The Entrepreneur

Cleaning toilets mightn’t be the most

glamorous job, but it’s just as important as any other,
and everyone has to start somewhere. Though today
he’s the Co-Founder and CEO of famous flavoured
French fries franchise, that’s exactly how Jose
Magsaysay Jr started out, cleaning the rest rooms
and kitchens at Wendy’s.
Jose was nicknamed JoMag by a Wendy’s
colleague and it’s a name that stuck. Jose is always
referred to as JoMag now. While he was studying he
also worked part-time to support his mother, and
when he was offered a full-time position, it was an
easy decision.
From there, he was trained in management,
overseeing a store and then a district. Even though
some of those positions involved a long commute or difficult hours, he accepted new
responsibilities without complaint, evidence of his belief that determination and focus brings
successes at Wendy’s.
At that time, Joe has been working with Wendy's for about 9 years already, and he needed
extra cash for a growing family. When the group asked him to join in before they opened their
first outlet, he readily agreed, but stayed on his day job for the meantime. The first outlet opened
in July of 1992.
Business Corporate Name
Everyone is familiar with Potato Corner, a brand that is truly owned by a Filipino company
that is now one of the most successful local food service business and now being recognized in
other countries. Filipinos love to eat, obviously rice is the most common staple food in the
country and not potatoes. But then again, it had gone main stream as one can get. The group
behind this company has built their very own empire capture the taste of the Filipino people as
well the other states in around the globe.
The small business has gone globally. They currently have 550 kiosks around the world. In
other countries, they have adapted to the flavors the customers are accustomed to spicier flavors
in Indonesia and cinnamon flavor and chicken wings in the USA.
Nature of Business
According to (BusinessWorld, 2018) the country’s food service industry has continued to
improve over the past years due to the stronger consumers’ purchasing power, influenced by
today’s fast-paced lifestyle. Food service players are increasing their network to cater to more
Filipinos who demand for more convenience. In this type of business, it’s classified under the
Accommodation and Food Services sector comprises establishments providing customers with
lodging and/or preparing meals, snacks, and beverages for immediate consumption. The sector
includes both accommodation and food services establishments because the two activities are
often combined at the same establishment.
Entrepreneur Qualities
Magsaysay has long been immersed in the food business with a vast experience in leading
different food chains. But he partly attributes his business know-how to Wendy’s Titoy Pardo, his
most influential mentor. He wouldn’t become this successful without these following quality and
traits as an entrepreneur (1) Reasonable Risk Taker, Magsaysay attributes the growth and success
of Potato Corner to his sense of focus. Although he had lots of opportunities to explore, he do
“one thing at a time”. (2) Strong Work Ethic, Magsaysay never thought of leaving his job at
Wendy’s but without his mentor’s (Titoy Pardo) advice he wouldn’t be able to start-up his
business. (3) Human-Relation Skill, technically by using other people time and money to launched
franchise stores, the brand became successful (4) Innovative, according to Magsaysay his current
millennial costumers were the same kids purchased his products when the business was just
starting. Also, added some twist of flavors in some other countries. (5) Goal-Oriented, Magsaysay
had three sons but he wants them to choose their own path. The company always maintain their
flavors when they first started the business and their DNA is to be focused on the business.
Risk and Rewards
Joe Magsaysay, shared his experiences while he was still employed by Wendy’s and
recalled how Pardo (his former mentor) advise him to focus on his business start-up. Mr.
Magsaysay had his choice whether to quit his current job at Wendy’s or grab the opportunity as
an entrepreneur he’d aspire as to be by starting his small business.
Later on, with this solid grounding in business JoMag and three other partners (his
brother-in-law among them) started Potato Corner in 1992, with just 150,000 pesos, around
US$6,000 at the time. More risk did Magsaysay in starting up this business was (1) borrowing
money to make the investment. (2) The first small team had their mistakes when the first cart
was opened in SM Megamall, the second largest in the Philippines. (3) In the first three months,
they had to change their carts three times. “We weren’t entrepreneurs” Magsaysay stated when
his team realized that the first cart of the company had the wrong signage, so they had to change
it a couple of times just to improve their business strategies.
As far as Magsaysay is concerned, he had the entrepreneur mind-set that mistakes and
errors are acceptable within a reason. It helps the company learn and grow, that failures are
seeds planted for success. Neverthless, Magsaysay (JoMag) has dedicated himself to improving
in other ways, having undertaken a master’s degree in entrepreneurship to “take the company
to the next level”. Although he says he wasn’t an entrepreneur to start with, he sees Potato
Corner as fundamentally an entrepreneurial organisation – agile, cooperative and streamlined.
A very interesting entrepreneurial start

- Rey Gamboa (The Philippine Star) - December 10, 2016 - 12:00am

Potato Corner is a wholly-owned Filipino company that is now one of the most successful local
businesses that is also reaping success in other countries. It can be found in all malls and the
brand has gone from just kiosks to stand-up stores. Its amazing success, like most other success
stories, started with a leap of faith and has gone on to establish it as one of the most profitable
franchises in the country.

One of the original founders of Potato Corner, Joe Magsaysay, shared with Business & Leisure
the company’s humble beginnings over 20 years ago. It started with four partners: Ricky
Montelibano, Joe’s brother-in-law, and friends Danny Bermejo, George Wieneke and their wives.

Ricky was the first to start the flavored popcorn in the Philippines which became a craze among
young Pinoys. With only two flavors, barbecue and cheese, Ricky was making so much money
that he could afford a new car and a new cell phone back when these were very new and very
expensive in the country.

Joe, on the other hand, was working with Wendy’s, a modestly successful foreign brand here, but
he needed a “sideline” to earn more for his growing family. With Ricky’s flavored popcorn
business as model, the idea was born: flavored fries.

The group needed to put up P150,000 as starting capital for Potato Corner. Joe remembers that
he didn’t have the money and had to scrounge around for P37,500, his 25 percent share in the
business. Like him, the other members of the group also had to borrow to come up with their
share of the total starting capital.

Meanwhile, Joe, who had been working with Wendy’s for nine years, was confronted with a
choice — it was Wendy’s or Potato Corner. He couldn’t have both, so Joe made his incredible
leap of faith right there and then and left the safety of a stable corporate job for the unknown.

That was in 1992, and they opened their first store in October of that same year. It was a only a
cart in Mandaluyong because, as Joe simply said, they couldn’t afford anything bigger. In just 30
days, Joe was able to pay back the P37,500 loan he got, and so did the rest of the group. This was
phenomenal success for their novel product and the group saw the opportunities that were open
to them. That was the time to expand, and franchising was certainly the most promising option
they considered seriously because, with very little funds at their disposal, franchising seemed to
be their only option to raise additional capital.

At that time, franchising was a still a novel idea here, and the group did not have the advantage
of our current entrepreneurs who have the support of organized bodies like our national
franchising associations. Joe knew about the mechanics of franchising through his old job at
Wendy’s, which is a local franchise.
Undaunted, he read books and researched on franchising. Armed with only the basics of the
mechanics of franchising, the group accepted their first franchisee, with a franchise agreement
that they copied on the net. Their first three franchises were closed on mere handshakes, Joe
recalls, and they had no manuals to go by to guide them. Their gut feel for the business was so
strong that they plunged into it without second thoughts.

As things turned out, their franchise business grew faster than their company-owned stores. This
was because the group was bent on raising funds for their planned expansion. “It’s because of
franchising that we were able to dominate the market,” Joe said.

Fast forward to 2006. There was an Indonesian student who studied here, got a degree and
eventually went back to his native country in 2003. Joe received a call from him expressing his
interest to bring Potato Corner’s flavored fries to Indonesia. Joe was not yet interested because
they were still fully developing the local market. The persistent student called again in 2004, in
2005 and finally in 2006 when Joe relented and entertained the idea of bringing the brand to a
foreign country. That same year, they opened their first store in Indonesia.

In 2010, they brought the brand to the United States. It was also another student whose father
used to head the security of the Israeli Embassy here who was instrumental in bringing Potato
Corner to the land of French fries. The student who studied at the International School and lived
in a condo along Ayala Avenue used to walk every day to Glorietta to buy from Potato Corner and
wanted to bring it to the US. Joe and his group studied the market there and talked with a
marketing guru in the US who actually advised him against it, likening the prospect to selling ice
cream to an ice cream house. Their group, however, had more faith in his gut feel and went ahead
with Potato Corner’s invasion of the land of French fries.

Today, Potato Corner has over 100 stores in Indonesia, 45 stores in the United States and several
others in various countries. Panama is one of these countries, and it was incidentally also a
foreign student studying at the Poveda who made the first step here. In all of these countries,
Potato Corner was the first to offer flavored fries.

Starting with only a service crew of four, the enterprise now employs over 200 hundred in their
corporate offices and company-owned stores. Some of them who have been with the company
when it started in 1992 continue to serve up to this day. The company now sends the deserving
ones to earn their masteral degrees in schools like the Ateneo. Joe himself turned 55 in August
of this year and decided to retire early. It’s time, he says for the company to take care of him
now. Their company continues to grow and they are looking forward to having 150 company-
owned stores before the year ends and more stores in other countries. They are also looking
forward to their 25th anniversary in 2017.

His advice to would-be entrepreneurs? “Consider franchising, and don’t wait until the “fad”, the
strong market acceptance fades. If you have a good product, aim to achieve market dominance
at the soonest time, and continue to find ways to control the business.”

Mabuhay!!! Be proud to be a Filipino.

We’re fast. We’re always ready: Jose Magsaysay
Co-Founder and CEO Jose Magsaysay JR describes Potato Corner as an entrepreneurial
organisation – one that’s flexible, cooperative and innovative.

Jose Magsaysay
CEO, Potato Corner
Words - Oliver Featherston

Cleaning toilets mightn’t be the most glamorous job, but it’s just as important as any other, and
everyone has to start somewhere. Though today he’s the Co-Founder and CEO of flavoured
French fries franchise Potato Corner, that’s exactly how Jose Magsaysay Jr started out, cleaning
the rest rooms and kitchens at Wendy’s.
He even lists that experience on LinkedIn, and it’s not hard to see why – it’s a testament to how
far you can go with a robust work ethic.

Jose was nicknamed JoMag by a Wendy’s colleague – and it’s a name that stuck. Jose is always
referred to as JoMag now. While he was studying he also worked part-time to support his mother,
and when he was offered a full-time position, it was an easy decision.

From there, he was trained in management, overseeing a store and then a district. Even though
some of those positions involved a long commute or difficult hours, he accepted new
responsibilities without complaint, evidence of his belief that determination and focus brings
success.
“My advice to everybody is to work 100% on whatever they are doing,” he says. “A lot of people
say you have to multitask, and that’s okay, but there’s nothing better than putting 100% of your
mind into whatever you’re doing.
It’s like driving – when you’re driving, all your focus is on the road. The moment you pick up your
phone, half your focus is on driving and half is on your phone.” With this solid grounding in
business, JoMag and three other partners (his brother-in-law among them) started Potato Corner
in 1992, with just 150,000 pesos, around US$6,000 at the time.

JoMag had to borrow money to make the investment, and a cart offering flavoured French fries
was opened in SM Megamall, the second largest in the Philippines. It wasn’t altogether perfect,
however; JoMag recalls the small team made their fair share of mistakes in those early days. “In
the first three months, we changed our cart three times,” he recalls. “We weren’t entrepreneurs.

We were making all these mistakes. We realised the first cart had the wrong signage, so we
changed it. Then two months later, we realised that we needed to improve again. The entire
history of Potato Corner is learning and improving.”

As far as JoMag is concerned, taking risks and making errors are acceptable (within reason), since
it gives an entrepreneur room to learn and grow. He believes that in failure the seeds for success
are planted.
Nevertheless, JoMag has dedicated himself to improving in other ways, having undertaken a
master’s degree in entrepreneurship to “take the company to the next level”. Although he says
he wasn’t an entrepreneur to start with, he sees Potato Corner as fundamentally an
entrepreneurial organisation – agile, cooperative and streamlined.

“Our DNA is about making sure that we’re focused on business,” JoMag says. “It means we’re
small. We’re a micro-business – three people manning the stores. We make sure we’re always
flexible and dynamic. To us, a decision has to be made within 24 hours. The decision on whether
to open a new site should take 24 hours. We’re fast. We’re always ready.”

This agility is achieved through the company’s use of people power; JoMag compares it to Uber.
“We used other people’s time, organisation and capital to grow,” he explains. “That’s why we
could grow rapidly, by using other people’s resources.

We’re not an asset-based company. We’re an IP-based company – 80% of our stores are
franchised. That’s how valuable our franchisees and partners are to us.” Potato Corner’s success
is equally buoyed by an enduring, well-loved brand, alongside which its customers and
franchisees have grown, too.

The company’s target market has always been children – in fact, a focus group of kindergarteners
chose the trademark. But Potato Corner isn’t limiting itself by targeting only kids; deep down,
JoMag believes we’re all kids, and customers will continue to patronise Potato Corner long after
they’ve grown up.

“We make sure the flavours we have today are the same as what we had in 1992,” he says.
“People can come back and say, ‘This is the same thing I used to eat 20 years ago.’ We’ve seen
what happened to Coke when they tried to introduce a new taste.
“People will always have these sentimental feelings. We have to tap into that.”
For food, it’s important to stick to what made you successful, because people will always have
these sentimental feelings. We have to tap into that.”
References

Gamboa, R (2016, December 10). A very interesting entrepreneurial start. The Philippine Star.
Retrieved from https://www.philstar.com/business/2016/12/10/1651875/very-
interesting-entrepreneurial-start
Mini (2017, August 10). 4 Secrets Behind the Success of Potato Corner. Business News Philippines.
Retrieved from https://www.businessnews.com.ph/4-secrets-behind-success-potato-
corner-20170810/
Featherston, O (2019, July 25). We’re fast. We’re always ready: Jose Magsaysay. The CEO
Magazine. Retrieved from https://www.theceomagazine.com/executive-
interviews/food-beverage/jose-magsaysay/