Barbecue, BBQ or ihaw-ihaw. Despite its many names, BBQ is an all-time Filipino favorite viand perfect with an ice-cold glass of Coca-Cola. Its versatility is another reason for its popularity – it’s also a tasty afternoon snack.
If you are an avid ihaw-ihaw fan and want to turn your passion for BBQ into an income-generating venture, our guide will give you tips on how to start an ihaw-ihaw business.
1. Starting Capital Computation
One good thing about ihaw-ihaw business is that you can start selling on a small scale. If your house is located in an area where many people pass by, you can start your barbecue business by opening a stall just outside your gate.
Consider preparing the following if you want to start your business in a home-based set-up:
- Two to three tables with chairs
- Rectangular plastic containers for your food items
- Lightbulb if you plan to sell until nighttime.
These can be gathered from around your house and don’t need to be additional expenses to your starting capital.
Here’s a sample computation of how much you’ll need to begin your ihaw-ihaw business.
Stainless steel barbecue grill – 3,500 to 5,000 pesos
Meat and Innards – 3,000 pesos
Marinade ingredients – 1,000 pesos
Coal – 300 to 350 pesos per sack
Packaging – 500 pesos
Cooking Equipment – 500 pesos
With 10,000 pesos you will be able to open a home-based ihaw-ihaw business. Consider adding rice and soft drinks to your menu if you plan to accommodate indoor diners later on.
2. Write Your BBQ Business Plan
We don’t know how often you’ve heard this, but this principle applies to business – failing to plan is planning to fail. Write your business plan before you purchase any equipment or ingredients. Your business plan does not need to be sophisticated as it is the starting point for all your business ideas.
These are some questions that your business plans should answer:
- What is your menu?
- Where will you get the funds?
- How much is your total budget? How much can you allocate for the following?
- Equipment
- Ingredient
- Packaging
- Other supplies
- Where will you sell? Will you be renting a commercial space?
- What documents, licenses, and permits will you need?
- Will you need an assistant or cashier to help you out?
- What is your marketing strategy?
These are the basic questions that will help you get started. More questions may arise from this first set.
3. Decide on Your Unique Selling Point
In every city, there are various establishments selling barbecue. So, how will you stand out from them? What is special about your ihaw-ihaw stand?
One way to distinguish yourself is to decide what kind of barbecue you will serve. Will you focus on chicken meat only? Will you sell a combination of chicken and pork BBQ? Is fish or grilled seafood included in your menu?
To help you identify what food items to include in your menu, you can do a competitor research and compare what ihaw-ihaw products are commonly sold in your area. Some popular menu offerings are pork and chicken meat, pig’s ears, intestines, liver, and other body parts or organs.
Remember that your unique offerings and menu selections will set you apart from the competition. By carefully considering what types of barbecue you’ll serve and conducting thorough competitor research, you can carve out a niche for yourself in the market.
4. Look for a Reputable and Reliable Meat Supplier
When running a food business, you need to ensure that the quality of your food is consistently good. One thing that drives away customers is inconsistency. If your food tastes good this week and then tastes different the next, or when your servings gradually decrease, they will not feel inclined to come back. This is why you need to get your meat from a trusted supplier.
Also, working with only one or two suppliers can help you save in the long run because you will be able to request discounts from them, especially in bulk orders.
5. Invest in Sturdy Grilling Equipment
Before you get tempted to buy those portable grills you see online, remember that the quality is not guaranteed. It is safer and more cost-efficient to invest in a customized stainless barbecue grill.
Grill price ranges from 3,000 to 5,000 pesos on Facebook Marketplace. You can use Facebook to search for stainless steel specialists near your area.
Essential Equipment for Barbecue Business:
- Plates
- Tongs
- Sauce containers
- Ladles for the sauces
- Take-out packaging (paper bags)
6. Choose a Prime Location for Your BBQ business
Location is key to the success of your ihaw-ihaw business. Choose a strategic location with high foot traffic, preferably near offices, schools, or residential areas where people often crave a quick and tasty meal. Consider factors such as accessibility, parking availability, and competition in the area. A well-chosen location can significantly boost your sales and visibility.
7. Comply with Documentary Requirements
Before diving into the details of getting permits, it’s important to decide how your food business will be set up. Your choice of business structure will have a big impact on things like taxes, permits, and your responsibilities as the owner.
The most common structure for small businesses is Sole Proprietorship. This is when one person owns the whole business and is responsible for everything. It gives you full control, but also means you’re personally responsible for any problems. To start a Sole Proprietorship, you need to register with the Department of Trade and Industry (DTI) and pick a business name.
Once you’ve figured out your business structure, it’s time to think about getting the right permits and licenses for your ihaw-ihaw business. Here’s an overview of the documents every new food business owner should know about:
- DTI Registration: Whether you’re running your business online or in person, registering is a crucial step. Sole Proprietors register their business name with DTI.
- Business Permits and Licenses:
- Tax Identification Number (TIN)
- Mayor’s Permit
- Barangay Clearance
- DTI Business Name Certificate (for Sole Proprietors)
- Community Tax Certificate from the City Treasurer’s Office.
You might also need a Sanitary Permit to show your business meets health standards, and if you rent your space, you’ll need a lease agreement.
- BIR and SSS Registration: You’ll also need to register with the Bureau of Internal Revenue (BIR) to get your Tax ID Number. If you have a huge capital and have employees, you’ll need to pay the Employer’s Share to make sure that they are covered by SSS benefits.
- Following FDA Rules: If your business involves making or selling food, you need to comply with the regulations set by the Food and Drug Administration (FDA). Check their website for info on licensing and registration.
Key Takeaway
Starting an ihaw-ihaw business can be a lucrative venture for those passionate about grilling and serving delicious barbecue delights. However, success in this endeavor requires careful planning and attention to detail. We hope the essential steps outlined in this guide will help you set yourself up for success as a business owner.
