Innovation

KOTO's business model consists of two interdependent components: the KOTO training center and the KOTO training restaurants. The KOTO training center, a non-profit organization, provides disadvantaged and at-risk youth in Vietnam with a comprehensive 24-month hospitality training program.

On the other hand, the KOTO training restaurants function as social enterprises and serve as a financial support system for the KOTO training center. These restaurants offer a distinctive dining experience, with all profits contributing towards the training center's operations. This connectedness between the training center and the training restaurants is the cornerstone of KOTO's flourishing business model, as it provides trainees with a real-life learning experience in a professional setting and sustains the training center's operations. This practical experience is aimed at preparing trainees for industry roles, with KOTO providing support in securing employment upon completion.

Most vocational training programs solely focus on hospitality knowledge, but KOTO provides a comprehensive 24-month program that includes Life Skills and English Training for students. Tuition fees and living expenses are fully covered. In addition, students live together in shared houses, ensuring the children can focus on their studies and build a sense of belonging. This is a way to help children develop healthily.

Inspiration

KOTO's founder, Jimmy Pham, had a life-changing experience when he visited Vietnam for the first time in 1996. He witnessed poverty and many street children who only had odd jobs to survive. After feeding sixty of these children for two weeks, Jimmy was inspired by their resilience and decided to take action. The idea underlying KOTO was that they needed practical abilities to secure reliable employment: "We need skills to find stable jobs.”

This experience was the turning point that led a 23-year-old with only 200 dollars in his pocket to start KOTO. He did not want to send money from Australia like other expatriates; instead, he tried to make a difference by helping the children.

Overall impact

KOTO has significantly impacted the lives of disadvantaged youth in Vietnam. Since its inception in 1999, KOTO has trained and provided employment opportunities to almost 1,500 students from complex backgrounds from all over Vietnam.

Through its vocational training program, KOTO has helped its students acquire professional skills and access employment opportunities in the hospitality industry. This has enabled them to secure stable and sustainable livelihoods and improve their economic situation. In addition to hospitality training, as mentioned above, KOTO also provides its students with English and life skills training. According to a public speech by the founder Jimmy, "When childhood is taken away from the kids, the best thing you can do is to give them back." This is why life skill training was designed to give workshops including anger management, stress management, first aid, and managing their budget to help them transition into independent living and become positive contributors to society.

The influence of KOTO extends beyond its students to their families and communities. KOTO helps to break the cycle of poverty and vulnerability by providing employment opportunities to its students, creating a positive ripple effect in their communities. Overall, KOTO has demonstrated that social enterprises can effectively develop sustainable solutions to social and economic challenges and play a critical role in promoting social mobility and economic empowerment in developing countries like Vietnam.

Currently, KOTO only operates in Hanoi, Vietnam. However, KOTO wants to be more than that. Once KOTO can recover and maintain the sustainability of the project post-COVID, in the long run, KOTO also intends to impact the food rescue area, considering Vietnam ranks second in Asia-Pacific regarding food waste. Therefore, by implementing a food rescue program or partnership, KOTO could positively impact the environment and society by reducing food waste and supporting more vulnerable populations.

Business benefit

KOTO's training restaurants provide high-quality food and service that meet customers' expectations. Its training program provides students with professional skills in hospitality and culinary arts, giving them the knowledge and skills necessary to prepare and serve food, manage customer relations, and maintain a clean and safe environment. This has helped to build a loyal customer base and generate positive word-of-mouth.

Furthermore, KOTO's training program fosters a strong sense of community and employee teamwork. The program emphasizes the value of teamwork, communication, and leadership and provides opportunities for employees to collaborate and learn from one another. This fosters a positive and supportive work environment, which boosts employee morale and productivity.

Finally, KOTO's training program also helps to create a unique and attractive brand for its restaurant business. By emphasizing its social mission and the positive impact it has on the community, Koto distinguishes itself from other restaurants and appeals to customers who are interested in supporting social enterprises and ethical businesses.

Social and environmental benefit

KOTO's training program supports its students with internships and job placements. Hanh, the foundation manager of KOTO, proudly said that "100% of the job placements were successful just right after they finished the program. We received very positive feedback from our partners that the kids perform well in terms of skills and knowledge and attitude while working." In collaboration with its partners, KOTO has created job opportunities for its graduates, thereby improving the economic situation of their families and communities. KOTO promotes economic growth and reduces inequality by providing stable and long-term employment.

Far beyond training and job placements, the essential idea of KOTO is about empowerment, sustainability, and contribution. 70% of the alumni are actively connected to KOTO, and 50% of the KOTO staff are alumni. The KOTO alumni who were once helped can now give back, help someone else, and create an enormous impact in the community.

Interview

Hoàng Hạnh, Foundation Manager