When Dwight Cham started Balai Pandesal, he had no background in food or franchising. What he did have was a love for cooking and eating, and an eye for spotting what Filipinos crave most: a warm, soft, freshly baked pandesal.
“We just wanted to create a good pandesal for everyone,” Dwight says, looking back at the early days.
At that time, the Philippine bakery industry was crowded but fragmented. Every neighborhood had its local bakery, yet Dwight and his team noticed a common problem.
“We tried a lot of pandesal from north to south and found out there were many bakeries with different tastes,” he explains. “But their breads would get dry and hard easily after a few hours. So we came out with one that can stay soft for even a few days.”
That was the simple but powerful insight that launched Balai Pandesal.
Building the Brand
Setting up shop wasn’t the difficult part. The real challenge was uncertainty: Would customers like the product? Would they come back?
“Setting up was the easy part,” Dwight recalls. “But not knowing how your product will do in the market was the hard part.”
The founders brainstormed dozens of names before settling on one that resonated deeply: Balai Pandesal. “We ended up with Balai Pandesal after consulting and brainstorming for a homey name that people can relate to,” Dwight says.
From the beginning, the business was self-funded. “We used our own funds when we started Balai,” Dwight notes. There were no outside investors at first, just sweat equity and family belief in the vision.
As for location strategy, Dwight’s approach was straightforward but deliberate: go where the people are. “Our product caters to ABCD markets, so we chose various locations like AB neighborhoods and high foot traffic areas for the CD market,” he explains. This mix gave Balai both aspirational positioning and mass appeal.
Scaling Up
The first two stores proved the concept, but the third was the turning point. “When people started patronizing our product and we opened our third branch, I think that’s when we realized this is scalable,” Dwight says.
Growth, however, brought new challenges. “Having one to two stores was easy,” he admits. “But going from three to five was different. You need to get good people to help you professionalize and grow the business.”
Balai’s north star remained product quality. “Keep your quality the same all the time and keep on improving your product—that was our mentality,” Dwight emphasizes.
Competition was never ignored but also never feared. “We always believed if your product is good, people will come eventually,” he says. Taste, value, and quality became the brand’s shields against larger chains.
The Unexpected Exit
Balai Pandesal’s sale wasn’t part of a master plan. In fact, Dwight insists it wasn’t even on the radar until life forced him to pause.
“A common friend introduced us to someone who wanted to open a bakery chain,” Dwight recalls. “Selling was never our long-term plan. But when I got COVID and got quarantined, that’s when I thought, ‘What if…?’ You can say COVID changed everything. But Lester was the main reason—what he told me he would do with the brand.”
The buyer was Lester Yu, the founder and CEO of Fruitas Holdings, the largest kiosk-based food and beverage operator in the Philippines. Fruitas began with a single fruit shake stall in 2002 and has since expanded into more than 800 stores nationwide under over 30 brands, ranging from fruit shakes and desserts to baked goods and lechon.
For Dwight, alignment mattered more than money. “We found someone who had the same vision and mission as us,” he says. “Someone who, moving forward, we are confident would not just retain but also improve Balai.”
His only non-negotiables? “Keep the key people and keep the brand equity,” Dwight stresses.
Letting go was bittersweet. “Of course letting go of your baby project was hard,” he admits. “But at the same time, I was happy since now you can see Balai anywhere you go.”
Money, Mindset, and Legacy
From the beginning, Dwight kept his personal finances separate from the business. “That way, we had a clear view of the health of the company,” he explains.
After the sale, his philosophy toward wealth shifted. “Yes, you have to think big and do the work and do it now,” Dwight says. “Don’t waste time. Invest and diversify.”
His advice to aspiring founders is simple but practical: “Build something that is scalable and has good cash flow.”
If he could turn back time, Dwight admits he would have invested more aggressively in property and stocks. “Maybe invest more in property and stocks,” he says with a laugh.
For now, he keeps himself busy with smaller ventures and partnerships. “A few, partner here and there for now,” he says lightly, suggesting that entrepreneurship still flows in his veins.
Lessons for Entrepreneurs
Dwight Cham’s story is a classic case of identifying a simple but overlooked consumer need, building a product around it, and scaling with discipline.
He didn’t have a culinary degree or a franchise background. What he did have was curiosity, perseverance, and a belief that pandesal—an everyday staple—could be done better.
Balai Pandesal’s rise and eventual sale highlight several lessons for entrepreneurs:
Spot the gap. Even in a crowded market, there are pain points waiting for solutions. In this case, bread that stays soft longer.
Invest in identity. A relatable brand name and consistent product quality build loyalty faster than flashy marketing.
Scale with structure. Growth requires good people and professional systems.
Exit with integrity. Choosing the right buyer ensures the legacy lives on.
Think bigger. Beyond business, diversifying into property and investments secures long-term wealth.
Dwight’s journey shows that even the most ordinary Filipino breakfast bread can be the foundation of an extraordinary business story.
