Marvin Agustin started his career doing odd jobs in the food industry–mascot, waiter, cashier, and cook–before becoming an actor and a successful restaurateur.
Agustin values this experience as it helped him develop an “entrepreneurial mindset.”
In the RCBC Boz Sessions, a series featuring Filipino entrepreneurs, Agustin–owner of Sumo Sam, Secret Kitchen, COCHI, and Mr. Monk–discussed his comprehensive experience in the restaurant business.
“Working in a restaurant sharpened my skills and allowed me to develop an ‘entrepreneurial mindset.’ Success requires not just hard work and perseverance but also a strong strategy,” he said.
Agustin learned early that the key to making a profit in the food business is simple: “Sales minus costs and expenses equals profit margin.”
This formula guides how he manages his businesses and personal savings.
“I’ll never forget the lesson from wise mentors: it’s not about the amount of income but having sustainable savings,” he said.
The two biggest expenses in the food business are food and labor costs. These are critical factors for success.
Many new restaurateurs mistakenly think that a crowded restaurant always means profit.
“Even if a restaurant is busy, it may not meet sales targets due to unmonitored inventory or wasted ingredients, increasing food costs. Assumptions without data can lead to problems,” he explained.
Agustin offers three tips for new restaurant owners: use workforce hours efficiently, delegate duties properly, and have a clear operations process.
“Align these practices with your managers and employees. Then, implement and monitor them,” he added.
He admits that tracking expenses and sales can be daunting. He recommends tools to simplify this process.
One such tool is RCBC Boz, a banking app that helps entrepreneurs manage business accounts separately from personal ones. It features invoicing, expense tracking, and financial reporting.
“You cannot monitor what you cannot measure,” he stressed.
Agustin emphasized the importance of tagging collections and expenses to analyze business performance.
Properly monitoring expenses and revenue helps in executing business ideas effectively. “Jeff Bezos said, ‘An idea is only one percent; 99 percent is execution.’ Execute your detailed plans to increase income,” he said.
Aspiring restaurateurs shouldn’t fear imperfect plans. “Start with what you think will make an impact and adjust as needed,” Agustin advised.
He encouraged small and medium enterprises owners, new or experienced, to take bold steps and use tools like the RCBC Boz App to help.
