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STI West Negros University

College of Hospitality and Tourism Management

Burgos St., Bacolod City

Marketing Plan:

K’fame Friends Cafe

In Partial Fulfillment of the Requirements in CTHC 1014

(Tourism and Hospitality Marketing)

Submitted By:

Gonzales, Joana

Graves, Remia

Guerero, Maricon

Juanico, Fritz

Jumbas, Remar

BSHM 3-A

Submitted To:

Ms. Genevieve Tan

Subject Professor
Table of Contents

Section Page

I. Executive Summary 3

II. Introduction 8

III. Situational Analysis 10

PESTEL Analysis 10

Porters Five Forces Analysis 16

SWOT Analysis 19

Customer Profiling 23

Direct/Indirect Competitors 24

IV. Marketing Goals and Objectives 26

V. Target Market 27

VI. Marketing Strategies 29

Place 29

Product 30

Price 30

Promotion 31

VII. Implementation Schedule 32

Time Table 32

Implementation Plan 38

VIII. Budget 41

Five Year Sales Projection 41

Marketing Budget 43

IX. Conclusion 45

References 46
I. Executive Summary

K’fame Friends Cafe is built to become a daily necessity for every coffee

addict, a place to dream of as you try to escape the daily stresses of life,

having fun, a comfortable place to meet your friends or read a book, and a

place where you can spend your leisure time, all in one. The structure of the

cafe is made of lovely bamboo and wood, so you can feel the nature and

native structural elements of it, and it is well-known for its beautiful ambiance

and excellent service. The K-Fame Friends Cafe is located on Osmena

Avenue in Victoria City, a three-minute drive from the Victorias City Mall and

close to the highway. The company’s target market would include residents,

businesses, students, and coffee lovers. K-Fame Friends Cafe offer its

customers the best prepared coffee in the area, with a compliment of pastries

and quality products served. K’fame friend cafe serves both hot and cold

brewed milkteas, juices, coffee, espresso, cappuccino, and latte. In addition

to their coffee, they also sell different flavors of pizza, like Pepperoni,

Hawaiian, and Double Cheese Pizza. In terms of their pasta, they have their

carbonara and spaghetti. They also provide a simple ambience with free wifi

for their customers. The company’s mission is to serve the best coffee in

Victoria City to friends and neighbors with unparalleled quality, customer

service, and attention to detail. The company’s vision is to become a

destination café where people come for the atmosphere, the friendships, and

the stories told over a warm cup of Java.

3
In the situational analysis in this section, the PESTEL Analysis, Porter’s five

forces, SWOT Analysis, customer profiling, and direct/indirect competitors of

K’fame Friends Cafe have been analyzed to determine the situation of the

cafe in the market. In addition, the difficulties that exist in the coffee business

are not complex and are simply eliminated, which is why entry into the

market is so easy. Since the coffee shop or supply can be established on a

low scale with a little takeaway cafe on the corner of the street, there is no

need for a large amount of capital. An external aspect that causes

competitive rivalry is the massive number of coffee shops. K'fame Friends

Café is competing against several local competitors. In this regard, the rival

population is fairly diverse in terms of specialization and strategy. To open a

coffee shop, all you need is a small amount of money, which is why several

coffee shops are being established. To compete with other coffee shops,

K'fame friends must analyze their strengths and seize the opportunities that

they have in order to continue to grow. Students, government officials, and

bikers make up a large portion of the cafe's customers, which is why the cafe

is located alongside the highway. During the pandemic, the government

imposed strict regulations on many businesses, including coffee shops, as

the government implemented protocols such as social distancing and one

seat apart. Small coffee shops were severely impacted by this protocol, and

they could only serve a few customers. Only a quarter of people have dined

in a restaurant since the pandemic began in March 2019, according to

Modern Restaurant Management (2020). Furthermore, k'fame friends must

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ensure that their cafe is equipped with commercial recycling and compost

bins, as well as that all employees are trained in proper waste separation.

Furthermore, at this time of pandemic, it is critical that coffee shops link their

product distribution with food service delivery in Victorias City in order to

attract more customers.

In addition, in the marketing goals and objectives section, sales, profit, price,

and product are among the general marketing goals and objectives of K’fame

Friend Café. Some of K'Fame's friend’s café’s objectives include increasing

consistent sales and revenue by 10% each year with an annual sales

average of P10,300,000.00, generating a significant profit. The café also

offers high-quality products and fosters a positive and courteous work

environment. As a result, K’fame Friend Café’s major goal is to be the best at

all it does in order to achieve long-term success.

To determine the target market for K-fame Friends Café, we evaluated the

market and determined the best strategy for segmenting, which involves

separating the market into separate groups. Age, life cycle, and

psychographics are used to segment the market. After doing a situational

analysis to assess the potential for success in each category, we opted to

focus on one specific group, which is the millennials. Millennials are the

chosen target market for this marketing plan based less on the fact that they

are coffee drinkers and more on the fact that this generation frequently seeks

out other options for nights out with friends. Thus, it will help accomplish the

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financial goals of K'fame Friends Cafe and become a successful business

within the city of Victorias.

Furthermore, in the marketing strategy section, the strategies give direction

on where to focus on resources to gain the most opportunities in K’fame

Friend Café. It includes the 4 Ps of marketing: place, product, price, and

promotion. To compete with other establishments, the proposed marketing

strategy for the K’Fame Friends Café first started with the place strategy,

which suggested a renovation of the café from the floor plan to minimize the

amount of space needed to cater to the multiple customers that visited the

café. The proposed marketing strategy within the product strategy will be the

addition of a new product to increase sales and revenue for K'fame Friends

Cafe. In the pricing strategy, the K-fame Friends Café will consider and base

its pricing on the competitors'. As well, enhancements to the promotional

strategy have been proposed to advertise and promote the services and

products of the K-fame Friends Café. It will benefit the establishment and

advancement of the business by proposing market strategies.

After studying and assessing all of K'fame Friends' strategic planning, the

marketing team developed a strategy and activities to enable them to

increase their sales and brand awareness through an implementation plan for

3 years. The cafe's objectives, goals, and market strategies were all aimed at

increasing sales and making it a well-known coffee shop in the city. The

coffee shop is a newcomer to Victorias City, with several competitors who

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might be the reason for their downfall. Almost all of their competitors are well-

known coffee shops in the city with loyal customers and k-fame friends who

have bagged down against them. In that case, we utilized it to implement

various activities and strategic planning in the coffee shop, such as new

advertising mediums, extending menus, renovating the cafe, inviting

influencers, and creating a video campaign, all of which helped the cafe

become the city's number one coffee shop. Additionally, in the year 2022, the

team's goal is to raise brand awareness in the first quarter of the year and

expand the menu option in the second quarter, so that by the third quarter,

the cafe will be well-known in Victoria City. We will renovate the cafe in 2023,

and in order to attract more customers and improve sales income by ten

percent, the cafe should provide certain promotions and discounts. By 2024,

influencers will be invited to publicize the cafe's products and promote the

coffee shop to their followers. It's possible that by taking these steps, the cafe

will be able to make more profit each year.

Lastly, for the marketing budget section, we proposed the marketing budget

for the marketing plan made for K’Fame Friends Cafe with the attached 5-

year sales projection. After a successful marketing plan and strategies are

implemented for the K’fame Friends Cafe, the forecast will show a steady

increase in sales of 10% annually for the first five years. During the next five

years, the project's sales will level off, leaving the cafe with monthly average

revenues of P850,000.00 to P950,000.00 and annual average revenues of

P10,300,000.0.

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Thus, after the completion of the marketing plan and with the proposed

marketing strategies, K’fame Friends Cafe will be able to continually innovate

and improve their products and services, expand their business, generate

more sales and profits, and be successful in this competitive field of the food

and beverage industry.

II. Introduction

There are several processors of roasted beans and ground coffee in the

Philippines. The largest local processor of coffee is Nestle Philippines, Inc.,

(Cagayan de Oro), and it accounts for 80% of the instant coffee market.

Universal Robina Corporation and Commonwealth Foods Corp is the second

largest. As an example, in Murcia town, Negros Occidental, the Minoyan

Murcia Marginal Coffee Growers (M3CG) is working to go beyond

manufacturing itself by moving into an enterprise through value-adding in

hopes to increase revenue. For now, the M3CG continues to be a partner of

Coffee Culture Roastery Shop (Alijis Rd, Bacolod, 6100 Negros Occidental),

which buys their green coffee beans at PHP160 per kilo of sorted Robusta,

and PHP250 for a kilo of Liberica and Excelsa.

Coffee shops are the most common type of business in the modern world.

Nowadays, coffee shop can be seen in almost every corner of the street.

Despite the fact that there are many existing coffee shops, entrepreneurs are

still willing to risk their resources and time to open one for the simple reason

that this type of business is not difficult to maintain. Furthermore, it is trendy,

particularly among millennials and coming generations, because these

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facilities not only provide food and coffee, but also a nice environment in

which memories are built.

K’fame Friends Cafe is built to become a daily necessity for every coffee

addict, a place to dream of you as you try to escape the daily stresses of

life,having fun and a comfortable place to meet your friends or to read book,

and a place where you can spend your leisure time, all in one. The structure

of the cafe is made of lovely bamboo and wood, so you can feel the nature

and native structural elements of it and its well-known for its beautiful

ambiance and excellent service. K-Fame Friends Cafe is located at Osmena

Avenue, Victorias City, and accessible with a three-minute drive from the

Victorias City Mall, nearby the highway. The company’s target market would

include the residents, business, students and coffee lovers. K-Fame Friends

Cafe will offer its customers the best prepared coffee in the area with the

compliment of pastries, and quality products served, as well free books that

customers that can read to enjoy their visit and trendy services like a tough to

beat board games and fun games while enjoying your favorite snacks and

lattes.

Mission

The company’s mission is to serve the best coffee in Victorias City, to friends

and neighbors with unparalleled quality, customer service, and attention to

detail.

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Vision

The company’s vision is to become a destination café where people come for

the atmosphere, the friendships, and the stories told over a warm cup of

Java.

Products & Services

K’fame friend cafe serves both hot and cold brewed coffee, espresso,

cappuccino, and latte. In addition to their coffee they also sell, different flavor

of pizza, like Pepperoni, Hawaiian and Double Cheese Pizza. In terms of

their pasta they have their Carbonara and Spaghetti. The other beverages

that they offer is different kind of juices such as Lemon juice, Iced tea,

original Calamansi Juice. Also, they provide a selection of street food that

most of people in Victorias favorites, including their original Fishball, Squid

ball, tempura, and cheese stick. They also, provides simple ambience with

free wifi to their customers. It has a lot of of books to provide to its customers

for free as they sip their coffee and eat various foods at the K'fame

friend cafe.

III. Situational Analysis

To gain a better understanding of the current and future states of the market

we are entering, we have done a PESTEL Analysis, Competitive Analysis,

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and SWOT Analysis, which is situational analysis done to analyze and

identify the micro and macro environment,competitive intensity, internal

strengths and weaknesses, and external opportunities and threats of an

organization. We have done detailed analysis on the areas that will affect

business.

PESTEL Analysis

Every industry, small or large, is subject to several elements that affect the

firm’s function as a whole. These elements are assumed to be the driving

forces behind a business’ success or failure. One factor that must be

considered by any businesses is the external environment and the underlying

aspects that must be given emphasis by any organization. As mentioned, the

case was about the changes that must be implemented by the establishment

and how the company has been able to adjust to the stiff competition of this

kind of business.

In this regard, the environment around the establishment will be analyzed

using the PESTEL model. The PESTEL model evaluates political, economic,

sociocultural, technological, environmental, and legal factors. This analysis

highlights the various elements that impact its business performance. This

understanding helps to evaluate the critically important external business

factors for any brand.

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P E S T E L
Political Economic Sociocultural Technological Environmental Legal
-The tax policies -The increasing -Consumer - -The -The
and employment cost on raw preferences Technologica establishment establishment
laws of a materials and could shift l ’s business has a chance
establishment labor charges from coffee advancement can get to improve their
can have can be a threat to other such as affected if the performance
specific impact concerning the beverages. accepting growth of and customer
on its sales. development of payments via coffee and satisfaction
the business. -The food smartphones raw supplies rates by
-The items offered suffers from following rules
establishment -Faces a lot of by the -Use of insects, and regulations
must be flexible competition establishme technology diseases, on product
to adapt to these nt are can improve climate, or safety,
changes and -The drastic expensive operational natural consumer
plan business effect of considering efficiencies disasters. protection and
strategies COVID-19 that they are advertising.
accordingly. pandemic a small and -Opportunity:
brought to the not well- Advertise -The -Due to the
-Cafe/Coffees economy of the known cafe. through establishment pandemic, the
hop is one of the hospitality social media is nearby the Cafe should
fastest growing industries, highway and adhere to
industry in the including the is affected by certain rules
food service K’Fame Friends air pollution and regulations
industry Cafe. coming from provided by the
the vehicles. government on
-Lack of -Constant how they
international demand for food should operate
representation and beverages. their business.

Based on the information given in the PESTEL analysis, mostly of the following

are threat to the growth of their business and with less opportunity. Therefore,

they should have a take a look and focus on areas that might have a great effect

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on their business. For like example, considering that they are a start-up and

their products are expensive, and nowadays people prefer low prices with

good quality products. They should make a strategy on how they can lower

their prices at a reasonable price. In addition, the drastic effect of COVID-19

pandemic brought to the economy of the food industries, including the

K’Fame Friends Cafe on 2019. According to Modern Restaurant

Management (2020), only a quarter of people have dined in a restaurant

since the pandemic started back in March 2019, Philippines. More than half

of consumers aren’t willing to go back to restaurants during the next year.

And, only 14 percent of people say they don’t worry about dining out once the

vaccine becomes available. Cafe or even restaurant owners aren’t too

optimistic about the future. 9 out of 10 expect their establishments to stay

partially or fully closed for the next few months. Two-thirds of owners believe

that it will take anywhere from three to 12 months before they can start

working normally (Modern Restaurant Management, 2020). Though after 1

year, many establishment survived and continue operating their business,

including the K’fame Friends Cafe, but their revenues and profits are only

enough to operate their business. However, with the on-going and everything

seems going back to normal, K’fame Friends is also going back to normal

and operating their business like before. Which they are glad that they

survived through that years.

According to Masaigan(2019), the food service industry in the Philippines is

growing at a phenomenal rate and everyone wants a part of it. For those

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unaware, the food service industry is composed of all forms of food retail.

This includes fast-food chains, food kiosks, cafes, bars, take-out and delivery

stores, and full-service restaurants. In addition, the Philippine food service

industry, in 2016, generated P535.9 billion in revenues on the back of 84,503

food outlets operating in the country. This year, revenues are seen to top

P616 billion with 3,126 more food service establishments in operation than

there were in 2016. Masigan (2019), also added that to be successful, one

must have the basics in place. These include a strong concept, a good value

proposal (food quality in relation to price), a favorable location, an efficient

supply chain, tight cash and inventory controls, and enough competitive

advantages to compete with the established players in the industry.

Furthermore, Philippines food service market is a highly competitive market.

The majority of the share is held by some of the leading players, including

McDonald's, Starbucks Corporation, and Jollibee Foods Corporation

(Philippines Food Service Market, 2021). With a lot of competition happen in

this industry, therefore K’fame friends should considered their competitors,

on how they can compete and be ahead of them. Thus, managing the K’fame

Friends Cafe well, by understanding the trends in the market and considering

their competitors on how they can become the best in the market, could be a

great opportunity for them to grow their business and be successful within the

industry.

In addition, in this analysis, in the modern world where technology are

advancing, this a great opportunity to K’fame Friends. According to report of

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Food Tech: Technology in Food Industry, tech innovations allow for the

production of more food and in a shorter period of time, while also making

products more affordable and with a higher quality. In other words, the future

has already started changing the food and beverage industry. In which also,

the use of technology can improve K’fame Friends operational efficiencies

and opportunities to innovate and develop new products and services. In

June 2018, the Filipino-owned food delivery app, Delivery Guy, was launched

in the Philippines. This online-based foodservice is expected to compete with

Singapore's Honestbee and GrabFood, Germany-based Foodpanda, and

other players operating in this segment (Food Service Market, 2018). In

addition to that, many delivery business also existing and for the Victorias

City, Philippines is the Toktok PH. It is an express courier service that

delivers your packages fast and safe guaranteed. According to a survey on

food services and cloud kitchen conducted by Rakuten Insight in August

2021, 85 percent of respondents in the Philippines stated that they would

continue to order as often as they did during the coronavirus (COVID-19)

lockdown because of its convenience. The same survey revealed that Food

Panda and Grab Food were the most popular food delivery apps among

Filipino consumers. Nowadays, a lot of establishment, partnered with delivery

business due the effect and impact of pandemic. Thus, for K’fame Friends

Cafe, this could be an opportunity and a new strategy to develop and grow

their business. In which, partnering with an online food delivery service will

mean more customers, and more revenue. It opens up a whole new base of

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people previously restricted by location or because they didn’t know about

your restaurant. Furthermore, Delivery platforms also actively advertise

venues on their apps and websites, helping you to reach even more

customers without having to lift a finger. Plus, this extra exposure can also

encourage people to check you out in-person. This shows partnering with a

delivery service platform can increase your reach without investing in

physical expansion (Online Food Delivery, 2022).

Porters Fiver Forces Analysis

The 5 forces Analysis is a useful tool for K’fame Friends Cafe to analyzed the

competitive intensity. It is a great tool to use to better understand and counter the

threats that K’fame Friends is facing

Bargaining
Threat Power
of Substitute
Threat of of Products
Suppliers
new Entrants isisHIGH
is High HIGH
when when
when Force
Force
Force
Availability of of
The differentiation substitute products
the substitute is is
product HIGH
Intensity ofProduct
Competitive
Differentiation
Rivalry is is HIGH when Force
LOW
Differentiation
The rate of the alternative
of progress in supplier’s products
product'sand service is
price-performance HIGH
NumberinofEstablishing
Capital Requirements competitors Coffee
is HIGH
Switchingsubstitute
costs of theis buyer are shop are LOW
HIGH
Product Differentiation is LOW
Incumbent’s
Bargainingaccess
Power to government isrequirements is LOW
As a result of analyzing Porter’s fiveof Buyers
forces, HIGH
following arewhen Force
the list of threats that
The number of suppliers is HIGH
Availability of the same product in the city is HIGH
Importance of the supplier’s input to quality of buyer’s final product HIGH
is
could affect the establishment:

Threat of Substitute Products: High

The threat of substitutes for the coffee industry is high in Victorias City due to

the availability in different alternatives. The number of substitutes for coffee is

16
rising, which posing a risk to the coffee business. The various teas offered by

Milk Tea Shop in the city are one of the key alternatives for the coffee

business, which is negatively impacting the K'fame Friend Cafe. In the

Philippines milk tea is highly preferred over coffee and coffee is taken as an

occasional drink. According to (Herbert,2015) milk tea is an ideal refresher on

such hot days in the Philippines and Filipinos prefer to choose milk tea over

coffee. Hence the threat of substitute products will be considered relatively

high. In Victorias City there are several milk tea shop that could affect the

coffee establishment because people nowadays love to sip milk tea than

coffee in short this a number one alternative drinks of a coffee.

Bargaining Power of Suppliers: High

The bargaining power of Suppliers is high as the coffee shop does not have

enough suppliers to supply them but there’s an availability of substitute

products for their customers. Since many of the suppliers are located far

away from the cafe, the coffee shop does not have a variety of options. The

buyer is switching as a result of the coffee shop's lack of a supplier to keep

their products in available.

Bargaining Power of Buyers: High

The buyers have options to choose from multiple coffee shop in Victorias

City, that keep the power of buyers high. Moreover, most of the buyer in the

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city had their loyalty in their favorites coffee shop. In Victorias there’s a lot of

suppliers of coffee powder and beans that could buyers go for it for lower

price, customer is able to get similar product from the supplier. In addition,

City Mall was built and a lot of customers must consider the coffee powder

that being sell in the market that they could think, they could save than the

coffee shop.

Intensity of Competitive Rivalry : High

In the cafe, there is a lot of competitive rivalry. In Victoria's City, several of

these new competitors has emerged, all of which could have an impact on

the small cafe. Every coffee shop in the city sells precisely the same

products. Other competitors are already well-known, making the cafe in

extremely difficult to compete. Since there is several direct and indirect

competition, product differentiation of the K'fame friend is low, and most of

their customers have already had their loyal brand when it comes to coffee

and other food and beverages.

Threat of New Entrants: High

The difficulties that exist in the coffee business are not complex and are

simply eliminated, which is why entry into the market is so easy. Since the

coffee shop or supply can be established on a low scale with a little takeaway

cafe on the corner of the street, there is no need for a large amount of

capital. The required skills are not highly specialized, but they are trainable,

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making it even easier to get into the coffee business (Mighty,2017). The

coffee business's 5 percentage growth draws new entrants and makes the

whole thing easier for newbies in the coffee business, increasing the threat of

new entrants (Adamkasi,2021).

SWOT Analysis

The following SWOT Analysis captures key strengths and weaknesses within

company and describes the opportunities and threats facing the K’fame

Friends Cafe.

S W O T
Strengths Weaknesses Opportunities Threats
-Passionate -Small, start-up cafe -Coffee shop is one -Government rules
team of workers with limited space of the fastest and regulations.
providing growing industry in Nowadays, due to
excellent service -Expensive and the food service the pandemic, there
and premium similar product industry. is a high probability
specialty offerings to the of being unable to
coffee beverages competitors -Developing new conduct normal
products and business
-Great ambiance -Establishment is services. operations.
and friendly nearby the main
environment highway and so -Use of new -Consumer
affected by an air technology can preferences could
-Free Wi-Fi pollution improve shift from coffee to
operational other beverages.
-The -No brand efficiencies
establishment is awareness or -Climate Change &
accessible and reputation as a -Developing loyal Natural Disasters
convenient startup and new customers

Analysis: Strengths and Weaknesses

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These are the internal factors within the K’fame Friends Cafe, which are the

things that they have some control over and can change. For the strengths,

the K’fame friend Cafe team is full of passionate, innovative, talented people

who are excited about their brand and genuinely care about meeting the

needs of their target market. Because of this internal passion, K’fame friends

Cafe provides excellent service and delicious specialty coffee beverages.

Another one of their main strengths is the great ambiance and friendly

environment that the cafe providing to their customers, as well the free Wi-FI

which are the reasons that many customers loves to dine-in to their cafe. The

accessible and convenient location of K’fame Friends is also one of their

main strength because of less hassle and less expense for transportation

that they can provide to their customers. In addition, for the weaknesses,

being a small-start-up cafe with having a limited space for their customers, is

one of the weaknesses that they are facing. Expensive and similar product

offerings to the competitors are also one their weaknesses, which according

to them there are instances sometimes that even their regular customers buy

to their competitors because of pricing. Furthermore, even though the

location of their establishment is one of their main strengths, however, it is

also one of their weaknesses which they are located near the main highway

and so affected by an air pollution coming from the different vehicles passing

by their cafe. Lastly, zero brand awareness or reputation from their target

market, is also their weaknesses. Thus, this weaknesses will hopefully be

alleviated over time with promotional and positioning efforts. Which also with

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the help of this marketing strategy and promotion, that can hopefully able to

improve their company and become big later on.

Analysis: Opportunities and Threats

These are the external—things that are going on outside the K’fame Friends,

in the larger market. The company can take advantage of opportunities and

protect against threats, but the main thing is they can’t change them. With the

opportunities, nowadays, coffee shop is one of the fastest growing industry in

the food service industry. According to Business Insider, coffee is the second

most sought-after commodity in the entire world, with an industry that is worth

over $100 billion across the globe. To remain current in a highly competitive

and successful industry, foodservice operations need to stay ahead of new

trends. Therefore, coffee shop is one of the best business in the world that

one could likely be successful -by managing well and promoting your

business according to the needs and preferences of your customers. Thus,

managing the K’fame Friends well and with this proposed marketing strategy

will be a great opportunity to grow their business and be successful within the

industry. Furthermore, in a modern world where technology is advanced. This

is also one of the opportunity for the K’fame Friends, in which the use of new

technology in their business can improve their operational efficiencies, as

well an opportunity for them to develop new products and services that can

help to the growth and development of their business. With that, it could likely

also an opportunity for them to develop new and loyal customers. In addition,

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as for the threats, due to the impact of worldwide pandemic to most of the

coffee shops not only in Philippines but also to the other countries, many

struggled on how they can continue and provide their business in order to

survive and grow. According to the K’fame Friends cafe, they are also being

greatly affected by the hit of COVID-19 and because of that they struggled to

operate their business. By adhering to certain laws and regulations mandated

by the government of the Philippines, with the rules of social distancing and

limited persons are only allowed in the establishment, they must adhere and

follow it. In which, it caused them to get more customers and it reduced their

sales and profits. Aside from that, consumer preferences is also one of the

threat to their company, not only to them but also to any other company,

which something that they can’t control because every person has its own

preferences and likes that may something that the company can’t provide.

For like example, their preferences could shift from coffee to other

beverages. Lastly, with the changes of climate and sudden natural disasters

happen in the Philippines, this also a threat to their company. For like

example, this can cause a delay to the delivery of their goods from their

suppliers due to the natural disasters like typhoon. Thus, to lessen this threat,

K’fame Friends should be always prepared for any disasters, diseases, and

certain phenomenon that might caused their business. With the proposed

marketing plan and strategies, this will gonna help them to lessen the threats

that they are facing and don’t have control.

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Customer Profiling

Gender Age Civil Status Occupation Location


Male 6-26 Single Students Victorias City
Female 6-24 Single Students Victorias City
Male/Female 18-25 Single Bikers Northern Negros
Male/Female 27-58 Married Government Victorias City
Employees

Male/Female 60-70 Married Retired Victorias City


Employees

Female students aged 6 to 28 years old make up the largest percentage of

customers, while female and male retired employees aged 60 to 70 make up

Customer Profiling

8%
Male Students 6-28
16% 28% Female Students 6-24
F/M Bikers 18-25
F/M Employees 27-58
F/M Retired Employees 60-70

19%

29%

the lowest percentage. As seen in the pie chart above, customers are found

not just in Victorias City, but also in the Northern Negros.

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Direct & Indirect Competitors

Considering the K’fame Friend Cafe's various distinctive features, there

are other establishments will almost definitely claim to be major

establishment competitors. The main competitors have been recognized as

establishments that provide services that overlap with the café and are

located in Victorias City, as with K’fame Friend Cafe. The following

businesses have been listed as competitors;Tasa Cafe, Cafe Racs, and

Beans n' Tea.

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Tasa Cafe Cafe Racs Beans n’ Tea
Direct Direct Indirect
Competitor Competitor Competitor
Company Tasa Cafe is a Cafe' Racs is a Beans ‘n Tea is a
Profile two-story coffee coffee shop in milk tea shop
IV.
cafe in Victorias Victorias City that located in
City that opened started operating Victorias City.
in 2019. in 2015.

Target Market Government Students, Office Students, milk tea


Employees, workers, lover and
Coffee Lover, and families , and Government
middle to upper Solo diner Employees
class customers.

Marketing Flyer and Social Flyer and Social Flyer, Social


Strategy Media Media Media, Influencer
and Radio
advertisement

Products & Imported coffee pizza, nacho Different flavors


Services as well as fries, pasta, of Milktea and
exquisite food, drinks, shawarma Shawarma, Free
pizza, pasta, rice and a distinct Wi-Fi
juices and free sort of coffee,
Wi-Fi Free Wi-Fi
Pricing High price Affordable Price Affordable Price
Distribution FF errands Food Tok tok food Tok tok food
Channel Service delivery service and FF service delivery
errand food
service delivery

Strengths High Tech Famous Coffee Advertisement


Machines Shop in Victorias Strategy
City since 2015.
Imported Famous Milktea
Products. Quick and Shop in the City.
motivated staff.
Good Ambience Great Ambience
Located along the
Linked in food Highway. Located besides
service public Plaza and
Linked in Food Commercial
service Market.

They have 2 Linked in Food


branch. Service

Weaknesses Limited Staff to Limited space to Limited space to


cater a lot of and it is not cater a lot of
customers. convenient for a customers.
large number 25 of
They offer pricey customers.
products
Marketing Goals and Objectives

Marketing objectives

The general marketing goals and objectives of K’fame Friend Café includes

sales, profit, pricing, and product. These serves as to enhance the business

by proposing marketing strategies that would attain to achieve the goals for

the improvement of the establishment and advancement of the business.

Thus, K’fame Friend Café can compete with other food industry business,

increase its revenue, and continuously grow and expand in the future.

Objectives

 To develop enough brand awareness by the 3 rd quarter of 2022 that 30

percent of Victorias City knows about the K’fame Friends Café.

 To expand menu options of K'fame Friends Cafe food and beverage

products by the 4th quarter of 2022.

 To offer promos or 5 percent discount coupons during holidays and the

anniversary of the K’Fame Friends Café.

 To increase steady sales and revenue by 10 percent annually.

 To maintain appropriate financial leverage starting by the end of the

month of 2023.

 By the 1st quarter of 2024, to collaborate with the social media

influencers from Negros Occidental for the promotion of the K’fame

Friends Café.

 By 2025, to have annual sales of around P10,300,000.00.

26
Moving forward, these marketing goals and objectives will definitely help to

guide K'Fame Friends Cafe in running a profitable and successful business in

the future. In which K’fame Friend Café aims to provide a substantial income

and to create a business and working environment where both the customer

and employee are treated with respect and dignity. The café will surely

provide high-quality drinks, a welcoming environment, and a relaxing

environment to help customers unwind. This also contributes to the

establishment of a positive, respectful workplace and empowers employees

to be themselves and achieve their full potential. Thus, K'fame Friend Café

wants to be the best at everything it does so that it can be successful in the

future.

V. Target Market

In this section we evaluated the market and determined the best strategy for

segmenting, which involved dividing the market into distinct groups. The

segment are based on age, life-cycle and psychographics. We then

evaluated the potential for success in each segment by doing a situational

analysis, and decided to target one distinct segments: the millennials.

Victorias is a coastal component city in the province of Negros Occidental.

The city has a land area of 133.92 square kilometers or 51.71 square miles

which constitutes 1.71% of Negros Occidental's total area. Its population as

determined by the 2021 Census was 90,101. This represented 3.43% of the

27
total population of Negros Occidental province, or 1.13% of the overall

population of the Western Visayas region (Victorias City, Negros Occidental

Profile, 2021). The target market for this proposed marketing plan are the

millennials living in Negros Occidental, which comprise 30.65% of the

population in that region. That alone makes up almost 28,000 people

between the ages of 18 and 24 of the market. Although they do represents a

significant portion of coffee shop consumers, the fact that they are the

chosen target market for this marketing plan is less based on fact that they

are coffee drinkers, and more on how is generation is often seeking alternate

options for nights out with friends. The decrease in the party scene, has

resulted in a greater demand for establishments to implement different

activities for their consumers to partcipate in (Howe 2016). The K’fame

Friends Cafe is a place where millennials can come with their friends to

create memories and meaningful experiences. The importance of the latter is

decreasing dramatically among young adults, who are resolving that being

sober and having real conversations with people is much more effective at

building friendship, than is being highly intoxicated at a club (Chapin 2016).

The fact that K’fame Friends Cafe is a business that can satisfy this demand

for millennials, is an important reason for targeting them. It is important to

note that they were the chosen target market for this marketing plan

because, according to the study, among the growing consumers of coffee in

Victorias City, millennials ranked number 1 as coffee drinkers in the survey.

By choosing to targeting this group we are optimistic about achieving the

28
financial goals of K’fame Friends Cafe, and becoming successful business

within the city of Victorias.

Coffee Drinkers in Victorias City

Millenials
12%
Students
10% 35% Government Employees
Retired Employees
others
15%

28%

VI. Marketing Strategies

Place

The K'fame Friends Café is a small café nearby in Victorias City and

suggested to change the floorplan of the café to expand and minimize the

space to cater multiple customer that visited in the café. The location of the

café has a vacant lot across and it is a good idea if that vacant lot make it

parking area. It also great idea if has a lounge area on outside where

customer can relax and enjoy their meal. This will help the café location to be

more accessible such us for takeout orders where they can wait in the lounge

area or it can easily to pick up ordered meals.

29
Product

The K'fame Friends Café has some of the best coffee, but they only have

limited choices for their snacks. For like example combo meals or barkada

meal. Since some most of the customer who visited in the Café are group of

people/friends. For new additional products, the combo meals and barkada

meals are suggested to added on the menu to increase the source of

revenue, also other snacks and pastries. The barkada meals go well with

their coffee and other beverages which is different kind of fresh juices.

Adding barkada meals consists of 3 slices of pizza with a platter of different

kind of street foods and 1 pitcher juice (lemon juice, iced tea, fresh calamansi

juice) for a budget friendly price that will surely the customer enjoy this set of

meal. By this, K’fame Friend Café can compete with other food industry,

increase its revenue, and continuously grow, and expand their business.

Price

K’fame Friends cafe is an expensive cafe. Since they are a start-up business,

the best strategy is to lower their prices at a reasonable price. Competitive

pricing is the best strategy for this kind of problem. In which competitive

pricing is the process of selecting strategic price points to best take

advantage of a product or service based on the market relative to

competition. This pricing method is used more often by businesses selling

similar products, since services can vary from business to business while the

attributes of the product remain similar. Since cafes are the most common

30
business in the modern world, and as K’fame Friends has a lot of competitors

in the city. Therefore, they should consider and base their pricing according

to their competitors, because nowadays people prefer to go a cafe that has

prices at lower prices with quality products. Another strategy is for the K’fame

Friends Cafe to find a different supplier that also sells quality products but at

a lower price, to increase their sales and lower their prices so that many can

afford what they are selling.Thus, with this proposed marketing strategy,

more people will buy their products and dine in to their cafe, giving them the

opportunity to generate more sales and profits.

Promotion

The K’fame Friends Café offered discount coupons to those customer’s first

order and consistent customer such as by through loyalty coupon card for

example purchasing worth 200 pesos will get 1 stamp and reaching 5 stamp

will get free your choice of drinks or foods. Also giving discount during

monthsary and anniversary of the café. The coupons serve as to increase the

amount of the customer who will return and back again in the café. The

K’fame Friends Café, suggesting to invite bloggers/vloggers to collaborate to

try the offered products to advertise the café. Also using social media

platforms through Facebook and Instagram to be post and share about the

café information. Also to introduce the foods that are offered in café and in

that way it can attract more customer and make the café to be known. As the

name itself of the café it establishes an image of acceptance and

31
friendliness. It can be branding the café, in which the café it seen a place

where people can be lasting bonds and friendships. Through branding

awareness promotion in a socially responsible manner The K’fame Friends

cafe will be more attractive to the target market.

VII. Implementation Schedule

Time Table of K’fame Friend Cafe Marketing Plan

Year of 2022

Marketing Team Operational Team Outsourced

32
Task/Activities Jan Feb Ma Ap Ma Ju Ju Au Se Oc No De
r r y n l g p t v c
Strategic
Planning with
our teams and
the owner of
the coffee
shop.
Proposal of
our Marketing
Plan
Analyze the
consisting
promotional
strategy of the
cafe.
Researching
of the target
audience. Year
Choosing/ 2023
considering
advertising
medium.
Choosing
form of
promotional
marketing.
Making new
different social
media, such
as Instagram
and
Facebook.
Making a
video
campaign
about the cafe
mission and
vision and
post it in new
social media
account.
Shooting of
new video
campaign.
Designing the
flyer.
Reviewing the
flyer and
video
campaign.
Publication of
video
campaign of
the cafe in 33
different social
media
Task/ Jan Feb Ma Apr Ma Ju Ju Aug Se Oc No De
Activities r y n l p t v c
Making
construction
plan for
expanding
the cafe, as
includes
interior and
exterior
design.
Proposing
the
renovation
plan to the
owner.
Requesting
a permit
from the city
hall for the
purpose of
construction.
Negotiating
a deal for
the food
delivery in
Victoria's
City.
Temporarily
closing of
the
establishme
nt but
continuing
selling of
products
through the
partnered
food delivery
in Victorias
City
Cafe
renovation
Monitoring
the progress
of the
ongoing
construction.
Promoting
the linked
food delivery
service in
their social
media and
flyer. 34
Making a
brochure or
Year 2024

35
Task/ Jan Feb Ma Apr Ma Ju Ju Aug Se Oc No De
Activities r y n l p t v c
Improving
and
promoting
their cafe in
social
media.
Searching
for an
influencer
that could
promote the
cafe to
his/her
followers by
advertising
the cafe.
Shoot with
influencer for
the
advertiseme
nt of the
cafe.
Inviting the
influencer
vlog the
product of
the cafe.
Launch of
the
advertiseme
nt in Radio
or in Social
Media
Making
brochure
and flyer
about the
new
advertiseme
nt with
vlogger.
Distribution
of the
brochure
and flyer.
Reviewing
the financial
sale of the
cafe.
Reviewing
online
presence.
Make a list 36
of the
additional
Implementation Plan

Year 1 (2022)

After presenting the marketing plan in K’fame friend cafe, in order to achieve

the objective of the developing brad awareness by the 3 rd quarter of the

2022, we will make sure to consider the medium of the advertisement and

the form of the promotional marketing. The cheapest and easy way to

perform it, is to have a social media presence such as, Intagram and

Facebook, cafe need to provide a little amount of money to promote their

page in social media. After we achieved the target number of followers, we

will make a video campaign about the mission and vision of the

establishment and post it in Facebook and Instagram. In addition, flyers also,

is essential to those who do not have social media. We make sure that the

our flyer is informative. These promotional marketing will help the cafe to be

known in Victorias City. In other hands, in terms of expanding the menu by

the 4th quarter of 2022, we will make sure that the current meal we put on the

menu is something that the customer will like. In order to achieve this, we will

conducting a customer survey to determine the best food in the café that

could be included in barkada meals. Moreover, in terms of pricing we will

benchmark the other establishment to have a excellent pricing strategy. After

choosing meals that will included in the menu like barkadas meal we will post

it in social media in order to update their customer. After we will review and

analyze the new implemented menu. In that, K’fame friend cafe their menu

and beverage products by the 4th quarter of 2022.

37
Year 2 (2023)

In this year, If the new product innovation has a positive impact on the cafe,

we will develop a construction plan for expanding the cafe, including interior

and exterior designs, and we will request that the cafe will be closed for

nearly five months. We will find a food service delivery in Victorias City, such

as Tok tok and FF errands food service, to avoid a significant loss due to not

operating for months. Even if they are under reconstruction, they still sell their

product through delivery. After obtaining a construction permit from the

government office, the café will be renovated  the cafe automatically to just

save time, and we will continue to monitor the ongoing renovation to ensure

that the project is processed satisfactorily. Before the re-opening, they must

create brochures and flyers to market and update their customers about their

new menu and the reopening of the newly renovated café. In 3 rd quarter of

2023, the team will ensure that the cafe renovation is completed correctly.

After the renovation, it is the start of promos or the 5 percent discount

coupons, in order to attract more customers, and also, mus offer the same

promos every holidays and likewise in their anniversary. Moreover, it is

important to know the feedback of the customer about the renovated

establishment.

Year 3 (2024)

38
In the 1st quarter of 2024 we will look for a famous vlogger or influencer that

could promote the cafe in her or his followers. Then, in order to attract more

customers, we will create an advertisement for the cafe's products. If the

influencer and cafe come to an agreement, we willl invite him or her to the

cafe to vlog the k'fame friend café. Furthermore, this year is the ideal time to

launch the cafe's new advertising campaign across several social media

platforms and on the radio. To ensure that everyone is informed, we will

create a flyer and brochure for those who do not use social media to notify

them about the cafe. This year, we plan to achieve yearly sales of

approximately Php1,500,000.00 by 2025 by assessing all of our

implementations. In addition, this year we will analyze the cafe's financial

selling as well as its online presence to ensure that they will make a

significant profit in the future.

VIII. Budget

Finances are a crucial element of every aspect of a business, and fiscal

responsibility is critical to success as an entrepreneur. Below, we've included

our five-year sales projections and marketing budget.

Five Year Sales Forecast

A typical, independently owned café generates roughly P500,000 in revenue

monthly (Heibutzki, 2011). For the financial projections this is going to

assume this to be a reasonable starting point for the income of K’fame

39
Friends Cafe. However, expecting to have an increase in customers with

time, and from this the forecasting will steady increase in sales by 10%

annually for the first five years. After the five year period the project sales will

stabilize, leaving K’fame Friends Cafe with monthly average revenues of

P850,000.00 to P950,000, and an annual average revenue of

P10,300,000.00.

2020 and 2021 Sales of K’fame Friends Cafe

%
Month 2020 Sales 2021 Sales Differences
Differences
January ₱530,000.00 ₱556,500.00 ₱26,500.00 5%
February ₱500,000.00 ₱525,000.00 ₱25,000.00 5%
March ₱505,000.00 ₱530,250.00 ₱25,250.00 5%
April ₱515,000.00 ₱540,750.00 ₱25,750.00 5%
May ₱520,000.00 ₱546,000.00 ₱26,000.00 5%
June ₱505,000.00 ₱530,250.00 ₱25,250.00 5%
July ₱497,000.00 ₱521,850.00 ₱24,850.00 5%
August ₱505,500.00 ₱530,775.00 ₱25,275.00 5%
September ₱490,000.00 ₱514,500.00 ₱24,500.00 5%
October ₱500,000.00 ₱525,000.00 ₱25,000.00 5%

40
November ₱520,000.00 ₱547,000.00 ₱27,000.00 5%
December ₱545,000.00 ₱572,250.00 ₱27,250.00 5%
Annual
₱6,132,500.00 ₱6,440,125.00 ₱307,625.00
Income:

Monthly and Annual Sales Projections

% 2022 Sales 2023 Sales 2024 Sales 2025 Sales 2026 Sale
Month
Differences Forecast Forecast Forecast Forecast Forecas
January 10% ₱612,150.00 ₱673,365.00 ₱740,702.00 ₱814,772.00 ₱896,249.
February 10% ₱577,500.00 ₱635,250.00 ₱698,775.00 ₱768,653.00 ₱845,518.
March 10% ₱583,275.00 ₱641,603.00 ₱705,763.00 ₱776,339.00 ₱853,973.
April 10% ₱594,825.00 ₱654,308.00 ₱719,738.00 ₱791,712.00 ₱870,883.
May 10% ₱600,600.00 ₱660,660.00 ₱726,726.00 ₱799,399.00 ₱879,338.
June 10% ₱583,275.00 ₱641,603.00 ₱705,763.00 ₱776,339.00 ₱853,973.
July 10% ₱574,035.00 ₱631,439.00 ₱694,582.00 ₱764,041.00 ₱840,445.
September 10% ₱565,950.00 ₱622,545.00 ₱684,800.00 ₱753,297.00 ₱828,607.
October 10% ₱577,500.00 ₱635,250.00 ₱698,775.00 ₱768,653.00 ₱845,518.
November 10% ₱601,700.00 ₱661,870.00 ₱728,057.00 ₱800,863.00 ₱880,949.
December 10% ₱629,475.00 ₱692,423.00 ₱761,665.00 ₱837,831.00 ₱921,614.
Annual Sales
₱7,084,136.00 ₱7,792,554.00 ₱8,571,808.00 ₱9,429,007.00 ₱10,371,88
Forecast
Marketing Budget

K’fame Friends Cafe has an average of ₱1,300,000.00 annual gross sales

with a total average income of ₱3,900,000 for 3 years. In this 3 years, 19.5%

of its each revenue per year which is ₱780,000.00 will be used in the

marketing plan and strategies to be implemented for a better branding of the

company. The budget summary will be presented in a chart form for the

understanding of each of the materials and activity needed to be done in this

plan.

K’fame Friends Cafe Capital Expenditure

Sales

41
Beverage ₱3,864,075.00
Food ₱2,576,050.00
Total Sales ₱6,440,125.00
Cost of Sales
Beverage ₱1,134,075.00
Food ₱1,050,040.00
Total Cost of Sales ₱2,184,115.00
Gross Profit: ₱4,256,010.00
Controllable Expenses
Salaries and Wages ₱1,200,000.00
Employee Benefits ₱200,000.00
Other Controllable
₱100,000.00
Expenses

Total Controllable
₱1,500,000.00
Expenses
₱2,756,010.00

Income Before Occupancy cost


Interest, Depreciation, and Income Taxes

Occupancy Cost ₱500,000.00


Interest 300,000
Depreciation 600,000
Total ₱1,400,000.00

Cafe Profit: ₱1,356,010.00

Budget Summary of Marketing Plan (3 Years)

Total Gross Sales: P3,900,000.00 | 19.5% of P3,900,000.00 = P760,000.00

Quantity Estimated Budget


Expansion (Cafe) ₱350,000.00
Materials ₱50,000.00

42
Flyers 1000 ₱5,000.00
Business Card 1000 ₱5,000.00
Banners 50 ₱8,000.00
Brochure 3 ₱5,000.00
Public Relations and Events 3 ₱30,000.00
Social Media ₱5,000.00
Blogs ₱3,000.00
Website ₱3,000.00
Training 3 ₱20,000.00
Graphic Designs ₱5,000.00
Photographer/Videographer ₱15,000.00
Media Avertising ₱10,000.00
Marketing Team ₱50,000.00
Research Team ₱50,000.00
Operation Team ₱50,000.00
Outsource ₱10,000.00
Human Resource ₱20,000.00
Vloggers 2 ₱20,000.00
Others ₱46,000.00
Total Estimated Budget: ₱760,000.00
IX. Conclusion

Throughout the semester, the group of students were implementing new

marketing strategy that would best applied to K’fame Friends Cafe. According

to the research and analysis done for this study, many of the areas in the

establishment were executed carelessly, and the results were not positive.

Even though the coffee shop was generating profits, they were not enough to

compete with its competitors and grow their business. With the growing

demand and the rise of competition in this industry, it is important to adapt to

new strategies and ideas by understanding the marketing trends that could

be helpful to the business. In addition, K’fame Friends Cafe was in a situation

43
where it needed new ideas and new ways to do things. With the

improvements made by the student, the K’Fame Friends Cafe may improve

and will become more visible in the City of Victorias. Furthermore, many of

the improvements although are minor, but important when increasing

awareness and profitability. Thus, after the completion of the marketing plan,

we have all come to the conclusion that with the proposed marketing strategy

presented, K’fame Friends Cafe will be able to continually innovate and

improve their products and services, expand their business, generate more

sales and profits, and be successful in this competitive field of Food and

Beverage Industry.

44
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