product Yeah, and then for the promotions. These are actually for me at the moment. This is my one of my struggle as well because During my first month many people ask me hey Do you have 40 packages because we are 10 in the family and we would like to have 10 persons to be served in one Package one offering and then now I created like Amount of packages And I don't know how to schedule it now on my social media Right, right. Gotcha. You know what? Well, we'll take that conversation offline and I'll give you some tips and tricks as well 100% and you know what it's it's crazy to see your growth I mean like you have been in the community all along and once again Thank you so much for your time for for jumping on this and sharing your lessons You've learned your experience and growing this and I I know you're gonna be like super successful within your business I'll keep tabs with you. You're in the community Just keep us up to date and you know what? We'll get you back on the interview and see how you're able to grow to multiple different ghost kitchen locations in the future Oh my god, that's great Actually, I was looking forward some day that when the COVID is over and get the chance to meet some of the people in the group and Also collaborate with some with some products because you know I also have some of witnesses that I need to improve especially on creating new products and new food that I can offer and of course For the technicalities of restaurant is I'm not yet a good one I need to learn more Perfect if if our viewers in our audience and our friends want to come find you support you How can they find you? Do you have a social media link? Do you have Instagram or what do you have? Yeah, we actually have social media account, but we have you do for casino Leonardo's We also have Instagram casino Leonardo's as well and Facebook page, which is Perfect Yeah, I will I'll include those into the description link below because I don't think people would be able to like kind of hear everything All at once, but nonetheless, I really appreciate you jumping on sharing all the goodies with us I hope that everyone's gonna come and support you like your page and just see what you're up to Yeah, thank you so much to Wilson. I do appreciate your time for me today and Thank you so much as well for all the videos that you're sharing. It's very knowledgeable and very informative especially for anyone like