"One of our directors, Jorge Ong, discovered kimpao in one of his frequent trips to China. It left a mark on his palate. When he got back, he was raving about a fried creamy bun that could be eaten on its own or with milk," said Krispy Kimpao Deli Corp. president Hans Tan.
Using the Cantonese chefs of Harbour City Seafood Restaurant, which Ong co-owns, the company worked on the fillings, which range from Filipino comfort food like adobo and ham and cheese to more sophisticated variants such as chicken teriyaki and spicy tuna.
"We incorporated only this January but we have been selling kimpao since December 2002 in bazaars and trade fairs. The three- to four-day events gave us the opportunity to check out the potential of our business concept. We sold out at every single event. People were buying in boxes of 10 to take home or to give away," said Tan.
By middle of this year, the company will have opened 10 outlets, most of which are located in SM malls.
The kimpao is centrally produced by a commissary currently located behind the Makati branch of Harbour City. At the retail level, the product is fried only when an order is made.
"There’s a technique to the frying, which provides on-the-spot ‘entertainment’ for our customers. The temperature of oil has to be right. Otherwise, the kimpao will be too oily or not be crunchy," said Tan.
In an effort to provide variety and cover a wider market, the company has increased its fillings offerings to six. The kimpao also now comes in two sizes– the regular size, which is at least one and a half times bigger than a regular siopao, and the petite size. In the works is the jumbo size.
"It’s a versatile product. At P20 for the regular size, it can be eaten as a snack by the office worker or packed as baon by the student. We throw in a cup of iced tea for a total of P25. Two orders or P40 is filling enough for lunch," said Tan.
Krispy Kimpao is targeting 40 outlets by year-end, largely through the franchising of outlets in northern and southern Luzon. The franchise package for a cart measuring three to four square meters costs P150,000, inclusive of the cart and all equipment except the chiller. The price could go to as high as P220,000 with the lease of an iced tea dispenser.
Average payback is estimated at six months to a year.
"Eventually, we hope to have a presence in major cities nationwide. We have received franchise applications as far as Cagayan de Oro," said Tan.
Another indication of kimpao’s market acceptance is the growing number of imitators in Metro Manila.