Restaurant/ bar / club businesses difficult for foreigners to make a success of in the Philippines but most popular out of all the businesses to start. Very risky, alot fail/ fold. Best of luck to Michael on his new business venture and Beaver Bar & Grill. I wish him every success.
it would fail for sure cause you must remember philippines are not rich and bar/restaurant/club business are for rich people and tourist and you clearly don't know your target audience if you want a successful business the best option if you loved restaurant is to open a franchise business like jollybee/maninasal/mcdonalds this is a very profitable business but its heavily dependence to location if you have great location you can start earning profits in 5 years at most cause in a peak location you can earn 1milion pesos in 2 weeks and also if you have a great location its best to build internet cafe if your area is in a school zone 10 units of PC you can earn 30k-60k per month its already been deducted of all other bills and you can buy a one set of piso net for 25k pesos
@@PavolKosik-b3u lol i mean is not stocks but a personal physical store the friend of my uncle own 10 jollibee franchise and earn 1 million pesos per weeks and although franchise is 25m-40m pesos 10 stores he earn 1m per weeks
I'm a Filipino-Canadian from Toronto. Canada and going to retire and move the family to Cagayan de Oro next year. I promise we will take a family vacation to Iloilo and will make sure to visit Roxas and your bar to support your business! Hope your business continues to prosper and grow! We need more people like you in the Philippines. All the best.
I am canadian of geeman descent. I grew up with a phillipino guy and are best friends to this day. EVERY phillipino person i have met in canada are the most wonderful of people! I sometimes think phillipnes is the real first world nation.
Do not move to CDO. I am an expat here and it's been a big mistake to reside here. Please look around first! There are far better places to be than here. On the one hand, it's cheaper than a lot of other places, but if you spend just a few more pesos, the difference in cost is nothing compared to the access you get to real world commodities. Just a suggestion....good luck. If you do come here, look me up. Oblio Arrowgood.
My main business interests are in property. Obviously as a foreigner I can't personally own property outright, but there are legal means of getting around that problem. We own three residential properties in fairly high-end areas of the city in which we live. We also built a store, a block of 12 bedsits and a coffee shop on land we bought out in a nearby town. The key here is location - it's 200 yards from the local hospital so the customer base is guaranteed. After 2 years of running it ourselves we then decided to step back and rent the business to the employees. Their incentive? If they put the work in they get the returns since we charge bare rent and leave the profits to them. I never had any difficulties, either bureaucratic or practical, when establishing any of our interests and things continue to run smoothly.
To be fair. Our regulatory framework is patterned closely on US state regulations. Except we dont operate an actual market ecomomy similar to US. Thus the disconnect. What you can do is create or hire a BIR registered marketing agent to do your wet market purchases and bill you on their receipt. Consult a local lawyer and accountant to handle all these tasks for a small fee. The savings will be large.
Super informative video about things people need to consider before trying a bar or restaurant in any foreign country, especially the PH. Points like not being able to write off legitimate costs like vegetables & fish, food bought with cash in a mostly cash society. That alone can drop your profit margin down to non existent. You can really find out what the challenges are with this video and feel some of this guys stress. I follow his channel and I think he [hopefully] will exit the business or maybe make it big if he can find a bigger space. Good luck!
profit is already non-existent 😂😂😂 dumping 100,0000-200,000 pesos a month into it. going down the rabbit hole 🕳 so far he’s going to end up in China 🤔🤔
Great job Michael - you and your team have a really nice local spot to serve all types of customers. Looks like you filled a nice void in the area. You have a great outlook and knack for business and how to treat staff and customers well. Plus you’re a good guy…may sound corny, but I do strongly believe that treating people and staff well, you get the best out of them. Hope to come visit your place on our next trip to the Phils. Happy Holidays and Merry Christmas. Much continued success!
Amazing insight….. I live in Bohol and understanding now all of the regulations that the Philippines government puts on businesses to strangle them. A country that needs business development is doing everything they can to stifle it. Totally on brand.
Best of luck to you Michael. I hope you'll keep going and make more cash. Next move don't jump right away and take it. Please research and make sure you really own the business. just to make sure. sometimes there is a risk. I hope well go there someday. I love the name of your bar. Have a good one. Regards from Canada.
I hope you the greatest success and continued growth sir. You have chosen a difficult path. The #1 business that fails worldwide are restaurants. Even huge corporations with unlimited funds fail and see their locations close.
I follow him on RUclips ... and my wife and I have just settled in for retirement in Guimaras. We've been to Roxas before, and now I know where I want to go when we go back. I'm looking forward to it.
@@Livingabroadalex the foreighners can now own business in the Philippines with 100% ownership because of the new law just recently enacted except for those that has something about national security concerns.
Yes. I want to add: the ph economy has been on the rise for many years now. The ph evonomy COULD BE one of the best boom economies globally in the next decade or two. Correct me if i am wrong but i understand ph gov is now seeking and supporting foreign ownership and investment.
Seriously? where are your numbers to back it up? Growth from a low base? You must be a Filipino since 98% lack the critical thinking skills and end up just a followers and subservient laborers all over the world. OFW and BPO industry breaks down family structures and not sustainable.
Sige sige lang, salamat po! I commend your efforts. Back in 2008 when the construction/housing industry was an epic failure. I was newly single and began talking with a young lady from Dasmarinas Cavite. Next thing I know, I liquidated my construction company tools and truck and had the bright idea to buy a one-way ticket (that immediately caused me issues) as they wont sell a oneway ticket to anyone with a blue passport... OMG Culture shock! I had no idea how life was outside N America.... Needless to say it didn't pan out! LOL
Michael, I was at the Canadian Beaver 2 nights ago. I ordered the Nachos and they came out with a little meat but then they squirted stuff on it that tasted like mayonnaise and maybe fries sauce, no cheese. I won’t sugar coat it, it was not good. I then ordered the chili with chips and cheese but they did not have cheddar cheese and of course I didn’t want the previous topping. They just brought the chili and it was very sweet and I didn’t eat it as well. Sorry but the food was not good. THE STAFF WAS FANTASTIC.
@@bluemm2852 It’s mostly expats. I know I would pay more and I bet I’m not alone. The chili and chips menu item pictures cheddar cheese they were just out.
@ guess I’ll keep looking. The next morning I went to a place called the Coffee Project and had a fantastic breakfast. It can be done but I’ll be needing to do some research for my favorite spots to eat.
It’s a big challenge to open a restaurant/bar that caters to expats in an area where there aren’t so many. In another area, he could be charging more, have more tables, and have a better chance of success.
Look it was always going to be a tough challenge, I would never start a business here, especially a bar, unless the culture had changed. It's costing him heavily each month and I don't know how he is able to sustain the huge losses
Best way of business as a foreigner is sitting on the right site on the bar and using the dinner tables to use the bar and food tender service pay your bill and leave. Starting "business" in Philippines i told and explained already you cant make any money and its all based on never endings tax payments and regulations, the labor payments looks low but compare with your income its ...still expensive with all your netto left income. For real business you need have connections and network ... from mayor to local fam. suppliers. best way to make money is abroad and spent your money on places like you run ..only reason to do "local business" is a money loop for all your relatives to keep them busy and livelihood thats it! Or go online business in trading day trading stock market makes me a wealthy man after I get jobless due to covid and lost my job overseas job
Some people just have to lose a lot of money first before they learn... can always start over... just save enough for a plane ticket home and taxi fare.
This video is a great example of why I advise expats against starting a business in places like PH, TH, and etc. Especially those without business and/or management experience. Too many think it is easy and a way to supplement or replace their income when the reality is normally the opposite for months or years. Michael has done everything right as far as I can tell and is still not showing real profit but businesses are hard and the bureaucracy and other legal issues of a business like this are hard in places like the US or CAN but even more so in PH. I was not aware of the specifics of how BIR handles the so called underground economy. Sadly it seems if you have to purchase from them you can't write that off. And that is a huge deal in a business like this. A lot of phantom profit being taxed creating more expenses. Making it harder for him to turn a profit. Food costs are normally in the 30% range of revenue so just imagine if you were being taxed on that like it was actual profit. Business is business and anyone who goes into something like this expecting it to be easy and profitable shouldn't do it. Equally someone who wants to build something and understands it takes time should not and would not be turned off by the realities of it. I hope Michael can get it all to work out and in 1 to 2 years will be running a business that turns a profit most if not all months. Either way I think his sharing of this journey on youtube is a positive. Nice to see the realities (good and bad) shared.
Agreed and now it makes sense on how he was able to get the endeavor off of the ground in the first place, having 3 PH partners/financial backers was the key and the struggle continues. This will last as long as his partners have the patience to wait for the business to start turning a profit.
I feel for him he seems like a good guy i am a retired business owner here in Canada,and from what i gather here i unfortunately dont believe he will ever see a return on investment,especially a bar in the phills.He would have been way better off just investing any extra money and just do his RUclips thing.
An email marketing strategy would be helpful here if not in place already. For example, I would have collected emails from all those that attended the grand opening. Next develop an email strategy to stay engaged with these customers. Implement email campaigns monthly/quarterly where Beaver is staying in touch with this audience reminding them of the delicious meals, great beachside location, offering the occasional discounts on meals, drink specials and notifying them of restaurant events and activities etc.
Mike, I'm taking you up on your initiative of expansion. As we both know, you have travelled and lived here in Dumaguete, and that we have a number of Expat bars here. Some are well supported, and some are not so suppported. but there is a group of expats that are missing out of not having a nice place to go. Thse are the families who dont appreciate a girly bar, where patrons are too noisy, and I think you know those type of people, and all they want to do is tell you their woes and mistakes in life, how they beat the VC in Vietnam, and places where the food comes out of the deep-fat fryer all the time. When I go out with my Filipina, she is the one who decides whether we return to a place or not. The place has to be alive, fun to be in; and the food has to be of a good standard with a fair balance between fried/grilled food and non-fried/grilled food. Remembering, that us “Old Timer’s” constitution has a tenancy to reject food that has been fried in fat/oil as we get older and is a great factor in whether we return again. Your Bar/Restaurant looks like it has the right approach, drive and the best approach in terms of business planning. I encourage you to branch out in Dumaguete and bring a fresh face, and not too much in the way of fried food options. :) Good lunch in your future business plan.
I wish I could have had a conversation for half an hour with Michael before he got into that, but there again you know what they say, "the best advice is usually ignored" and I am also definitely guilty of that one.
Great video, a lot of expats lose money trying to open &/or but existimg businesses in other countries. This is the first time someone breaks down business taxes in PI. Who ever woulda through that the profits in a filipino bar would come from the food & not the alcohol.
Its good to stay engaged with stuff. I was in the Philippines last January. Winters are great. I think year round i would get bored. I have a lot going on in the summers in the states. If you can't deduct your expenses, is it even worth doing? Do those big call centers really pay OT?
The agricultural products like fish, meat, rice and vegetables ARE NOT TAXABLE. You can use the invoice or any written document including scratch paper from a meat stall or vegetable store. For new employees who are not up to your company standards, you can fire them but always make documentations. Also, accord them with due process.
Nice one. Can probably offer additional services to help increase revenue like inter Island boat trips or diving from the same location. I would add vending machines too for cigarettes, soda and candy as these are easy money. Put up pool tables and game room as well. Add a massage services on the beach , so much ways you can increase revenue her. Gold mine
Keep it simple do less tables less staff regional food which is cheaply available at the market hire staff temporary hours pay them extra in Cash dont give out receipts if not necessary ... gotta be smart in the philippines 😂
No one ever brings up business requirements in the Philippines. The tax issues, the wholesale food receipts needed, employment laws really cut into profit margins.
Its part of the reason why the informal economy is so big there. "Hiring" an uncle or cousin to work for you without any sort of legal framework is much easier than hiring random people. Every country that has these sort of ridiculous laws end up with bloated informal economies and difficulty collecting tax revenue. IIRC India's informal economy was 90 percent of their employment, if not more. Also the people working often have to get certificates to work at anything that is legitimate. There is a reason why it's ranked in the top 10 worst places to be a worker.
It is well known that 50% of restaurants and bars close down within 2 years of opening, and a cumulative total off 90% within 3 years. The 9% that survive are “living dead”. Only 1% make money.
The game is: you start a restaurant run it for a few months and then sell the restaurant to another foreigner. Then start another one and do it again. That's where the money is.
Mike makes more on RUclips membership monthly dues and video monetization than the bar. The publicity and intrigued of the business feeds to the RUclips channel alive. He can franchise the bar concept later on.
@@millennialexplorer Very true. It seems like the modus operandi of many expats: generate income from You-Tube videos, some to increase their earnings, others to supplement their meagre social security checks. Either way, they don't contribute to the local community, and can be perceived as parasites. Ouch! That's a tough image to live with.
The reason most resturants fail is lack of future planning and promotion. Most resturant owners are of the mind of build it and they will come and that is why they fail. Jollibee started out as as a small ice cream parler. Colnel sanders drove around in his car selling his chicken batter. These people had a bigger vision then waiting for the locals to drop buy.
You seem like a good guy so I’ll tell you this. I had a good friend who started the map company in the Philippines, the company the mapped individual provinces and cities. These maps were available all throughout the PI. The business was highly successful. At one point he had a dozen employees in Angeles City, charting and producing these fold-out maps. Unfortunately, he had taken in a Filipino partner. After a few successful years, the Filipino partner accused my friend of some misconduct, and the upshot of this was legal proceedings that resulted in my friend loosing the business completely and being banned from the Philippines. To you: Beware of Filipino partners. Buy them out if you can. They may seem charming and honest, but where the peso is concerned, avarice takes over. Good luck.
As a fellow Canadian, I suggest you retain a lawyer with experience on labor disputes to keep you on the safe side of the law. Also, look for farms that can give you a steady supply with BIR receipts, some of them are willing to deliver the goods on site. And while you're still in the start up stage, you may have to do most of the critical work, get your hands dirty, reduce costs, and slowly delegate as the business grows.
inhardtheler7999 if he is on a tourist visa, there is no way in the world he is allowed to start/own a business or be in the business working or even be on the premises. So I doubt he's on a tourist visa.
@@reinhardtheler7999just to give you an idea of how spiteful things can get here, I was painting my fence of my house ( on my wifes land ) many years ago and I got a visit from the immigration department asking me why I was painting the fence instead of hiring a local to paint the fence for my wife!! I was supposedly doing a job that a local person could do. I was obviously dobbed in by one of my wife's pig of a brother who doesn't like me one bit because I stopped funding his family.😮
exactly what I said at the start. Sadly you MUST do due diligence. That is were he went wrong. Before you buy you sit down with a spread sheet and look at costs. If you don't know cost find out or don't move forward
@@jeffreyhill5137not just costs, but costs that are recognized by the revenue authorities. I buy most of my groceries at the public market, and you don’t get receipts. Good point!
yep. they can up and decide to sell at anytime, and there’s no way he’ll ever recoup any of his money 🤦♂️🤦♂️ how long has he even known these people? 🤷♂️ he’s already infused massive amounts of cash into a business he doesn’t even own, or is even close to profitable 😖😖 this isn’t going to turn out well for him..
highly likely .. Ten Years will go by .. you will have busy restaurants and use the best of your life but still wont be able to re tire back home and afford a house there ? But why not ? 👍👍 we are also always outsiders
You would need the same amount of paperwork and permits even in USA and other western countries. There are a lot of rules before you can open a restaurant in USA.
@joesixpack5691 I dont know. I live in Europe and here is so hard just for a farmer to sell his milk to public directly. You will get million rules, inspections and would need to meet so many requirements that most rather dont bother.
When a foreigner is doing a business in the Philippines, it's called business for the Filipinos-your balance sheet is always negative, while any Filipinos associated with it will always be positive. Similar like Russian business. You start with 1million, and after years of great success of spending everything you have you can close it down with only $1 left. or maybe some debt accrued.
Wishing you Michael all the best but watching other this kind of business in Philippines runned by foreigns , it never lasts long bankrupt. Not enough tourists there, especially after a season...plus huge storms , typhoons...
Wish you good luck mate. To be successful in the food industry one has to be a chef and try to employ good family members. If you think you are going to be successful without the above requirements, it’s a disaster to go broke.
I don't understand why he is complaining about food supply, labor costs and other logisitical concerns. Surely he researched such issues thoroughly when putting together his written business plan prior to committing his and other peoples capital to the business. A cute new girlfriend and due diligence are seldom good bedfellows.
I thought it was easy to get rid of staff in the Ph., if not it certainly makes it difficult to run labor intensive businesses like bars and restaurants. Also, to not be able to deduct your expenses cos you can't get receipts, ceratinly an obstacle. I think Angeles City could be a good location though. I stayed there for a while and there are some restaurants that are Ok, some italian, etc, but not that many, and a place like this certainly could get customers. Don't know 'bout the reality show part though, but it's not my expertise, so who knows. It's great with a "visionary", lots of things are the same, it seems across the Ph. and everything is not good. I like that this guy is trying to bring in some positive change and not just another int'l franchise.
I've gone back and forth about starting a business in the Philippines as a foreigner. My conclusion is it's for someone else. I know a foreigner who owns a restaurant, and he seems like a slave. He opens it and stays til closing. He is always there, and time is more precious to me. It's better to open an international online business that trades in USD dollars. Make your money from first-world countries and spend it in 3rd world countries, and does not require so many hours.
They should make it easier for expats. I know they might be afraid because of replacing filipino business.. But in reality, it would create so much jobs and all people could earn more
On one of Michael's recent videos he said he puts 100,00 - 200,000 PHP a month into the business to keep it going. Hell, I make the equivalent in USD a month with a handful of income ETFs. Why on earth would someone work for, and lose, that kind of money when you can generate an income letting your money work for you.
@@kabiebebe2332they are all making money from youtube channels. The farm is just a decoration for content. Also Kumander and the other one they work for DOT.
If I ever open a pub here, it's going to be called "Bob and Doug's Bar and Grill". Will import Molson Canadian stubbies. Take off eh! Take off to the Great White North! Great interview... very good insights into doing business here in the Philippines!
@@timtarr9364he’s got 3 business “partners “ that probably haven’t invested a dime in it 🤦♂️🤦♂️ he’s sinking deeper into the rabbit hole 🕳 and the sunk cost fallacy will probably cause him to sink further into debt. yikes 😬 these types of business ventures go belly up in the states at a 90 percent failure rate, like you mentioned before you haven’t seen one ex- pat business that succeeded in the Philippines 😂, everyone that opens one of these types of restaurants/bar establishments thinks they’re the exception, they have the “expertise “ and know how to succeed 😂😂 I remember when the pandemic hit in 2020 these establishments, all but a few lost everything, including being liable for the lease on the property, even after re- opening, any that still had a financial pulse we’re relegated to “outdoor dining “ and face masks were required 😂😂 and still customers stayed away, right now, I’m watching another restaurant in my area dying a slow death,I walk by there2 or 3 times a week and it’s basically empty, on weekends they close by 8-8:30 at night.
This is misleading. You can own 100%, but you have to have an absurd amount of working capital to be eligible for this. The only other arrangement for ownership is 40% foreign owned & 60% Filipino
I decided against moving to P.I., and (instead) I'm moving to Cambodia (and) I'll be BRINGING (and having) plenty of money, so I won't need to make any more....
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MICHAEL IS VERY KNOWLEDGEABLE WHEN IT COMES TO BUSINESS, I DO HOPE HIS PLAN WILL REWARD HIM, A LOVELY MAN.
Restaurant/ bar / club businesses difficult for foreigners to make a success of in the Philippines but most popular out of all the businesses to start. Very risky, alot fail/ fold. Best of luck to Michael on his new business venture and Beaver Bar & Grill.
I wish him every success.
9 out of 10 new restaurants fail in USA. Its hard everywhere and just a money pit.
It's no surprise that you can't make back on your customized investments in the Philippines. 💩
it would fail for sure cause you must remember philippines are not rich and bar/restaurant/club business are for rich people and tourist and you clearly don't know your target audience if you want a successful business the best option if you loved restaurant is to open a franchise business like jollybee/maninasal/mcdonalds this is a very profitable business but its heavily dependence to location if you have great location you can start earning profits in 5 years at most cause in a peak location you can earn 1milion pesos in 2 weeks and also if you have a great location its best to build internet cafe if your area is in a school zone 10 units of PC you can earn 30k-60k per month its already been deducted of all other bills and you can buy a one set of piso net for 25k pesos
@@MrNoBodyXD12 Buy Jollibee and McDonald stock and dont think about dumb ideas.
@@PavolKosik-b3u lol i mean is not stocks but a personal physical store the friend of my uncle own 10 jollibee franchise and earn 1 million pesos per weeks and although franchise is 25m-40m pesos 10 stores he earn 1m per weeks
Michael has a good business mind. Solves problems and stays objective.
Sarcasm,right?😂😂😂😂😂😂
You for real it was a bad buisness investment buying that shack foe a bar on the beach totally inadequate for a kitchen 😊
All you said why woukd you buy in to invest in a restraunt and bar
I'm a Filipino-Canadian from Toronto. Canada and going to retire and move the family to Cagayan de Oro next year. I promise we will take a family vacation to Iloilo and will make sure to visit Roxas and your bar to support your business! Hope your business continues to prosper and grow! We need more people like you in the Philippines. All the best.
I am near there now so beautiful
I am canadian of geeman descent. I grew up with a phillipino guy and are best friends to this day. EVERY phillipino person i have met in canada are the most wonderful of people! I sometimes think phillipnes is the real first world nation.
@@reappraisalthey are the best overall by miles
Do not move to CDO. I am an expat here and it's been a big mistake to reside here. Please look around first! There are far better places to be than here. On the one hand, it's cheaper than a lot of other places, but if you spend just a few more pesos, the difference in cost is nothing compared to the access you get to real world commodities. Just a suggestion....good luck. If you do come here, look me up. Oblio Arrowgood.
@@reappraisalWow, such an appreciative man. Thank you, may you have a blessed new year and beyond.
My main business interests are in property. Obviously as a foreigner I can't personally own property outright, but there are legal means of getting around that problem. We own three residential properties in fairly high-end areas of the city in which we live. We also built a store, a block of 12 bedsits and a coffee shop on land we bought out in a nearby town. The key here is location - it's 200 yards from the local hospital so the customer base is guaranteed. After 2 years of running it ourselves we then decided to step back and rent the business to the employees. Their incentive? If they put the work in they get the returns since we charge bare rent and leave the profits to them. I never had any difficulties, either bureaucratic or practical, when establishing any of our interests and things continue to run smoothly.
I do really wish Michael all the success. I appreciate these expats who genuinely love PH. :)
To be fair. Our regulatory framework is patterned closely on US state regulations. Except we dont operate an actual market ecomomy similar to US. Thus the disconnect. What you can do is create or hire a BIR registered marketing agent to do your wet market purchases and bill you on their receipt.
Consult a local lawyer and accountant to handle all these tasks for a small fee. The savings will be large.
Super informative video about things people need to consider before trying a bar or restaurant in any foreign country, especially the PH. Points like not being able to write off legitimate costs like vegetables & fish, food bought with cash in a mostly cash society. That alone can drop your profit margin down to non existent. You can really find out what the challenges are with this video and feel some of this guys stress. I follow his channel and I think he [hopefully] will exit the business or maybe make it big if he can find a bigger space. Good luck!
profit is already non-existent 😂😂😂 dumping 100,0000-200,000 pesos a month into it. going down the rabbit hole 🕳 so far he’s going to end up in China 🤔🤔
I wish you good luck in your business! The key to success is the quality of products and services, and treating your people well.
I'm an expat here in the Philippines, the last thing I want is a job.
Love the branding, the name, the logo. Very creative and inspiring. Greetings from Ottawa. Yep, that Ottawa.
Great job Michael - you and your team have a really nice local spot to serve all types of customers. Looks like you filled a nice void in the area. You have a great outlook and knack for business and how to treat staff and customers well. Plus you’re a good guy…may sound corny, but I do strongly believe that treating people and staff well, you get the best out of them. Hope to come visit your place on our next trip to the Phils. Happy Holidays and Merry Christmas. Much continued success!
Amazing insight….. I live in Bohol and understanding now all of the regulations that the Philippines government puts on businesses to strangle them. A country that needs business development is doing everything they can to stifle it. Totally on brand.
Best of luck to you Michael. I hope you'll keep going and make more cash. Next move don't jump right away and take it. Please research and make sure you really own the business. just to make sure. sometimes there is a risk. I hope well go there someday. I love the name of your bar. Have a good one. Regards from Canada.
I hope you the greatest success and continued growth sir. You have chosen a difficult path.
The #1 business that fails worldwide are restaurants. Even huge corporations with unlimited funds fail and see their locations close.
Every expat who wants to start a business here needs to watch this
100%
Wish you success in your Philippines endeavor.
dudes got courage .. id rather be a customer than a business owner in PH
A business is not for everyone, I'm stressed out just listening to him
I follow him on RUclips ... and my wife and I have just settled in for retirement in Guimaras. We've been to Roxas before, and now I know where I want to go when we go back. I'm looking forward to it.
That's awesome!!
@@Livingabroadalex the foreighners can now own business in the Philippines with 100% ownership because of the new law just recently enacted except for those that has something about national security concerns.
Interesting
Yes. I want to add: the ph economy has been on the rise for many years now. The ph evonomy COULD BE one of the best boom economies globally in the next decade or two. Correct me if i am wrong but i understand ph gov is now seeking and supporting foreign ownership and investment.
Seriously? where are your numbers to back it up? Growth from a low base? You must be a Filipino since 98% lack the critical thinking skills and end up just a followers and subservient laborers all over the world. OFW and BPO industry breaks down family structures and not sustainable.
The key to making a small fortune in business as an Expat in the Philippines is to start with a large fortune
Good for him. I think even with a small amount of people you can still make it work
Beautiful place. Great test site and Roxas City is making great improvements... Wonderful city...
Checking out the website. Fish and chips looks super good 🎉.
It’s delicious! Come visit soon 😊
@@Livingabroadalex do they still have rib night?
@tcs831usa last I heard yes
Sige sige lang, salamat po! I commend your efforts. Back in 2008 when the construction/housing industry was an epic failure. I was newly single and began talking with a young lady from Dasmarinas Cavite. Next thing I know, I liquidated my construction company tools and truck and had the bright idea to buy a one-way ticket (that immediately caused me issues) as they wont sell a oneway ticket to anyone with a blue passport...
OMG Culture shock! I had no idea how life was outside N America.... Needless to say it didn't pan out! LOL
As an Expat; starting a business in P.I. is (borderline) suicidal....
Insurmountable cultural differences.
@@JeffMathias I'm wondering if he met the requirements to own 100% of the business,
or he has a Filipino partner(s)...
@@CDMaclintock you cannot own 100% of a business here in the Philippines as an Expat
@@CDMaclintock he has a few Filipino partners as he said in the video
If they are business owner,, they will not give you something for nothing 🤔
Good luck in your business!
Michael, I was at the Canadian Beaver 2 nights ago. I ordered the Nachos and they came out with a little meat but then they squirted stuff on it that tasted like mayonnaise and maybe fries sauce, no cheese. I won’t sugar coat it, it was not good. I then ordered the chili with chips and cheese but they did not have cheddar cheese and of course I didn’t want the previous topping. They just brought the chili and it was very sweet and I didn’t eat it as well. Sorry but the food was not good. THE STAFF WAS FANTASTIC.
Almost all dairy in phils is imported and very expensive. You cannot have real cheese AND a cheap price.
Welcome to Philippines. Sweet chili with sweet chips and sweet mayonnaise sauce is the standard here, better get used to it 😂😂😂.
@@bluemm2852 It’s mostly expats. I know I would pay more and I bet I’m not alone. The chili and chips menu item pictures cheddar cheese they were just out.
@ guess I’ll keep looking. The next morning I went to a place called the Coffee Project and had a fantastic breakfast. It can be done but I’ll be needing to do some research for my favorite spots to eat.
@@VittoShulman I'll bring my own sauce its called chalula
Great video!!
It’s a big challenge to open a restaurant/bar that caters to expats in an area where there aren’t so many. In another area, he could be charging more, have more tables, and have a better chance of success.
Look it was always going to be a tough challenge, I would never start a business here, especially a bar, unless the culture had changed. It's costing him heavily each month and I don't know how he is able to sustain the huge losses
GREAT VIDEO, VERY INFORMATIVE
Thank you!!
Live & Learn as a foreigner running a business in the Philippines, from the system we're used to in Canada.
Best way of business as a foreigner is sitting on the right site on the bar and using the dinner tables to use the bar and food tender service pay your bill and leave. Starting "business" in Philippines i told and explained already you cant make any money and its all based on never endings tax payments and regulations, the labor payments looks low but compare with your income its ...still expensive with all your netto left income. For real business you need have connections and network ... from mayor to local fam. suppliers. best way to make money is abroad and spent your money on places like you run ..only reason to do "local business" is a money loop for all your relatives to keep them busy and livelihood thats it! Or go online business in trading day trading stock market makes me a wealthy man after I get jobless due to covid and lost my job overseas job
Having local interests in a business abroad as an expat may be the right move.
Some people just have to lose a lot of money first before they learn... can always start over... just save enough for a plane ticket home and taxi fare.
Should start one in Barretto, olongapo
It sounds so hard to make money 💰 in Philippines hard enough in your own country put good luck 🤞😀👍🙏
Looks awesome!
I've been here 1.5 years and owning a business here would be a nightmare
Starting a business in the Philippines is a BIG MISTAKE especially for foreigners 🤨
I love how there are so many inspectors and BIR nonsense in the Philippines yet they can’t fix a sidewalk
Sharks can smell a drop of blood in the water from a mile away!
The whole system is designed to screw up foreigners. . from woman to government. ....@@platoon1081
@@platoon1081the most important think in business and investment is .....position position position .....
very good interview, thank you.
This video is a great example of why I advise expats against starting a business in places like PH, TH, and etc. Especially those without business and/or management experience. Too many think it is easy and a way to supplement or replace their income when the reality is normally the opposite for months or years.
Michael has done everything right as far as I can tell and is still not showing real profit but businesses are hard and the bureaucracy and other legal issues of a business like this are hard in places like the US or CAN but even more so in PH.
I was not aware of the specifics of how BIR handles the so called underground economy. Sadly it seems if you have to purchase from them you can't write that off. And that is a huge deal in a business like this. A lot of phantom profit being taxed creating more expenses. Making it harder for him to turn a profit. Food costs are normally in the 30% range of revenue so just imagine if you were being taxed on that like it was actual profit.
Business is business and anyone who goes into something like this expecting it to be easy and profitable shouldn't do it. Equally someone who wants to build something and understands it takes time should not and would not be turned off by the realities of it.
I hope Michael can get it all to work out and in 1 to 2 years will be running a business that turns a profit most if not all months. Either way I think his sharing of this journey on youtube is a positive. Nice to see the realities (good and bad) shared.
Agreed and now it makes sense on how he was able to get the endeavor off of the ground in the first place, having 3 PH partners/financial backers was the key and the struggle continues. This will last as long as his partners have the patience to wait for the business to start turning a profit.
I feel for him he seems like a good guy i am a retired business owner here in Canada,and from what i gather here i unfortunately dont believe he will ever see a return on investment,especially a bar in the phills.He would have been way better off just investing any extra money and just do his RUclips thing.
Agree . Should have stayed in Canada and make some real money
@@bigbearhugebear9018 that's not why he's here for he wants to hear the waves
An email marketing strategy would be helpful here if not in place already. For example, I would have collected emails from all those that attended the grand opening. Next develop an email strategy to stay engaged with these customers. Implement email campaigns monthly/quarterly where Beaver is staying in touch with this audience reminding them of the delicious meals, great beachside location, offering the occasional discounts on meals, drink specials and notifying them of restaurant events and activities etc.
Excellent video, I enjoyed it!
Thank you!
Mike,
I'm taking you up on your initiative of expansion. As we both know, you have travelled and lived here in Dumaguete, and that we have a number of Expat bars here. Some are well supported, and some are not so suppported. but there is a group of expats that are missing out of not having a nice place to go. Thse are the families who dont appreciate a girly bar, where patrons are too noisy, and I think you know those type of people, and all they want to do is tell you their woes and mistakes in life, how they beat the VC in Vietnam, and places where the food comes out of the deep-fat fryer all the time.
When I go out with my Filipina, she is the one who decides whether we return to a place or not. The place has to be alive, fun to be in; and the food has to be of a good standard with a fair balance between fried/grilled food and non-fried/grilled food. Remembering, that us “Old Timer’s” constitution has a tenancy to reject food that has been fried in fat/oil as we get older and is a great factor in whether we return again.
Your Bar/Restaurant looks like it has the right approach, drive and the best approach in terms of business planning. I encourage you to branch out in Dumaguete and bring a fresh face, and not too much in the way of fried food options. :) Good lunch in your future business plan.
I will definitely stop by there when I come visit the area. 😊
You'll have a great time 🥳
I wish I could have had a conversation for half an hour with Michael before he got into that, but there again you know what they say, "the best advice is usually ignored" and I am also definitely guilty of that one.
The chicken burger definitely was definitely big it was more than I expected
I can't wait to try it next time
Sounds amazing, I'm in Cebu
I have one question Alex? How long do you think it will take for Michael to scrap this business? I think not very long 🤔
should have scrapped it already, sunk cost fallacy will cause him to lose thousands of dollars more🤦♂️🤦♂️
🤷♂️
He will probably sell it to Alex soon 😂😂😂.
Business is a lot better here than in East Europe 🎉
Hi Alex fantastic interview with Michael Canadian beaver bar taken over the ph sana all 🎉
Thanks 😁
Great video, a lot of expats lose money trying to open &/or but existimg businesses in other countries. This is the first time someone breaks down business taxes in PI. Who ever woulda through that the profits in a filipino bar would come from the food & not the alcohol.
I like the uniforms, looks like a good place.
Its good to stay engaged with stuff. I was in the Philippines last January. Winters are great. I think year round i would get bored. I have a lot going on in the summers in the states. If you can't deduct your expenses, is it even worth doing? Do those big call centers really pay OT?
Good interview Bud, are you living in Philoland now? Heading back to Canada in January for the last visit and time.
Philippines is my base while I hop around every couple months
good luck Michael.
The agricultural products like fish, meat, rice and vegetables ARE NOT TAXABLE. You can use the invoice or any written document including scratch paper from a meat stall or vegetable store.
For new employees who are not up to your company standards, you can fire them but always make documentations. Also, accord them with due process.
Nice one. Can probably offer additional services to help increase revenue like inter Island boat trips or diving from the same location. I would add vending machines too for cigarettes, soda and candy as these are easy money. Put up pool tables and game room as well. Add a massage services on the beach , so much ways you can increase revenue her. Gold mine
Keep it simple do less tables less staff regional food which is cheaply available at the market hire staff temporary hours pay them extra in Cash dont give out receipts if not necessary ... gotta be smart in the philippines 😂
Lol. He has to sell 50 more beers a day to maybe make a profit...
@@Flavour25myea good idea... Have you ever seen the inside of a Philippine prison...
Good Luck, you need it...
Just the stress ,good luck its good to hear the pitfalls ❤❤😊😊😊
No one ever brings up business requirements in the Philippines. The tax issues, the wholesale food receipts needed, employment laws really cut into profit margins.
Its part of the reason why the informal economy is so big there. "Hiring" an uncle or cousin to work for you without any sort of legal framework is much easier than hiring random people. Every country that has these sort of ridiculous laws end up with bloated informal economies and difficulty collecting tax revenue. IIRC India's informal economy was 90 percent of their employment, if not more.
Also the people working often have to get certificates to work at anything that is legitimate. There is a reason why it's ranked in the top 10 worst places to be a worker.
It is well known that 50% of restaurants and bars close down within 2 years of opening, and a cumulative total off 90% within 3 years. The 9% that survive are “living dead”. Only 1% make money.
The game is: you start a restaurant run it for a few months and then sell the restaurant to another foreigner. Then start another one and do it again. That's where the money is.
@ great game since there will always be suckers among expats who are already the bottom 20% of where they came from 😎😎
Mike makes more on RUclips membership monthly dues and video monetization than the bar. The publicity and intrigued of the business feeds to the RUclips channel alive. He can franchise the bar concept later on.
@@millennialexplorer Very true. It seems like the modus operandi of many expats: generate income from You-Tube videos, some to increase their earnings, others to supplement their meagre social security checks. Either way, they don't contribute to the local community, and can be perceived as parasites. Ouch! That's a tough image to live with.
The reason most resturants fail is lack of future planning and promotion. Most resturant owners are of the mind of build it and they will come and that is why they fail.
Jollibee started out as as a small ice cream parler. Colnel sanders drove around in his car selling his chicken batter.
These people had a bigger vision then waiting for the locals to drop buy.
Interesting video. Would have done such things when i was younger, now I calculate more realistically. ))
You seem like a good guy so I’ll tell you this. I had a good friend who started the map company in the Philippines, the company the mapped individual provinces and cities. These maps were available all throughout the PI. The business was highly successful. At one point he had a dozen employees in Angeles City, charting and producing these fold-out maps. Unfortunately, he had taken in a Filipino partner. After a few successful years, the Filipino partner accused my friend of some misconduct, and the upshot of this was legal proceedings that resulted in my friend loosing the business completely and being banned from the Philippines.
To you: Beware of Filipino partners. Buy them out if you can. They may seem charming and honest, but where the peso is concerned, avarice takes over.
Good luck.
I not think this bar is in the same league of profit. I think he be lucky tp turn a profit if pays hImself something.
As a fellow Canadian, I suggest you retain a lawyer with experience on labor disputes to keep you on the safe side of the law. Also, look for farms that can give you a steady supply with BIR receipts, some of them are willing to deliver the goods on site. And while you're still in the start up stage, you may have to do most of the critical work, get your hands dirty, reduce costs, and slowly delegate as the business grows.
He is not aloud to get he's hand's dirty . He is on a tourist visa . Only he can do is overlook he's Investment . Very strict Laws .
inhardtheler7999 if he is on a tourist visa, there is no way in the world he is allowed to start/own a business or be in the business working or even be on the premises. So I doubt he's on a tourist visa.
@@reinhardtheler7999just to give you an idea of how spiteful things can get here, I was painting my fence of my house ( on my wifes land ) many years ago and I got a visit from the immigration department asking me why I was painting the fence instead of hiring a local to paint the fence for my wife!! I was supposedly doing a job that a local person could do.
I was obviously dobbed in by one of my wife's pig of a brother who doesn't like me one bit because I stopped funding his family.😮
This is going to end badly, 3 Filipino partner's, what could go wrong.🤔😂
exactly what I said at the start. Sadly you MUST do due diligence. That is were he went wrong. Before you buy you sit down with a spread sheet and look at costs. If you don't know cost find out or don't move forward
Unfortunately, he has pipe dreams and not enough business sense@@jeffreyhill5137
@@jeffreyhill5137not just costs, but costs that are recognized by the revenue authorities.
I buy most of my groceries at the public market, and you don’t get receipts.
Good point!
Shut up! You guys have no balls😅🤣
yep. they can up and decide to sell at anytime, and there’s no way he’ll ever recoup any of his money 🤦♂️🤦♂️ how long has he even known these people? 🤷♂️ he’s already infused massive amounts of cash into a business he doesn’t even own, or is even close to profitable 😖😖 this isn’t going to turn out well for him..
highly likely .. Ten Years will go by .. you will have busy restaurants and use the best of your life but still wont be able to re tire back home and afford a house there ? But why not ? 👍👍
we are also always outsiders
In the rainy season it's gonna hard for Michael business to keep up.
You would need the same amount of paperwork and permits even in USA and other western countries. There are a lot of rules before you can open a restaurant in USA.
Yeah, but it's 10x easier to get those things done in the US. Nobody should ever compare those 2 countries with regards to starting a business.
@joesixpack5691 I dont know. I live in Europe and here is so hard just for a farmer to sell his milk to public directly. You will get million rules, inspections and would need to meet so many requirements that most rather dont bother.
When a foreigner is doing a business in the Philippines, it's called business for the Filipinos-your balance sheet is always negative, while any Filipinos associated with it will always be positive. Similar like Russian business. You start with 1million, and after years of great success of spending everything you have you can close it down with only $1 left. or maybe some debt accrued.
Bonne chance ….if I visite i will stop at your place for sure
Yes that peso is so valuable!
The maps were called E-Z Maps
Wishing you Michael all the best but watching other this kind of business in Philippines runned by foreigns , it never lasts long bankrupt. Not enough tourists there, especially after a season...plus huge storms , typhoons...
Wish you good luck mate. To be successful in the food industry one has to be a chef and try to employ good family members.
If you think you are going to be successful without the above requirements, it’s a disaster to go broke.
Hiring family members will get you broke quick...
trouble here in fils is what good for the goose is not necessarily good for the gander
Nice content
Thank you 😊
Where is the place located?
I don't understand why he is complaining about food supply, labor costs and other logisitical concerns. Surely he researched such issues thoroughly when putting together his written business plan prior to committing his and other peoples capital to the business. A cute new girlfriend and due diligence are seldom good bedfellows.
You live and learn. Sometimes it's more fun in the Philippines if you open a bar and you've done your research.
@@MrBatteryChanger1 Not difficult to see whey the original investor decided to pull out.
I thought it was easy to get rid of staff in the Ph., if not it certainly makes it difficult to run labor intensive businesses like bars and restaurants. Also, to not be able to deduct your expenses cos you can't get receipts, ceratinly an obstacle.
I think Angeles City could be a good location though. I stayed there for a while and there are some restaurants that are Ok, some italian, etc, but not that many, and a place like this certainly could get customers. Don't know 'bout the reality show part though, but it's not my expertise, so who knows.
It's great with a "visionary", lots of things are the same, it seems across the Ph. and everything is not good. I like that this guy is trying to bring in some positive change and not just another int'l franchise.
The “Filipino investors” who “never show up or ask questions” seems like a smart ruse so he can tell others it’s not solely owned by foreigners.
Personally think it was a bad investment it's way to small your kitchen is a cubicle. No wholesale prices
When he starts talking Netflix episodes, well, he is a dreamer, I do hope he mange to get there without any big hick-ups.
Weed is illegal here, he is serious about the businesses
Should have opened it in Angeles City.... The name itself says why.
Get Michael to introduce you to grilled Capiz shell... also Smoke sorizoes...
I've gone back and forth about starting a business in the Philippines as a foreigner. My conclusion is it's for someone else. I know a foreigner who owns a restaurant, and he seems like a slave. He opens it and stays til closing. He is always there, and time is more precious to me. It's better to open an international online business that trades in USD dollars. Make your money from first-world countries and spend it in 3rd world countries, and does not require so many hours.
They should make it easier for expats. I know they might be afraid because of replacing filipino business.. But in reality, it would create so much jobs and all people could earn more
On one of Michael's recent videos he said he puts 100,00 - 200,000 PHP a month into the business to keep it going. Hell, I make the equivalent in USD a month with a handful of income ETFs. Why on earth would someone work for, and lose, that kind of money when you can generate an income letting your money work for you.
Tbh a Business that isnt profitable isnt a Business its just a liabality
He possesses more wealth than wisdom.
Alex i think Michael has better chances farming than owning bar here in Philppines
🤷♂️
@Livingabroadalex Kumander Daot, and friend of his (i forgot what his name) is farming business quite sucessful too
@@kabiebebe2332they are all making money from youtube channels. The farm is just a decoration for content. Also Kumander and the other one they work for DOT.
Where are you located in the Philippines? I will visit your place.
do not change your prices......just charge everyone in canadian dollars......
If I ever open a pub here, it's going to be called "Bob and Doug's Bar and Grill". Will import Molson Canadian stubbies. Take off eh! Take off to the Great White North!
Great interview... very good insights into doing business here in the Philippines!
Tagaytay
contract a buyer with a company to buy from the market who van give u a receipt ?
Could of named it after most of the women in the USA, The Angry Beaver 😅
"We are the place for the Meat" - The Canadian Beaver 😂🍁
Thank you!!
Walk before u run .😅😮😮😮❤❤
As a foreigner, you can now own 100% of a business now
Wrong 1,000%
@@timtarr9364he’s got 3 business “partners “ that probably haven’t invested a dime in it 🤦♂️🤦♂️ he’s sinking deeper into the rabbit hole 🕳 and the sunk cost fallacy will probably cause him to sink further into debt. yikes 😬 these types of business ventures go belly up in the states at a 90 percent failure rate, like you mentioned before you haven’t seen one ex- pat business that succeeded in the Philippines 😂, everyone that opens one of these types of restaurants/bar establishments thinks they’re the exception, they have the “expertise “ and know how to succeed 😂😂 I remember when the pandemic hit in 2020 these establishments, all but a few lost everything, including being liable for the lease on the property, even after re- opening, any that still had a financial pulse we’re relegated to “outdoor dining “ and face masks were required 😂😂 and still customers stayed away, right now, I’m watching another restaurant in my area dying a slow death,I walk by there2 or 3 times a week and it’s basically empty, on weekends they close by 8-8:30 at night.
This is misleading. You can own 100%, but you have to have an absurd amount of working capital to be eligible for this. The only other arrangement for ownership is 40% foreign owned & 60% Filipino
I decided against moving to P.I., and (instead) I'm moving to Cambodia (and) I'll be BRINGING (and having) plenty of
money, so I won't need to make any more....
Could you provide more details: your name and address in Cambodia, how much money, etc.