For Proposal Defense

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 1
MARKETING STRATEGIES OF INDEPENDENT FAST CASUAL CAFES,

RESTAURANTS, AND FOOD PARKS IN MALABON
Ezekiel Jacob D. Carinan

Master of Business Administration
Major in Marketing Management
2018
CHAPTER 1
THE PROBLEM AND ITS SETTING
Introduction
While today’s consumers are very picky in terms of their food selection and what of
those enter their pantries, they are not just eating at home. Nielsen (2016) released that in
fact, eating out isn’t just for special occasions; it’s a way of life for nearly half of global
respondents (48%), who say they eat at restaurants or other out-of-home dining
establishments weekly or more often. Respondents in Asia-Pacific and North America are
particularly avid out-of-home diners.
In this trend, it must be sighted that behavior of the people are currently being much
more favorable toward food retail establishments than ever before. What does seem to be
the driving force behind the rise of consumerism toward eating out?
From the rise of fast-casual restaurants to the ease of delivery services, eating
prepared food is a convenient proposition in 2016. And it seems that millennials are taking
advantage of that, spending more of their food budget on dining out than ever before.
Forbes.com (2016) released on its website that in United States, Millennials spend
44% of their money – or $2,921 annually – on eating out, according to the Food Institute's
analysis of the United States Department of Agriculture’s food expenditure data from 2014.
That represents a 10.7 percent increase from prior data points in 2010.
Significant changes continue to shift the food industry in the United States—both
foodservice and retail—as a result of Millennials. This is not just because the industry has
chosen to focus on Millennials (roughly any consumer between the ages of 21 and 39) but,
rather, because Millennials have focused so much on food as a critical part of their social,
political and economic consciousness. So, although much has already been said about this
influential demographic, it’s crucial to stay current with their evolving dining and flavor
preferences.
Getflavor.com (2017) states that other age cohorts have, of course, incorporated
food into their culture, from home entertaining in the ’50s to dining out in the ’80s. But no
generation before the Millennials has placed such significance on food—from how it’s grown
to how it’s manufactured or made, prepared, served and disposed.
In contrast, baby boomers in 2014 spent 40% of their food dollars on eating out or
$2,629 annually.
Independent.co.uk (2015) states about the dining out behavior of people living in
United Kingdom, “They are the generation saddled with more student debt than ever before,
yet 16 to 24-year-olds are spending more on food than any other age group because they
know so little about cooking.”
Independent.co.uk states, “Young people spend more money than any other age
group on food – an average of £63.65 a week compared with a typical spend for all adults of
£57.30, polling for the BBC’s Good Food magazine shows.”
Most of this cost comes from eating out and takeaways. Despite earning the least,
they spend £19.61 on takeaways on average, compared with the adult average of £11.31
and £3.20 for over-65s. Young people also spend an average of £28.26 eating in cafés and
restaurants, while the typical spend among all adults is £17.22.
It can be concluded that globally, people are preferring to eat dine out, with most of
them belonging to the Millenial group.
In a study conducted by Mastercard (2015), it has been found that overall,
consumers in Asia Pacific are not looking to make any significant changes to their dining out
plans with 61 percent of all consumers indicating they will look to eat out at the same
frequency in the next six months. Twenty percent plan to eat out more and 19 percent plan
to eat out less in the next six months.
The most popular dining option for consumers in Asia Pacific are mid-range
restaurants and cafes which are afforded now by most young professionals, followed by fast
food outlets and then hawker centres and food courts.
Consumers in the Philippines (44 percent) are looking to tighten their belts with close
to one in two planning to eat at less expensive venues in the next six months. Forty-nine
percent also plan to eat out less regularly (Mastercard, 2015). This is because of the
exponential increase of their dining out behavior that has been dominating their income
expenditure in the recent years.
A significant proportion of older consumers are going online to check for dining
discounts whether on coupon websites/applications or credit card promotions. More than
one-third of consumers aged 55 years old and above (36 percent) indicated they regularly
do so before deciding on a dining option (Mastercard, 2015).
Consumers in China (58 percent), Taiwan (44 percent) and Thailand (44 percent) are
the most inclined to book dining deals on coupon sites or coupon applications; while
consumers in Bangladesh (1 percent) and Indonesia (11 percent) were least likely to do so
(Mastercard, 2015).
Diners in Thailand (60 percent) and China (57 percent) are most likely to post
comments or reviews on social networking sites like Facebook and Twitter with about one in
two respondents in these markets reporting that they regularly post comments online
following their dining experience (Mastercard 2015).
The results are based on interviews that took place between between May and June
2015 with 8,718 individuals (18 to 64 years-old) across 17 markets in Asia Pacific.
No wonder, expansion and refurbishment of malls outside Metro Manila, as well as
the establishment of the millennial-driven food parks, may be expected in the retail property
market this year, a property analyst said (Jll.com.ph, 2017)
In an email to The Manila Times as re-featured in an article of Jll.com.ph (2017),
Prime Philippines managing director Jet Yu said demand for sites for building foodparks is
seen increasing this year, mainly driven by the millennial market.
“With its surge in popularity, more and more vacant lots will be obtained or leased out
for the purpose of food parks. We may project this trend similar to the trend of food markets
like Mercato, which had a boom in 2011 in terms of new food markets established and set
up,” Yu said.
The managing director said the demand for vacant lots for food parks increased by
more than 10 times in Metro Manila last year.
“2016 saw the rise in popularity of food parks stemming from establishments such as
StrEat Maginhawa, which was followed by multiple food parks along the area and in other
cities,” Yu said.
Apart from catering to the millennial market, the food park trend also presents
advantages for the Micro, Small and Medium Enterprise (MSME) market, Yu said.
“Food parks give small scale businesses the venue to thrive and profit from a captive
market setup with relatively lower costs compared to taking out a lease at bigger
establishments. Yu explained.” This is timely as business registration of both old and new
businesses continue to increase,” Yu explained.
The history of the food park began in the late 2000s. In 2007, Banchetto opened to
cater to the growing number of workers in the business process outsourcing (BPO) industry
in the Ortigas central business district. Claiming to be the first “overnight street food fiesta”,
the park opened late at night every Friday and lasted until Saturday morning.
Mercato Centrale in BGC launched not long afterward in 2010. Inspired by the
outdoor markets of Florence and the Boroughs Market in London, Mercato promised to bring
an innovative weekend night markets with unique, great tasting food in a clean, open-air
setting.
Slightly more visits to full-service restaurants must be expected in the coming years.
Euromonitor (2017) states that Filipinos’ improved purchasing power helped drive more
visits to full-service restaurants in 2017. As their lives improve, they are becoming more
exposed to the different dining options available to them. This is the reason why full-service
restaurants are adapting to customers’ changing practices. Despite having a core consumer
group, as in other categories, players within full-service restaurants recognize the potential
in tapping into the emerging group of millennials (Euromonitor, 2017). Such players
consistently offer something new and exciting to attract these consumers, from store
renovations to simple food presentation techniques to create something that is
“instagrammable”.
With aggressive competition, full-service restaurants will maintain steady slow growth
at constant 2017 prices over the forecast period. Fast casual restaurants and even the
emergence of food parks directly affect the category of full-service restaurants, as these
alternatives also offer a wide array of food and beverage choices to customers.
Theoretical Framework
Figure 1. 7Ps of Service Marketing
The Services Marketing Mix
The concept of 7 Ps was developed by B.H. Booms and M.J Bitner in their book titled
Marketing Strategies and Organization Structures for Service Firms. According to Booms
and Bitner (1981) describe that marketing management is the concept of the marketing mix
(Figure 1). The marketing mix is not a theory of management that has been derived from
scientific analysis, but a conceptual framework which highlights the principal decisions that
marketing manager’s make in configuring their offerings to suit customers’ needs. The tools
can be used to develop both long term strategies and short term tactical programs (Palmer,
2004). Booms and Bitner (1981) defined 7Ps of the marketing mix as follows:
Product
Products are the means by which organizations seek to satisfy their customers.
In this sense, a product is an offer which consists of any elements - tangible and intangible
ones. A service product is composed of a core product that responds to the customers’
primary needs and supplementary services which constitute value-added enhancements.
Planning the marketing mix begins with creating a service concept which involves product-
mix decisions aimed at offering value to customers which would satisfy their needs better
than competing offers. Typically, product-mix decisions focus on quality, brand image,
design, and reliability. One important implication for service products’ decisions is that new
services cannot be protected by patents or copyrights.
Place
Place decisions refer to the ease of access that customers have to a service. Service
distribution involve physical location decisions, decisions about which intermediaries to use,
and what channels to choose - physical or electronic ones. In many cases service firms offer
customers a choice of distribution channels, which may include visiting a branch, dealing
with an agent, using the Internet, call center or self-service machines like ATMs. Nowadays,
speed and convenience of place and time have become important determinants of service
delivery. To ensure effective distribution, firms offer extended hours (e.g. 24/7), use more
distribution channels, and develop their websites to enable customers to get detailed
information and online help, make reservations, orders and payments.
Promotion
No marketing program can succeed without communications, which involves
different methods and techniques used to deliver information about an offer, persuade the
target customers of the benefits of a specific brand, and encourage them to take action at
specific times. The traditional promotion mix includes advertising, personal selling, sales
promotion and public relations. In the case of services marketing these elements are also
important, but because services are produced and consumed at the same time, service
personnel can become an important component of promotional activities as well as tangible
elements of service environment. Also, because of services intangibility, the role of services
communications is to create confidence in the firm’s capabilities and reduce the perceived
risk of purchase.
Price
Pricing is an important strategic issue because it is a significant indicator of products’
quality. In services marketing the role of pricing is even more important, as many services
are intangible in nature, so customers rely mostly on price while assessing the level of their
quality. In general, pricing decisions involve choices regarding the level of prices to be
charged, discounts, terms of payment and the extent to which price differentiation is to be
pursued. These decisions are similar to the issues facing a good marketer, however some
differences occur. Most services are perishable and they cannot be stocked in inventory. If
there is no demand, the unused capacity is wasted. On the other hand, when the demand
exceeds the capacity, a number of customers may not buy a product. Thus, a key issue for
services marketers is to smooth demand using dynamic pricing strategies.
People
Many services require direct interaction between customers and the firm’s personnel,
that is why people often become an important part of the service experience. The
appearance, attitude, behavior and skills of the service personnel influence the customer’s
perception of the service. Therefore, recruiting, training, motivating and rewarding service
employees cannot be only regarded as human resources decisions, but also marketing
decisions. To achieve specified quality standards, marketing department and human

resources department need to work closely together. Another issue that causes implications
for marketing decisions is that customers themselves can affect the service experience,
service quality and their own satisfaction. Service marketers need to carefully select target
market, choosing the right customers, educate them and shape their behavior.
Physical evidence
The intangible nature of services and the fact that services are produced and
consumed at the same time mean that it is difficult to judge a service before purchase.
Customers perceive greater risk and uncertainty while taking buying decisions and choosing
among competing services. To reduce this risk and persuade customers to a specific
service, marketers may use environment in which the service is delivered. The elements of
this environment are tangible, so they can serve as an important indicator of service quality.
The physical evidence includes such elements as brochures, business cards, signage,
equipment and staff uniforms. In many cases it also includes the physical environment of a
service outlet where customers make purchase decisions. So, landscaping, the appearance
of buildings, vehicles, interior furnishing, stationery and other visible components of
environment are also significant and marketers should design them carefully.
Process
Manufactured goods are produced in a factory, where quality standards are under
control and customers themselves are not involved in the production process. Thus,
production is of little concern to the consumers of manufactured goods, whereas in services
customers participate in the production process and are often involved in co-production.
As flow of activities within the service delivery provide customers with evidence on which to
judge a service, creating and delivering services requires design and implementation of
effective processes. For these reasons, marketing managers and operations managers
need to work closely together to ensure reliable delivery, high quality and productivity. The
key issue is to reduce variability, which can be achieved by various means, such as
designing customer service processes, training employees, implementing service quality
management and standardized operating procedures.
Figure 3.
Flower of Service
The flower of service.

Its petals are supplementary services which are essential for service delivery or they
enable the use of a core product. They include the following services: information, order-
taking, billing, and payment.
• Information is crucial to obtain full value from a service product. It
can be provided by front-line employees, brochures, displays, websites, and
other sources. The types of information vary depending on the nature of a
service and may include schedules, directions to a service site, conditions of
sale, confirmation of reservations, instructions, receipts and tickets, and
warnings.
• Order-taking is a service which is offered to a customer once they
make a purchase decision and are ready to buy a product. Some service
companies such as banks and insurance companies require that a customer
goes through application process which is designed to gather essential
information. In other cases, making reservations will be considered a typical
form of order-taking. Order entry can be received through sales personnel,
mail, e-mail, or online.
• Billing is common to many services. Customers expect bills to be
accurate, complete, clear, informative, and timely. There are different
procedures of billing which range from verbal statements, handwritten
invoices, machine display to self-billing and others. Billing is usually
associated with payment.
• Payment is typically expected after a customer gets a bill. The most
typical form of payment is cash or credit cards; however other options can be
used. They include coupons, vouchers, checks, and others.

• Enhancing supplementary services. These are supplementary
services that may add extra value for customers. They include services such
as consultation, hospitality, safekeeping, and exceptions.
• Consultation involves a dialog between a service person and a
customer focused on finding the best solution to the problem. Consultation
can take a form of advice which requires understanding of customer’s special
needs and wishes. It can also be counseling which helps understand
customers their situation and find their own solutions. Training in product use
is another form of consultation which involves detailed description of product
application and might be adjusted to customer’s individual needs.
• Hospitality is especially important in face-to-face encounters. It is
associated with welcoming customers, showing them interest and willingness
to understand and meet their needs. Since hospitality can have a
considerable impact on customers’ satisfaction, careful selection of service
personnel is required. People who are naturally warm, open and friendly
create much more hospitable atmosphere than others.
• Safekeeping refers to caring for customers’ personal possessions. It
involves coat rooms, parking for vehicles, safekeeping of valuables, child
care and pet care. Some customers would not come to buy a product, if such
services were not provided. Safekeeping can also refer to services aimed at
caring for products that customers bought and they include packaging,
transportation, delivery, installation, and others.
• Exceptions are supplementary services which are out of routine.
They involve special requests which may relate to personal needs such as
diets, children care, and medical or disability needs. Other types of
exceptions include problem solving when service delivery fails, handling of
customers’ complains, and compensation for failures. Supplementary
services provide many possibilities for adding value to a core product.
Marketers can use combination of them depending on the nature of a service product
and a company’s market positioning strategy. A strategy which is focused on delivering high
quality services requires more enhancing supplementary services than a strategy which
aims at competing on low prices.
Conceptual Framework
INPUT PROCESS OUTPUT
Profile of the
Respondents Assessment on the
 Age MARKETING STRATEGIES OF
 Sex INDEPENDENT FAST CASUAL MARKETING STRATEGIES OF
CAFES, RESTAURANTS, AND INDEPENDENT FAST CASUAL
 Salary Range
FOOD PARKS IN MALABON CAFES, RESTAURANTS, AND
FOOD PARKS IN MALABON
7Ps of Service Marketing
 Place
Presentation, Analysis and
 Product Interpretation of data
 Process gathered through
 Price interview and Problems identified
 People questionnaire
 Physical
Evidence Solutions/
 Promotion Recommendations
Visiting and
Consumption Behavior
and Frequency of Diners
Statement of the Problem

The objective of the study is to assess the level of engagement of respondents to their
creative discipline, determine the underlying gap between creativity and graduate school
education, and reveal insights about how graduate school business education in Polytechnic
University of the Philippines create opportunities for creativity to be harnessed by its
students.
Specifically, it answers the following questions:
1. What is the profile of the respondents in terms of the following:
1.1 Age
1.2 Sex
1.3 Occupation
2. Using the reformulated questionnaire based on Usage, Attitude, and Image Study
framework, the researcher seeks to test and see the engagement of the visitors or
customers
2.1 Place
2.2 Product
2.3 Price
2.4 Promotion
2.5 People
2.6 Process
2.7 Physical Evidence
3. Is there a significant difference in the respondents’ preference when they are
grouped according to profile?
Hypothesis
Scope and Limitations of the Study

The study will be conducted only in five restaurants in Malabon City due to time and
cost limitation. As a result, findings of the study will somehow become representative of a
city population. They can only be categorized as casual dining.
One of the most important limitations is that, people may be hesitating to give
information as some would just like want to eat on their own and prefer not to be disturbed
by someone.
The study will be conducted only in selected areas only as these dinin places are
geographically concentrated in Malabon. Hence, it does not represent the complete picture
of those who live in the city as long as purchasing decision is concerned.
The study will be made based on the information supplied by respondents and
therefore it cannot be generalized.
Significance of the Study
To the cafes and restaurants in Malabon
This study will serve as the springboard for all intended improvements of cafes and
restaurants in Malabon not only to compete with one another, but to gain competitive and
strategic advantage over big chains of fast food and restaurants dominating the food service
market industry in the city.
To owners of independent cafes and restaurants
This study will be manifesto for other owners of independent cafes, restaurants and
food parks about the new trends occurring in food retail industry. They will learn different
aspects of a service business, metrics of food retail success, and innovative ways to
promote their business.
To the local government

This paper will be fundamental to giving information to local governments about the
industry booming in Malabon. Tax incentives, acknowledgement or public advertisement of
these business may ensure their growth which will result to increase of governmental
revenue.
Definition of Terms
CHAPTER 2
REVIEW OF LITERATURE AND STUDIES
The Philippine Setting of Food Establishment Industry
Consumers today are facing difficulty in terms of choices as food establishments
have risen exponentially and growing more than ever from year 2015 to 2017. Independent
restaurants and food chains face stiff competition as who to get the customers.
The following data are found in the report of fnbreport.ph (2018) written by Peter
Pysk.
1. There is a growing upper/middle class in the Philippines estimated at 18 to 20 million
people.
a. On average, 20 percent of the food budget of a middle-class income
household would be spent on dining out of the house. This is according to the
Family Income and Expenditures Survey (FIES) of the National Statistics
Office.
b. Market surveys reveal that less grocery items are being purchased because
individuals and families eat out more often. In the BPO industry, where more
than 1.5 million people are working, most employees would eat out at least
once a day.
2. Since 2011, there has been a five-percent growth of new food establishments—from
80,050 to 84,250—in the country. Three percent or 3,000 of this increase occurred in
the past two years since 2014. Forty-five percent of all establishments are located in
NCR.
3. If we estimate that 1,000 establishments will close each year, this would mean an
average of 2,500 new food establishments opening each year since 2014 (or an
average of 6.8 new food establishments per day).
a. Since 2011, there has been a 33 percent growth in foodservice sales in the
Philippines from $9 billion to $12 billion in 2016. Forty-four percent of these
sales come from retail locations such as malls and supermarkets. Fast food
chains, quick service, and casual service restaurants cover this segment.
The data above show the rationale behind the implosion of restaurants and food
establishments in the Philippines as more investments come and flow from the fact that this
market experiences fast growth rate and potentiality.
Fnbreports.ph (2018) also expresses its high belief toward the success of
established brands from overseas in the Philippine marketplace for food establishments. In
this, he cited some big brands which are harder to compete with:
“Some of the biggest players in the industry fill their portfolio with such
brands. These operators such as The Bistro Group (TGIFridays, Bulgogi
Brothers, Denny’s), Global Restaurant Concepts Inc. (Applebee’s, Ihop,

California Pizza Kitchen), and AM-PHIL Food Concepts (Chili’s, Wild West
Roadhouse Grill, Tokyo Tonteki), can be more sustainable as they have a
foundation to build from. These established concepts usually come with a lot
of support from the brand’s head office.”
The changing nature of the industry is also challenging the mall operators. Considering that
44 percent of food-related revenues are currently being spent in the malls, the mall
operators have found the need to remain competitive with the changing times.
Majority of this growth in concepts is driven by the millennial market that craves
trends, social casual concepts, and places that are social media-worthy. They have a need
to fit in within the crowd and want to be seen in spaces that they can share with the world.
We need to remember that the life cycle of a restaurant used to be five years but with the
boom in the industry, the rise of the millennial, and the introduction of technology into
marketing, the life cycle has now been reduced. Most concepts today become obsolete
within two to four years.
With the growth in the Philippines, we will see so many new concepts open up but
we will also see just as many, if not more, close. Is this an implosion? No. It is an evolution
or, as some might say, a revolution.
The latest formal audit conducted by Department of Trade and Industry (DTI)
revealed that as of the beginning of 2016, there were approximately 6,652 full-service
restaurants, 4,477 fastfood restaurants, 3,772 food kiosks, 3,748 cafeterias, and 1,445 bars
& pubs operating in the country. I reckon the number should be 10% to 15% higher today
given that the survey was conducted some time ago. Note, the survey excludes
establishments in the underground economy.

The survey further showed that the food industry generated robust revenues
throughout the period of audit. Full-service restaurants generated the most gross income,
raking in P158.1 billion; fastfood chains generated P144.8 billion; food kiosks earned P17.7
billion; cafeterias took in P15.8 billion while bars & pubs made P10.9 billion. Interestingly,
only P4.9 billion was generated through e-commerce (or online ordering and delivery
services). This suggests that Filipinos still prefer to dine within the restaurant premises.
In terms of profitability, the industry had an average income and expense ratio of
1:19. In other words, for every one peso spent by a food establishment, one peso and
nineteen centavos was generated back. This is a higher rate of return that most other
industries.
The trickle-down contribution of the food service industry to the economy is
substantial as well. Collectively, the industry spent P395.3 billion on their respective supply
chains, salaries, rent and other operating expenses. As a result, the food service industry
contributed nearly 3% to gross domestic product.
Unfortunately, there are no formal studies to ascertain the real mortality rate in the
restaurant business. I can only speculate. Closure rates are higher for full-service
restaurants, whether fine-dining or casual. In my experience, less than 60% survive the first
three years of operations.
No data is available for fast-food restaurants, food kiosks, cafeterias, and bars but I reckon
mortality rates are not as high as those of full service.
(http://www.bworldonline.com/booming-restaurant-business/)
Types of Restaurants
Casual Dining
This type of restaurant has a relaxing and friendly atmosphere, moderate food
pricing and table services. Casual dining restaurant is between fast casual and fine dining
restaurant. These kinds of restaurants have a large alcohol menu, which includes different
type of beers and wines with sidebar and bar staff. The portion size is usually large. Unlike
fast-food and fast-casual restaurants, casual-dining restaurants don’t use disposable cutlery.
They are frequently, but not necessarily, part of a wider chain, particularly in the United
States. In Italy, such casual restaurants are often called “trattoria” and are usually
independently owned and operated.
Family Style
Family style restaurant is very similar to casual dining with a difference, that the food
is served in a bigger dish on tables where customers can serve the food for themselves and
pass it to the other people at the table. Benefits of the family restaurant include a relaxed
atmosphere where customers have more control over what they eat. If done right, family
style menus can have better food cost than a traditional menu. It caters well to families with
children or groups of friends. Chinese and Japanese restaurants mostly serve the food in
this way. It is very often that in Family style restaurant you will find a circular rotating ‘plate’
in the middle of the table, so people can reach to any dish they want.
Fine Dining or High End
Customer service in a fine dining restaurant is much more attentive than in casual
dining establishments. Fine dining service goes far beyond taking an order and delivering
food. Many fine dining services include: Escorting patrons to the table, holding the chair for
women, replacing linen napkins if a patron leaves the table etc. It has a special design,
unique decoration, high-quality furniture. Full services with special food are offered to
customers group.
All of the details that are expected of a fine dining server require staff to be rigorously
trained. They should be able to answer all questions customers may have about a menu or
item or wine. They should also be ready to make menu recommendations if asked.
Very often, there are certain rules for dining which customers expected to follow. Dress code
is an important detail.
The majority of fine dining restaurant clients are loyal guests. Keeping and maintaing
customers are tasks that should be adequately considered as a responsibility. It is easier to
maintain already existing customers rather than finding new ones. Lighting should also be
subtle, leaning toward dim (romantic). Music playing subtly in the background should reflect
the theme of the restaurant, such as classical for a traditional fine dining restaurant or jazz
tunes for something modern. Reservation required
Fast Casual
This restaurant concept — a mash-up of fast food and casual dining — has been one
of the strongest segments in the restaurant industry over the past decade. It continues to
thrive, despite the recession and it continues to evolve to fit customer’s needs and
preferences. The meal prices are between that of fast food chains and casual restaurants
This type of restaurant does not offer full table service while higher food quality and better
atmosphere can be enjoyed than in a fast food restaurant offers.
Visible kitchen and counter with handmade food presented to please the customers
Fast-casual restaurants require a specific approach to ensure that the customer experience
is both super-efficient and distinctly memorable. Underneath the surface, there needs to be
a well-oiled machine that can withstand the pressure of serving 500 meals an hour, while on
the surface the experience needs to stimulate, inspire and encourage customer loyalty.
Fast Food or Quick Serve Restaurant
Fast food is the most familiar restaurant to most people. Chains like McDonald’s and
Burger King became popular in the 1950s, and helped spawn countless other concepts like
Taco Bell, KFC and In-n-Out Burger.
Fast food service attracted customers for its speed, convenience, and cheap prices.
Ingredients used in a fast food services restaurant are either preheated or pre-cooked to
decrease the cooking time. Food served to the customers as takeaway package.
Fast food restaurant can be stands or kiosks, with no shelter, sometimes there would be an
exterior sitting area.
Furniture is as simple as possible either benches or basic chairs and tables. The
other important thing: the furniture in fast food restaurants is deliberately made to be
uncomfortable so visitors spent less time in the restaurant. Music is usually loud and the
lighting is deliberately bright and intimidating. Colors are mostly bright: most popular colors
are red, yellow and green, as these colors arouse appetite.
Independent Cafes, Restaurants, and Food Parks as Small Businesses
The Millenials as Impelling Force in Food Establishments Market
According to Manila Times (2017), in 2017, the ever-outspoken millennials have
made it clear they would rather fill their bellies with food that is “unique, exciting and
extraordinary,” rather than tried and tested flavors from the big-name chains and established
restaurants of commercial destinations.

“Millennials today, they’re very outgoing. And then aside from that, a lot of them are
actually working so they look for an outlet for stress. Usually, the first outlet they go to is
food; second is a place where they can socialize with friends since they enjoy eating with
others and not alone. That’s why food parks and food trucks are trending,” Gretchen King,
group product manager of food and beverage at NutriAsia meanwhile told The Manila Times
Lifestyle during the successful launch of the Locally Fruit Truck at Bonifacio Global City.
The Power of Social Media in Food Establishments Industry
Social media have been widely adopted by many businesses to engage customers
(McCorkindale 2010). In particular, social media applications such as Facebook and Twitter
are becoming commonplace in large enterprises. Recent research indicates that more and
more people are using these social media applications in their daily lives (Kaplan and
Haenlein 2010, Keckley and Hoffman 2010, Westland 2012), with the statistics that twitter
reached more than 100 million active users and generated over 230 million tweets a day
and Facebook had over 845 million monthly active users as of 31 December 2011
(Protalinski 2012).
In the past, because of financial constraints, many small businesses could not afford
to use powerful marketing channels such as mass media to reach their customers broadly
as large enterprises did. However, this situation is changing due to the development of Web
2.0. In particular, social media have become a mighty channel for both small businesses and
large enterprises to engage existing customers and attract new customers. As social media
can be easily set up at no cost, social media offer a significant opportunity for small
businesses in competition with large enterprises to promote and sell their products or
services on the Internet.

Studies have examined how enterprises could make profitable use of social media
and reach customers directly (Scott 2007, Weber 2009, Kaplan and Haenlein 2010, Culnan
et al. 2010, Kietzmann et al. 2011, Laroche et al. 2013, Correia 2013) and how social media
could significantly impact an enterprise’s reputation, sales, and even survival (Safko and
Brake 2009, Kietzmann et al., 2011). While some studies have investigated how large
enterprises such as Dell, Hewlett-Packard, and Walmart implemented social media (Culnan
et al. 2010, Di Gangi et al. 2010, McCorkindale 2010, Araujo and Neijens 2012,
Lykourentzou et al. 2012, He et al. 2013) in business operations, the research on the
adoption and use of social media by small businesses has been limited (Vuori and Okkonen
2012, Wamba and Carter 2013). Whereas the definition of small businesses varies in
different countries, in this paper, small businesses are referred as enterprises with less than
100 regular employees; most small businesses specialize in providing goods or services for
their local areas. Small businesses are considered critical to the U.S. economy, because
they “represent about half of the private sector economy and more than 99 percent of all
businesses” (SBA 2012).
While 46% of the respondents said that personalization on a website grabs their
attention, personalization was not the most effective strategy in this endeavor. Thus,
hypothesis 3 was not fully supported. The digital marketing strategy that overwhelmingly
grabs the attention of a Millennial is the use of graphics. Respondents were asked to look at
a list of website features and select up to three features that were most likely to grab their
attention. Graphics capture the attention of 73% of the respondents. Approximately half of
the respondents said that interactive features and bright colors seize their attention. A
simple, professional layout captures the attention of 43% of the respondents. As shown in
Table 3, the least attention-grabbing feature is the use of the word “free.” However, the word
“free” does serve a purpose, as identified by the next survey question, free gifts will prompt
repeat visits to a website.
Online recommendations are one way to personalize a relationship. Online
recommendations range from personal reviews from other customers to personalized
recommendations provided by recommender engines or systems. Recommender systems
are information sources that provide personalized information to consumers (Ansari,
Essegaier, & Kohli 2000). These systems use an information filtering technique in order to
formulate product recommendations that are most likely to be of interest to the user.
Marketers will benefit from providing recommendations to online consumers, especially if the
source is providing personalized recommendations. Consumers focus more on the
recommendation source itself than on the type of website on which the recommendation
appears (Senecal and Nantel 2004).
Online reviews are increasing in popularity, with 25% of the U.S. online population
reading these types of consumer-generated feedback (Li and Bernoff 2008). According to
Senecal and Nantel (2004), people who consult online product reviews purchased the
recommended products twice as often as people who do not consult reviews. In a study by
Chevalier and Mayzlin (2006), a good book review led to an increase in sales on the website
containing the review. Online peer reviews are especially beneficial since subjects in the
study were more prone to read an actual review rather than just reading summary statistics.
Extremely negative reviews had a greater impact than extremely positive reviews. This
finding also came out in a study regarding the impact of consumer product reviews on
attitude toward the brand. Extremely negative reviews had a stronger influence on attitude
toward the brand than extremely positive product reviews. The study also found that even a
moderate amount of negativity negated the effect of extremely positive reviews (Lee,
Rodgers, & Kim 2009).
Millennials often look to peers to determine the merit of a website or a product. A
study of over 7,000 Internet users in France revealed that online peer reviews of video
games positively influence consumer’s purchasing decisions. The study also showed that
the effect of online peer reviews is as important as the effects of personal and expert
reviews (Bounie et al. 2008). In recent years online product review forums have been
exerting an increasingly powerful influence on consumer choice (Godes et al. 2005). Thirty-
four percent of Millennials use websites as their primary source of news (Marketing
Breakthroughs Inc. 2008).
Word of mouth (WOM) is seen as more credible than advertising as it is perceived as
having passed through the evaluation of “people like me” (Allsop, Bassett, and Hoskins
2007). According to Keller (2007), WOM has become the most influential communication
channel. The quantity of online reviews is often used to determine the product popularity
because it is considered to represent the market performance of the product (Chevalier and
Mayzlin 2006). Online consumer reviews provide a trusted source of product information for
consumers and therefore a potentially valuable sales asset. Since online peer reviews can
be very beneficial to a company, marketers should determine what motivates consumers to
write these reviews. Today’s digital generation, the Millennials, are more than willing to write
reviews and provide consumer-generated product information. Twenty-eight percent of
Millennials own a blog and 44% read blogs (Marketing Breakthroughs Inc. 2008).
Consumer-generated commercials, podcasts, and blogs are on the rise with the aid of
websites such as YouTube, V-Cam, and Google Video. Some Millennials prefer creating
advertisements rather then watching them. Companies are becoming interested in

leveraging consumer-generated content as a valuable digital marketing tool. Firms are
proactively trying to induce consumers to spread the word about their products (Godes et al.
2005). It had become a business in itself to provide consumers a venue to voice their
opinions. In return for consumer-generated content, some organizations pay cash, give
points, or provide some other form of recognition (Chatterjee 2001).
Customer Satisfaction and Customer Loyalty It is becoming increasingly important to
meet customer expectations and retaining their loyalty. According to Disney (1999), service
quality is a major factor that helps firms satisfy their customers and in turn gain their loyalty.
There is strong evidence indicating that customer satisfaction and loyalty positively affect
performance of service firms in general (Edvardsson, Johnson, Gustafsson, & Strandvik,
2000) and restaurants in particular (Oh, 2000). Companies that retain satisfied and loyal
customers were found to earn greater profits through higher margins (Barsky & Nash, 2003).
Apart from enhancing profitability, customer satisfaction and loyalty is also important for
lowering marketing costs and spreading positive word-of-mouth (Bowen & Chen, 2001;
Dwyer, Schurr, & Oh, 1987; Eskildsen & Kristensen, 2008). It has been stated that word-of-
mouth greatly impacts the popularity of restaurants (Zhang, Ye, Law, & Li, 2010). Customer
satisfaction is directly related to repurchase intentions and word of mouth recommendations
(Yu, 2002, cited in Qin & Prybutok, 2008). Thus, gaining customer satisfaction is an
important criterion for long term success of an organization. Customer satisfaction enhances
the possibilities of return patronage (Dube, Renaghan, & Miller, 1994). Customer satisfaction
is also important considering the findings that the financial performance of firms is positively
and significantly impacted by improvement in customer satisfaction (Gupta & Zeithaml,
2006). In a study by Helgesen (2006), there was a positive link between customer
satisfaction and customer loyalty and between customer loyalty and customer profitability.
However, past research suggests that high customer satisfaction is not a passport to
success. Thus, the strength of the satisfaction is an important aspect that cannot be ignored
and indicates that restaurant managers need to be specific about the parameters that
account for customer satisfaction and loyalty (Terblanche & Boshoff, 2010). In the restaurant
industry, consumer perception of pace of the menu offerings also impacts their satisfaction.
With reference to quick-service restaurants, a quick meal pace suits the restaurant
managers as it decreases the wait time for other customers. This is especially true during
peak demand hours or periods. It also results in a less likelihood of losing customers due to
excessive waits and an increase in covers and revenues. At QSRS, consumers prefer faster
service, order accuracy, ordering simplicity and better packaging (Oches, 2012). In contrast,
at fine dining and casual restaurants, consumers are less sensitive to the speed of service
preferring high quality and slow pace service as they enjoy and experience the dining
occasion. According to the National Restaurant Association (2012), consumers typically
spend 2 to 3 hours in a full-service restaurant and approximately 30 to 45 minutes at quick-
service restaurants. This indicates that there is a significant difference in expectation
between the different types of restaurants. A quick pace at a fine dining restaurant lowers
the satisfaction level but it increases satisfaction level in the quick-service restaurant
segment (Noone, Kimes, Mattila, & Wirtz, 2007). These suggest that marketers need to
understand the perception of the consumers towards the service attributes to evaluate the
tradeoffs.
Service Attributes (Service Quality, Food Quality, and Ambiance) Most of the
previous research has recognized that restaurant quality has several dimensions. Mittal,
Ross, and Baldasare (1998) have recognized several reasons to use multi-attribute models
of quality. “First, consumers are more likely to render evaluations of their post-purchase
experiences of satisfaction at an attribute level rather than at the product level. Second, an
attribute-based approach enables researchers to conceptualize the commonly observed
phenomenon such as consumers experiencing mixed feelings toward a product or service”
(Mittal et al., 1998, p. 35). Earlier studies have used the SERVQUAL model that recognizes
reliability, responsiveness, empathy, assurance, and tangibles as the key aspects of quality
(Bojanic & Rosen, 1994; Cronin & Taylor, 1994; Lee & Hing, 1995; Parasuraman, Zeithaml,
& Berry, 1988). However, this model did not include several unique characteristics of
restaurant operations. This resulted in the development of a new model named DINESERV
that included restaurant specific dimensions such as ambiance, food, and service quality
(Kim, Ng, & Kim, 2009; Stevens, Knutson, & Patton, 1995). *There are also other factors
such as price (Andaleeb & Conway, 2006) that effect quality. In research by Dube and
colleagues (1994), the authors noted that for upscale restaurants, food quality is most
important for repeat purchase intentions, followed by service and ambiance. In the case of
QSRs, it is the service quality and food quality that drive consumers to repurchase as shown
by DiPietro, Parsa, and Gregory (2010) and Qin and Prybutok (2008).
SERVICE QUALITY The service quality is an important attribute that affects the
purchase behavior and choice of the customers (Zeithaml, 1988). Service quality is a
differentiator and a potent weapon that helps firms gain lead in the marketplace
(Kandampully, 1998) as it is “an important antecedent of customer satisfaction” (Qin &
Prybutok, 2009). This also impacts customer satisfaction which mediates the effect of
service quality on customer loyalty as studied for fast food restaurants like Pizza Hut,
Subway, etc. (Polyorat & Sophonsiri, 2010). Superior service quality ensures higher
economic returns (Qin & Prybutok, 2008) and also impacts loyalty towards the service
provider (Kandampully, 1998) and is therefore, an important attribute for QSR and chain
restaurants (Jauhari & Dutta, 2009). Service quality is possibly the most studied aspect of
restaurant quality (Cronin & Taylor, 1992; Dabholkar, Shepherd, & Thorpe, 2000; Ha & Jang,
2010; Mattila, 2001). Service quality is usually defined as the customer’s judgment of the
overall excellence or superiority of the service (Zeithaml, 1988). In the restaurant industry,
service quality is viewed as intangible benefit such as responsive, courteous, caring, and
professional behavior provided by the service staff.
FOOD QUALITY The food quality dimension of total restaurant quality has also
received significant academic attention (Ha & Jang, 2010; Namkung & Jang, 2007; Ryu &
Han,2010). In her study, Mattila (2001) indicated that food quality was the most important
attribute of overall restaurant service quality. It has been shown that food quality positively
affects dining experience and it is crucial for restaurant operations (Namkung & Jang, 2007;
Sulek & Hensley, 2004). Furthermore, Mattila (2001) considers food quality as a key
predictor of customer loyalty in casual-dining restaurants.
AMBIANCE Quality of ambiance was shown to be of high importance in hospitality
industry, especially in restaurants (Bitner, 1990; Ha & Jang,2010; Hul, Dube, & Chebat,
1997; Raajpoot, 2002; Reimer & Kuehn, 2005; Ryu & Han,2010; Turley & Milliman, 2000;
Wakefield & Blodgett, 1996; Wall & Berry, 2007). Originally Bitner (1992) has introduced the
concept of “servicescapes,” which explains that physical surroundings in any service
industry have a major effect on both employees and customers. As a result, restaurants
place a greater importance on the quality of their ambiance. Kim, Lee, and Yoo (2006) have
recognized atmosphere, interior design, lighting, and dining area layout as crucial tangible
aspects of restaurant service that has an effect on customers’ behavior and their perception
of the restaurant. Moreover, Wakefield and Blodgett (1996) have claimed that perception of
a restaurant’s servicescape is affected by layout, accessibility, facility aesthetics, electronic

equipment, seating comfort, and cleanliness. Dutta, Venkatesh, and Parsa (2007) noted that
importance for service attributes is further compounded by the fact that the dissonance
remains even after the service recovery has taken place. Dube and coworkers (1994)
mentioned that respondents tend to trade off various service attributes while expressing their
intentions to repurchase. Thus, it is important for managers to prioritize the service attributes
(service quality, food quality, and ambiance) and make necessary improvements to realize
the highest return on investment possible. It becomes increasingly important when
investment resources are limited and service facilities need upgrades to keep up with the
changing competitive environment. Hence, the current study investigates the relationship
between service attributes (service quality, food quality, and ambiance) and consumer
willingness to pay and patronage.
Synthesis of the Reviewed Literature and Studies

CHAPTER 3
RESEARCH METHODOLOGY
This chapter includes discussions on the research used, population description of the
respondents, research instrument, data-gathering procedure, and statistical treatment of
data.
Method of Research
The researcher will use the description method of investigation. It is because it fits to
assess the 7Ps of a Service Marketing appropriate for the Independent Cafes,
Restaurants, and Food Parks in Malabon.
According to Sevilla, et. al. (2001), the descriptive method is designed for the
researcher to gather information about existing condition with depth and opening the
discussion with more possibilities. The prinicipal aim is to describe the nature of situation
as it exists on the time of the study. Descriptive research method is involved in collection
of data in order to answer questions pertaining to the current status of the subject of the
study.
The purpose of using this method is to search for new links or opportunities that can
be used by these independent small food retails to gain competitive edge to stay in the
business. It is concerned with conditions of relationships that exist, practices that reveal
processes that are going on, effects that are being felt, or trends that are developing.
Descriptive research involves the elements or interpretation of the significance of what is
described and the major emphasis is on the discovery of ideas and insights. Qualitative
methods (case studies, content analysis, ethnographic studies) and quantitative methods
(survey research , cross-sectional survey, longitudinal study, trend study, cohort study
panel study and correlation research) uses descriptive research.
Survey Method
Under descriptive method, the specific method which will be used is survey method.
In survey method research, participants answer questions administered through interviews
or questionnaires (Jackson, 2009). After participants answer the questions, researchers
describe the responses given. In order for the survey to be both reliable and valid it is
important that the questions are constructed properly. Questions should be written so they
are clear and easy to comprehend.
Population, Sample Size, and Sampling Technique
The researcher will focus on the consumers or visitors of independent cafes,
restaurants and food parks in Malabon. However, the sample size that will be used for the
study are 50 from among the population. Cluster sampling (also known as one-stage
cluster sampling) has been used in the study. It is a technique in which clusters of
participants that represent the population are identified and included in the sample. Cluster
involves cluster of participants that represent the population are identified and included in
the sample.
Description of the Respondents
The researcher will gather a total of 50 respondents who are from different programs
of MBA in PUP Business Graduate School.
Research Instrument
The researcher will utilize the data gathered through structured questionnaires
prepared of the respondents. The survey questionnaire that has served as the primary
data gathering instrument of the study has consisted three parts:
Part I has been designed to gather the profile of the students in terms of their sex,
age, and occupation.
Part II is to discover their the level of engagement toward their creative discipline.
To interpret the level of effectiveness of the different social media channels being
studied, the Likert Scaling was utilized:
4 = 3.51-4.00 = Very Effective
3 = 2.51-3.50 = Effective
2 = 1.51-2.50 = Less Effective
1 = 1.00-1.50 = Not Effective
Data Gathering Procedure

The researcher will have the survey questionnaire prepared in accordance to the
advice during the proposal defense and later revised to a simpler form as the researcher
had a limited time and the same has been approved by the advisor.
Request letters to permit the researcher to conduct a survey using personal
interview will be used to collect data.
Statistical Treatment of Data
Statistics plays a critical role in defining the results of the study. The sets of data that
were generated from the survey were tallied, tabulated, and summarized to analyze and
interpret the figures which will justify conclusions to the statement of the problem.
For Part I of the questionnaire, the profiles of the respondents have been tallied and
statistically treated using Frequency and Equivalent Percentage. Percentage has been
used to retrieve proportion of the frequencies of responses through the use of formula:
%= ____f____ x 100
where
f= frequency of the responses
N= is the number of respondents
For Part II, Weighted Arithmetic Mean has been used for the statistical treatment of
raw data gathered for the level of effectiveness of various social media channels adopted
or potential to be used by Navotas Local Government. The formula to get the weighted
mean is:
_
Xw= ___∑fw___
N
Where:
∑= is the summation
f= is the frequency in each weight
w= is the assigned weight
N= is the number of respondents
Analysis of Variance (ANOVA) has been used to test the significant differences in the
respondent’s assessment on the level of engagement of the respondents to local
government education programs when they are grouped according to profile. The scale of
statistical values used where in accordance with the following:
4 = 3.51-4.00 = Very Effective
3 = 2.51-3.50 = Effective
2 = 1.51-2.50 = Less Effective
1 = 1.00-1.50 = Not Effective
The t-Test has been used by the researcher to test the validity of the null hypothesis
of the study because it is the most significant test to determine the difference between two
or more means obtained from independent samples.

BIBLIOGRAPHY
Bitner MJ, Booms BH (1981). Marketing Strategies and Organization Structure for Service
Firms. In Donnelly JH, George WR. (Eds), Marketing of Services, Conference Proceedings:
American Marketing Association, Chicago, IL, pp. 47- 52.
Ch. Lovelock C, J. Wirtz, Services Marketing. People, Technology, Strategy, Prentice Hall,
2011, p. 86.
Palmer A (2004). Introduction to Marketing. Theory and Practice, Oxford University Press.
T. McCorkindale, “Can you see the writing on my wall?: A content analysis of the Fortune
50’s Facebook social
networking sites”, Public Relations Society of America, 4(3), pp. 1–13, 2010.
A. M. Kaplan and M. Haenlein, “Users of the world, unite! The challenges and opportunities
of social media”,
Business Horizons, 53(1), 59–68, 2010.

P.H. Keckley and M. Hoffman, 2010. Social networks in health care: Communication,
collaboration and insights.
Deloitte. Available online at: http://www.deloitte.com/assets/Dcom-UnitedStates/Local
%20Assets/Documents/
US_CHS_2010SocialNetworks_070710.pdf (accessed 21 December 2010).
E. Protalinski, 2012. Facebook has over 845 million users. Available online at:
http://www.zdnet.com/blog/
facebook/facebookhas-over-845-million-users/8332 (accessed 25 December 2012).
M. Laroche, M.R. Habibi and M.-O. Richard, “To be or not to be in social media: How brand
loyalty is affected
by social media?”, International Journal of Information Management, 33(1), pp. 76–82, 2013.
M. Culnan, P. McHugh and J. Zubillaga, “How large U.S. Companies can use twitter and
other social media to
gain business value”, MIS Quarterly Executive, 9(4), pp. 243–259, 2010.
A. Correia, “Social information: Gaining competitive and business advantage using social
media tools”, Online
Information Review, 37 (1), pp. 151–152, 2013.
L. Safko and D.K. Brake, The Social Media Bible: Tactics, Tools, and Strategies for Business
Success, Hoboken,
NJ: Wiley, 2009.
J.H. Kietzmann, K. Hermkens, I.P. McCarthy and B.S. Silvestre, “Social media? Get serious!
Understanding the
functional building blocks of social media”, Business Horizons, 54(3), pp. 241–251, 2011.
doi:10.1016/j.bushor.2011.01.005
Disney, J. (1999). Customer satisfaction and loyalty: the critical elements of service quality.
Total Quality Management, 10, 491–497.
Edvardsson, B., Johnson, M. D., Gustafsson, A., & Strandvik, T. (2000). The effects of
satisfaction and loyalty in profits and growth: product versus services. Total Quality
Management, 11, S917–S927.
Oh, H. (2000). Diners’ perception of quality, value and satisfaction: a practical
viewpoint. Cornell Hotel and Restaurant Administration Quarterly, 41(3),
58–66.
Barsky, J., & Nash, L. (2003). Customer satisfaction: applying concepts to industrywide
measures. Cornell Hotel and Restaurant Administration Quarterly,
44(5/6), 173–183.
Bowen, J. T., & Chen, S. L. (2001). The relationship between customer loyalty
and customer satisfaction. International Journal of Contemporary Hospitality

Management, 13(5), 213–217.
Zhang, Z., Ye, O., Law, R., & Li, Y. (2010). The impact of e-word-of-mouth on the
online popularity of restaurants: a comparison of consumer reviews and editor
reviews. International Journal of Hospitality Management, 29, 694–700.
Qin, H., & Prybutok, V. R. (2008). Determinants of customer-perceived service quality
in fast-food restaurants and their relationship to customer satisfaction and
behavioral intentions. Quality Management Journal, 15(2), 35–50.
Dube, L. L., Renaghan, M., & Miller, J. M. (1994). Measuring customer satisfaction for
strategic management. Cornell Hotel and Restaurant Administration Quarterly,
35(1), 39–47.
Gupta, S., & Zeithaml, V. (2006). Customer metrics and their impact on financial
performance.Marketing Science, 25, 718–739.
Helgesen, O. (2006). Are loyal customers profitable? Customer satisfaction, customer
(action) loyalty and customer profitability at the individual level, Journal of
Marketing Management, 22, 245–266.
Oches, S. (2012). 2012 QSR Study: Ranking of QSR Chains. www.qsrmagazine.com
Terblanche, N. S., & Boshoff, C. (2010). Quality, value, satisfaction and loyalty
amongst race groups: a study of customers in the South African fast food
industry. South African Journal of Business Management, 41(1), 1–9.
Noone, B. M., Kimes, S. E., Mattila, A. S., & Wirtz, J. (2007). The effect of meal
pace on customer satisfaction. Cornell Hotel and Restaurant Administration
Quarterly, 48, 231–245.
Bojanic, D. C., & Rosen, L. D. (1994). Measuring service quality in restaurants:
an application of the SERVQUAL instrument. Journal of Hospitality & Tourism
Research, 18(1), 3–14.
Kim, W. G., Ng, C. Y., & Kim, Y. (2009). Influence of institutional DINESERV on customer
satisfaction, return intention, and word-of-mouth. International Journal
of Hospitality Management, 28(1), 10–17. doi:10.1016/j.ijhm.2008.03.005
WEBSITES
http://www.manilatimes.net/food-park-feat/371309/
http://fnbreport.ph/features/the-possible-implosion-of-the-restaurant-industry-in-manila-
peterp-20180606/
http://www.jll.com.ph/philippines/en-gb/news/316/foodparks-to-expand-in-ph-retail-market-
this-year
http://www.nielsen.com/ph/en/insights/news/2016/dining-without-doing-dishes-almost-half-
globally-eat-away-from-home.html
https://www.forbes.com/sites/alexandratalty/2016/10/17/millennials-spend-44-percent-of-
food-dollars-on-eating-out-says-food-institute/#17273fcd3ff6
https://www.independent.co.uk/news/uk/home-news/16-to-24-year-olds-spend-more-on-
food-than-any-other-age-group-says-research-a6678596.html
https://www.getflavor.com/the-millennial-effect/
http://www.bworldonline.com/streets-culinary-revolution/
http://www.euromonitor.com/full-service-restaurants-in-the-philippines/report
file:///E:/New%20folder/Parsa-Proofs-RestaurantAttrbutes-Apr2014%20(1).pdf

For Proposal Defense

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

For Proposal Defense

Uploaded by

Copyright:

Available Formats

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 1

MARKETING STRATEGIES OF INDEPENDENT FAST CASUAL CAFES,

Ezekiel Jacob D. Carinan

THE PROBLEM AND ITS SETTING

particularly avid out-of-home diners.

to how it’s manufactured or made, prepared, served and disposed.

know so little about cooking.”

£57.30, polling for the BBC’s Good Food magazine shows.”

restaurants, while the typical spend among all adults is £17.22.

them belonging to the Millenial group.

In a study conducted by Mastercard (2015), it has been found that overall,

to eat out less in the next six months.

food outlets and then hawker centres and food courts.

expenditure in the recent years.

discounts whether on coupon websites/applications or credit card promotions. More than

do so before deciding on a dining option (Mastercard, 2015).

following their dining experience (Mastercard 2015).

No wonder, expansion and refurbishment of malls outside Metro Manila, as well as

market this year, a property analyst said (Jll.com.ph, 2017)

In an email to The Manila Times as re-featured in an article of Jll.com.ph (2017),

seen increasing this year, mainly driven by the millennial market.

more than 10 times in Metro Manila last year.

businesses continue to increase,” Yu explained.

renovations to simple food presentation techniques to create something that is

Figure 1. 7Ps of Service Marketing

The Services Marketing Mix

primary needs and supplementary services which constitute value-added enhancements.

services cannot be protected by patents or copyrights.

information and online help, make reservations, orders and payments.

No marketing program can succeed without communications, which involves

personnel can become an important component of promotional activities as well as tangible

Pricing is an important strategic issue because it is a significant indicator of products’

services marketers is to smooth demand using dynamic pricing strategies.

decisions. To achieve specified quality standards, marketing department and human

of buildings, vehicles, interior furnishing, stationery and other visible components of

production is of little concern to the consumers of manufactured goods, whereas in services

designing customer service processes, training employees, implementing service quality

management and standardized operating procedures.

The flower of service.

taking, billing, and payment.

• Information is crucial to obtain full value from a service product. It

can be provided by front-line employees, brochures, displays, websites, and

other sources. The types of information vary depending on the nature of a

service and may include schedules, directions to a service site, conditions of

sale, confirmation of reservations, instructions, receipts and tickets, and

• Order-taking is a service which is offered to a customer once they

companies such as banks and insurance companies require that a customer

goes through application process which is designed to gather essential

information. In other cases, making reservations will be considered a typical

form of order-taking. Order entry can be received through sales personnel,

mail, e-mail, or online.

• Billing is common to many services. Customers expect bills to be

accurate, complete, clear, informative, and timely. There are different

procedures of billing which range from verbal statements, handwritten

invoices, machine display to self-billing and others. Billing is usually

associated with payment.

• Payment is typically expected after a customer gets a bill. The most

used. They include coupons, vouchers, checks, and others.

• Enhancing supplementary services. These are supplementary

as consultation, hospitality, safekeeping, and exceptions.

• Consultation involves a dialog between a service person and a

customer focused on finding the best solution to the problem. Consultation

can take a form of advice which requires understanding of customer’s special