HALAL CATERING IN METRO MANILA

Philippines

Table of Contents

Executive Summary............................................................................................................1

Introduction.........................................................................................................................1

Supply Analysis..................................................................................................................1

Supply/Demand Gap...........................................................................................................2

Demand Analysis and Projection........................................................................................2

Halal Food Competitors in Metro Manila Region..............................................................3

Market Share of Competitors..............................................................................................4

Financial Analysis and Feasibility......................................................................................4

8.1

Compliance with Legal Requirements........................................................................5

8.2

Registration with Food premises Regulations (1991).................................................5

8.3

General Hygienic Food Regulations (1995).............................................................6

8.4

Temperature Control....................................................................................................6

4P Analysis..........................................................................................................................7
9.1

Product and Service Strategy.......................................................................................7

9.2

Pricing Strategy...........................................................................................................7

9.3

Distribution Strategy...................................................................................................7

9.4

Promotional Strategy...................................................................................................8

10

Recommendations...........................................................................................................8

11

References.......................................................................................................................9

Executive Summary

The report is based on Halal Food Business in Philippines where Metro Manila is the focused
area. The project report entails introduction of the foodservices and catering industry of
Philippines. This is followed by Supply and Demand Analysis and then the proposed method
for the calculation of Demand and Supply Gap Analysis to exactly predict the future demand
and supply. Further, the report includes Competitors Analysis, Financial Analysis, Marketing
Management and Compliance Policies related to the incubation of business. In last, the
project report elicits recommendation s and suggestions for the halal food business.

Introduction

The economy of Philippine has been posting oscillated but positive growth, with upward
strong urges back in 2010, then in 2012 and growth in 2013 as well. This has registered the
total value of economy at US$168 billion in year 2013. Massive increment in the
participation of workforce, participation of women, time-pressed workers participation and
urban consumers all have played their role in the development of foodservice and catering
sector. This has registered the total value of sector at US$9.8 billion in year 2012, according
to the report published by Euromonitor (2014).

Supply Analysis

Independent and individual operators of businesses are the major representation of the sector.
But, this representation has just a slight margin. Those businesses that are operating in terms
of chains usually post huge profits and growth rates in terms of sales value, along with the
numbers of transactions, as the chains tend to exploit the advantage they gain from the
economy and extend their operations in the market. Moreover, more the presence in the
market through chains strategy, more the availability of supply in the market is (Sahota,
2006). Apart from the foodservice and catering sector, other sub-sector components swiftly
gaining favour in those markets where they operate especially in Manila. This includes
takeaways/home delivery which has beaten all other sub-sectors in growth terms the period
is from 2008-2012.

Independent operators are the major suppliers of the services and food products that is
accounted for $1.5 Billion in Manila alone, which is a larger percentage of total catering and
foodservice market in the city (Euromonitor, 2012). While, the same operators account for
500 Million transactions annually in 2012 (in Manila) with 63,000 outlets. However, chained
outlets do twice the operations of individuals operators in the market. The future supply
projections will help to govern the total market that is satisfied to other total number of
customers who are willing to avail foodservices and catering services as well to the
population targeted with growth rate of 2.94% to the agreement frequency.

Supply/Demand Gap

The estimation and projection of gap analysis is significant to determine. The gap can be
calculated through the subtraction of projected supply and projected demand. This will
present the untapped market that is available to serve. It will unveil the number of untapped
market consumers that are required to be tapped. The further calculations are required to find
gap for each product and service from projected supply and projected demand.
Top ten major suppliers and players are indexed in Appendix (1), according to the report of
Euromonitor (2014).

Demand Analysis and Projection

Euromonitor (2014) projects a complete map of future growth and demand of foodservice
and catering business prevailing in the market. The report and various other studies projected
$10.196 Million in total consumer service in 2013. However, the value has seen growth in
Year 2014 and posted a total of $10,680 million. Where, in 2015 the projected value has
increased to $11, 370 Million (Munoz et al., 2005). There is immense explosion of growth
expected by the reports in 2016 and 2017 that are valued at $11,995 Million and $12,670
Million respectively.
Further in Manila and in other important regions, there are massive opportunities for
independent business owners of catering and foodservices. In 2016 and 2017, for independent

and individual ownerships can view the value of demand reaching up to $6, 6670 Million and
$6,990 Million in year 2016 and 2017, respectively (Wilkinson, 2008). Where, in the same
sector (individual/independent owners) can view compounded annual growth rate at 4.3%,
whereas, the chained businesses at larger scale are viewing growth of 7.2% in the catering
and foodservice sector.
There is a significant increase in the demand of foodservices and catering for year 2011 to
2015 is centred on the growth rate of population that is measured at 2.94%. The annual
demand that was projected is based on the acceptability ratio that is measured at 83.43 as per
target population (Lie et al., 2000).

Halal Food Competitors in Metro Manila Region

There are several players, individual and chained operators in the market (in the metro
Manila region) that are operating in Halal Food Market. The first player in this perspective is
New Bombay Restaurant at Makati City. The main speciality is serving food with blaze.
Further, the restaurant is also operating in Ortigas, Makati and Taguig foodcourts. It is
interesting to note down that 65% of their customers are Filipinos. The other player is Moud
Halal Restaurant in Quaipo Manila. The area is home to the biggest Muslim community and
home to Muslim families. However, the restaurant is small but still a favourite
recommendation among the residents. Another player is Murtabak Caf near the Asia Mall
and is a major player for around seven years serving dishes like seafood, soups, and beef etc.
with a Halal Sign and a halal certificate pasted in the entrance. Other major Halal food, caf
and hotels in the region includes Al Batra Restaurant and Coffee Shop, Kashmir (near
Rustans Supermarket), Gilak by Hossein (in Ayala Centre that is near Makati City scattered
all over the malls in the name of Hossein group) and The Chicken Rice Shop near Robinsons
Place, Manila. Shawarma Snack Centre, Chicken Bacolod and Quiapos Muslim Town are
some of the other major players in the market of Halal Foods.
7

Market Share of Competitors

In Philippines, the industry of foodservice is majorly covered by independent and individual

players. Most of those operators have chains and other outlets in detached locations. Among

major chain players, local operators like Jobilee Foods (Inc.) operate through its vast
assortment of tones of brands of fast food. Other major players comprise of Golden Arches
Dev Corporation along with the brand of McDonalds. KFC and Mister Donut (operating in
the name of Ramcar Inc.) and Seven Eleven Corp of Philippines are among other brands
(Lang et al., 2006). All these companies and brands are operating in various locations mostly
at travel, retail and standalone as well. Retail Channels are usually positioned inside the mall
that includes malls like Ayala malls, Robinsons, and SM Malls etc. are mostly targeted by the
operators. The reason is that these locations and outlets return high sales and transactions for
their brands with the major reason of high traffic on foot. However, Metro Manila region is
majorly occupied by international brands of fast foodservice and catering services as well.
According to the report (2012, 2014) by Euromonitor, around 40% market is occupied is
these brands rest is tapped by local brands that are usually chained or independent operators.
The other data related to market share of these brands is understudied and significant research
is required to make clarifications pertaining to market share of these operators both
dependant and independent chain and individual operators especially of the Metro Manila
region. It is clear that global operators have posed a stronger competition to other brands to
serve urban customer needs. However, these foodservices are sole provider of food products
but not the catering service that opens a new avenue and effective/efficient combination of
the two services (Edralin & Catillo, 2001).

Financial Analysis and Feasibility

To start a comprehensive business poses financial requirements for the initiation of the
project. There is a need of immense investment to start both services at a time that includes
foodservices and catering services at a time.

1. Facilities
and
Other
Major
Equipments
- Kitchen Facilities
- Freezers and Refrigerators
- Hot Plates and Ranges
- Ovens
- Equipment for Transportation
- Dryers and Washers

Amount in USDs
10,000
5,000
5,000
2,000
2,000
3,000

2. Small Equipment/Furnishings
- Food Processors
- Mixers
3. Miscellaneous Equipment
- Crock pots, Heating
Electric Kettles
- Coffee Makers

Trays

1,000
200
and

4. Kitchen Equipment
- Strainers, Pans and pots, Scales
- Cutting Boards
- Knives
5. Serving Equipment
- Linen, Glassware and China
- Decorative Items and baskets
- Serving Ware
6. Administrative Equipment
- Computers/printers
- Stationary
- Chairs & Desks
TOTAL COSTS

8.1

2,000
300
100
10
20
50
20
30
2000
100
500
32730

Compliance with Legal Requirements

8.2

Under the compliance with the act, we will not sell food that is unfit for the people
o Posing danger to the peoples health
o Sale and delivery of products and services that customer might not expect
o Misleading the presentation of food

Registration with Food premises Regulations (1991)

8.3

Must register ourselves within 28 days before the opening

General Hygienic Food Regulations (1995)

Rules and regulations as per charter must be followed related to premises, food and
staff as well (Collado, 2014)

8.4

Temperature Control

Specific temperature control to be implemented as required by the foods

Fire safety compliance/Availability of all safety equipments and exit doors (ibid,
2014)

Below is the comprehensive five year Profit and Loss Statement as per requirement.
Year
2015
Sales
300,450
Cost of Goods 150,430
Sold
Operating
150,020
Income
Expenses
Payroll
General Admin
Marketing
Professional fees
Cost of Insurance
Vehicle/Travelling
Cost
Utility and Rent
Miscellaneous
Payroll Taxes
Total Operating
Costs
NET PROFIT
9

9.1

2016
410.270
160,480

2017
470,890
240,570

2018
520,980
200,398

2019
600,550
250,870

240,790

230,320

320,492

340,680

15,000
400
600
700
500
400

14,975
470
578
710
525
410

15,600
510
687
767
536
430

17,900
700
800
825
577
455

18,700
600
835
889
620
465

1000
200
400
19,200

1,200
230
430
19,528

1,500
260
450
20,740

1,700
290
490
23,737

1,900
310
520
24,799

130,820

221,262

209,580

296,755

315,881

4P Analysis

Product and Service Strategy

The company should be focusing on nutritious food and quality service. Usually, the main
food products are required to be Halal meat and chicken and other vegetables. Further, the
services include the provision of catering services on various events and ceremonies and also
delivery of food at home. The timing includes the provision of breakfast, lunch, dinner and

supper. Also, the business is targeting special celebrations and social gatherings as the most
important market to tap in.

9.2

Pricing Strategy

The main pricing strategy will be penetration-focused. It will be designed to attract new
customers as the business is at introductory stage and will be countering new customers.
Also, the focus of the business is to operate in the business for a long time and will be a
leading player in the foodservices and catering sector. Another tactic can be used is to
incorporate differentiation strategy where the business focuses on both foodservices and
catering service. As per analysis of the market and giant competitors, there is also adoption of
going rate pricing strategy is required to beat the competitors.

9.3

Distribution Strategy

The catering services are required extra personnel for the deployment of catering services.
Additionally, there will be extra delivery-guys also required to deliver products and
foodservices at home as well.

9.4

Promotional Strategy

The focus of promotion will be to attract and retain new customers. This will be done by the
distribution of leaflets and mass marketing to attract families, students, social gatherings and
those customers who want to host special gatherings, ceremonies and to celebrate various
other occasions. Advertisement on local newspaper, bulletin-boards, and billboards are the
main sources of promotion.

10 Recommendations

As per industry Analysis it is transparent that there seems a significant growth in future in
foodservices and catering business in Philippines especially in the Metro Manila region.
However, the focus is on Halal Foods. In this perspective, there is one recommendation that
the management is required to focus not only on customers from Muslim community but also
on non-Muslim community as well (Coyle, 2006). The management can ensure availability of
those products and services that are also halal and are favourite among non-Muslims as well.
This can be done by massive market research process and through surveys as well. Further,
there will be immense competition from the local brands as described above in the report.
This can be tackled through availability of new products (new recipes) new services like
inducting of catering services and other pricing and promotional strategies to attract new
customers.

11 References

Collado, L. S., Corke, H., & Dizon, E. I. (2014). Food safety in the Philippines:
problems and solutions. Quality Assurance and Safety of Crops & Foods, 7(1), 45-56.

Coyle, W. (2006). A revolution in food retailing underway in the Asia-Pacific

region. Amber Waves, 3(4), 22-29.

Edralin, D. M., & Castillo, M. P. (2001). An In-depth Study on the Hotel and
Restaurant Industry in the Philippines. Philippine Institute for Development Studies,
Philippines.

Lang, T., Rayner, G., & Kaelin, E. (2006). The Food Industry, Diet Physical Activity
and Health: A Review of Reported Commitments and Practice of 25 of the World's
Largest Food Companies (pp. 15-21). London: Centre for Food Policy, City
University.

Liu, C. M., & Chen, K. J. (2000). A look at fast food competition in the
Philippines. British Food Journal, 102(2), 122-133.

Munoz, J. M., Raven, P. W., & Welsh, D. H. (2005). An exploratory study of retail
service management in the Philippines. Proceedings of the US Association for Small
Business and Entrepreneurship.

Sahota, A. (2006). Overview of the global market for organic food and drink. The
world of organic agriculture, 19.

Wilkinson, J. (2008). The food processing industry, globalization and developing

countries. The Transformation of Agri-Food Systems: Globalization, Supply Chains
and Smallholder Farmers. Food & Agriculture Org., New York, 87-108.