How I Trained 2,000 Underprivileged Youth Into 5-Star Hospitality Talent | Jimmy Pham, KOTO | EP 366

Key Concepts

• Social Enterprise: A business that has a social mission at its core, reinvesting profits to achieve its goals.
• Talent Development Pipeline: A structured system for identifying, training, and placing individuals into specific industries.
• Vocational Training: Education and training focused on practical skills for a specific trade or occupation.
• Resilience: The ability to recover quickly from difficulties; toughness.
• Social Return on Investment (SROI): A framework for measuring and accounting for a broader concept of value; it seeks to measure the social, environmental, and economic impact of an organization or program.
• Holistic Development: A comprehensive approach to development that addresses physical, mental, emotional, and social well-being.
• Peer-to-Peer Learning: A learning process where individuals learn from each other, often through collaboration and shared experiences.
• Reciprocal Relationship: A relationship where both parties give and receive, creating a mutually beneficial exchange.

Coto: A Social Enterprise for Hospitality Talent Development

This summary details the journey and operational model of Coto, a social enterprise founded by Jimmy Pham. Coto has transformed from a small sandwich shop in 1999 into a significant talent development pipeline for Vietnam's hospitality sector, producing over 2,000 industry-ready graduates. The core of Coto's success lies in its unique business model, which emphasizes professional training, discipline, and a clear pathway to employment for underprivileged youth.

Genesis and Personal Journey of Jimmy Pham

Jimmy Pham, the founder of Coto, shares his personal story, which is intrinsically linked to the establishment of the organization. Born to a Korean father and Vietnamese mother, he left Vietnam at a young age and was raised in Australia. His return to Vietnam in 1996 was prompted by a profound encounter with street children. At that time, Vietnam was still recovering from war, with 80% of the population living precariously. Many children were forced to work on the streets to support their families, acting as a form of social insurance.

Pham's "walk that changed his life" involved spending time with these children, feeding them and attempting to communicate in his rudimentary Vietnamese. This experience ignited a passion for community work and a desire to "be the change that I want to see in the world." This led him to return to Vietnam three months later with $300 and a job at Intrepid Travel. Despite lacking formal qualifications in hospitality or development, his strong desire to make a difference was the driving force. He fondly recalls the "innocent period" of Vietnam in the late 1990s, characterized by simpler infrastructure (like intermittent water and electricity) and a strong sense of community, where people, despite having little, were happy.

The Birth of Coto: From "Giving a Fish" to "Teaching to Fish"

Pham's initial efforts involved providing direct aid to street children, a phase he describes as "giving a man a fish." After three years of this, the children he had been supporting approached him, expressing a need for more sustainable solutions, specifically jobs. Unable to find suitable training centers that would accept street children due to their lack of documentation, Pham decided to create his own solution.

In 1999, he established Coto, starting with nine street kids and a sandwich shop. The concept was to provide them with a "fishing rod" – the skills to support themselves. They charged a nominal fee of $1 for a buffet breakfast, serving basic sandwiches and milkshakes. Crucially, Coto became a "family" for these children, fostering a sense of belonging that Pham identifies as the foundation of the organization today.

Coto's Impact and Success Stories

Coto has a remarkable track record of transforming lives. Pham proudly states that he remembers every graduate, and out of the 2,000 alumni, he can account for their current situations. He shares inspiring examples:

• A former street kid who sold conical hats in Hanoi now owns six restaurants in Melbourne, Australia.
• Two graduates from the first class are now private chefs for the Swiss and Irish ambassadors in Hanoi.
• A social return on investment (SROI) report indicated that 80% of Coto graduates remain in the hospitality industry, prospering from the vocational training they received.

Coto's Operational Model and Growth

Coto's capacity has grown significantly since its inception. Starting with nine trainees, it expanded to 20, then 30, and now aims to train up to 350 students per year. The organization has moved from its initial locations to a new campus built by Guintown (part of Ving Group), which provides facilities for students to live, work, rest, and play, creating an integrated ecosystem.

The vision for Coto extends beyond a two-year training program; it aims to build a supportive community within the hospitality sector. The organization emphasizes doing things "right," helping others, and contributing to the industry and community. Pham believes that Coto's brand integrity, built over 25 years, allows for rapid expansion and increased impact in a sustainable and prosperous manner. The long-term vision (30 years) is to expand impact by fostering active citizens who do the right thing and, in turn, help others, creating a ripple effect.

Recruitment and Selection: Identifying Resilience

Coto's recruitment process has evolved to address changing social disparities. While initially focusing on street children, they now also support ethnic minority youth, children in conflict with the law, and those from broken families. A critical aspect of their selection is identifying resilience. Pham explains that while underprivileged individuals are inherently disadvantaged, Coto cannot accept everyone.

The recruitment process looks for individuals who:

• Come from disadvantaged backgrounds.
• Possess the ability to give back to their community.
• Have a mindset ready for change and self-improvement.

The program requires a two-year commitment, encompassing life skills, English, and Australian-based hospitality training. Coto's strong reputation means they have a high application-to-acceptance ratio, with approximately one in seven applicants securing a position. The investment per student is substantial, around 300 million VND. It is crucial for trainees to understand that Coto is not a charity but an enterprise where they must be resilient and committed to personal growth and supporting those around them. The learning environment fosters peer-to-peer support, with older students mentoring younger ones.

Coto's Resilience and Adaptation (Post-COVID)

Pham highlights Coto's own resilience, particularly in the face of the COVID-19 pandemic. The organization experienced significant setbacks, including being forced out of their school and restaurant (their primary income source), leaving them with nowhere to go and a large number of students to care for. This challenging period necessitated the development of a new business model, making them less complacent and more resilient. The unwavering belief of their students and staff was instrumental in overcoming these difficulties.

Partnering with Coto: A Reciprocal Relationship

Coto actively seeks partnerships, emphasizing that these should be collaborative efforts rather than purely charitable donations. They aim for a reciprocal relationship where both parties bring value. Brands are encouraged to engage not just as employers but as mentors and partners who invest in the growth of Coto graduates. Pham stresses that Coto graduates are not charity cases; they are highly skilled individuals who deserve market-rate pay and opportunities for development.

Coto operates two restaurants:

• Coto (Hanoi): Serves as a practical training ground where students are actively involved.
• ST25 (Ho Chi Minh City): An alumni-inspired restaurant that has received several awards.

These establishments are designed to be self-sustaining, generating revenue through high-quality food, service, ambiance, and competitive pricing, rather than relying on donations. This transactional yet reciprocal approach ensures the ongoing viability of the enterprise.

Diversity and Harmony within Coto

Managing diversity among trainees is a significant undertaking. Coto recruits from across Vietnam, representing various cultural backgrounds, ethnicities, and socio-economic statuses. To foster harmony, they intentionally diversify their student body, including representatives from 25 out of Vietnam's 54 ethnic minority groups, and maintain a gender balance.

Key strategies for creating harmony include:

• Diverse Cohorts: Mixing students from different backgrounds prevents any single demographic from dominating and encourages cross-cultural understanding.
• Experienced Mentors: Long-serving teachers and staff provide consistent guidance and support.
• Peer-to-Peer Mentorship: Older students take on the role of "older brother" or "older sister" to mentor and support newer trainees, reinforcing the "no one teach one" philosophy.

The Coto Journey: Discipline, Goals, and Holistic Development

The two-year program is structured to instill discipline and a strong sense of purpose. Upon arrival, students are asked about their motivations and goals, which are then documented and revisited through ceremonies like the "dream bottle" initiative. This helps them stay focused and motivated.

The program emphasizes holistic development through:

• Practical Experience: Students work in busy restaurants, handling up to 450 covers a day during peak season, honing their skills under pressure.
• Excursions and Social Programs: These activities provide variety and prevent the program from feeling monotonous.
• No Phone Policy: For the first year, students are prohibited from using their phones to encourage discipline, focus, and habit formation. This is a significant challenge, leading to an initial drop-off rate, but the comprehensive campus facilities (coffee shop, computer room, rooftop garden, sports arenas, swimming pool) provide ample engagement opportunities. After the first year, during their work experience phase, phone usage is permitted.

The program aims to develop "psychological adults" who are empowered, skilled, and unafraid of obstacles. This includes building good habits, mindsets, and the ability to maintain employment through a positive attitude and discipline.

Future Aspirations and Learning Interests

Looking ahead, Coto plans to expand its reach and impact. Pham expresses a desire to learn more about integrating Artificial Intelligence (AI) into the service industry while preserving the human-centric values of Coto. He also emphasizes the importance of mental health support for students, recognizing its growing significance in a complex society.

Conclusion

Coto stands as a testament to the power of social entrepreneurship, demonstrating that a business can achieve both financial sustainability and profound social impact. Jimmy Pham's vision, coupled with a rigorous and holistic training program, has created a powerful engine for change, empowering underprivileged youth in Vietnam and contributing significantly to the nation's hospitality sector. The emphasis on resilience, discipline, community, and reciprocal partnerships forms the bedrock of Coto's enduring success.