The sweet journey of Merced Bakehouse

MERCED BAKEHOUSE, a 53-year-old pastry shop in Quezon City, found itself back in the spotlight after a viral video reignited nostalgia for its signature pastry, the Beehive.

“The virality has given us a shot in the arm,” Max S. Gana, the third-generation vice-president of Merced Bakehouse, told ����ý in an interview.

“At least for the viral item, it’s like times 10, so literally a 1,000% of our old production for the viral product,” Mr. Gana added.

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Merced Bakehouse was founded in 1972 by Milagros Daez Sevilla, a doctor and owner of pharmaceutical drugstores who also happened to have a sweet tooth. The bakeshop was named after Ms. Sevilla’s mother, Mercedes Daez.

“Her hobby and her passion was pastry. She couldn’t bake herself, but she enjoyed eating,” Mr. Gana said. “So it made sense at the time for her to combine her entrepreneurial knack with her hobby.”

What began as a small operation with only six to 10 employees eventually expanded into more than 20 branches nationwide, making Merced Bakehouse a fixture in family celebrations and everyday indulgences.

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As the years passed, the legacy brand faced the challenge of staying relevant in a rapidly changing food scene. For Ayen D.T. Gana, marketing lead at Merced Bakehouse, the viral moment was a glimmer of hope and an opportunity to reintroduce Merced’s menu to a new generation.

“I guess as a millennial, I was a bit nervous about TikTok because it’s really also not my playground,” Ms. Gana said. “I’m used to Instagram and with older people, Facebook.”

Although they had some reservations about joining the platform due to generational gaps, they still decided to take the risk and coincidentally tapped into a new market.

“We discovered there is another younger generation that is on TikTok that also has an emotional connection to our brand,” she said. “And by being on that platform, we’re able to reach them,” she added.

Merced Bakehouse joined TikTok last January and has since gained 20,200 followers and around 180,800 likes.

Ms. Gana noted that to achieve this kind of success on the platform, one must stay true to their branding and champion both their employees and products. “There has to be a core of what you’re trying to say, whether it’s the history of your brand, the products, the people behind your brand.”

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On its website, TikTok stated that its Shop feature helps empower micro, small, and medium enterprises (MSMEs) by providing a platform for both marketing and selling through livestream selling and affiliate marketing.

“MSMEs can enhance their visibility and interact directly with a nationwide audience,” it said.

It added that through its Assortment, Content, and Empowerment (ACE) Framework, businesses can “optimize their product offerings, create engaging content, and ultimately convert interactions into sales.”

RELOCATION AND EXPANSION PLANS
The bakery’s main branch sits along EDSA in Barangay West Triangle, Quezon City, where it has been a familiar stop for generations of loyal patrons.

“When this was starting, all the bus stops were here and there was no flyover, meaning it was really like a center of traffic,” Ms. Gana said.

Over the years, the team has considered relocating the main branch, thinking it had become too inconvenient for their customers.

“Maybe people don’t visit anymore because it’s really a hassle to go to, but they still love our products,” she said. “It’s a little bit more hassle compared to going to a mall or to maybe a city center.”

After the video went viral, the Merced executives were proven wrong. “With the resurgence, we discovered that maybe we’re not so bad in terms of location,” said Ms. Gana.

“Perhaps we underestimated how many people can actually take the time, take the journey to go here,” she added.

Merced Bakehouse currently operates four branches and plans to open additional shops along E. Rodriguez Ave. and at the Philippine Heart Center in Quezon City by yearend.

PANDEMIC CHALLENGES
Like other MSMEs, Mr. Gana noted that one of their biggest challenges as a business was the COVID-19 pandemic which first hit in 2020.

“It’s extra difficult for us because that’s also when my Mom and Lola passed away,” Mr. Gana said. “Even if it’s not a family business, corporate structure-wise, you lose both your president and your vice-president in the span of two years; that was hard.”

He added that losing both leaders, in his personal life and family business, amid a global lockdown, led them to retrench. “That’s hard for us because we really develop relationships with the staff, and when you have to let go, that’s really tough.

“Some of them have been here before I was alive,” he added.

Data from the Asian Development Bank (ADB) in 2020 revealed that 70.6% of MSMEs surveyed in the Philippines had suspended operations one month after the beginning of the viral outbreak, and national quarantine measures were imposed.

Their hardship during the pandemic also led them to adapt to the digital world, according to Mr. Gana.

“We had to start wrangling everything in during the pandemic. Like, okay, let’s put up the Instagram, put up the Facebook, make the website nicer,” he said. “Because if we’re going to sell stuff, it’s only going to be through here.”

Despite leveraging online platforms, sales were still “modest” during this time because most of their customers were senior citizens.

“The thing is, they’re really not super into ordering online stuff,” Mr. Gana said. “Which is why we got the big boost now with the younger generation who are more savvy with the online stuff.”

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The Beehive’s nostalgic comeback is more than just a spike in sales but a reminder that the digital age can make traditions cross over generations, rekindling ties with old customers while drawing in new ones.

“People can go here and things are the same, but it takes work to keep things the same,” Mr. Gana said. “And that’s something that we can really lean on.”

Through its viral moment, new life has been brought to the brand, allowing it to preserve its legacy while creating a new chapter in its sweet history. — Almira Louise S. Martinez

Links to social media content:

EP 1 – How a viral TikTok video boosted Merced Bakeshop’s sales tenfold: ,

EP 2 – How legacy brands can harness TikTok to boost sales: ,

EP 3 – Why trust and consistency drive business longevity: ,

EP 4 – The sweet beginning of Merced Bakehouse: ,