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Pamantasan ng Cabuyao

Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION i

THIRD-PARTY: UNDERSTANDING THE LIVED EXPERIENCES OF

CABUYAO CITY FOOD BUSINESS OWNERS IN INVESTING

A Thesis Presented to the College of Business Administration and Accountancy

Pamantasan ng Cabuyao

In partial fulfillment of the requirements for the

BAC107A: Feasibility Study

Mahinay, Me-Ann A.

Parala, Rhaine Aira O.

Rodriguez, Cher Angeline R.

2022
Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION ii

Acknowledgement

We thank God, the All-Powerful, first and foremost for giving us this opportunity and

giving us the ability to do so. Thanks to the help and direction of many people, our

humble participants who shared their experiences to make this study possible. We also

would like to thank our friends, who supported us to finish this study. Therefore, we

would like to express our profound gratitude to everyone.

Additionally, we would like to convey our sincere gratitude to our adviser, Professor Ma.

Herbel Endencia, for her kindness, patience, and compassion, as well as sharing her

expertise while conducting the research. Also, we would like to thank Dean Fernando

Pendon III, our research professor, for guiding us with this study.

Last but not the least; we would like to thank our family who supported us financially and

mentally throughout writing this study.

-The Researchers
Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION iii

Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

The Covid-19 pandemic is primarily a global health crisis, but also has vast

economic and social impact. It has also brought challenges to businesses as they need to

cope with the struggles caused by the virus. According to Menon (2020), in this time of

challenges for business owners, one must be able to survive and learn to adapt. According

to a recent Raydiant (2020) study, without investing in delivery services, around 40% of

food businesses would be unable to keep their businesses open during the covid-19

pandemic. Even before the COVID-19, the on-demand economy driven by Uber, Netflix,

and Amazon had already begun to influence the restaurant industry. Convenience was

desired in all aspects of consumers' lives, including food. Restaurants are now looking to

food delivery services not only to sustain their business during a pandemic, but also to

strategize and join the bandwagon. Even large corporations like McDonald's are adapting

to the new normal, as such small business owners must as well (Norris et al., 2021). The

one-click order placement process from your mobile phone using the on-demand delivery

service app online has made a significant impact on people all over the world.
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION iv

According to the Business of Apps website survey, the revenue growth of this

food delivery business increased from 8.7 billion USD to 26.5 billion USD between 2015

and 2020. It is also expected to grow to 42 billion USD by 2025. It forecasts 61.53

percent revenue growth over the next five years (Curry, 2022). Since it has been

demonstrated that the demand for food delivery and the entire online ordering system has

increased significantly, businesses must consider the wider context when deciding to

utilize a food delivery system in the business process.

Food delivery is a long-term investment, so it is necessary to make research first

before deciding to implement it in the whole business process. Before it can be used for

business, it requires cash and capital investment because it has many costs. It will be less

work for a business if it uses a third-party partner for both ordering and delivery but

having that requires sharing of profits with that platform. The costs of partnering with a

third-party food delivery service may include (1) a one-time setup fee to add your menu,

find hardware and software for your restaurant, and get on the map. (2) Transaction fee,

most apps will charge a per transaction fee, which is a percentage of each other. The

percentage varies depending on where you are – busier areas typically have higher fees.

The percentage of transaction fees charged may differ depending on the delivery provider.

Some third-party apps also charge (3) marketing fees; most apps offer priority placement,

promoted listings, and featured offerings – for a fee. Prices vary depending on which
Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION v

third-party app you use (McCan, 2022). This research will further investigate the

usability of Third-Party Partnership by analyzing how valuable it is as an investment as

perceived by the lived experiences of Cabuyao food business owner. It is significant

because its partnership entails fees derived from profit or a portion of capital expenditure

for newly established businesses. This will aid business owners in planning their

investment, budget management, decision-making, and risk management decisions, all of

which are critical in any business operation. The researchers will focus on analyzing the

lived experiences of business owners in Investing, operating particularly in Cabuyao City

Laguna.

Theoretical Framework

Technology Acceptance Model (1989)

Technology Acceptance Model (TAM) is a theory that describes how users come

to accept and use technology, with two primary factors influencing individual intentions

to use new technology: perceived ease of use and perceived usefulness (Davis, 1989).

Consumers who do not want to go outside but also do not want to prepare meals at home

will be most likely to adapt technology because it is easier and convenient to them. Take

another example, a working woman who needs to finish her deadlines will also most

likely use technology to deliver some meals at her doorsteps. Cabuyao Menus is a new

online platform for customers of the Cabuyao area's local food industry. Limited face-to-
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION vi

face transactions in accordance with IATF protocols. Online transactions and virtual

communication are highly recommended. As a result, customers are influenced to use

technology and the internet because they play an important role in keeping our society

functional during times of lockdowns and quarantines (Xiao and Fan, 2020).

Research Paradigm

Figure 1. The Conceptual Framework

This concept map is used by the researchers to better understand the study. This

will serve as the foundation for further investigation of the researcher's idea and other

existing relevant studies. As a theoretical framework, the research utilizes the

Technology Acceptance Model, which is where food business owners and consumers
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION vii

arrive at using food delivery services. Investing in a third-party partner is where food

business owners will find other businesses that can provide online food delivery or

ordering service. Because of the perceived usefulness and ease of use of technology, the

three variables will now be the restaurant (food business owner), the food delivery

service provider (Cabuyao Menus), and the consumer. Consumer feedback and comments

received via Food Delivery Service will be forwarded to the food business owner, who

will use them to make improvements and suggestions.

Statement of the Problem

It is crucial for businesses not to take advantage of technology nowadays. In a

world where everyone is in a fast-paced environment, everyone must adapt to the changes

that are being brought by man. Many businesses have been forced to close because they

deny utilizing modern business operations and still use the traditional ones. Technology

has become critical in taking competitive advantage may it be a local or global market. In

consequence, businesses must not just look at their strengths but also at their weaknesses.

Investing in food delivery service providers entails advertisement fees, annual partnership

fees, commission fees, and any other cash disbursement that is important in cash

management and entire business operation. Hence, this study will further analyze the

lived experiences of Cabuyao food business owners that invest in a food delivery. To

support or oppose the existing studies, the study aimed to answer the following questions:
Pamantasan ng Cabuyao
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION viii

1. What are the lived experiences of Cabuyao City food business owners in

Investing?

2. How do the Cabuyao City food business owners face the demands and

challenges in Investing?

3. Based on the lived experiences of the food business owner in investing, what

action plan can be developed?

Scope and Delimitations

The study will focus on the demands and challenges of business owners in

investing in third-party delivery services. The primary participants of this study will be

ten (10) selected food business owners in Cabuyao City, Laguna. There will be criteria

for choosing respondents to narrow down the numbers of existing businesses around the

city. It will help researchers to clearly investigate and analyze the phenomena.

Furthermore, participants will be purposely selected from a list of Cabuyao Menus

business partners.

Significance of the Study

The researchers aim to learn about the real-life experiences of food business

owners in Cabuyao City, especially when it comes to investing in online food delivery
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION ix

services. The researchers’ goal in conducting the study will benefit the following

individuals:

Business owners. Business owners will understand how to invest in and utilize

online food delivery services to boost sales, expand the market and retain customers. On

the other hand, the study would benefit those business owners by strengthening their

business operations.

Food delivery services owners. The result of this study will provide food

delivery services owners with empirical information on the effect of online platforms on

the food business. Thus, it will lead food delivery services to an effective strategy in

handling business in a pandemic.

Entrepreneurs. The study will provide new information and ideas about the food

industry, food delivery services and investing.

Customers. This study will help them to understand the services they use and

how they relate to the food business from which they order.

Students. It will help them better understand the concept of online food delivery

services, their effects, benefits, and advantages.

Researchers. They will benefit from the study in terms of improving their

research skills and knowledge. Furthermore, the study will assist researchers in
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determining the results on challenges and demand, as well as the lived experiences of

food business owners investing in third-party services that they aim to investigate,

analyze, and understand.

Future researchers. The study presented will be used as reference data in

conducting new research. The study will also serve as their cross-reference that will give

them a background or an overview of how food business owners face the demands and

challenges in investing.

Definition of Terms

The following terminology are explained in order to better comprehend the subject that

will be covered in the study:

Brick-and-mortar Revenues. The profit or revenue generated from the physical

store of the business.

Commission fees. The payment of food business to online food delivery service

from rendering services.

Covid-19. The coronavirus disease that is contagious. Transmitted through the air

at a distance of 6 feet from an infected person, as well as through respiratory droplets.


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Customer Loyalty. The retained customer of the food business that repurchases

food products.

ECQ. Enhanced Community Quarantine is the government protocol during Covid

pandemic, wherein people stay at home to avoid spreading the virus.

Food Delivery App. Is an application that can be installed in customers' mobile

phones to order food and drinks in restaurants and fast-food chains online.

Food Delivery Providers. The third-party delivery service that has partnership

with food business and rendering delivery services to customers.

IATF. The Inter-Agency Task Force, the government agency that manages

COVID 19 related cases.

Investing. It is another way to diversify money. Investing to generate a return,

whether an income or the ability to grow.

Platform-to-Consumer Delivery. The food business uses online food delivery

services to serve their customers.

Restaurant-to-Consumer Delivery. The food business uses their own delivery

services to serve their customers.


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Social Media Platforms. Is like Facebook, Instagram and Twitter and used by

food businesses and customers to communicate virtually.

TAM. Technology Acceptance Model is the theory used in the study to relate the

use of technology in modern business.

Third-Party Partnership. The food business that works in collaboration with an

online food delivery.


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Chapter 2

REVIEW OF RELATED LITERATURE AND STUDY

This chapter reviews the related literature, which supports and gives credence to

the details of this research. The researchers anchored this comprehensive study to

different viewpoints and perspectives to present a thorough treatment of the problem.

Concepts, findings, theories, and notions, from scholarly research and articles related to

Food Business and Investing in Food Delivery Service Provider, are presented to provide

an extensive background of the study and justify the researcher's objective in undertaking

it. It will also provide a synthesis of related literature that may be confirmed, negated, or

improved by this study's new knowledge.

FOOD BUSINESS AND FOOD DELIVERY IN THE PHILIPPINES

According to Law Insider (2022), Food Delivery Services mean online food

ordering platforms that will charge franchisees a fee for their delivery services from 13%

to 40% of each customer's total order. Moreover, it is called Online Food Delivery

Services because orders are processed online using the internet and mobile phones.

According to an article from Sri (2021), a report by venture-capital builder,

Momentum Works, showed that food delivery in SEA reached $11.9 billion in GMV in

2020. This far exceeds the $4.2 billion industry estimate in 2019, and $2.2 billion tally in
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2018. The 2020 GMV estimation by Momentum Works combines on-the-ground sources

including from restaurants, delivery fleets, and other stakeholders (Legaspi, 2021).

According to e-Conomy SEA (2020), a report by Google, Temasek, and Bain &

Company, “Disposable income and offline spending on food and beverage may be low in

SEA; but overall food service spending has been growing with economic growth and

urbanization. With the proliferation of smartphones, online food delivery spending has

been growing healthily. While the average food delivery order is lower in SEA compared

to other regions, this can be offset by high volumes and density”.

The most popular Online Food Delivery apps in the Philippines are Lala food,

Food Panda Philippines, GrabFood Philippines, and Zomato PH. Meanwhile, the most

popular Online Food Delivery Services in Cabuyao City are the Cabuyao Menus Food

Delivery Service, Mangan.ph, FoodPanda, GrabFood, and Cabuyao Food Delivery. In a

study by Gupta (2019), Good Delivery performance can help restaurant operators

cultivate customer loyalty. As defined by Investopedia (2021), Customer loyalty is

demonstrated by repeat purchases of a product even when the consumer has choices of

competing alternatives. The excellent service performance of Online Food Deliveries to

customers positively influenced Food Business.

According to the study of (Dano et al., 2021), these third-party restaurant delivery

organizations charge restaurants excessive commissions for each client order when the
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genuine paramount worth they bring is helping new clients discover eatery for the first

time. Like Grabfood, where commission for every order amount to 10 to 25%, and

Foodpanda, where order commission is around 25–30% per order. Based on this

statement, commission rates and other additional fees towards restaurants charged by

apps slowly killed their profitability. If this keeps happening, how the restaurants would

earn enough profit to survive, the only option for the restaurants would be to increase

their prices, which may affect their customers, or develop their delivery systems, which

will incur more expense to the companies. That is why many restaurants have stopped

collaborating with the apps and are using third-party delivery systems to cut costs and

make better profits. The Online Food Delivery charges a commission fee to their

partnered Food Business to gain profit. However, high commission rates badly affect the

Business's profit. For a business to earn a profit, they need to raise its prices. In return,

customers buy fewer products, and again the company will lose sales or profit.

INVESTING IN THIRD-PARTY DELIVERY SERVICES

According to Snaiderman (2022), from his article titled “Should I Use a Third-

Party Delivery Service or Create My Own?”, using a third-party delivery service is great

for start-up businesses. It already has a built system and business owners may not worry

about the cost of having its own delivery system. These apps contain excellent marketing

tools as they allow the business to reach customers that might not have reached otherwise.
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These food delivery service providers have consumer smartphone apps that aggregate a

never-ending stream of restaurant options for hungry diners to choose from. Businesses

upload a list of menu available and important information, then customers place orders

directly from their phones to the in-house tablet, where an expediter calls out their order

to the kitchen. questionable profitability and low barriers to competitive entry. By then,

Investors should evaluate several different functional areas of the food delivery service

business in order to prepare for a potential transaction. Businesses' due diligence includes

examining the prospective food delivery partner's operational performance, food and

labor cost analysis, potential guest experience improvements, capacity, and market

analysis in order to identify risks and estimate the potential return on investment more

precisely.

In some cases, restaurants had to hire an extra person to spend a significant

amount of time packing up delivery orders and preparing them for pickup by a driver.

Deciding to work with a third-party delivery vendor will typically take a percentage of

each order the business makes. Uber Eats, for example, charges a fee of approximately

30% of every check brought to the restaurant via Uber Eats. For restaurants with razor-

thin margins, this can be an unsustainable cost. If a business owner decides to use a third-

party delivery service, it is necessary to check which services are operating in your area,

what percentage of each check the service absorbs, and whether diners in your region are
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION xvii

using third-party delivery services or they prefer to order straight from you. According to

Allen (2022), In its current state, the food delivery industry holds a lot of promise but

offers few clear winning investment ideas. While the sector may appear enticing due to

the sheer size of the restaurant industry's annual revenue haul, it is ultimately a service

business with.

Partnerships are highly beneficial, especially to a start-up. With the right partner,

a business can increase the overall pipeline, access otherwise high-cost infrastructure, and

reduce the risk of pursuing growth. The reality, however, is that most business

partnerships fail for one reason or another. Third-party partner means any partnership

engaged in Customer for the Processing of Personal Data. Start-ups must take advantage

of partnerships. According to Barry (2022), in his article "10 Steps to Developing a

Successful Third-Party Fulfillment Partnership", Startups should seriously consider

outsourcing to avoid capital use for facilities and systems and incur higher fulfillment

costs. A responsible restaurant owner must have understood in both the internal and

external issues that may affect their business. In the end, such a complete, transparent

perspective will support and validate not only the investing strategy, but also the financial

rewards in the business.

On the other hand, the challenge is that online food delivery service providers

continue to entice consumers with aggressive discounts and free delivery. Based on the
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION xvii

data from Stanley (2020), shows that this makes strategic sense because promotions and

deals influence 58 percent of consumers' decision-making. However, it is also leading to

negative earnings in every region.

Additionally, as stated by Stanley (2020), young and digitally savvy food

customers ages 18-34 are the most frequent users of delivery aggregators—but they are

also the most promotion-sensitive, with 63 percent checking for promotions and deals

before ordering or only ordering with a promotion. Taking restaurants' perspective, while

almost every chain has now added delivery, only a few can point to demonstrable sales

lift thus far. However, previous attempts at self-delivery for chains have had mixed

results. As the popularity of chain food delivery grows, online food deliveries enable

restaurants to reach new customers and new occasions in a low-risk model for the chains

themselves.

As supported by the study of McPherson (2019), The conclusion is that

businesses may make sure they are satisfying customer requests, market to new

customers, and track crucial consumer data and purchase trends that can guide essential

business choices by implementing a third-party delivery arrangement.


Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION xix

INVESTING BEHAVIOR OF FOOD BUSINESS OWNER

In March 2020, Enhanced Community Quarantine (ECQ) was implemented to

secure the safety of people due to the threat of Covid-19. The face-to-face transactions

and activities are limited. It affects the economy in general and Local Industries resulting

in decreasing sales because they could not operate. In the study by Fairlie and Fossen

(2020), they found that sales losses were most prominent in businesses affected by

mandatory lockdown, including food businesses.

As the government put higher restrictions on Food establishments and public

areas, the business owners developed a new business model to sustain their business,

adapting take-out and deliveries to consumers. In this technological advancement,

internet-based platforms play vital roles. Today, they are undeniably at the heart of the

digital economy (Lattanzi, 2020), opening the way for the rise of online food delivery

services and third-party delivery services. The worldwide pandemic has highlighted the

importance of Online Food Delivery in the lives of existing food consumers.

According to Lattanzi (2020), because millions of people were required to remain

at home to manage the health crisis, online food delivery services have become one of the

primary actors during quarantine. Alawan (2020) stated that, online food delivery

services have emerged as an alternative for reaching clients, offering them higher-quality

options in these difficult economic times. Online Food Deliveries also play an essential
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION xx

part in the long-term operation of the business. Orders placed using the website, smart

phone application, or messaging app have increased by 23% in the last four years,

amounting to a $26.8 billion sector. The rapid rise in popularity of food delivery services

like Uber Eats, Doordash and Deliveroo (to name a few) shows people love the

convenience of getting their meals delivered. In fact, a Statista report (2020) shows 8.7

million Aussies have ordered food online or through an app in 2020, compared with 5.6

million in 2017.

According to Curry (2022), As the world went into lockdown in February and

March, Uber Eats, Deliveroo, and DoorDash all reported a sharp increase in orders. In

fact, The popularity of online ordering through restaurant delivery applications has soared

recently, and sales are expected to reach $320 billion by 2029.

According to (Stephens et al., 2020), Using these third-party food delivery

services or a food business app, consumers may explore menus and place orders for take-

out or delivery from nearby food establishments. The need for variety, versatility, and

convenience among consumers was already high, thus increasing the use of food delivery

applications and websites globally. The COVID-19 crisis marks a new era, with a poll

recently revealing that more than 51 percent of customers rely on online food delivery.
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION xxi

FOOD BUSINESS AND THEIR CHALLENGES IN INVESTING

As food business establishments are filling up again and demand increases, food

delivery services do not seem to disappear anytime soon, although the government

lessens the restrictions and enables 100% capacity operations. There are many reasons for

this persistent change in customer behavior toward variety, versatility, and convenience

where food businesses might benefit from addressing some of the underlying issues.

According to Li, Mirosa, Bremer (2020), During the global COVID-19 outbreak,

online food delivery benefits were evident. It improved consumer access to prepared

meals while allowing food providers to remain open. However, there have been reports of

consumer and restaurant boycotts of online food delivery. Food delivery services have

been criticized for charging high commission fees to restaurants.

When customers order food through an online delivery service, users usually must

pay charges on top of the cost of the food. A few of these extra costs can be a registration

fee, a service charge, or even a tip for the delivery rider. According to an article released

by The Wall Street Journal, some restaurants are accountable for the rising expenses of

delivery orders. For example, as stated in reports, Chipotle's delivery pricing is around 17

percent more than instore pricing. The Wall Street Journal indicates that DoorDash

customers pay $15.95 for a Chipotle meal that would initially cost $13.65 if purchased in-

store.
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Some other underlying challenge surrounding the Food delivery service is the

lack of control over the delivery service. Many food businesses claim that bad service

during delivery affects their reputation more than the public image of the delivery service

and that the time it takes to deal with customer complaints and refunds is more

complicated than it sounds. Consumers' impressions of a restaurant may be damaged if

their meal is delivered cold or poorly handled after a long drive. Due to the lack of face-

to-face interaction, the business may also have fewer chances to recover a negative

complaint when customers consume their product (McCan, 2020).

As stated by Kumar (2022), another challenge would be order errors and delays.

Orders might be delayed because of preparation time, traffic, and other circumstances.

Similarly, orders are occasionally delivered incorrectly. In this situation, consumers

might raise complaints and leave negative feedback on the business's profile. As the

demand increases because people enjoy ordering online, the rise of high competition can

also be observed. Several applications and websites meet people's choices and food

demands resulting in the competition of different food businesses and delivery sites

The food delivery industry is now leading the online market and expanding

rapidly. Every day, a large number of new customers join the ranks of online food

ordering customers. Because of customer demand and future opportunities, most

entrepreneurs, especially small food businesses, have recently entered this industry. Since
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business cannot avoid issues or challenges especially when investing, certain situations

may create difficulties to the business operation. Companies must therefore develop more

effective solutions to these issues in order to remain competitive and grow. Before

entering the online food delivery market, entrepreneurs should be aware of the challenges

that may arise at any time in their operations. (Business Process Incubator, 2021)

According to the Info Entrepreneurs Organization (2021), The solution to several

problems is resource management. Managing resources can aid a business in performing

its tasks effectively and efficiently. It leads to the development of a customer base. And

since investing requires capital and it requires monetary issues to be considered,

Developing a budgeting process is the most effective way to keep your company's

finances on track. Planning in a structured manner can greatly influence the growth of the

business. Entrepreneurs needs to focus their efforts on boosting revenue, cutting

expenses, and boosting returns on investment.

INCREASE IN SALES AND CUSTOMER LOYALTY

According to Frost and Sullivan (2018) and Morgan Stanley Research (2020), On

demand food delivery services are expected to be worth $82 billion in gross sales by

2018 and will account for approximately 6% of the food business industry in 2020. As

the businesses accept the conceptualization of utilizing Online Food Deliveries, some

have seen a boost in their incremental sales. According to Collison (2020), as per the
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difference-in-differences approach, 30-50 cents of every dollar spent on online food

delivery services is incremental, while the remaining is diverted from brick-and mortar

revenues.

Collison (2020) claimed that, online food delivery services aim to increase

business profits. As shown in a study of thousands of restaurant owners, providing online

delivery services has increased revenues for 60% of restaurant owners. Online food

delivery services generate significantly larger additional revenue for people who rarely

eat at restaurants. Meanwhile, Morgan Stanley predicts that food delivery services will

ultimately account for 40% of restaurant revenues. In an article released by McCarthy

(2021), DoorDash partner and co-owner of PizzaCo in Kokomo, Indiana, Bethan Johnson

quoted, "We are seeing the app. Even Dashers are coming back to order their dinner after

completing a delivery." According to McCarthy (2021), food delivery services offer

convenience. Consumers who order food delivery save the time and effort necessary to

go out and purchase food or make one regardless of where they are. People stuck in their

homes or workplaces prefer accessibility to tasty and healthy meals that can be served

quickly and easily.

Another advantage is building Customer Relationships. Neuburger (2020) quoted,

"Partnering with delivery platforms can enable restaurants to gain access and forge

relationships with a new, broader customer base." Aside from this, during busy days,
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restaurants can extend their delivery area, increase the size of their workforce, and reach

more customers (Neuburger, 2020). Food delivery services also offer efficiency for food

businesses. It streamlines digital transactions in a timely manner, allowing for the most

efficient workflow in the kitchen (McCarthy, 2021). Unlike the traditional way of taking

orders, where staff receives orders from calls and lists them on paper. Like the American

Food delivery platform DoorDash, explicitly developed for the highest efficiency. It

implies that the service handles all the mechanics of online purchases, from placing and

preparing an order to updating the delivery riders, also called Dashers, to pick it up and

deliver it.

Reaching new customers and the significance of the food business's online

presence are two variables that contribute to the incremental revenue. Consumers browse

online for restaurants to order from 90% of the time. Thus, accessing this captive

audience should be a priority for every restaurant owner (McCarthy, 2021). Possessing a

food delivery service presence is a great way to connect with customers who would not

normally eat at your restaurant. According to Sandra (2021), a business can reach new

clients outside regulars and area customers by offering online purchasing through a food

delivery app. It can increase sales from both new and existing customers by boosting

your brand's online presence in the marketplace.


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Customer loyalty is beneficial to the food business as it increases profitability and

opens new market segments (Gupta, 2019). In a study by Suhartanto et al. (2018), e-

service quality is one of the factors influencing customer loyalty towards OFD service.

The customer experience in accessing online platforms, simple ordering, and delivery

service has a significant effect on customer perception of better service quality. In

addition, food quality is another factor that influences customer loyalty towards OFD

service. According to Rica (2018), quality food has consistency in terms of size,

color, and shape like the pictures provided and products must be properly packed and

sealed. High quality food influences customers to repurchase and recommend the same

OFD service that satisfies the customers’ perception of food quality (Suhartanto et al.,

2018).

Food quality of food business and e-service quality of OFD service both have

significant effects on customer loyalty. A food business that provides high quality food,

and innovated food according to customer demands and preferences retain customers

while also attracting potential and new customers (Suhartanto et al., 2018). Furthermore,

food businesses that do not provide delivery service and do not own a delivery service,

investing in third-party delivery services that have excellent delivering services and good

reputation is an advantage to food businesses.

Synthesis
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The unexpected lockdowns have greatly affected food businesses since the

beginning of the pandemic; they have lost sales and profit (Fairlie & Fossen, 2020).

Millions of people are forced to stay at home during the quarantine period, making online

food delivery services a significant food industry player (Lattanzi, 2020). In these

difficult economic times, online food delivery services have emerged as an alternative for

reaching clients, offering them higher quality options (Alawan, 2020). The study by

McCarthy (2021) found that since the start of the COVID19 crisis, more customers have

relied on online food delivery as it offers convenience. Investing in online food delivery

has become beneficial to food businesses as it aims to increase business profit (Collison,

2020) and efficiency (McCarthy, 2021). Additionally, it enables restaurants to gain access

and form relationships with a new, broader customer base (Neuburger, 2020), allowing

food providers to remain open (Li, Mirosa, and Bremer, 2020).

The related literature proves that pandemic significantly impact food businesses,

as the current study claims. The advantages that have been mentioned by different

authors above regarding the usage of food delivery services that become relevant and

prominent in times of a pandemic are related to the current study as researchers aim to

determine the live experiences of business owners in third-party partnerships.

Furthermore, online food delivery services are becoming one of the factors or strategies

that food business owners have used to continue operating, connecting with customers,
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and, most importantly, generating profit, which researchers aim to criticize and

investigate.

Regardless of the benefits food delivery services contribute to the food industry, it

is critical to remember that they are also a disadvantage. The discounts and free delivery

that attract customers (Stanley, 2020) and the commission fee charged by food delivery

services have a disadvantage to food business profitability. Furthermore, food delivery

services lack control over the delivery services (McCan, 2020), and order errors and

delays negatively impact the customer (Kumar, 2022). The study by McCan (2020) stated

that competition between different food businesses and delivery sites is inevitable as

various apps and websites cater to people's preferences and food demands.

These challenges that have been found by different authors regarding the

utilization of food delivery services are related to the current study as challenges and

struggles of food business owners regarding investing in third-party services or food

delivery services.
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Chapter 3
RESEARCH METHODOLOGY

This chapter discusses the research design, the selection of the respondents as

well as the instrumentation and validation, data gathering procedures and treatment and

analysis of data.

Research Design

For the purpose of describing the meaning of people’s lived experiences of a

concept or phenomenon, the researcher will employ phenomenological research design

under Qualitative research which focuses on identifying and analyzing what all the

participants have in common as they experience a phenomenon. This is to be done by

reducing individual experiences with a phenomenon to a description of the universal

essence (a “grasp of the very nature of the thing”, Van Manen, 1990 as cited by Creswell,

2014). The researchers aim to identify the lived experience of the food business owners

in Cabuyao Laguna.

Research Locale

The study was conducted at Cabuyao City Laguna. Business owners operating

inside the vicinity. All the chosen respondents reside in the following barangays in the

City of Cabuyao: Brgy. Uno, Dos, Banay Banay, Pulo and Niugan.
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Population and Sampling

Purposive sampling will be used in this study. The wide number of food business

owners of the study, which is the population of the study, this sampling technique will

narrow down the number of respondents that will be used in the better understanding of

the study. The study will be conducted in Cabuyao City Laguna which is part of Region

IV-A Calabarzon. The researchers chose purposive sampling because it can obtain a

representative sample by relying on researcher judgement, which can also save time and

money (Black k., 2020). In this study, the researchers selected ten (10) food business

owners that voluntarily share their lived experience on Third-party investing. These

participants are in partnership with the local food delivery service (third-party partner),

Cabuyao Menus, which is part of the criteria that will be further explained in the next part

of this study.

Participants of the Study

Before determining the chosen (10) respondents, criteria must be established.

Eligibility criteria specify the characteristics that people in the population must possess

characteristics needed in the study in order to be included on it. In this study, a participant

should be a food business owner that operates within Cabuyao City Laguna; Has

partnership with Cabuyao Menus for at least (1) year; and the respondent’s business
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should be locally owned. With criteria, the researchers will have ideal characteristics that

will be effective in analyzing the perception of food business owners.

Research Instrument

This study will utilize traditional and modern in-depth interviews using a

predesigned protocol containing the research questions comprising 5 WHAT (Textual)

and 5 HOW (Structural) questions capturing the lived experience of the participants,

which are general and open-ended following the guidelines of Moustakas (2004) as

reinitiated by Creswell (2017). The interview format is a semi structured interview that

enables the participants to answer freely. The participants can give a wider answer and

explanations to the questions asked. They can express their thoughts wider and that can

help the researchers to have a better theme. Their answers in open-ended questions are

expressed more than the usual yes or no answer using the format of semi structured

interview.

Validation of the Instrument

The in-depth interview of this study will be semi-constructed and not standardized,

it will be presented to school administrators, faculty members with knowledge about the

study, and some experts in the field of qualitative research who will provide comments
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and recommendations to ensure content validity. Through the protocol, the researcher

will be able to take notes during the interview about the responses of the participants.

Data Gathering Procedure

After the validation of the research instrument, the researcher will follow the data

gathering procedure.

1. The researchers will select the participants who are food business owners who

invested in food delivery services located in Cabuyao City, Laguna.

2. After gaining permission and building rapport with the food business owners, the

interview schedules will be set.

3. Finally, the actual face to face or online interviews will be conducted.

Ethical Considerations

The researcher will complete the study bearing in mind ethical considerations

especially in terms of informing and seeking permission from the participants.

Prior to the video-recorded and audio recorded interview, every participant will be

assured of absolute confidentiality and asked to sign a consent form informing him or her

right to withdraw from the study at any time.


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The participants will be given a privacy consideration to decide if they want to

hide their identity. And researchers ensure confidentiality of the data gathered and

collected and will only be used for academic and research purposes. Any information that

will affect the business’ reputation was not stated.

Treatment of Data

The following are the qualitative data treatments applied in the study connected to

the problems stated in Chapter 1:

1. The researchers will conduct an interview for (10) participants. It will be recorded

using audio recording and it will be typed verbatim in a word document.

2. The researchers will examine and analyze the recorded interviews using thematic

analysis to identify, analyze, and report repeated patterns (Braun and Clarke 2006)

and themes that represent all of the participants’ responses to certain questions

that will be asked. The researchers will assess it and describe the themes that

arose from all the participants' responses.

3. The researchers will make reflections and recommendations based on the results

of the study.
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Chapter 4

RESULTS AND DISCUSSION

This chapter presents how the researcher completed the process of bracketing,

horizonalization, theme clustering, constructing the textural and structural descriptions,

writing the overall essence, and verification of the lived experiences of the Cabuyao City

food business owner in Investing.

Theme clustering was done by analyzing, outlining and grouping the significant

statements into themes or meaningful units. It was able to identify seven theme clusters

divided into two. The first group of theme clusters was formulated to answer the central

questions of the study: What are the lived experiences of Cabuyao City food business

owners in Investing (textural description). The second group of themes answered the

second central question: How do the Cabuyao City food business owners face the

demands and challenges in Investing (structural description). Table 1 presents the

groupings of clustered themes based on the significant statements and their relative ideas.
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Table 1

Theme Clusters Divided into Two Groups

Group A: Textural Themes

Theme 1. Pandemic Experiences

Theme 2. Factors in Investing

Theme 3. Investing Experiences

Improve Customer Experience

Increased Customer Reach

Brand Awareness

Theme 4. Boost in Incremental Sales

Group B: Structural Themes

Theme 5. Budgeting and Planning

Theme 6. Investment Planning and Decision

Risk-taking

Background Check

Investment Decision

Theme 7. Strategic Management


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The participants have shared their experience as food business owners in Cabuyao

City. The Covid 19 Pandemic was a notable experience that affected their businesses at

that time. Since it became a trend and a way of coping up for most businesses, they

decided to invest in a Food Delivery Services. They also share their sentiments on how

they decided to invest in Cabuyao Menus, a local food delivery service provider in

Cabuyao. Moreover, most of them share that their investing experiences have helped

them as a food business owner and also their business as well. Furthermore, they

indicated that the Food Delivery Service provider, specifically Cabuyao Menus, has

helped them to increase and boost their sales, which is in their perspective the overall

benefit of their investment.

The researchers classified seven (7) themes to answer the central questions in the

study: What are the lived experiences of Cabuyao City food business owners in Investing?

(Textural description); and how do the Cabuyao City food business owners face the

demands and challenges in Investing (Structural description).

What are the lived experiences of Cabuyao City food business owners in Investing?

Theme 1. Pandemic Experiences

During the pandemic, all industries have been affected, especially the food business

industry. Before the pandemic happened, most local food businesses offered only dine-in
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and take-out. To sustain the business, they decided to invest in a food delivery service to

generate revenue and stop the possible business loss. Participants of the study share

common experiences during the pandemic that pushed them to invest in a Food Delivery

Service. According to them:

(P1) Tsaka naging trend talaga siya nung pandemic. Kasi gawa ng pandemic di

makalabas kaya malaking tulong sya sa mga ganyan yung mga ano lang solo store, yung

ikaw lang.. Business na di naman katulad ng mga bigating fast food.. Malaking tulong

sya.

(P3) The pandemic pushed us to have delivery services because it is the only way

to bring our products to the customers who availed it.

(P6) needed din naman kasi yun for rise ng sales namin for that certain period of

time lalo na nung medyo konti yung nakakalabas

(P7) good ano malaking advantage lalo na sa pandemic na nangyari kasi unang

una yung tao takot makipag halubilo sa…sa…ibang tao, then yung delivery kasi mas uh..

Convenient

(P9) since nagkaron ng pandemic may mga businesses talaga na humina dahil

sa nagkaron tayo ng..ng pandemic and then with food delivery service like Cabuyao
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Menus…sobrang uhmm helpful nila kasi parang ano sya eh imbis na lumabas pa

papadeliver ka na lang kasi diba sayang effort and time kung kaya naman ding ipadeliver

These claims tend to support the inquiry of Lattanzi (2020), according to him

because millions of people were required to remain at home to manage the health crisis,

online food delivery services have become one of the primary actors during quarantine.

In another study of Alawan (2020) he also stated that online food delivery services have

emerged as an alternative for reaching clients, offering them higher-quality options in

these difficult economic times. As stated by the participants, because of the Covid 19

crisis they are pushed to invest in food delivery services to keep their business running

and let the customers still be able to reach them. Furthermore, the COVID-19 crisis

marks a new era, with a poll recently revealing that more than 51 percent of customers

rely on online food delivery (McCarthy,2021).

Theme 2. Factors in Investing

Given the restrictions during the pandemic, food businesses decided to invest in a

Food delivery service because of some factors that pushed them to collaborate with them.

Participants shared some common experiences that reveal the factors that make business

owner decide to invest in a Food Delivery Service:


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(P1) Yung sa Cabuyao Menus parang ano pa yon… Napapansin ko dun sa mga

restaurant may karatulang nakalagay.

(P3) Cabuyao Menus reached us out to partner with them, I considered it because

during that time our in house riders were not enough to cater all our deliveries so I

agreed so that there will be another courier for us.

(P10) Nung time na nga yon na sa facebook nakikita namin na si Cabuyao Menus

ang sikat dito sa Cabuyao.

The findings of this study supports the inquiry of (McCarthy, 2021) which shows

that the COVID-19 crisis marks a new era, with a poll recently revealing that more than

51 percent of customers rely on online food delivery. The rapid rise in popularity of food

delivery services like Uber Eats, Doordash and Deliveroo (to name a few) shows people

love the convenience of getting their meals delivered. In fact, a Statista report (2020)

shows 8.7 million Aussies have ordered food online or through an app in 2020, compared

with 5.6 million in 2017. According to Curry (2022), As the world went into lockdown in

February and March, Uber Eats, Deliveroo, and DoorDash all reported a sharp increase in

orders.

Theme 3. Investing Experiences


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While some of the participants shared that investing in a Food Delivery Service

like Cabuyao Menus helped them during the Covid crisis, they can recall the actual

benefit and value of their investment based on their lived experiences. To measure the

worthiness of their investment, they look into some benefits they receive by paying some

amount of their financial cost that they consider affected the business. The participants in

the study shared and recalled:

● Improve Customer Experience

According to the participants, food delivery services improved their customer’s

experience in purchasing the foods they offer.

(P1) sa Cabuyao Menus may actual talaga na person na sumasagot sayo hindi

yung sa app lang, kaya mas convenient sya like kapag may request yung mga

customer..ayan..mas nabibigay yung..as a merchant mas nabibigay namin yung

kailangan na quality.

(P3) Delivery services for me provides convenience to the people who wants to

eat your products at the same time gives people jobs, like what happened during the

pandemic.
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(P7) kaya mas ano sa amin na mas..halimbawa na lang maulan yung panahon

may mga taong tinatamad lumabas ng bahay gagamit na lang silang app paraideliver

yung gusto nilang foods, drinks ganon

● Increased Customer Reach

Food business owners were able to increase their customers as they partnered with

food delivery services. It helped them reach people that were not able to leave their

homes and people who are unaware of their business.

(P6) yun, people who are restricted to go out like yung senior, with comorbidities

tsaka yung medyo out of di ba may restricted areas lang yun, out of the area natin, sakop,

narereach namin so you’re able to expand available customers namin through delivery.

(P7) And oo mas nakilala kami ng customers siguro let’s say 20% ng customer

nakilala kami…

(P9) Para mas maraming mareach na customers

● Brand Awareness

Food delivery service helped food business owners to promote and make their

business known to the market. As they use social media platforms and promotional

materials, people are intrigued and are able to acknowledge their businesses.
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(P5) then meron pa nga silang mga..parang may pa ano pa sila popromote pa sa

facebook page..uhmm nagbibigay pa ng flyers si Cabuyao Menus..

(P8) hindi lang service nila yung naooffer nila pati napo-promote na den yung

mismong business namin.

(P9) it's a matter of..parang ano ba yung promotion na lang din sa business

namin dahil uhmm first time din nman naming nagventure ng (business) kaya ayun

parang pinaka advertisement na rin namin..para mas makilala yung business

(P10) malaking tulong din yung Cabuyao Menus dahil prinopromote din naman

nila yung mga naka ano sa kanila naka tie up partners na mga business

Furthermore, this reflects the inquiry of McCarthy (2021) that shows food

delivery services offer convenience to people who prefer accessibility to tasty and healthy

meals that can be served quickly and easily at their respective places. As stated by the

participants, food delivery services offered convenience to their customers. Another

claim as stated by (Neuburger, 2020) is that the other advantage of utilizing food delivery

service is building customer relationships and reaching more customers, which is evident

on the participants' claim where they were able to expand and reach new customers. In

addition, According to Sandra (2021) you may increase sales from both new and existing

customers by boosting your brand's online presence in the marketplace. Also evident in
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the participant’s answer where they stated that food delivery service helped them to

promote their business and make their business known to other people they never reached

before.

Theme 4. Boost in Incremental Sales

Investing in food delivery services offer advantages that food business owners can

benefit from. One of them is an increase in sales. As to what have the participants shared,

they noticed the increase in their sales while partnering with food delivery services.

These statements is recognized in the following responses:

(P2) It was good and right because that we are making money (because of food

delivery)

(P5) Siguro ganon den..more income..mas malaki yung kinikita namin…mas

nadadagdagan yung sales namin sa araw-araw.

(P7) Ahh..syempre unang una para makapagdagdag pa ng sales…syempre bukod

sa walk-in,dine-in..so malaking bagay yung delivery lalo na kapag mga may celebration

sa mga customers namin sa bahay nila.. much better na magpadeliver na lang sila…so

malai yung add ng sales sa delivery…

(P8) so delivery is add sales talaga sya kung tutuusin


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(P9) at the same time yung parang..give and take process na lang yung

nangyayari so..we’re gaining naman din

The findings show how the participants' statements are related to the study of

Frost and Sullivan (2018) and Morgan Stanley Research (2020), wherein as the

businesses accept the conceptualization of utilizing food delivery services, some have

seen a boost in their incremental sales. Collison (2020) claimed that online food delivery

services aim to increase business profits. It can be said that online ordering systems help

the restaurants to boost their sales as overall sales in the delivery industry are expected to

increase up to $320 billion by 2029 (Curry, 2022). Through the participant’s responses

the researchers were able to conclude that a boost in sales is one of the common

advantages that food delivery services can offer to the food business owners.

2. How do the Cabuyao City food business owners face the demands and challenges

in Investing?

Theme 5. Budgeting and Planning

One of the challenges in investing in Food delivery services takes adjustments

when it comes to budgeting. It is important as their business decisions may affect their

profitability which may affect the entire business. Budgeting and Planning can also be co-

related to the pricing and profit in regards to investing in a Food delivery service. The
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participants commonly reveal that taking adjustments on their budget is how they handle

challenges during their investment in a food delivery service.

Many of the participants’ statements may be similar to each other when it comes

to investing. These statements is recognized in the following responses:

(P1) Ayun nga syempre mag aadjust ka…nung…nung..budget mo

(P2) kung maaari maghanap ka ng ibang resources para mapunan yung

mawawala sayo ng week nayon bago dumating

(P3) you have to really estimate the value that you will gain

(P8) ayon kapag mga gantong mga ano kailangan talaga syang pag isipan kung

kaya ba ng sales ng business..yung bago kami pumasok sa isang partnership with food

delivery service..ayon

(P9) Yes..nagaano din kami nagbubudget..nagpaplano muna

These claims tend to support the study of Info Entrepreneurs Organization (2021)

that shows developing a budgeting process is the most effective way to keep your

company's finances on track. Managing resources can aid a business in performing its

tasks effectively and efficiently. It leads to the development of a customer base. As stated

by the participants, adjustments with budgeting have to take place as well as planning and
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decision making must be considered seriously as they need to cope with situations

wherein it can affect the business operation.

Theme 6. Investment Planning and Decision

It is a challenge for business owners to invest in food delivery services that are

convenient for their business. Therefore, choosing the right delivery services includes

risk-taking, background check, and good investment decisions. Participants stated:

● Risk-taking

Participants claimed that investing in food delivery service is a risky move as you

can win or lose.

(P1) syempre mag tatake ka ng risk sa kanila gaya nyan kasi hindi naman

automatic magbabayad sila sayo

(P4) Nung sinimulan yung business, risk taker talaga kami. Business yan, paano

malalaman kung di natin susubukan.

(P7) ang investment kasi risky 50/50 pwede ka manalo pwede ka matalo.

(P8) Pagka mag-iinvest ka sa mga Food Delivery Service dapat ready ka ..kung

kaya mo imark-up or kaya mong stay as much as possible yung price mo para..yung
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kita..mo is..alam m kung kumikita ka ba or hindi..tapos syempre dapat alam mo sa sarili

mo na..ano..kung worth itpa ba sya na..magstay sa partnership ng food delivery service

● Background check

Food business owners shared that they performed background checking before

investing in food delivery service.

(P4) Wala kasi medyo alanganin kasi 30% ang hinihingi nila sa amin. kasi yung

kind of business namin na nakafocus lang sa isang menu kasi pinasok na rin namin yung

food packages, catering. kaya mahirap sila makatie up kasi more on na mabilisang order

sila. kasi ngayon di kami nagaaccept ng dine in, online kami and delivery lang at walkin.

(P5) Hindi sa namahalan eh, naano ako bago ako mag bayad sa kanila, nag ano

kami nag sumali ako sa mga gc ng mga ganyan tapos marami yung negative, tsaka ano

kasi marami yung ano mga nag s-scam, Panalo sa may Customer pero yung merchant

yung kawawa .

(P10) Yes po kasi naghanap din naman kami ng feedback about kay Cabuyao

Menus. Considered na kasi nga hindi naman sya nung time na yun ha nung time na

kumoha kami kay Cabuyao Menus na hindi sya ganun sikat katulad ni Food Panda or ni

Grab kaya naghanap kami ng feedback nagtanong din kami sa ibang ano na nila tie up

na business… okay naman


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● Investment decision

Investment decision as claimed by the participants was done to assess whether the

food delivery service they invested in is worth it and does their part correctly to decide if

they will continue the partnership or not.

(P4) pinagisipan muna namin yun bago namin tinanggap yung offer.

(P7) pipili ka muna ng brand na pag iinvestan mo..yung uhmm systematic tapos

(R7) kilala na para hindi naman masasayang yung investment mo..kailangan uh

practical ka

(P8) tapos syempre dapat alam mo sa sarili mo na..ano..kung worth it pa ba sya

na..magstay sa partnership ng food delivery service ..ayun..sobrang hirap

(P7) Usually naman ang mga deliveries merong contract…so…ang system sa

ganyan pag ka maganda yung ambag sayo ng deliveries.. Sa transaction tutuloy-tuloy mo

yung contract.. Pero kapag nakita mo naman na hindi naman nag iincrease yung sales…

so you have to decide na icut na sya or tapusin na lang yung contract

The findings of this study tends to support Allen (2022) inquiry that shows

investors should evaluate several different functional areas of the food delivery service

business in order to prepare for a potential transaction. Businesses' due diligence includes

examining the prospective food delivery partner's operational performance, food and
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION xlix

labor cost analysis, potential guest experience improvements, capacity, and market

analysis in order to identify risks and estimate the potential return on investment more

precisely. A responsible restaurant owner must have understanding in both the internal

and external issues that may affect their business.

According to Callahan (2021), it is important to know your financial position by

assessing your financial status before investing. By becoming aware of financial

conditions, you can make the best choices about when to start investing. Furthermore,

assessing the tolerance for risk is essential as any investment carries some risk, but being

aware of how much risk you are prepared to face will help you choose the investing

approach that is ideal for you.

Theme 7. Strategic Management

The business owners are facing challenges such as how to keep products in good

condition while estimating the time riders will arrive at their destinations and promoting

products when there are no customers in the store because people are at home. Most of

the participants stated that they use techniques when it comes to preparing products.

Furthermore, they market their products to gain customers. They stated:

(P2) What we do is we promote our product and we only made our product.

When will the rider arrive


Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION l

(P5) Meron naman sinabing ganun sila pero parang tingin ko natabunan na ng

natabunan kasi nga parang sa Facebook na ad lang naman sya so gumagawa rin ako ng

sarili ko

(P6) pati dapat yung pagdating sa customer is ano pa sya mag a- at peak pa

yung ano nya yung product mo. Kumabaga may time kasi yan diba so ayon dapat ganon.

(P9) meron kaming certain na..na..certain na amount of time for the food

preparation na para atlis marating sya sa customer ng di sya natutunaw

The findings from the participant’s answers supports (Suhartanto et al., 2018)

study that shows a food business that provides high quality food, and innovated food

according to customer demands and preferences retain customers while also attracting

potential and new customers. Akshay (2021), stated maintaining the food quality while

meeting client expectations and happiness is the most difficult challenge for food delivery

services. For instance, certain things like ice cream and cold beverages need to be

refrigerated or packaged in particular containers to keep the ice cream from melting .

Similar to this, some foods need to be stored at a particular temperature to assure the

quality and flavor. According to Worth (2022), A make-to-order strategy is that food

preparation only begins when an order has been received. This is to make sure that the

food to be delivered to the customer will stay in good condition.


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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION li

Textural Description. The first four theme clusters answered the first core question:

What are the lived experiences of Cabuyao City food business owners in Investing. The

first theme cluster describes how the participants decided to invest in food delivery

services as Covid 19 crisis emerged, which proved the statements of Alawan (2020)

where it is stated that food business owners are pushed to invest in food delivery services

to keep their business running and let the customers still be able to reach them. The

second theme cluster explains the factors that led food business owners to invest in food

delivery service. They shared that they notice how Cabuyao Menus is popular and how

they saw their promotion in social media. Their statements can be connected to

(McCarthy,2021) where it is stated that the rapid rise in popularity of food delivery

services shows people love the convenience of getting their meals delivered. The third

theme cluster enumerates the participants’ investing experiences with food delivery

services. They stated that it improved their Customer’s Experience, increased customer

reach, as well as gave awareness to their brand. Their statements about their experiences

supports McCarthy (2021) study where food delivery services offer convenience,

Building Customer Relationships as claimed by Neuberger (2020) and Sandra (2021)

study where she claimed that business owners may increase sales from both new and

existing customers by boosting their brand's online presence in the marketplace. The

fourth theme reveals that participants noticed the increase in their sales while partnering
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with food delivery services. Their statements support Frost and Sullivan (2018) and

Morgan Stanley Research (2020) where they claimed that as the businesses accept the

conceptualization of utilizing Online food deliveries, some have seen a boost in their

incremental sales.

Structural Description. The three (3) theme clusters answered the second statement of

the problem: How does the Cabuyao City food business owner face the demands and

challenges in investing. The first theme reveals that budgeting and planning is how the

participants face the challenges occurring while investing. It is supported by related

literature of the Info Entrepreneurs Organization (2022) which states that the best method

to maintain the financial stability of your business is to establish a budgeting plan. The

second theme cluster extracted from the answers of the participants is the investment

planning and decision where they revealed how their responsibilities as business owners

help them improve their skills on how they handle their investment. As stated by Allen

(2022), Businesses' due diligence includes examining the prospective food delivery

partner's operational performance, food and labor cost analysis, potential guest

experience improvements, capacity, and market analysis in order to identify risks and

estimate the potential return on investment more precisely. The third theme cluster is

strategic management where it shows how food business owners formulate a strategy for

the business to deal with some challenges they experience during the investment. As the
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION liii

participants’ commonly stated that they are focusing on the food standard so it can

produce an excellent customer experience, it is then supported by the statement: A food

business that provides high quality food, and innovated food according to customer

demands and preferences retain customers while also attracting potential and new

customers (Suhartanto et al., 2018).

Essence. After a conscientious analysis of the structural and textural descriptions of the

experiences shared by the participants, it is proven that the pandemic greatly affects most

businesses in Cabuyao City, which drives them to adopt and utilize the emerging food

delivery services. Through food delivery services, food businesses are able to reach

customers, promote products, and increase sales.

Furthermore, it reveals that budgeting and investment planning are beneficial for business

owners in managing business and financial decisions. In addition, strategic management

is another significant skill that food business owners must have to overcome the

challenges and demands of investing.

3. Based on the lived experiences of the food business owner in investing, what

action plan can be developed?

The main challenge as the business owner who invests in a third-party food

delivery who does the delivery of their product, is that they do not have full control of the
Pamantasan ng Cabuyao
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION liv

service. As they are just a partner of their business, they cannot control entire

management policies regarding delivery instances. Additionally, investing in food

delivery gives the food business non-full control of customer experience. In conclusion,

establishing an in-house delivery system for the business is this study’s action plan.

TITLE OF THE ACTION PLAN

“Enhanced Small Business Budget Management”

NAME OF THE RESEARCHERS

This action plan is provided by Me Ann A. Mahinay, Rhaine Aira O. Parala, and

Cher Angeline R. Rodriguez from Pamantasan ng Cabuyao.

RATIONALE

The objective of this proposed action plan is to help the Cabuyao City food

business owner the proper handling and planning of budget that is important when

dealing and investing to food delivery service provider. It will also help owners how to

take control of their food business so they can make better financial decisions and grow

their business.
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lv

COURSE RELEVANCE

Based on the lived experiences of the Cabuyao City food business owner, the

main challenge they experience in investing is budget management and planning. At

some time, food business owners have difficulties in spending control that leads them to

just enter an investment without prior planning their budget and finances. It is important

that businesses especially start-ups take a look at a clearer picture of not just amount of

money they are working with but also how it flows in and out of their business.

BUDGET MANAGEMENT

Budget management includes skills, abilities, and knowledge business owners use when

planning and regulating spending. There are many benefits of preparing budget for food

business especially when investing to delivery service provider. The ability to foresee

operating costs, spend less than you earn, and use earnings to expand the business is

foremost among these advantages.

Without proper budget management, business owners will not have full control of their

spending that is crucial for cash flow of their business. Budget for a food business, even

a very simple one, can help owners to move in the correct direction and toward its

objective: a profitable business.


Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lvi

This guide will help food business owners to create an effective small business budget,

and how they will plan, prepare, and manage their finances.

1. Reviewing revenue

The first step in creating a budget is to list all the money sources you have at your

disposal to support your business operations (usually on a monthly basis). Add up

all of your income sources after you have gathered and described each one to

determine your real monthly income. The actual phrase is crucial since budgets

should be created using revenue rather than profit, which is the amount of money

left over after all expenses have been covered.

2. Set a contingency fund

A prepared contingency fund works well with extra sources of funding, such

small business loans or additional contributions from any investors you may have.

Your contingency/emergency fund, in contrast to the latter two alternatives, is

liquid, accessible right away, and doesn't accrue further debt in the form of

incurred interest (although growing it with interest from a savings account is

always a good idea).

3. Create and map your budget


Pamantasan ng Cabuyao
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lvii

The objective is to visualize the ups and downs of revenue entering your business

and expenses leaving it. Then, you may start making modifications based on

baseline estimates for both revenue and expenses.

For instance, it makes sense to make sure you'll have extra money on hand for

seasonal personnel and marketing materials during certain months if your

company has a "busy season." Saving a percentage of the larger revenue earned

during your busy months will help you stay afloat and avoid cash shortages if you

have a "lean season."

4. Compare business sales and costs

Here is where the strength of a restaurant budget really starts to show. You can

get a decent understanding of your company's financial situation by comparing

your costs for the month with your sales for the month.
Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lviii

Table 2: Action Plan Proposal

AGENDA ACTION PEOPLE PEOPLE TO BUDGET TIME


TO BE INVOLVED CONDUCT HORIZON
TAKEN
Online Create the Cabuyao Financial P5,000 – 1-day
seminar seminar Food Experts P 10,000 seminar
about budget program. Business
management, Owner These are the
finance List all the people who
handling, Cabuyao They will be will share
and proper City food the their
cost business participants knowledge,
management. owners and of this experience,
let them seminar and and expertise
know if this someone to the food
seminar from them business
interests will initiate owners.
them. It is this seminar.
suggested
that prior Local
contacting Government
food
business
owners, the These are the
seminar has people who
already will initiate
agendas and the webinar/
objectives seminar.
so they will
know how it
will benefit
them as
well as their
business.

Create the
Pamantasan ng Cabuyao
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lix

possible
participants.

Have a
credible
resource
people that
will share
their
expertise in
the entire
seminar.

Execute the
online
seminar.

RESOURCES PURPOSE FOR WHOM

NEEDED

Invitation for It will be used to announce the online ALL BUSINESS

participants of the seminar to the food business owners. It is PROPRIETORS

online seminar proposed that the invitation should be

send through email so they can avoid

paper works and hassle in sending in-


Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lx

person invitation.

Invitation for the It will be used to contact and deal with the For online seminar

resource people resource person. participants/ Food

business owner
Pamantasan ng Cabuyao
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lxi

Chapter 5

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary of findings, conclusions and the future

directions of the study to further enhance the concepts and the facts discussed in the

preceding chapters as provided by the results of analysis of data.

Summary

The study focused on describing and understanding the lived experiences of

cabuyao city food business owners in investing.

To solve the problem of the study, the researcher worked out the following central

questions:

1. What are the lived experiences of Cabuyao City food business owners in

Investing?

2. How do the Cabuyao City food business owners face the demands and challenges

in Investing?

3. Based on the lived experiences of the food business owner in investing, what

action plan can be developed?

The significant findings of the study are as follows:


Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lxii

1. As to the lived experiences of Cabuyao City food business owners in

Investing.

After reading, re-reading, analyzing, and reflecting on the verbatim

interview transcriptions, four themes emerged describing the experiences of food

business owners in investing. Theme 1: Pandemic Experiences. Theme 2 :Factors

in Investing. Theme 3: Investing Experiences. Theme 4: Boost in Incremental

Sales.

2. As to how the Cabuyao City food business owners face the demands and

challenges in Investing.

The second group of themes consists of three essential themes explaining

in detail how the Cabuyao City food business owners face the demands and

challenges in Investing. Theme 5: Budgeting and Planning. Theme 6: Investment

Planning and Decision. Theme 7: Strategic Management.

Conclusions

The researcher came up with the following conclusions based on the textural and

structural descriptions:

1. The food business owners describe their experience in deciding to invest in food

delivery services due to the COVID-19 crisis, which decreased their business
Pamantasan ng Cabuyao
Katapatan Subd. Banay-Banay, City of Cabuyao, Laguna

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lxiii

sales. However, they became aware of food delivery service product promotions

on social media, which prompted them to invest in food delivery services. The

participants recognized that investing in food delivery services improved their

customers' experiences, increased their customer reach, and raised awareness of

their brand. Additionally, food business owners noticed an increase in sales after

partnering with food delivery services.

2. The participants agreed that budgeting and planning to ensure the financial

stability of the business, investment planning and decision-making to properly

manage their investment, and strategic management to develop a strategy for the

business to deal with some challenges encountered during the investment are all

necessary to facilitate a successful investing.

Recommendations

The researcher offered the following recommendations for possible actions:

1. Local governments are recommended to establish relationships between their

local businesses, the Cabuyao city food business owners, to provide them proper

management of the business that may include budgeting, risk management, etc.

2. Food business owners should invest in expanding their knowledge, to ensure they

are handling good investment. They should do this by receiving advanced training,
Pamantasan ng Cabuyao
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lxiv

or attending Webinars that will educate them on the strategies for business that

will be beneficial in their daily operation.

3. Food business owners should continue to use strategic management to face the

demand and challenges of food delivery services. Providing quality food and

services helps retain customers. Furthermore, satisfied customers may contribute

through word-of-mouth marketing, promoting the business's products and

increasing sales.

4. Food delivery service providers should improve their delivery services as well as

the platform or application they use, as scams are prevalent. Having a proper

platform where there is no sudden cancellation of orders by riders could avoid

miscommunications between customers and food businesses. Furthermore, being

a good service provider attracts more customers that will use the applications or

platform, as well as more food businesses that will get the services.

5. Future researchers are encouraged to validate the findings or explore more the

implications of this study. They are also encouraged to further study about other

food delivery services and how they affect the financial status of the business.
Pamantasan ng Cabuyao
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COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION lxv

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