CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

The service sector is expanding at an increasing rate and is becoming

intensely competitive. As such, every organization needs to adopt some

strategies which will enable it to have a competitive edge over the others. As

competition intensifies, many businesses continue to seek profitable ways in

which to differentiate themselves from competitors. Strategies are at ends and

these ends concern the purpose and objectives of the organization.

They are the things that organizations do, the paths they follow and the decisions

they take in order to reach certain points or level of success.

In global and highly competitive markets, organizations strive to be

innovative and agile enough to meet customers’ demands. Competitiveness,

based on organizational capabilities and production strategies, may lead to

quality, efficiency and flexibility. In the pursuit of ‘mass customization’, flexibility

and scale economies are followed simultaneously. The search for a system’s

flexibility, responsiveness and reliability on the one hand, and low costs on the

other, has led to the reconfiguration of the design and production activities and

thus advocated the changes in the overall supply chain management (Suri,1998).

In today's world of cut-throat fierce competition, customer satisfaction is

very essential for an organization to not only exist but excel in the market.
Today's market is enormously more complex. Henceforth, to survive in the

market, the company not only needs to maximize its profit but also needs to

satisfy its customers and should try to build upon from there. The fastchanging

competitive environment and firms' competitive positions are constantly

challenged by the emergence of new technologies, products, markets and

competitors. Flexibility and adaptability have become key management concepts

to develop a sustainable competitive advantage. Successful firms apply them in

new organizational strategies that put into question many conventional tenets on

organizations and their management. These strategies involve a decentralized

and responsive work organization, based on co-operative relations not only

within the firm but also in its relations with customers, suppliers and competitors.

However, firms are also increasingly resorting to traditional market mechanisms

through the use of contingent workers and arms’-length subcontracting relations.

Competition is a contest between individuals, groups, nations, restaurants

and animals for territory, a niche, or a location of resources. It arises whenever

two or more parties strive for a 5 goal which cannot be shared. Competition

occurs naturally between living organisms which coexist in the same

environment. Business is often associated with competition as most companies

are in competition with at least one other firm over the same group of customers,

Lynch (2003).

According to David (2000), the level of competition a firm faces will

depend on a number of factors which include; the greater the number of firms

operating in the industry, the greater will be the level of competition faced by
each firm in that industry, on the extent to which its products are similar to its

competitor’s products. If a firm operates in an industry where its competitor’s

products are an almost perfect substitute for its products, then the firm will

generally face a high level of competition. If however a firm is able to offer a

product which is different from that of its rivals, then the firm will face less

competition and the ease with which competitors can enter or leave the industry.

If firms find it difficult or costly to enter the industry, then existing firms may find

that they face limited competition. Whereas if it is relatively easy to enter an

industry, firms will generally find that they face a high level of competition.

Generally speaking, an industry could be described as being highly competitive

whenever a large number of relatively small firms, who offer similar products,

operate in the industry. If however the industry is dominated by a small number

of large firms, the industry could be described as being highly concentrated,

Darrow at al., (2001)

Competition, the process of rivalry between firms striving to gain sales and make

profits, is the driving force behind markets. Efficient and fair markets are

essential for catalyzing private sector development and economic growth. Yet,

while markets work fairly well much of the time, effective competition is not

automatic, and can be harmed by inappropriate government policies and

legislation, and by the anti-competitive conduct of firms.

Theoretical framework

Although the industry-based view of business strategy emphasizes the

importance of industry structure and RBV emphasizes the value of firm resources

for competitive advantage, it is also recognized that the decisions a firm makes in

terms of its actions and reactions in relation to its competitors in a market is a

major determinant of firm performance. The competition-based theories of

business strategy emerged to fill this gap and ensure attention to the dynamics of

competition between rivals. It is important to emphasize that the need for firms to

think strategically is driven by the existence of competition. If there is no

competition, there is no need to make strategy a priority. Firms that hold

monopolistic positions within their industries do not face competition and

therefore have little need for thinking strategically.

Bruce Henderson, founder of Boston Computer Group, points out that

"competition existed long before strategy"as he draws an analogy between

business competition and competition between biological organisms. He

observes that according to Gause’s principle of competitive exclusion, two

animals of the same species attempting to live together within the same

environment will not survive.

This competitive reality in biology drives differentiation of species, and

the same dynamic occurs in business competition.

Statement of the Problem

The research aims to answer the following problems.

1. What are the factors affecting customers preference in selecting Fast

Food chain in timog avenue?

2. What are the economic factors that can affect the fast food industry?

3. How does customer’s preference affect the profitability of the competing

fast food chain businesses?

4. What are the benefits of having competition in the same field?

Significance of the Study

The researchers hope that this study would help, add, and develop the

awareness of the following concerned individuals:

Students – through this study it teaches them how to be creative when it comes

to competition, bring new ideas and resourcefulness.

Fast Food Companies – companies strategies to introduce new products and

advertised their company

Consumers – consumers have different choices to try and select fast food chain

that’s for their own prerogative.

Future Businessmen – for an entrepreneur, they can have good views on what

business they will have to put up and build a new plans to improve the business.
Scope and limitation

This study focused only on a specific place where many restaurants are

really enjoyed by many people, and also this study proves that the competition of

the fast food chain businesses has a profound impact on our economy.

Limitation of the study

Thestudy is limited to areas where many well-known fast food chains are

actually crowded with people. The limits of our study are in timog avenue Quezon

City. Because we found out that timog is not just a place of food a lover, but a

place for fun and leisure like bars and hotels.

Definition of terms

 Hygiene -conditions or practices conducive to maintaining health and

preventing disease, especially through cleanliness.

 Authentic - Made or done in the traditional or original way, or in a way

that faithfully resembles an original.

 Rivalry -competition for the same objective or for superiority in the

same field.

 Efficient -(especially of a system or machine) achieving maximum

productivity with minimum wasted effort or expense.

 Niche -A specialized segment of the market for a particular kind of

product or service.
 Cut-throat -(of a competitive situation or activity) fierce and

intense; involving the use of ruthless measures.

 Reliability -the quality of being trustworthy or of performing

consistently well.

 Scope -the extent of the area or subject matter that

something deals with or to which it is relevant.

 Competitors -an organization or country that is engaged in

commercial or economic competition with others.

 Competition -The activity or condition of striving to gain or win

something by defeating or establishing superiority over others.

 Threatening -having a hostile or deliberately frightening quality or

manner.

 Financial -The finances or financial situation of an organization

or individual.

 Jockey -struggle by every available means to gain or achieve

something.
CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter includes ideas, generalization, or conclusions, methodologies

and others. Those that were included in this chapter helps in familiarizing

information that are relevant and similar to the present study.

Foreign Literature

While the fast-food giants have been holding up better than many other

industries -- and certainly better than any in the restaurant sector -- even they are

beginning to suffer from the downturn.

And if the economy, especially with some new jobs, doesn't start coming

back soon, that pressure is apt to continue this year and possibly beyond.

Consider McDonald's MCD, -3.26% : In late 2009, it posted some of it first

U.S. same-store sales declines in years for October and November. The Golden

Arches had until then been firing on all cylinders for years, using new products,

value menus and expanded hours to lure in diners looking to "trade down" from

pricier fare

The trouble appeared even earlier for some rivals. Yum Brands YUM, -

3.42% parent of Taco Bell, Pizza Hut and KFC, posted a 6% decline in same-
store sales in the third quarter while Burger King Holdings BKC reported a nearly

3% drop in the same key industry metric. Wendy's/Arby's WEN, -3.59% numbers

also slowed.

Fast-food chains "have been holding up relatively well, as long as you say

'relatively'," said Dennis Lombardi, executive vice-president at WD Partners, a

consultancy. "They didn't really feel the pinch until the middle of the year, while

other restaurants did in 2008."

He noted that the category has "some of the lowest price points and a high

value perception [but is] not absolutely resilient, nor immune" to economic

conditions.

"There is an industry adage that says when money gets tight, you trade

down and when you lose your job, you trade out," he said.

One thing that has been hurting the top and bottom lines is an orgy of

deep discounting and couponing. There is almost a "how low can you go" kind of

contest going on when it comes to items like double cheeseburgers and snack

wraps.

That has moved traffic levels higher in some cases, Lombardi said, "but

the same can't be said for profit margins. Some people say this is a "penny-profit"

business but [now] it is a tenth-of-a-penny-profit business. But it is certainly better

than not having the cash register ring."

 On the plus side, profits have been holding up better than sales, largely

due to the help of a weak dollar which helps international operations and the

impact of lower commodity prices as worldwide demand for everything from

potatoes to cheese slows. Labor costs are also down with the current buyers'

market for jobs while all of the big chains have been busily streamlining

operations and squeezing their vendors.

The stocks have been mixed, though all are off their lows. Dow

component McDonald's is trading at $62 and change, off a bit from north of $64

late last year but well ahead of its March nadir of just over $50. Burger King is in

the $18 range, down from $24.10 in April but above a low of $15.61 last summer.

Wendy's/Arby's is going for $4.70, smack-dab in the middle of its 52-week range

while Yum is hovering near a yearlong high of $36.13 vs. $23.37 last spring.

According to Zacks Research, the "industry remains under pressure in the

current economic downturn, which has badly affected consumers disposable

income."

Operators are reporting declining traffic as consumers dine out less or eat

at home while competition "is expected to remain fierce with respect to price,

service, location, and concept in order to drive traffic, which may adversely affect

... restaurant operating margins and profits."

Still, with the exception of Wendy's/Arby's, Wall Street is expecting higher

2009 profits for the big four, with earnings for all then continuing to grow through

2011, according to analyst estimates compiled by Fact Set Research. That could
change when the companies begin rolling out fourth quarter and full year

numbers over the next few weeks and start to give outlooks for 2010 and/or

beyond.

Much will of course depend on how long the economy remains in the

doldrums and a shifting competitive picture.

According to a new study from consulting and research firm Technomic,

consumer perception of fast food has expanded beyond the traditional burger

joint to locations that serve up the chow quickly but put more emphasis on

"flavor, quality and ambiance." Indeed, 41% of the eating public apparently now

considers places offering "fast food" to include fast-casual restaurants like

Panera PNRA and even full-service restaurants that offer carryout or curbside

service.

"As Americans continue to trade down from full-service concepts, more

restaurants are competing for the 'fast food/food fast' customer," said Darren

Tristano, an executive vice-president at Technomic. "Both quick-service and fast-

casual restaurants are borrowing elements from the other to drive traffic."

Trends include up scaling of limited-service formats, more price-driven elements

in fast-casual outlets, and full-service restaurants offering call-ahead and online

ordering, home delivery and curbside pickup, Technomic said.

In the bigger picture, Technomic reports that 49% percent of consumers

say they eat at fast-food restaurants at least once a week with one in four have
increased their visits over the last year, higher than in any other industry

segment.

However, even with the new challenges outlined by Technomic, the

chains' worst enemies are -- and will likely continue to be -- each other.

"The quick-service restaurant industry is intensely competitive, marked by a

history of price wars," said R.J. Hottovy, an analyst at Morningstar. "With minimal

switching costs, customers can be fickle."

He added that rivalry "appears to be on the rise, with chains increasingly

competing with one another on the basis of price and product differentiation,"

while "a proliferation of new menu items could slow down the speed of service."

Further, "tighter credit markets could impair franchisees' ability to add new

restaurants, perform renovations, or purchase equipment," Hottovy said.

Local Literature

According to the Institute for Development and Econometric Analysis, Inc.

(IDEA) latest Industry Trends, a regular publication produced by IDEA, food is

always viewed as an indispensable household necessity. Based on the 2009

Family Income and Expenditure Survey (FIES), around 42.6 percent of the total

expenditure of a typical Filipino household is solely being allocated for food.

Changing consumer behavior and lifestyle, however, are some of the factors that

continuously shape and influence households’ decisions on food consumption.

 The increasing numbers of white-collar workers, the women’s changing

role in the society, the shifting consumers’ preferences towards leisure and

convenience, and urbanization have heightened consumer demand for food

services—particularly for fast food services.

Per IDEA, a fast food refers to a type of restaurant that offers quick

services and affordable food. This thriving industry has transformed the

landscape of Filipinos’ diet and culture. Buying of fast food has now become an

everyday routine for most people, especially for middle class earners engaged in

productive activities. Most fast food establishments are located in Metro Manila

and in several major cities in Central Luzon and Southern Tagalog. As of 2009,

there are around thirty-two thousand fast food outlets in Metro Manila area alone.

Emerging urban areas outside Luzon—including Metro Cebu and Metro Davao—

are also considered as strategic locations for outlet expansion.

Per same published report, it was revealed that according to the 1994

Philippine Standard Industrial Classification (PSIC) handbook, fast food services

are classified under class 55210—restaurants, cafes and fast-food centers. This

classification comprises all activities concerned with the sale of prepared foods

and drinks for immediate consumption in the premises such as restaurants,

cafes, lunch counters and fast food outlets. It is also concerned with take-out

operation activities which includes drive-thru option.

Furthermore, it was also revealed that Gross Value Added (GVA) in the hotel and

restaurant industry remains to be in the uptrend in the past decade (Figure 1).
 The industry posted a decade?best of 9.3 percent GVA growth in 2007,

but was immediately followed by modest GVA growth rates of 3.1 percent and

2.7 percent in 2008 and 2009, respectively. The slowdown illustrated the

industry’s difficulties in sustaining high growth during the height of the Global

Economic Crisis (GEC) in 2008 and 2009. The industry reverted back to its

bullish growth in 2010 with 9.1 percent. The sustained positive growth of the

industry during the last decade can be attributed to the robust performance of the

restaurant sector, particularly the fast food subsector given that approximately 80

percent of the restaurants in the country are classified as fast food. Based on a

report released by the Department of Primary Industries–Victoria, Australia, the

Philippine Fast Food subsector is valued at USD 3 billion, with growth rates

ranging from 10% to 15% in the last decade. This subsector is immune to most

economic turmoil given its large pool of consumers, ranging from middle class

workers to wealthy local and expatriate customers. In addition, the fast food

industry has managed to capture high-end restaurant goers when general prices

are rising; this was said to be evident during the GEC, according to IDEA.

Foreign Studies

It seems like just yesterday that the fast-food chains were competing with

each other by devising increasingly calorie-packed, fat-saturated sandwiches

with names like the Double Down, the Baconator and the Quad Stacker.
 What a difference five years makes — many consumers these days want

nothing to do with such culinary behemoths. But before we discuss what a

difference five years makes, perhaps we should first discuss what a difference

four decades makes.

It was in 1971 that McDonald’s first introduced McDonald land, a popular

30-year marketing concept that transformed the restaurant into a fairy-tale realm

inhabited by whimsical costumed characters named Ronald McDonald, Grimace,

the Hamburger land and Mayor McCheese. So closely did McDonald land

resemble the worlds created for ’70s children’s television shows by Sid and Marty

Krofft that the Kroffts successfully sued McDonald’s for copyright violation.

Burger King answered McDonald’s in the late ’70s with its own Burger

King Kingdom, inhabited by the king himself, as well as Sir Shake-A-Lot, the

Burger Thing, the Duke of Doubt and the Wizard of Fries. As beloved as these

characters were and undoubtedly still are among kids of all ages, many food and

nutrition experts have long believed that the burger chains’ extremely successful

efforts to appeal to children were actually contributing to the childhood obesity

epidemic in North America.

The claims of such experts were largely ignored by the general public for

years.

But it was difficult to ignore a sense that a tide had turned in 2013, when a

9-year-old girl named Hannah Robertson lambasted McDonald’s CEO Don

Thompson at a shareholders’ meeting. “It would be nice if you stopped trying to

trick kids into wanting to eat your food all the time,” she reportedly told him.

McDonald’s true vulnerabilities as a business were prophetically

addressed by Alan Siegel, onetime chairman of brand consulting company

Siegel+Gale, in a 2002 New York Times article. Siegel said fast-food chains

couldn’t solve their problems by changing their advertising. They could only solve

their problems by changing their food.

“Companies must reposition their brands,” Siegel told the Times, “to

represent healthier choices, smaller portions, or more transparent health

information. And in doing so, the food companies may actually strengthen their

businesses.”

Thirteen years later, the chains are still trying to figure out how best to

interpret and act on that message.

One more-recent message that the fast-food chains can’t afford to spend

too much time mulling over: Millennial are turning away from traditional fast-food

fare in droves, according to Darrin Duber-Smith, senior lecturer in marketing at

Metropolitan State University in Denver. So-called fast-casual chains like

Chipotle, Panera, Noodles & Company and Five Guys Burgers and Fries —

boasting healthier and fresher ingredients — are serving millennial their quick

lunch of choice these days.

So far, the fast-food chains have responded to the rise of the fast-casual

restaurant with marketing efforts rather than substantive menu upgrades.

 McDonald’s recently resurrected the Hamburglar as a wrier and more

ironic character. KFC followed suit by doing the same with the late Colonel

Sanders (assayed this year by former Saturday Night Live cast member Darrell

Hammond). Watching a recent KFC ad in which Hammond expresses a desire to

put chicken in the chain’s lemonade, a viewer can be excused for wondering who

the spot’s intended audience is and what their reaction to it is supposed to be.

Even one of the Hamburglar’s creators, former McDonald’s marketing

executive Barry Klein, expressed skepticism about the resurrection of the burger

thief to the New York Times. “Why they’re using the Hamburglar again, I have no

idea,” he said. “To me, it’s just another attention getter. It’s like a gimmick to

make people pay attention to the commercial.”

Duber-Smith said these recent marketing efforts are “all meant to attract

young males,” and it remains to be seen what impact these efforts will have, if

any.

Burger King’s attempt to resurrect the king character as a mute stalker

who came to be widely known as “Creepy King” was a “notable failure,” Duber-

Smith said.

According to Zach C. Cohen at Time magazine, the reboot was retired in

2011 “in favor [of] a new ad campaign that features [Burger King’s] healthy food

options.”

Concerns about the deleterious effects of fast food have existed for years,

Duber-Smith said. What’s changed is the ubiquity of those concerns. “

 The obesity epidemic and the health and wellness trend driven by a desire

for natural ingredients are now a part of the zeitgeist,” he said.

Duber-Smith believes there is only one direction for these venerable fast-

food companies to go. “They must improve food quality. People are serious

about this. They want value not [expletive] products.”

Duber-Smith said the market has moved on and that “McDonald’s has

struggled to keep pace with the change in attitudes and behaviors among food

consumers.”

Five Guys has succeeded by offering higher-quality burgers at higher

prices — a business model that may cause McDonald’s some trepidation. But

Duber-Smith said the American Southwest chain In-N-Out Burger has offered

Five Guys quality at McDonald’s prices for years. His point: Low cost does not

necessarily have to equal low quality.

“McDonald’s prices are higher than In-N-Out despite much lower quality,”

he said. “The ‘better burger’ guys are eating their lunch, so there are lessons to

be learned.” The fast-food chains, Duber-Smith said, will have no choice but to

study and emulate the fast-casual model. “Say adios to artificial flavors and

colors, antibiotics and most preservatives,” he said. “Not every older brand will

survive.”

McDonald’s and Burger King need to abandon the strategy of complicating

their menus with premium burgers and instead “improve core products.”
 “Brands can and often must change to survive,” he said. “Brands known

for poor quality will not survive in the long run. These are huge companies. They

have the means to figure out what to do.”

An interesting and contradictory coda to this blog post can be found in

Taco Bell’s success with its breakfast menu, which is lacking in anything that can

reasonably be described as healthy. Duber-Smith said Taco Bell made the wise

choice to introduce and promote the menu with a straightforward marketing

message, free of gimmicks.

USA Today reported in June 2015 that McDonald’s had begun testing an

all-day breakfast menu in Mississippi.

For McDonald’s, breakfast may indeed prove to be the most important

meal of the day.

Local Studies

The best fast food restaurants to franchise in the Philippines are in this

hub. They are the top fast food chains to franchise and really lucrative business

to start up. If you want a sure profit, choose only the best franchise.

A lot of businessmen and entrepreneurs would rather choose franchising a

business than starting a new one from scratch. In franchise, you don’t have to be

known because your franchise business is known already and has been

successfully established years ago. You will save a lot of time, too in thinking
about building and executing your business because all aspects has been laid

out and planned already. Franchising a proven profitable business requires a big

investment of huge money in return of a bigger and higher profit for you.

Why choose fast food franchise? Simply because food businesses are

ninety-five percent profitable than any other kind of business. People always eat,

anytime, anywhere and at any cost. You can skip buying a new pair of shoes or

fancy clothing in a mall but you can never skip dining inside your favorite fast

food restaurant. When you’re on a road trip, you always drop by any drive thru or

when you’re lame at home, a pizza delivery is just a call away. Would you pass

not eating Kentucky’s fried chicken in a year? Or probably not even in a month

nor week? See, fast foods are already part of our lives.

Below are the top fast food chains in the Philippines best to franchise by

anyone who’s so interested. I’ve included the requirements for franchising when

applying a franchise for the best fast food in the Philippines. Majority of these fast

food businesses are already known worldwide and are proven profitable and

solvent for many years already. Here are the best fast foods to franchise with

their initial franchise costs.

I love Jollibee more than Mc Donald’s because their spaghetti is the best

and their burgers are just so mouthwatering.

Everyone knows Mc Donald’s. It is also one of the top fast food here. The

numbers of Mc Donald’s franchised stores in the Philippines is still growing. I’ll

never get sick of their mc flurry and fries, just the best. If you’ve got enough
capital investment, you’re financially secured and has a good leadership skills,

you can be qualified to franchise Mc Donald’s store in the Philippines. How much

will it cost to franchise Mc Donald’s in the Philippines? The franchise cost of

investment ranges from 25 to 35 million pesos depending on the size of the site,

building, location and land cost.

MangInasal is the fastest growing barbeque fast food chain in the

Philippines, serving chicken, pork barbeque and other Filipino favorites. Wow,

grilled barbecue in charcoal, rice wrapped in banana leaves, a marinade

concocted out of local spices and herbs, every time I pass by MangInasal, the

smoke and aroma is calling me. With just 1.2 million pesos initial franchise fee,

you can open your own MangInasalstore anywhere in the country. The initial

franchisee fee covers the operation support, use of brand name and trade name,

opening marketing support and training support. The requirements and all

franchise costs to open MangInasal restaurant are in their website.

Greenwich is the Philippine’s favorite pizza chain and also the one of the

fastest growing fast food chains in the country. It is the largest pasta and pizza

chain in the Pinoy’s land. Greenwich has become the Outstanding Filipino

Franchise of the Year - Hall of Fame for some years now.. It is truly a pride of the

Philippines because it started here. Greenwich is a big rival of Pizza

Hut and Shakey’s here. The requirements to franchise Greenwich are commonly

the same in terms of skills but the initial franchise fee is a bit lower. The total

franchise investment to franchise Greenwich ranges from 8 to 10 million

pesos depending on the final store type and size. Royalty fee is 10 percent of

gross sales and the term of franchise is up to 10 years and is renewable.

Everyone knows Kentucky's fried chicken (KFC) and everyone just loves

their finger lickin’ good chicken. Franchising KFC in the Philippines is becoming

more phenomenal, too. There are over 13,000 KFC outlets in more than 80

countries and territories around the world. KFC has strict franchise requirements.

For international interested franchisees, the franchise fees aren’t disclosed in

their website. And they require someone who has professional managerial

experience - preferably in the service industry (whether in the distribution,

commercial or financial area), with the necessary skills to successfully operate,

manage and grow a restaurant business. The minimum financial requirement to

open a KFC in the US is $ 1.5 million net worth and $750,000 in liquid assets.

I just love my Chinese foods. Chowking has it all – noodles, dumplings,

rice toppings, siomai, siopao, and even the famous Pinoy halo-halo. Chowking

gathered the rewards from the ground-breaking product and marketing expertise

of Jollibee when it became a wholly-owned subsidiary of Jollibee Foods

Corporation in 2000. Chowking has won the Outstanding Filipino Franchise of the

Year for several years like Jollibee. To franchise Chowking, one must has a good

moral character and possess an enthusiastic entrepreneurial business skills,

financially stable and capable. Franchise investment requirement costs from P9M

to P12M, depending on the size of the store.

 They say you’re not a Filipino until you’ve

tasted mamon, palabok, dinuguan and puto. Goldilocks is the leading brand in

the Philippine bakeshop industry and caters Filipino famous dishes like the ones

mentioned a while ago. With over 40 years of experience, it also was in the Hall

of Fame in the Outstanding Filipino Franchise of the Year last 2005. To franchise

Goldilocks fast food resto, the initial franchise feecosts 1.2 million

pesos exclusive of VAT while the franchise investment costranges from 10 – 13

million pesos depending on the site and location.

CHAPTER III

METHODOLOGY

This chapter discusses the methods and procedure of the study. It describes the

research design, how the study was conducted the instrument used in gathering

the data, the validation of instruments and statistical treatment of data.

Research Design

The researchers used the descriptive method as the research design. A

descriptive method describes and explains the conditions of the factors involved

in the study. It is a fact finding with adequate analysis. It pointed out that

descriptive method of research describes and interpret beyond data gathering

through questionnaires and surveys.

Locale of the Study

This study is mainly based at Timog Avenue, Quezon City which has a lot

of fast food restaurants competing. Researchers distributed survey

questionnaires to different fast food chain within the area to come up with

comparison and contrast.

Population and Sampling of the Study

The respondents of this study are 30 persons which include managers,

customers and some employee in the fast food restaurant.The researcher used

the technique of random sampling. The researchers conducts interview and give

survey questionnaire to the respondents who have a view on competition among

fast food restaurants.

Research Instrument Used

Survey questionnaire will be used as the main instrument in gathering

data in this research. Questionnaires are an inexpensive way to gather data from

potential respondents. Often they are the only feasible way to reach a number of

reviewers large enough to allow statistically analysis of the results. The

instrument used in the research study is an essential tool in data gathering.

Data Gathering Procedures

The researcher formulates a problem to be the subject of the study. They

become curious about the competition among fast food chain businesses. So

they come up with a problem to make as our study which is the “Effects of

Competition among Fast Food Chain Businesses in the Economy”. However it

was revised so the researchers’ revised title then was “Competition among Fast

Food Chain Businesses: Its Implication in the Economy”. The researchers took a

lot of effort to gather data regarding the struggle of fast food chain businesses.
The researcher needed to be highly motivated and resourceful in order to come

up with their objectives. Upon revision of the title and approval of statement of

the problem, theyconduct their primary researches on libraries and on the

internet as well as to friends and experts. And after the location has been

selected, we will conduct our study on a certain fast food restaurants in Timog

Avenue, Quezon City.

The researchers collected the data through survey questionnaires,

observations, and interviews to the respondents who are involve in the

competition of the fast food restaurants. After the validation of the survey

questionnaires, the researchers used the method of random sampling, we

conducted interview and gave survey questionnaires to the managers and

costumers of a certain fast food restaurants as the researchers’ target

respondents. The researchers conducted survey and interview within two weeks

and we gathered 30 respondents. In chapter 4 is the justification of the data.After

the justification of the data comes up to the conclusion and recommendation of

the data for the solution of the problem.

CHAPTER IV

Presentation, Analysis and Interpretation of Data

This chapter presents the findings, analysis and interpretation of

data gathered whose main objective is to found out the implications on the

economy of the fast food business competition.

1. The demographic profile of the respondents

1.1 Name;

1.2 Age;

1.3 Gender;

1.4 Educational Attainment;

1.5 Employment Status

2. The implications on the economy of the fast food business competition.

Profile of the Respondents

Table 1
Distribution of Respondents According to Age
Age (in years) Frequency Percent

18-20 9 30%

21-23 2 6.66%

24-26 5 16.66%

27-29 6 20%

30 and above 8 26.66%

Total 30 100%

Table 1 shows the frequency and percentage distribution of respondents

according to their age in years. The data reveals that the majority of respondents

(f=9) are 18-20 years old during the period of data collection, followed by 30 and

above years old (f=8), then the third is 27-29 years old (f=6), followed by 24-26

years old (f=5) and lastly 21-23 years old (f=2).

Table 2
Distribution of Respondents According to Gender
Gender Frequency Percent

Male 14 46.66%

Female 16 53.33%

Total 30 100%
 Table 2 shows the frequency and percentage distribution of respondents

according to their gender. The date reveals that the majority of respondents

(f=16) are females, comprising 16 elements, while their male counterparts are

only 14.

Table 3
Distribution of Respondents According to Educational Attainment

Educational Attainment Frequency Percent

High School 4 13.33%

College 13 43.33%

Post Graduate 13 43.33%

Total 30 100%

Table 3 shows the frequency and percentage distribution of respondents

according to their educational attainment during the period of data collection for

this study. The data reveals that the majority of respondents are college graduate

(f=13) and post graduate (f=13); and the least are high school graduates (f=4).
 Table 4
Distribution of Respondents According to Employment Status
Employment Status Frequency Percent

Manager 10 33.33%

Service Crew 13 43.33%

Cook 0 0

Unemployed 7 23.33%

Total 30 100%

Table 4 shows the frequency and percentage distribution of respondents

according to their employment status. The data reveals that the majority of

respondents are service crew (f=13), followed by manager (f=10) and lastly

unemployed (f=7).

The implications on the economy of the fast food business competition

Table 5 Frequency and percentage distribution of the respondents according to

their idea about the competition in businesses.
Competition Among Yes % No % Total %

Fast Food Chain Businesses:

A. Healthy for the business 23 76.66% 7 23.33% 30 100%

B. Beneficial to economic growth 23 76.66% 7 23.33% 30 100%

 Table 5 represents the idea of 30 respondents about competition among fast

food chain businesses if it’s:

A. Shows a result of 76.66% or 23 out of 30 respondents agree that

competition among fast food chain businesses is healthy for the business,

while 7 out of 30 or 23.33% disagree that competition among fast food

chain businesses is healthy for the business.

B. Shows a result of 76.66% or 23 out of 30 respondents agree that

competition among fast food chain businesses is beneficial to economic

growth, while 7 out of 30 or 23.33% disagree that competition among fast

food chain businesses is beneficial to economic growth.

Table 6 Competition affects customers’ sense of preference in terms of:

Yes % No % Maybe % Total %

A. Quality 28 93.33% 0 0 2 6.66% 30 100%

B. Cleanliness 28 93.33% 0 0 2 6.66% 30 100%

C. Value of 27 90% 1 3.33% 2 6.66% 30 100%

Money

Table 6 represents the perception of 30 respondents regarding the

customers’ sense of preference.

The data reveals that majority of respondents believe that quality of food

and cleanliness of the place is what affects more the customers’ sense of

preference which both have a result of 93.33% or 28 out of 30 said yes and

6.66% or 2 out of 30 said maybe. While 90% or 27 out of 30 said yes, 3.33% or 1
out of 30, and 6.66% or 2 out of 30 said maybe that in terms of value of money,

competition affects the customers’ sense of preference.

Table 7 Franchising increase the urge to compete

Frequency Percentage

Yes 21 70%

No 9 30%

Total 30 100%

Table 7 represents the thought of 30 respondents regarding franchising

the business.

The data reveals that majority of the respondents agree that franchising

increase the urge to compete having 70% or 21 out of 30, while 30% or 9 out of

30 disagrees.

Table 8 Competing with one another has a detrimental effect on the business
Frequency Percentage

Yes 24 80%

No 6 20%

Total 30 100%
 Table 8 represents the thought of 30 respondents regarding if competition

of every fast food has a detrimental effect on the business.

The data reveals that majority of the respondents agree that competing

with one another has a detrimental effect on the business having 80% or 24 out

of 30, while 20% or 6 out of 30 disagrees.

Table 9 Factors affecting the competition

Frequency Percentage

A. Location 29 96.66%

B. Price (Food, Beverages, etc.) 30 100%

C. Service 30 100%

D. Ambiance 29 100%

E. Parking Place 26 86.66%

F. Cleanliness 30 100%

G. Quality of food (Taste, Presentation, etc.) 28 93.33%

H. Others 0 0

Table 9 represents the factors that may affect the competition among fast food

chain businesses.

The data reveals that price of food and beverages, service given by the

restaurant and cleanliness of the place are the main factors affecting the

competition having 100% or 30 out of 30; followed by location and ambiance

having 96.66% or 29 out of 30. Then, quality of food having 93.33% or 28 out of

30 and lastly parking place having 86.66% or 26 out of 30.

CHAPTER V

Summary of Findings, Conclusion and Recommendation

This chapter provides the summary of data gathered for the study, it gives also

the conclusions consequent after analyzing each data and presents the

recommendation for the further study.

Summary of Findings

The researchers conduct a survey to the respondents who has a view on the

competition among fast food chain business.

The data yielded the following result.

1. The profile of the respondents are as follows:

1.1 Majority of the respondents were 18-20 years old (f=9)

1.2 Most respondents are female (f=16)

1.3 Majority of the participants are college and post graduate (f=13)

2. The findings of the researcher about the implication in the economy of fast

food business competition agreed that that competition of fast food business

are beneficial to economic growth got 23%. And the lowest was the opposite

of the said data got 7%.

Conclusions

Based on the findings arrived at by the researchers, the

following conclusions are given:

After analyzing the data given, the researchers conclude that:

there are competitions among fast food chain business, competition are

healthy for the business and it is said that competition among fast food

business are beneficial to economic growth especially when it deals with the

quality of food, location, price, service, parking place, cleanliness, and

especially the ambiance of the business.

Recommendations

The following recommendations based on the findings and

conclusions in the present study that the researchers could propose.

The researchers recommend to all the strategies of the fast food chain

businesses that they should be very conscientious of their marketing strategy

in findings ways to improve the quality of promotions. Since competition is

stiff, the promotions are one that will be their competitive edge in the fast food

chain industry. The strategies should promote a product that is convenient to

everyone that even an ordinary people can buy without hesitations. The

ambiance of the business should eye catching in order for the customers to

repeat purchase. And lastly the researchers recommend that the fast food
staff should serve their customers with a pleasing attitude even though they

struggled a lot.