Netong’s eyes partnerships to cushion rising costs

ILOILO CITY — Netong’s Original Special La Paz Batchoy is seeking partnerships with hotels and private companies to sustain operations as rising ingredient costs squeeze margins, its owner said.

“It’s expensive now, and you cannot just have a price increase,” third-generation owner John Patrick Guillergan told reporters.

Mr. Guillergan said the Iloilo-based brand, known for its warm noodle soups, is exploring tie-ups with hotels and corporate clients, while continuing to work closely with the local government.

He said the strategy could help stabilize demand and offset higher input costs without passing the full burden to customers.

Founded in 1948 by his grandfather Leonito, Netong’s has built its reputation on affordable servings of La Paz batchoy using ingredients bought from local public markets. The brand said its supply setup allows it to maintain operations even during supply disruptions.

“The only advantage is that when we run out of soup, we have a backup because our ingredients are here in the market; that’s our traditional practice,” Mr. Guillergan said, adding that the dish’s broth remains its key differentiator.

Each bowl, priced from P115 to P155, includes egg noodles, pork, beef and innards, topped with pork cracklings, spring onions and toasted garlic. Customers may also opt for thin wheat or glass noodles and add bone marrow.

Despite rising costs, the company has yet to decide on price increases.

“We are actually talking about the price because you also need to consider that the salary of our customers has yet to increase,” Mr. Guillergan said. “We also cannot reduce the serving and quality because it might trigger bashers on social media.”

Data from the local statistics office showed the average retail price of fresh beef rose to P376.34 per kilo in the second phase of March, slightly higher than earlier periods. The Department of Agriculture has also warned that pork prices could climb sharply if geopolitical tensions from the Iran war worsen.

The company said it has no immediate plans to expand outside Iloilo, citing high capital requirements and uncertain market conditions.

“It’s hard to open a business right now because there are a lot of expenses,” Mr. Guillergan said. “You have to shell out a lot of money.”

Instead, Netong’s plans to open another kiosk within Iloilo to reach more customers, while continuing to join trade fairs such as World Food Bazaar and Arte Fino in Manila.

The company previously operated five outlets but closed three during the coronavirus pandemic. It maintains branches including one at the redeveloped La Paz Public Market. — Almira Louise S. Martinez