Running head: OPPA-ra 1

OPPA-ra

Brian, Cindy P.
Bungay, Allysa Denn C.
Castillo, Mary Rose H.
De Guzman, Primus Lex F.
Ilumin, Marixi S.
Pulido, Alyssa Jane M.
Rosario, Rhenzy Czarmayne S.
Sack, Man Fai Anthony V.
Group 3 – Block 3
Bachelor of Science in Accountancy

Mr. Raul Serafica

Purposive Communication Instructor

March 21, 2019

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Chapter I

Introduction

Street food industry has long taken centerstage in Filipino food culture and lifestyle.

However, mobile food business has introduced an innovative and more dynamic business

style that is flexible enough to meet consumers’ varying needs with time. While food stalls

and food carts have already been popular in malls and train stations since 1990s and early

2000s, today however, sees an emerging trend towards food trucks which began to spring

up five to six years ago in the Philippines (Cuevas 2016).

Based from the article Venture Food Trucks, the Food Truck Business is a fast-

growing industry and it has been growing for years into today’s existing market segment.

Although the restaurant industry has moved up at a growth rate of 2% yearly, the food truck

industry has a huge 7.9% annual growth rate for the past five years making it in the trend

for Accommodation and Food Service Activities sector.

OPPA-ra, a moving food truck merchandising business using a customizable truck,

offers various Korean street food and noodles for all types of people who want to discover

Korean culture. This business gives convenience to potential customers because of its

products’ affordable price and customers’ transportation cost will not be necessary as the

business itself will go directly to the places requested by its customers. This business goes

with the trend and it gives new experience as customers can freely watch Korean Drama

or listen to Korean Pop Music while they enjoy their orders together with their friends and

loved ones.

Since OPPA-ra is a moving business, it does not have a fixed location, instead it

will move to various locations. OPPA-ra will operate within the vicinity of Dagupan city,
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particularly near the known universities. Subsequently, not all the locations are available

to food trucks, OPPA-ra will park in different spots. The business has four primary

locations in which it will run at a certain time of the day. The food truck will operate in

four college institutions in Dagupan, namely University of Pangasinan (UPang), University

of Luzon (UL), Lyceum Northwestern University (LNU), and Kingfisher School of

Business and Finance (KSBF). The business owners chose Dagupan City to be the main

location of the business because it has many students from different universities and

schools who are the target market. This business has the first mover advantage because

currently, there are no existing food trucks in Dagupan, and that is one of its competitive

advantage.

Locations are selected considering the maximum number of people at a particular

time of day:

1. Kingfisher School of Business and Finance – 8:00 - 11:00 in the morning

2. Lyceum Northwestern University – 11:00 - 1:00 in the afternoon

3. University of Luzon – 1:00 - 4:00 in the afternoon

4. University of Pangasinan– 4:00 - 6:00 in the evening

Figure 1. Map of the four-primary location in which OPPA-ra operates.

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1.1 Statement of the Problem

This descriptive research study aims to evaluate the viability and feasibility of

establishing a food truck business that offers Korean street food within the vicinity of

Dagupan City through exploring the perception of students from the four known

schools in Dagupan. Specifically, the objective of this study is to prove if the OPPA-ra

food truck business is profitable and manageable in Dagupan City.

With the continuous development of the mobile food industry, there are still

some food trucks that have not been able to succeed because of internal and external

factors. Internal factors include issues about business owners such as lack of business,

financial and accounting knowledge of owners as well as their lack of management and

people skills. Moreover, owners tend to underestimate costs related to truck and

equipment maintenance, fuel, and parking tickets. On the other hand, external factors

include competitors that offer better and cheaper products and customer service and so,

customers lack loyalty because of dissatisfaction.

According to the Annual Survey of Philippine Business and Industry (ASPBI)

of the Philippines Statistics Authority (PSA), there are 1,679 establishments of mobile

food service activities in the Philippines as of 2016, which is 5% of the Accommodation

and Food Service Activities sector for all establishments. This number of

establishments will continue to grow as people become aware of the advantages of

entering such business. However, people must also consider the probable conflicts that

may arise upon starting this food truck business.

Opening a food truck business is cheaper than opening a restaurant, therefore it

is more a tangible goal for those who are wishing to serve their culinary works to their
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community. However, achieving success in the food truck world is more complex than

is often perceived. It may seem like entrepreneurs enter the food truck industry mainly

because of stated high profitability of successful food truck business owners, but people

tend to disregard, however, the 60% high rate of failure under within three years of

opening (Restaurant MBA, 2017, para. 4). Several factors can contribute to food truck

failure, but the main reason is oversimplification because people tend to overlook vital

details about starting-up and managing the business. Likewise, lack of proper

understanding of accounting which is to accurately estimate and properly track

expenses also causes failure of this business.

Therefore, upon opening food truck business, entrepreneurs must have the basic

knowledge about business, financial and accounting principles. Entering the food truck

world requires extremely hard work and patience, a solid financial plan that can be a

foundation of the business, and expanded fundamental knowledge regarding business,

financial and accounting concepts. Entrepreneurs must also remember that food is not

merely the component that needs thorough consideration but there are more important

things to consider. As stated by Restaurant MBA, “Without a specified layout of costs,

operational processes, marketing strategies and branding plans, and research into

industry specific issues, any food truck may be bound to fail.” Researching industry

specific issues can help entrepreneurs to avoid such and for them to make strategic

plans for the betterment and success of the business.

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1.2 Scope and Delimitation

The scope of the study Oppa-ra business will be students in Dagupan City,

Pangasinan. This study limits its coverage on the students of University of Pangasinan

(UPang), University of Luzon (UL), Lyceum Northwestern University (LNU) and

Kingfisher School of Business and Finance (KSBF) only. Preferably, 16-20 years old

students will be the target market of the business. From this target market, the

researchers will choose respondents of 100 students in conducting the survey.

Researchers will give same questionnaires to each respondent for them to answer. This

study aims to evaluate and test the feasibility of the business to exist in Dagupan City.

1.3 Theoretical Framework

1.3.1 SWOT Analysis

1.3.1.1 Strengths

1. First mover advantage

The OPPA-ra business design is a first mover advantage in the

crowded market place of Dagupan. The business offers new experience to

potential customers and it also contributes to the rapidly increasing growth

of the industry.

2. Mobility

Unlike a restaurant, a food truck can simply move to new and

distinct locations. A food truck can generate revenue in several ways.

Furthermore, a food truck owner can drive around heavily populated areas

anytime, may it be during breakfast, lunch, or even dinner hours. Location

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change is good because some customers who may be craving for Korean

street foods or want to experience Korean culture can easily access the

customized food truck. Food truck can travel all over the place of Dagupan

which gives nearness to its customers.

3. Convenience

Food truck gives convenience to its customers because of its ability

to move from one place to another. If a customer is on the go but still want

to eat a great snack, OPPA-ra can bring them convenience, as the food truck

itself goes directly to the requested place of the potential customers.

Therefore, food truck helps customer to save time, money, and effort of the

customers if they want to eat various Korean street foods and noodles.

4. Affordable Price

Currently, Korean culture are booming in the Philippines that is

resulting to Filipinos adapting the said culture. For this reason, Korean

Restaurants are being established in different locations that offer variety of

Korean foods. A customized food truck tends to sell affordable price of

Korean Street foods and noodles compared to those Korean restaurants that

offer expensive Korean products. In this economy, OPPA-ra’s affordable

price is a huge bonus for food lovers, and people looking for concession

trailer space.
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1.3.1.2 Weaknesses

1. Shortage of Supply

The OPPA- ra business offers Korean street foods which in turn

results to the difficulty in looking for a supplier that can cover the needs of

the business. Food supplies will be coming from overseas and it will take

time since there are limited supplies in the country.

2. Limited space
The OPPA-ra business is a food truck and the limited space is its

weakness. It cannot cater enormous number of customers especially when

their customers prefer dine-in rather than takeout.

3. High Start-Up Cost

The high start-up cost is considered a weakness of the business

because the supplies that will be used are not commonly found in the area

that is why high costs are to be incurred. Likewise, the customized truck

and equipment are also expensive.

1.3.1.3 Opportunities

1. Increase in popularity due to the new trend

Since Filipinos most of the time, go with the trend, and Korean is a

presently a trend, Filipinos adapt Korean culture in their lifestyle. Most of

them want to experience the culture of the people they idolize; however,

they do not know how. Because of this, OPPA-ra can increase its popularity

because it is new to people and go with the trend.

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2. Increasing social media users

The OPPA-ra business can use social media in disseminating

information about their product or service that they provide to the market.

It is a way of strategic market advertising that lets the business to be known

as many consumers are active on social media platforms.

3. Business expansion

The business can expand due to its rising demand in the industry, it

will be easier for OPPA-ra business to expand or franchise its brand all over

Pangasinan.

1.3.1.4 Threats

1. Customers preference in food

Nowadays, many people are patronizing the Korean culture

especially their songs, the way they act, and sometimes their language but

it does not mean that they want all things about Korea. Many people

specifically millennials always go with the trend, however, there are people

who dislike Korean foods. Also, there are people who only want to

experience or taste the food of Korean only once.

2. Occurrence of Different Calamities

Extraordinary circumstances like typhoons, earthquakes and other

calamities are unavoidable. Calamities destroy many infrastructures, and

businesses which can lead the business to incur unwanted costs. Thus,
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business may not run their regular operation if ever these calamities occur

especially when there is flood cause by typhoons.

3. Traffic
Regarding customized food truck business, one of the threats it may

face is vehicular traffic jam in the city. Traffic can delay the service of the

business and because of that, the food truck may arrive late in the location

that may cause failure to achieve high profits.

4. Government Regulations

Government policies, which could also pose a great threat to the

mobile food truck industry. Regulations can also limit the hours or time of

the food truck in its current place or location, as well as regulations about

its distance to restaurant that offers the same foods or products. Also,

parking fees may also increase.

1.3.2 Porter’s Five Forces Model

1.3.2.1 Competitive Rivalry Between existing players- LOW

Since OPPA-ra is new to the public, it has a competitive edge.

Korean food truck which sells street foods is not common in Pangasinan

specifically in Dagupan City, therefore chance for the existence of

competitors is low. Though other Korean restaurants are already established

in Dagupan and around Pangasinan, still, these businesses do not offer

Korean street foods.

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Competitors Profile

1. Park and Kim Korean BBQ is in the Ground Floor, Eastgate plaza, A.B.

Fernandez Avenue, Dagupan City.

Strengths:

The business is established and known by many customers.

This business has varieties of Korean food which attract customers.

Weakness:

This business cannot move from other places unlike OPPA-

ra which is a food truck that has an access for transportation.

2. Jinju Korean Food Haus is found at Tapuac Road, Dagupan City. Its

business hour is from 9:00 am to 8:30 pm, Monday to Saturday. Jinju is a

Korean food restaurant.

Strengths:

The business is established and known by many customers.

It is home of authentic Korean food that offers affordable price.

Weakness:

The business had limited operation hours and business days

thus they may lose other potential customers.

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1.3.2.2 Threat of New Entrants – LOW

A highly profitable industry is a line of business that is extremely

attractive for potential competitors to be engaged in. This barrier of entry

lowers the threat for new entrants because in the industry of Korean foods

specifically street foods there are no other direct competitors who are

existing. Also, since OPPA-ra is a moving truck, other competitor would

find it difficult to enter to the market because of lack of background about

the business concept. In addition, if other businesses will enter the market

there would be a low competition since the location and the target market

of OPPA-ra is broad and not limited to a certain place.

1.3.2.3 Threat of Substitute- HIGH

The existence of substitute product offers customers different

choices and allows them to have options within the industry and beyond it

to products that may fulfill a similar need. Korean street foods are not

common to Filipino consumers so there is a possibility that they will not

appreciate the taste of it. Instead they will consider buying the traditional

Filipino street foods. Also, Korean street foods are more expensive than the

Filipino street foods which may cause the dissatisfaction of the potential

customers. Thus, it is an implication that the threat of substitute is High.

1.3.2.4 Bargaining power of buyers - MODERATE

Korean culture paves the way of culinary here in the Philippines. In

the Philippines, there are only selected places where the Korean culinary is
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exercised. Those businesses who are offering the taste of Korean foods or

street foods are in minimal places in the country, so as with Dagupan city,

Pangasinan. Therefore, this implication pertains that if OPPA-ra, a Food

truck business that offers Korean street foods, will come into the scenario,

it will have buyers that less concentrated to sellers, meaning, there are more

buyers with a few numbers of sellers. (If the term “sellers” is just only

pertaining to Korean food sellers/businesses) However, if the other food

businesses, aside from Korean food businesses, that offer other food

products have to be considered, it goes to show that there is an availability

of substitutes, making a partial conclusion that the bargaining power of

customers is high.

In conclusion, Korean businesses in Dagupan city, are not totally

offering affordable Korean foods, nor to the non-Korean food business,

because what they are offering are those foods that are sumptuous, such as

Korean barbeque. So, the perception of the buyers is that these businesses

offer a highly priced product. Whereas, OPPA-ra offers an affordable taste

of Korean foods – Street foods. In relation to this, OPPA-ra offers Korean

street foods that was derived from Filipino street foods, resulting into the

belief of buyers that these Korean street foods are affordable. The

implication of these factors is that buyer switching costs are high and the

products that the OPPA-ra are offering are highly differentiated products,

making the bargaining power of buyers, low.

Therefore, the bargaining power of buyers is moderate.

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1.3.2.5 Bargaining power of suppliers – LOW

OPPA-ra serves a foreign food, particularly Korean foods. So,

OPPA-ra does not need to manufacture its own product because it offers

Korean street foods that need authentic ingredients that came from the

origin country, Korea. To this kind of business, OPPA-ra, it is seldom to

meet a business that offers Korean street foods within the vicinity of

Dagupan city. However, many of the sellers of Korean street foods are

found, particularly in Manila. The implication of this, is that there is an

expected mass number of suppliers, making the bargaining of the suppliers,

low. In addition, there are two factors affecting why the bargaining power

of suppliers is low. First, because of the wide range number of suppliers,

there is an obvious high dependence of supplier's sale on a buyer. Second,

if other suppliers will offer a low price of various kinds of Korean street

foods, the switching cost of the buyer is low. Therefore, bargaining power

of suppliers is low.

1.3.3 Operating hours

The operation will last ten hours that will start from eight in the morning to

six in the evening. These designed time ranges seem strategic because it is when

the students' classes are about start for some students, and end for other students.

So, if the students have an exhausting day, they might try the products that OPPA-

ra is serving. Likewise, if the students do not have time to eat in their home, they

can buy food from OPPA-ra for their breakfast, lunch, snack, or early dinner.
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Meanwhile, students are just the highlighted customers of OPPA-ra, and it does not

disregard other potential customers.

1.3.4 Capital Distribution

OPPA-ra will be having a start-up capital of Php 1,902, 550. This is

composed of three main expenses namely; Inventory which is the product or food

that will be sold, next is the vehicle, equipment, and material which will be used by

the company for the operations, then the other expenses which entails

miscellaneous expenses. Inventory expenses totaled Php 266, 850 which is

composed of the different varieties of Korean Street Foods. Vehicle, equipment,

and materials expense totaled Php 1, 551, 350 which is composed of Food Truck,

Gasoline, Expenses, Bendable Tables, Bendable Chairs, Gasoline Stove, Grilling

Equipment, Refrigerator, Alternative Ovens, Fryers, Sinks/ Dishwashing, Smokers,

and Supplies. The other expenses totaled 84, 350 which is compose of Advertising

cost, Utilities, Wages expense, Business Permits/ Legal requirements, Maintenance

Expense, and Miscellaneous Expense. The business will be funded through the

equal capital contribution of the owners. The eight owners will contribute Php 237,

818.75 each.
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Table 1. Capital Distribution

Expenditures Allocated/ Estimated Quantity Total (Php)
Amount
Inventory

Korean Street Foods (good for 10 people)

1. Spicy Rice cakes (Tteokbokki) 1. Php 470 30 14100
2. Egg muffins (Gyeranppang)) 2. Php 235 30 7050
3. Korean-style Tempura 3. Php 1400 30 42000
(Twigim) 4. Php 940 30 28200
4. Korean sushi (Gimbap) 5. Php 1400 30 42000
5. Dumplings (Mandu) 6. Php 1170 30 35100
6. Korean noodles (Myeon) 7. Php 470 30 14100
7. Pancakes (Pajeon) 8. Php 1170 30 35100
8. Fish-cake skewers (Odeng) 9. Php 1170 30 35100
9. Korean donuts (Hotteok) 10. Php 470 30 14100
10. Corn dog (Gamja dog)
Vehicle, Equipment, Materials
Food Truck 1,500,000 1 1,500,000
Gasoline Expenses 1500 - 1500
Bendable Tables 750 3 2250
Bendable Chairs 150 8 1200
Gasoline Stove 1750 2 3500
Grilling Equipment 2350 2 4700
Refrigerator 15000 1 15000
Alternative Ovens 1850 1 1850
Fryers 2500 1 2500
Sinks/ Dishwashing 3500 1 3500
Smokers 5350 1 5350
Supplies 10000 - 10000
Other Expenses
Advertising cost 15000 - 15000
Utilities 6500 - 6500
Wages expense
1. Driver 8000 1 8000
2. Cook 15000 2 30000
3. Sales Man/Lady 10500 1 10500
Business Permits/ Legal 5850 - 5850
requirements
Maintenance Expense 6350 - 6350
Miscellaneous Expense 2150 - 2150
Total Expenses 1,902, 550
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1.4 Significance of the Study

FILIPINO ENTREPRENEURS

This research study will contribute to the Philippine society because

Filipino entrepreneurs will be aware of the issues and trend behind food truck

industry, therefore, those who would want to try this kind of business may avoid

those issues that hinder success.

POTENTIAL COSTUMERS

This research study will be beneficial to the potential costumers who are

actively looking for food services that offers new and exciting treats.

BUSINESS OWNERS

This study is significant to the owners because it can be a reason for their

success. The results of this study can help the owners know if their business will be

feasible and profitable.

FUTURE RESEARCHERS

This study can help future researchers in a way that they may use this as

their reference if it is related to their study.

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1.5 Definition of Terms

• ASPBI - Annual Survey of Philippine Business and Industry; an annual survey

conducted by Philippine Statistics Authority

• FAO – Food and Agriculture Organization, United Nations organization in-

charge of food and agriculture sector

• Feasibility – the possibility that can be made, done, or achieved and is reasonable

• Food Truck – is a large vehicle equipped with facilities for cooking and selling

food

• Millennials – persons born in 1980s onwards

• Oppa – in Korean means older brother who has similar role to parents, and it is

used only by girls when calling an older man

• PSA – Philippine Statistics Authority; the government’s major statistical agency

responsible for collecting, compiling, classifying, producing, publishing, and

disseminating general-purpose statistics

• Street Food – is a ready to eat food served commonly on the streets or public

places
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Chapter II

Review of Literature

Food-truck business runs with large vehicles equipped with facilities for cooking and

selling food and moving from location-to-location daily.

According to the article, “Food truck Market - Global Industry Analysis, Size, Share,

Growth, Trends and Forecast 2017 – 2025” reported by Transparency Market Research (2017),

entrepreneurs consider food truck as a mobile version of a restaurant business, as it can move to

any place where target customers are found. The said article also stated that food truck is one of

the hottest trends in the food industry and it has dominated the global market on account of the

several strategies adopted by its business makers such as food truck interior innovation, serving

style and adding new menu to taste.

Based from the article “Food Trucks Industry in the US” reported by IBISWorld in 2019,

“The Food Trucks industry has expanded over the five years to 2019 and is one of the best-

performing segments in the broader food service sector.” The article further explained that the

industry's remarkable rise is highly attributable to changing consumer preferences in favor of

unique, gourmet cuisine at less expensive prices. Horovitz (2017) reported that more than 4,000

food trucks are zipping around the nation, with annual sales exceeding $1.2 billion. He added that

food-truck revenue jumped at an annual rate of 7.9 percent over the past five years.

Mealey (2019) concluded that since 2008, food trucks have been among the most popular

trends within the restaurant industry. In contrast to a restaurant, food trucks may have begun as a

more affordable choice, but they have become one of the strongest business models in the food

and beverage industry. Mealey also added that given the low cost, many people who wants to be

restaurateurs are choosing to open a food truck business, which is thought as a good venue for
OPPA-ra 20

beginning a career in the food business. Thus, food trucks are currently prevalent throughout the

world. Locations for food trucks have changed over the past decade because as they continue to

be common in busy urban areas, they can likewise be found in rural areas and residential district

(Mealey, 2019).

Yoon and Chung (2017) argued that food truck service increases its popularity and became

part of foodie culture because they fit well with Millennials who want to experience new things,

new culture and new trend. In addition, based from the survey published by the National Restaurant

Association in 2017, consumers aged 18 to 34 years of age were the most likely to purchase a meal

from a food truck, followed by 54 percent of diners aged between 35 and 44 years. The survey

results showed that older generations were the least likely to patronize a food truck, with only 30

percent of survey respondents aged 65 and over having visited one. However, older diners would

be much more likely to visit a food truck from their favorite restaurant, with 53 percent stating

they would patronize a food truck of their favorite restaurant.

Millennials are widely considered the “food truck generation” with 47 percent having eaten

from a food truck at some point, making them the patrons of those mobile establishments that their

parents were more proper to refer to as “roach coaches” or “gut trucks” (Coughlin, 2016). Thus,

the OPPA-ra food truck business would be favorable to the target market because the students are

now part of the new generation. Additionally, the study of Yoon and Chung (2017) finds out that

consumers see hygienic, convenience, and hedonic benefits in food truck.

On the research study conducted by Steve King of Emergent Research in 2012, survey

results showed that food truck customers liked the food and enjoyed the experience. More than 90

percent of the diners interviewed rated food truck quality as either excellent (43 percent) or good

(48 percent). Furthermore, over 80 percent of those interviewed used words

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like fun, exciting, new, different, unusual, and unique when asked why they dined at food trucks.

Diners also liked the speed and convenience of food trucks and they willed to pay for the quality

of the product and the rendered good customer service. The average customer interviewed spent

$9.80 at lunch and $14.99 at dinner and almost all diners interviewed said they planned to continue

patronizing food trucks. Therefore, food trucks are not just a trend, but a feasible market segment

with significant competitive advantages relative to quick serve, fast food and take-out food

vendors.

According to Sunde (2018), the market research conducted by IBISWorld on 2017 found

that “despite strong performance, high competition and unfavorable regulatory conditions in some

cities have limited the growth of industry vendors.” Its report predicts that food truck growth will

grind to a halt over the next few years. New trucks are expected to emerge at a rate of just 0.4% a

year between now and 2020 (Hendrix, 2017). Thus, this is just one of the threats met by food truck

businesses especially in countries that have strict government rules and regulations.

On the other hand, according to Food and Agriculture Organization (FAO) of the United

Nations (2019), “street foods are ready-to-eat foods and beverages prepared and/or sold by vendors

or hawkers especially in the streets and other similar places.” Moreover, these foods are often sold

from portable food cart, food booth, stalls and food trucks that are prepared for immediate

consumption (Kiranmai et al., 2016). FAO also added that millions of low-and-middle-income

consumers consider these foods as an essential part of urban food consumption daily. Therefore,

street foods may be the least expensive and most accessible means of obtaining a nutritionally

balanced meal outside the home for many low-income people, if consumers are aware and are able

to choose the proper combination of foods that match their physical needs over their cravings.
OPPA-ra 22

FAO (2019) reported that in developing countries, street food preparation and selling

provides a regular source of income for millions of men and women with limited education or

skills. The said organization also added that currently, local authorities, international organizations

and consumer associations are increasingly aware of the socioeconomic importance of street foods

but also of their associated risks. FAO (2019) concluded that the major concern is related to food

safety, but other concerns are also reported, such as sanitation problems that include waste

accumulation in the streets and the congestion of waste water drains, traffic congestion in the city

also for pedestrians which causes by vendors that occupy sidewalks that can result to traffic

accidents, illegal occupation of public or private space, and social problems like child labor, unfair

competition to formal trade, etc. On the study conducted by Kiranmai et al. (2016), the Indian

medical researchers concluded that lack of hygiene of food handlers and improper waste disposal

could be the main risk factors for the contamination of street foods. In contrast with these risks

associated in buying and eating street foods, consumers still patronize these affordable snacks to

satisfy cravings while vendors continue selling such because it is the only source of their income

(FAO 2019).

Every country has its own distinctiveness and Korea is not an exemption. Korea is slowly

becoming known for its rich and historical culture. Likewise, people around the world, currently

recognize and even patronize Korean food culture. Based from the statement of Steve Miller,

Korea’s best-known travel video blogger-journalist, the greatest food in Korea is not in a restaurant

but is on the street. Korean Street food has traditionally seen as a part of popular culture in Korea.

Street food stalls have been the heart and soul of Korea’s food culture and despite certain

oppositions food stalls continue to flourish preserving important culture of Korean history
OPPA-ra 23

(Tantengco, 2013). Street food has been sold through many types of retail outlet, with new ones

being developed over time.

According to Tantengco (2013), “Korean street foods is like a mini-meal-filling fuel for

commuters journeying home in the wintry weather”. Recently, street food has been a popular

resurgence in South Korea, such as the Night Market at Hangang Park. There are many types of

street food sold in Korean markets and stalls ranging from traditional snacks like tteokbokki or

eomuk to popular Western goodies such as ice-cream and grilled cheese. Korean rice cakes are

also popular where it is cooked in chili sauce merged with odeng, strips of fish cakes that is

skewered and boiled in a salty fish broth. Customers can drink it as if it is like a soup or they can

use it as a dipping sauce for the fish cakes. South Korea’s cuisine is characterized not only by an

attention to detail, but also by the idea that eating is more than filling one’s belly. Moreover,

Korean street foods offered depends in part on where you are.

Uy (2012), reported that “food trucks have been around as early as the 1900s with the

“chuckwagons” feeding herders during cattle drives as their earliest predecessors.” She also added

that in Manila, people also had their own version of these mobile food vans that serve hot meals

on wheels and the rise in popularity of specialty or gourmet food trucks has led to code revisions

in communities eager to acknowledge this business model but cautious about food safety, traffic,

and neighborhood compatibility. Guactruck, the first designer food truck in Manila, first offered

burrito bowls, mounds of cilantro lime rice with your choice of fillings, salsa, and toppings and to

take things up a notch, the meals are served in a cardboard origami flower box, and with cutlery

made from cornstarch (Uy, 2012). Guactruck’s owners considered environmental responsibility

alongside the usual standards of delicious food, fitting design, and sustainability of operations. Uy

(2012) also asserted that the concept of food truck convergence also paved the way for “Cucina
OPPA-ra 24

Andare” in Makati. The creators of the weekend food bazaar, Mercato Centrale established it to

bring together these different trucks in one place for people to enjoy, just like in other countries

that first experienced the advent of food trucks. At Cucina Andare, Mercato Centrale’s newly-

launched weekend dining destination at Glorietta park just across the Makati Shangri-La Hotel,

are Manila’s version of gourmet food trucks that carry loads of wholesome food including

mouthwatering shawarmas, healthy wraps and tacos, sumptuous burgers, and even homemade

gelato and authentic Japanese ramen (Uy, 2012).

Uy (2012) concluded that the evolution of the food truck continues in Manila and the rest

of the country. She added that it goes ahead to usher in a new things, cultures, and even social

status. The food truck revolution breaks down the walls separating certain dining concepts by

elevating street food and making high-class food more accessible and the movement also keeps

our local street food from disappearing and has massive potential to educate people about food

(Uy, 2012).
OPPA-ra 25

Chapter III

Methodology

3.1. Type of Research

The researchers followed a quantitative approach and will employ a descriptive

research design. The researchers aim to understand the trends about the food truck business

that sells Korean street food within the vicinity of Dagupan City, Pangasinan. Descriptive

research describes, explains, and confirms the viability of establishing a first mover

business and it uses survey questionnaire to obtain information from the sample of the

population. Moreover, the research was quantitative in nature because the researchers will

use statistical treatment to determine the results of the study in the information gathered by

the researchers.

3.2. Respondents

The researchers used Slovin’s formula in calculating the appropriate sample size

from the population of the study.

𝑁
𝑛=
1 + 𝑁𝑒 2

where n = sample size;

N = Total population; and

e = margin of error (5%)

The population in Dagupan City as of 2018 totals 196,332. Therefore,

196,332
𝑛=
1 + (196,332)(0.05)2
OPPA-ra 26

196,332
𝑛=
491.83

n = 399.19

n ≈ 400

After calculating the sample size of the study, the researchers will use simple

random sampling wherein the researchers will select sample randomly and purely by

chance. The researchers will select tertiary students from the four different college

institutions in Dagupan City to be the respondents of the study. These institutions are

Kingfisher School of Business and Finance, Lyceum Northwestern University, University

of Luzon, and University of Pangasinan. The researchers will divide the sample size, 400

into the four college institutions, so there will be 100 respondents for each. The researchers

will choose students as the respondents because they are the target market of the business,

OPPA-ra.

3.3. Questionnaire

The researchers formulated a survey questionnaire to interpret, analyze, and

evaluate the gathered data correctly. This type of instrumentation is guided by the

principles of statistics; thus, this research will follow certain guidelines from creating a

sample to reporting the results of the data that has been collected. The statistical treatment

that will be used in this study is weighted average that are used extensively in descriptive

statistical analysis. According to Rodriguez (2017), “A weighted average is an average of

factors when certain factors count more than others or are of varying degrees of

importance.”
OPPA-ra 27

After gathering the information, the researchers will be able to interpret the data

collected and compare it with their assumptions.

From the survey questionnaire, the questions number 1 and 2 aim to determine the

demographic profile of the respondents. The questions number 3, 4 and 5 intent to know

the respondents’ familiarity, experience, and interest in purchasing Korean street food in

the OPPA-ra food truck. The researchers want to evaluate the time of day the respondents

would most likely to buy food from a food truck so that they will be able to know what

time the food truck business visit will and sell the products at a particular school. The

question number 7 will help the business owners what specific Korean street food would

be appealing to the potential customers. While for question number 8, the researchers want

to calculate the purchasing power of the respondents so that they would be able to know if

the business will be profitable based on the costs the business will incur. The question

number 9 will tell what are the factors that the respondents are considering when it comes

to purchasing in a food truck. Lastly, question number 10, the researchers want to evaluate

if the target customers will be loyal to the said business.

The researchers are predicting that the respondents especially the millennials will

be optimistic about the feasibility and profitability of the OPPA-ra food truck business.
OPPA-ra 28

Consent to Participate in the Research Study

OPPA-ra, a moving food truck merchandising business using a customizable truck, offers
various Korean street food and noodles for all types of people who want to discover Korean
culture.

This research study aims to evaluate the viability and feasibility of establishing a food truck
business that offers Korean street food within the vicinity of Dagupan City through exploring the
perception of students from the four known schools in Dagupan. Specifically, the objective of this
study is to prove if the OPPA-ra food truck business is profitable and manageable in Dagupan
City.

Dear respondent, we would like to request you to be one of our respondents in our study.
We hope you can help us by answering our questions sincerely and truthfully. All information
provided will be kept in utmost confidentiality and would be used only for academic purposes.
Thank you in advance for your interest and support with this research. More power and God bless!

Survey Questionnaire

Name: (Optional) ______________________________________

1. What is your age?

Under 18
18-29
30-39
40 or older

2. What is your gender?

Male
Female
OPPA-ra 29

3. Are you familiar with the concept “food truck business”?

Yes
No

4. Have you ever tried purchasing food in a food truck?

Yes

No

5. Would you be interested in buying from a food truck that only serves Korean food
truck if there was one near your school?
Yes

No

6. What time of the day are you most likely to purchase food from a food truck?
(Check all that apply)
Morning (8:00-11:00 AM)
Lunchtime (11:00-1:00PM)
Afternoon (1:00-4:00PM)
Evening (4:00-6:00PM)

7. Which types of Korean street food would you be most likely to purchase? (Check all
that apply)
Spicy Rice cakes (Tteokbokki)
Korean-style Tempura (Twigim)
Korean sushi (Gimbap)
Dumplings (Mandu)
Korean noodles (Myeon)
Pancakes (Pajeon)
Fish-cake skewers (Odeng)
Korean donuts (Hotteok)
Corn dog (Gamja dog)
Egg muffins (Gyeranppang)
OPPA-ra 30

8. What is the most you would be willing to spend at a food truck for a Korean street
food?
P50 – P100
P101 – P200
P201 – P300
More than P300

9. What is the most important factor to you when you buy Korean street food?
Quality of the food
Price
Speed of service
Range of food available
Convenience to attain the food
Others, please specify: ___________________________________

10. If after you had tried this food truck and you were happy with the price, menu, and
quality of the food truck, how often would you visit it?
Daily
3-5 days a week
Once a week
Once every two weeks
Once a month
Rarely
OPPA-ra 31

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