CHAPTER I

INTRODUCTION

1.1 Background of the Study

Food is any substance consumed to provide nutritional support for the body. It is usually
of plant or animal origin, and contains essential nutrients, such as carbohydrates, fats,
proteins, vitamins, or minerals. The substance is ingested by an organism and assimilated by
the organism's cells in an effort to produce energy, maintain life, or stimulate growth.
Food is a basic necessity. The industry which deals with preparing food items/products
refers to the food service industry. The food service industry is and will always remain in
high demand because of its genre. These industries include restaurants, fast foods, school and
hospital cafeterias, catering operations, food carts and food trucks etc. Restaurants and fast
foods mainly contribute to the food service industry. Like every other country, the food
industry has flourished very well in Philippines. Filipinos love to eat and that's the reason
why you will see a lot of restaurants scattered in the cities. These restaurants and fast foods
can be local or international food chains. Filipino food and chefs are considered one of the
best in the world. It is hardly surprising that Filipino food is labeled as somewhat strange but
in its own way, its food is a unique mixture of eastern and western cuisines and reflects the
history of Philippines. The Filipino food includes dishes and cooking procedures from China,
Spain, Mexico, United States, and more recently from further abroad. However, what makes
them Filipino is the history and society that introduced and adapted them. The people who
turned them to their tastes and accepted them into their homes and restaurants, and specially
the harmonizing culture that combined them into modern Filipino fare. Some of the popular
fast food chains of Philippines are Jollibee, McDonald, KFC, Chowking, etc. and popular

restaurants being Abe, Chelsea, Friday's, Chili's and a lot more.

Attracting a huge crowd to restaurants or fast food require more than just good food.
Though important, good food is only a part of the total dining experience. Equally important
is believed to be the way people feel while in the restaurants. This physical and emotional
response is a result of the atmosphere can make the food, service and whole dining
experience seem better. For that reason a restaurants or a fast food must take care of the
following to please its customers. This includes checking the cleanliness of the place and
freshness of the food, guarded premises, parking area, where people can park, ambiance and
landscaping, building design, lighting, and even music.
The demand as well as the competition in the food service industry is rising. People are
continuously demanding more innovations and improvements to satisfy their dining
experience. By understanding the market, and the competition, more opportunities will be
opened for success.
There are 5 restaurants that we are studying which is Tapsi ni Mamsi, Arabica, Avelinos,
Coko Caf and Bamboombayan.
Tapsi ni momsi was first established in Antipolo City on December 7, 1996. Tapsi ni
momsi is a family business capitalized hy tour individuals: Ramon Palomares, Jr.; Aileen
Digman-Palomares; Capt. Jun Digma and Joseph Digma. It is a small fast food/short order
restaurant operating 24 hour a day. They offer traditional Filipino all day braakfast food such
as tapsilog, tocilog, ribsilog, bangsilog, sizzling sisig, pares and many more. Tapsi ni momsi
are committed to offer clean, quality and affordable food to the market.
After 12 in the market, tapsi ni momsi are proud to say that they have 3 branches in
Rizal-Antipolo, Cainya and Angono and one jn Naga City. Tapsi ni momsi is now open for
franchising.

The Coko Cafe is named after Doa Consuelo "Chito" Madrigal. Because her family was
fond of calling her "Coco."
Coko Cake is a food service of the Consuelo "Chito" Madrigal Foundation - Bikol, a nongovernment organization founded by Doa Chito for poverty alleviation in the Bikol Region.
It started as a food service to the employees of the foundation and its scholars, but has grown
and extended its services to the Ateneo community and even to the society at large.
The food they served are guaranteed fresh and healthy and the prices are affordable to the
students and faculty. With wi-fi connection, full air-conditioning and al fresco dining area.
Coko Cafe is a perfect place to hold meetings, do research or brush up on their readings
while having refreshments. It is designed as social enterprise, he funds generated go mainly
to foundation's scholarship programs and other programs such as housing, he microfinance
and e integrated organic farming programs.
The name Bamboombayan or BB for short is from Bagumbayan, the barangay where it is
located and technically speaking the place is made out of Bamboo. BB is young at heart and
knows how to capture the heart of the youth.
The place is commonly dined by students not only from Ateneo but also from othee
schools and universities. Yuppies are also visible here.
The place is not a posh food place but just enough for students and those who are
looking for a yard-like ambiance of a home.
BB was born out of compassion for others and not entirely for profit. The clubhouse of
Ateneo played a major role for the owners of BB.
The second level of it justifies the name of the place and makes you feel like having
lunch in your own garden or yard. BB is located along Mother Francisca street at

Bagumbayan. Since BB is not your ordinary carinderia, it is st a whole lot of different level
in that spectrum.
Chicken is the main product of BB but they also offer a variety of sauces that can be used
eithee as topping or a dip in your fries. BB's chicken is one of a kind.
According to the owners the spices are from Saudi. So that you can have an idea on how
special BB's chickens are.
Behind Bamboombayan are two young business partners Marion and Kaye. Marion is the
man behind the business concept and marketing strategies of BB and also worthy to note
football enthusiast not only in Ateneo but also in Naga City. Out of passion for football, then
came passion for food and service for others. He was connected with the clubhouse of Ateneo
wherein employees of the snack house were scholars/football players to be specific. Kaye in
the other hand is head of the operations of BB. Clubhouse memories served as an inspiration
for the owners. The tandem of this two yuppies create a friendly atmosphere in the store.
Upon observation, customers feel comfortable here and there were even a group of students
who were I think practicing dance presentation just right outside BB. Seldom do cars pass by
here unlike Ateneo Avenue. This is also a blessing in disguise because there's less pollution
and noise for the customers. BB and the owners were able to suprass different challenges.
These young entrepreneurs have the heart and right attitude in what it takes to work hard for
something.
Food is a basic necessity of man. It will always be a part of our lifestyle which entails
great opportunity to gain profit. People are becoming more particular with their expenses
nowadays, demanding food and dining experience that both possess quality service.
Furthermore, it possesses a unique concept that has a high potential to gain a greater market
share with the right improvements.

1.2 Statement of the Problem

This study aims to determine the factors that affect the profitability of Bamboombayan.

Specifically to answer the following questions:

1. What is the profile of Bamboombayan customer in terms of:

a) Age
b) Gender
c) Civil Status
d) Occupation
e) Monthly Income

2. What is the level of awareness of the market concerning the existence of

Bamboombayan?

3. What are the factors that influence customers in dining at Bamboombayan in terms of:
a) Product
b) Price
c) Place
d) Promotional Strategy
4. What additional facilities/services are needed to gain more customers?

1.3 Scope and Limitation of the Study

This study focuses on the factors that affect the profitability of Bamboombayan. This
study would tackle about factors and aspects of the business that are relevant to its profitability.
Specifically the profile of its customers, the markets level of awareness on the existence of
Bamboombayan, the factors of the Marketing Mix that affects the buying decision of its
customers and as well as the additional demands of the consumers to improve their dining
experience.
The respondents of the study were composed of_____randomly customers, Each of the
respondents are given same questionnaires to answer and be able to analyze and process these
data within the duration of July 2014 to October 2014.

1.4 Significance of the Study

This research aims to provide benefit to the following:
a) Business Owner
The study would be able to enlighten the business owner about the business strengths,
weaknesses, threats and opportunities. And also will provide information about the
profile of the current consumers, their buying decisions and insights on improvements if
there any needed. Lastly, to let the business owner know the level of awareness of the
market about the existence of his/her business establishment.
b) Employees
Information that would be provided by the study would help in the improvement of
customer service and personality improvement within employees for greater customer
satisfaction and relationship.
c) Customers

This study would be a way for customers to relay their insights on Bamboombayan.
Specifically their demands for further improvements on products and facilities and other
suggestions.
d) Other future entrepreneurs
Entrepreneurs planning to venture in this kind of business would be able to gain more
knowledge about their target market and the business characteristics.
e) Future researchers
This study can serve as a guide and reference for any future research that would be
conducted with relevance to its subject.
f) Researchers

1.5 Definition of Terms

For clearer understanding of the terms used in this study, below are their meanings:

Atmosphere a surrounding influence or environment

Market - a group of prospective customers

Profitability - The state or condition of yielding a financial profit or gain. It is

often measured by price to earnings ratio.

Product The products or services offered to your customer: Their

physical attributes, what they do, how they differ from your
competitors and what benefits they provide.

Price How you price your product or service so that your price
remains competitive but allows you to make a good profit.

Place (Also referred to as Distribution) Where your business sells

its products or services and how it gets those products or services
to your customers.

Promotion The methods used to communicate the features and

benefits of your products or services to your target customers.