1

Republic of the Philippines

Batangas State University
COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND
INTERNATIONAL HOSPITALITY MANAGEMENT
Batangas State University Pablo Borbon Main I

Impact of COVID-19 World Wide Pandemic on

Financial Well-Being of Selected Food Business Owners of Calaca, Batangas

Year 2021-2022

A Research Paper Presented to the Faculty of General Education Department Batangas

State University Batangas City In Partial Fulfillment of the Requirements in MKT 203-

Marketing Research

First Semester A.Y. 2021-2022

Alamag, John Jayvy S.

Cervantes, Thyron T.

Salvacion, Klendy Mae

Tenorio, Jennalyn A.

MKT MGT 2106

December 2021
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APPROVAL SHEET

This research entitled, IMPACT OF COVID-19 WORLD WIDE PANDEMIC ON

FINANCIAL WELL-BEING OF SELECTED FOOD BUSINESS OWNERS OF

CALACA, BATANGAS YEAR 2021-2022 prepared and submitted by Alamag, John Jayvy

S., Cervantes, Thyron T., Salvacion, Klendy Mae, and Tenorio, Jennalyn A. in partial

fulfillment of the requirements for the Master of Business Administration Non-Thesis

Program, has been examined and is recommended for acceptance for oral examination.

Ms. Mae Hernandez

Adviser

Accepted and approved in partial fulfillment of the requirements for the degree of Master of

Business Administration Non-Thesis Program.

_________________ BENDALYN M. LANDICHO, Ph.D., AFBE

Date Dean, CABEIHM

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TABLE OF CONTENT

Page

TITLE PAGE................................................................................................. 1

APPROVAL SHEET..................................................................................... 2

TABLE OF CONTENTS............................................................................... 3-4

CHAPTER I THE PROBLEM

Introduction................................................................................................. 5-6

Background of the research problem......................................................... 7-8

Objectives of the Study................................................................................. 9

Hypothesis of the study................................................................................. 10

Definition of Terms………………………………………………………… 11-14

CHAPTER 11 REVIEW OF LITERATURE

Conceptual Literature.................................................................................. 15-22

Related Literature……................................................................................. 23-28

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CHAPTER III RESEARCH METHODOLOGY

Data Collection.............................................................................................. 29

Data Gathering Procedures.......................................................................... 30

Sample and Sampling Method…….............................................................. 31

Statistical Data and Method Analysis.......................................................... 32-33

APPENDICES……………………………………………………………… 34-35

BIBLIOGRAPHY ........................................................................................ 36-40

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Chapter I

THE PROBLEM

This chapter deals with the presentation of the problem. Specifically, this presents an

introduction, the background of the study, objectives of the study , hypothesis of the study,

and definition of terms.

Introduction

COVID-19 infection is increasing at an exponential rate around the world which

causes enormous health, economic, and social disruption. It has resulted in significant

changes in our daily lives, changes that have frequently occurred quickly and suddenly. Many

people begin to question how they would survive the epidemic and how they will adjust to

the new ways of functioning as a student, teacher, professional, and, more specifically, as a

food business owner, as this was a study focused on food business owners.

Food business owners were more likely to have problems as the pandemic progressed

because consumer behavior altered as a result of the restrictions, and transportation

throughout the country was restricted, resulting in a drop in customer numbers, fewer

purchases and consumer demand, and business closures. Hence, they have dealt with the

pandemic's ramifications, and their financial well-being has been affected in diverse ways.

Food businesses make a valuable contribution to the economy and also impacts upon

our society. Businesses like this, pay taxes which allow the government to fund community

services. Food is our most basic requirement, as we all know. We may be able to avoid
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purchasing new clothing, but resisting hunger will be difficult. This is why, at the time, the

food industry was one of the most profitable in the world. Does the pandemic really have an

impact on food firms' ability to earn and maintain financial stability?

This research paper will give further information regarding the Impact of COVID-19

World Wide Pandemic on Financial Well-Being of Selected Food Business Owners of Calaca,

Batangas. This also intended at developing a more effective plan of action to be proposed.
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Background to the research problem

For everyone, especially Filipinos, the year 2020 was not a nice year. When the

epidemic first broke out, many Filipinos were affected, and lockdown was imposed,

particularly on laborers and business owners. The spread of COVID-19 has already had a

significant negative impact on labor supply and employee earrings in various countries. Many

families were upset because the virus had killed so many breadwinners. Many people have

gone from being secure in their ability to meet their daily expenses to suffering and

sometimes pleading for help to meet their daily expenses and requirements. It's been really

difficult to acclimate to the new normal as a result of the numerous changes that have

occurred in recent months.

The word "financial well-being" refers to having control over daily, weekly, and even

monthly spending. When it comes to financial well-being, worrying about the financial crisis

is not an option. Financial well-being is all about being safe when a financial catastrophe

strikes. Meeting financial objectives is also a component of this. The freedom to make

choices is the most fundamental aspect of being able to enjoy life. However, given the

COVID-19 problem that the majority of people are currently dealing with, it is not impossible

to encounter difficulties and complications in terms of financial situation.

The outbreak of COVID-19 has caused consternation and a negative perception

because of how authorities act, how consumers and business customers react to the virus's

fear of infection by not going out, telecommuting, and so on, and how business conditions
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react to the virus, as well as weaker trade and domestic information. This has an impact on

both the business and the individuals that work on it. (Mann, C. L., 2020).

One of the main problems of society nowadays is the financial state of many owners

of food businesses at Calaca, Batangas in times of this pandemic. The researchers are focused

on assessing and determining the impacts of COVID-19 on the wellbeing of different food

business owners mainly in the town of Calaca. it is important to determine the impacts to

know the solution before making a good plan of action to be apply to avoid the future

difficulties that might arise because of these problems and uncertainty.

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Objectives of the study

The primary goal of this study is to determine the impact of the COVID-19 pandemic

on the financial well-being of selected food business owners. Specifically, this sought

answers for the following questions:

1. To know how the respondents sociodemographic be described in terms of;

1.1 Age _____

1.2 Individual monthly income;

Previously ____

Currently ____

2. To determine the Impact of COVID-19 world wide pandemic on financial well-being

of selected food business Owners.

3. To know the significant relationship between the Impact of the COVID-19 world wide

pandemic to the financial well-being of the food business owners.

4. To find out what recommendations might be made to the chosen respondents.

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Hypothesis of the study

Ho: There is no significant relationship between the Impact of the COVID-19 World

Wide Pandemic to the Financial Well-being of the Food Business Owners.

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Definition of Terms

Agricultural Production.The production of any growing grass or crop attached to the

surface of the land, whether or not the grass or crop is to be sold commercially, and the

production of any farm animals, including farmed elk, whether or not the animals are to be

sold commercially.(law insider). In this study, Agricultural Production is being used as one of

a factor as it affects the demand of goods and the production of products due to uncertainty.

Business Loss.A business loss occurs when your business has more expenses than

earnings during an accounting period.(Patriot Software LLC,2021). In this study, Business

Loss is being used to represent the financial state of businesses during the dilemma that they

were facing.

Capital.Large sum of money which you use to start a business, or which you invest in

order to make more money.(Collins,2021). In this study, Capital is used to pertain the

financial state of a certain business to identify the gains and losses of it.

Financial Crisis.A financial crisis is defined as any situation where one or more

significant financial assets – such as stocks, real estate, or oil – suddenly (and usually

unexpectedly) loses a substantial amount of their nominal value.(CFI Education Inc., 2015 to

2021). In this study, it is being used to a business who suffer financially due to insufficient

production of goods and demand

Food and Beverage Industry.The Food and Beverage Industry includes all the

companies involved in transforming raw agricultural goods into consumer food

products.(TriStar Plastics Corp., 2021). In this study, the food and beverage industry is used
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to specifically explain a one type of business that produces goods from raw agricultural food

products.

Food Business.A food business is any business, enterprise or activity that involves the

handling of food.(The State of Queensland, 1995 to 2021). In this study, food business is

being used as the main point of this research where it needs to determine how COVID-19

really affects the financial being of food businesses.

Food Supply Chain.Food supply chains encompass all of the activities involved in

the transformation of foodstuffs (i.e. raw materials) into consumer-ready food products –

from sourcing, to processing, handling, distribution, and sale – as well as the management

and documentation of these activities.(Siemens, 2021). In this study, food supply chains are

being used to represent the process and the cycle of how goods are being produced.

Food Store.Any premises or other place kept or used for the sale or handling for sale

of food.(Law insider). In this study, food stores is being used as they were one who liable to

sell and market the product from the consumer, which makes some difficulty since the

pandemic occurs.

Food System.Food systems embrace the entire range of actors and their interlinked

value-adding activities involved in the production, aggregation, processing, distribution,

consumption, and disposal (loss or waste) of food products that originate from agriculture

(incl. livestock), forestry, fisheries, and food industries, and the broader economic, societal,

and natural environments in which they are embedded.(European Commission, 2021).

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Ghost Kitchen.A ghost kitchen, otherwise known as a shadow kitchen or dark

kitchen, is a professional cooking facility that is set up solely for carryout or delivery.(Society

Insurance, 2021).

Global Economy.It is the exchange of goods and services integrated into a huge

single global market..(Encyclopedia, 2019). In this study, Global Economy is used to

describe the global market were it pertains to the growth and development of a country.

Restaurant.A restaurant is a business establishment which prepares and serves food

and drink to customers in return for money, either paid before the meal, after the meal, or

with a running tab.(StandS4 LLC, 2001 to 2021). In this study restaurant is being used since

it is also an example of a food business that offer goods and services.

Shortage of Working Capital.Working Capital Shortage means an amount equal to

the excess, if any, of the Target Working Capital over the Working Capital (and, for the

avoidance of doubt, if Working Capital is equal to or greater than Target Working Capital,

such amount shall be zero.(Law insider, 2013-2021). In this study, shortage of working

capital is being used to describe a business who is having a hard time to gain income as the

pandemic arises resulting in a shortage of capital on the business.

Small Business.Small businesses are privately owned corporations, partnerships, or

sole proprietorships which have fewer employees and/or less annual revenue than a

regular-sized business or corporation.(Wikipedia, 2021).

Social Distancing.the practice of maintaining a greater than usual physical distance

(such as six feet or more) from other people or of avoiding direct contact with people or

objects in public places during the outbreak of a contagious disease in order to minimize
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exposure and reduce the transmission of infection.(Merriam Webster, 2021). In this study, the

word Social Distancing is used to explain one of the etiquette and protocol to be followed as

the government and the world health organization implemented. and also the reason why

consumers are also having a hard time to purchase goods and services outside, due to the

inconvenience of the situation.

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Chapter II

REVIEW OF LITERATURE

This chapter deals with the review of related concepts and studies found in previous

literature.

Conceptual Literature (2010-2021)

In this part of the study, this will include different literature that is related to the

problem of the research. This literature will be the evidence of this research.

The COVID-19 pandemic has resulted in a significant loss of human life around the

world, and it poses an unprecedented threat to public health, food systems, and the

workplace. The pandemic's economic and social effects are devastating: tens of millions of

people are at risk of falling into extreme poverty, and the number of people who are

undernourished, which is presently estimated to be around 690 million, might rise to 132

million by the end of the year. The pandemic has had an impact on the entire food businesses,

exposing its vulnerability. Farmers and agricultural workers have been unable to access

markets, including to acquire inputs and sell their goods, due to border closures, trade

restrictions, and confinement measures, disrupting domestic and international food supply

chains and limiting access to nutritious, safe, and diverse meals. The pandemic has wiped out

jobs and put millions of people's lives in jeopardy. Millions of women and men's food

security and nutrition are jeopardized as breadwinners lose jobs, grow ill, and die, with those

in low-income nations, notably the most marginalized populations, such as small-scale

farmers and indigenous peoples, being the hardest hit. (ILO, FAO, IFAD, and WHO, 2020)
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According to Staniforth (2020) Every business in the world, including the food

industry, is waiting to see how the COVID-19 epidemic will affect its operations. Unlike the

food business, however, not every industry generates things that are considered necessities in

everyday life. Food manufacturers understand that if one facility closes, a few people may go

hungry, but if the entire industry is disrupted, the entire food supply chain may be

jeopardized.

According to Manepalli, N., and Nagvenkar, S., (2020) The food and beverage

industry is expected to see a different impact from COVID-19's rapid spread on each stage of

its value chain, including the affected workforce at the industrial level, raw material supply

(agricultural produce, food ingredients, intermediate food products), trade and logistics,

demand-supply volatility, and uncertain consumer demand at foodservice outlets, among

other things. The food and beverage industry's production, distribution, and inventory levels

are all expected to be affected. Given the health hazards, widespread fears about the

pandemic coronavirus have had a significant detrimental impact on the global functioning of

the food and beverage business as well as consumer attitudes. In addition to the

aforementioned considerations, a prolonged outbreak of COVID-19 will cause economic

instability and food inflation, despite the fact that prices of food and beverages and

agricultural produce have stayed consistent. While the short-term effects are more obvious, it

is still unclear what long-term effects the COVID-19 outbreak will have on the supply chain

and to what extent.

It's especially difficult to determine the long-term effects of a pandemic flare-up

because we're in the midst of one. Despite the fact that society has been impacted by a few

pandemics in the past, it is difficult to assess the long-term economical, behavioral, or

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cultural consequences because these viewpoints have not been consolidated earlier. The few

examinations that have been conducted show that the main verifiable pandemics of the last

thousand years have frequently been linked to resulting low resource profits. Following a

pandemic, we will generally be less interested in investing and more interested in saving our

money, resulting in slower monetary growth. Given the current situation, in which saving

capital approaches yield negative returns, we are unlikely to be as traditionalist as we have

been in the past. Individual insurance, like the use of face veils, appears to be linked to social

changes associated with pandemic events, rather than general behavior changes. Donthu, N.,

& Gustafsson, A., (2020).

The spread of COVID-19 could constitute a global health and life-threatening

emergency. At the same time, the outbreak has significant economic consequences for both

individuals and governments. In its World Economic Outlook report for 2020, the

International Monetary Fund (IMF) predicted that the world economy would collapse by –3%

in 2020 as a result of the COVID-19 pandemic. This recession is significantly worse than the

one that occurred during the financial crisis of 2008, and it is the worst since the financial

crisis. As a result, we are currently living in a natural experiment that necessitates research

into the impact of COVID-19 on financial outcomes as well as the involvement of

psychological factors (Goodell, 2020). We polled respondents about how they view the

long-term economic position in their home, nation, and the world at large at the start of the

COVID-19 pandemic.Individual differences in psychological characteristics connected to

scientific discipline, financial literacy, and emotional components of financial well-being

were also collected. This allows us to investigate which cognitive abilities are associated with

improved financial well-being during a financial crisis. Barragem, K., Västfjäll, D., &

Tinghög, G., (2020).

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Over 4.3 million confirmed cases and 290,000 deaths have been reported worldwide

as a result of the COVID-19 pandemic. When it comes to the food industry, there is also an

increase in demand owing to panic buying and stockpiling of food supplies. We summarize

the socio-economic repercussions of COVID-19 on specific elements of the global economy

in response to this global pandemic. (Nicola, M., Alsafi, Z., Sohrabi,C., Kerwan,A.,

Al-jabir,A., losifidis,C., Agha,M., and Agha,R., 2020)

According to Watts (2020) At the beginning of this global public health disaster,

consumer demand for food soared, leaving some store shelves temporarily bare and people

scrambling for essentials. Despite this extraordinary demand, the food supply chain remained

strong because numerous groups—including farmers, manufacturers, distributors, and

retailers—worked around the clock to replenish shelves and sought guidance from regulatory

authorities such as the FDA. Local grocery stores and supermarkets responded by working

longer hours for elderly and others most at risk of getting the coronavirus, not just to meet the

increased demand, but also to serve more vulnerable populations. Care packages were also

distributed by family-owned food stores across the country, like Golden Star Market in

Pittsburg, California, to residents of their communities who were afflicted by the pandemic.

Restaurants that have been hit hard by the pandemic have gone out to their local populations.

It has been humbling to witness firsthand how the entire supply chain worked collaboratively

to navigate COVID-19 and protect public safety at every step of the way. FieldTrip, a

restaurant in New York City's Harlem neighborhood, has donated meals to hospital workers,

and Vallarta Supermarkets, a Latino-owned supermarket chain in California, has donated

more than $100,000 to local non-profit groups supporting senior citizens. Operating

sanitization services for the food industry across the country, I understand how challenging it
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is to keep operations functioning while prioritizing employee health. While there is still much

to learn about the virus, all stakeholders involved in the food supply chain have demonstrated

their importance in satisfying food demand in a safe and sustainable manner.

In the United States, small enterprises employ roughly half of the workforce.

Nonetheless, our findings illustrate the financial vulnerability of many small businesses and

the extent to which the current crisis has harmed them. In our sample, which is weighted

toward the retail sector, 43 percent of businesses were temporarily shuttered, and

employment had dropped by 40 percent. This is a jolt to America's tiny businesses, who

haven't seen anything like it since the 1930s Great Depression. Many of these enterprises had

little cash on hand at the onset of the pandemic, meaning that they will have to dramatically

cut expenditures, take on additional debt, or declare bankruptcy, according to our data. This

indicates how the speed with which new funds are available might affect medium-term

outcomes.(Bartik,A.W., Bertrand,M., Cullen,Z., Glaeser,E.L., Luca,M., and Stanton,C.,

2020)

Given that official figures generated by government entities have a lag and hence do

not provide a clear picture of actual spending, detecting the influence of Covid-19 other

public strategy interventions on consumer spending creates considerable hurdles. Fortunately,

recent improvements in information technology and financial apps that help people manage

their money more effectively have enabled the collecting of transaction level data in real time

via supermarkets, financial institutions, and technological platforms. This allows researchers

to do more detailed examination of consumer spending and saving patterns as they emerge.

As a result, the accuracy of empirical testing will improve, as will the potential concerns
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associated with employing survey or experimental data, as well as presenting policymakers

with up-to-date information. Chronopoulos, D. K., Lukas, M., & Wilson, J. O., (2020).

According to Auman-Bauer (2020) Restaurants and catering industries were among

the first sectors of the economy to be hit hard by the COVID-19 outbreak. As social distance

guidelines took effect in towns and states, dining in restaurants almost came to a halt.

Even if food businesses such as restaurants reopen, the public may be hesitant to eat

there. Online ordering has made ordering takeout or delivery easier than ever before, and this

trend is expected to continue. Ghost kitchens can address the needs of this consumer segment

more efficiently and effectively than dine-in venues. It's also impossible to ignore the

economic benefits of the ghost kitchen model. It lowers overhead costs because it often

requires less space and fewer furniture. Full-service restaurants may not rebound until 2025,

according to experts, thus many firms may turn to ghost kitchens to recover earlier.

(Newton,E., 2021)

According to Al-Marzouqi,A., and Yahia,I.B., (2021) People are hesitant to eat out

as a result of the Covid-19 outbreak, which has had a significant impact on the hospitality

business. The role of hygienic measures in minimizing the effect of the Covid-19 danger on

customers' approach behavior is investigated in this study, which is based on the behavioral

inhibition system theory. 226 respondents were first asked to discuss their service quality

expectations, after which they were shown three alternative scenarios based on the three

levels of sanitary precautions performed by restaurants (no measure, medium-level measures,

and high-level measures). The findings show that, while the perceived risk associated with

Covid-19 has a negative influence on service quality performance, hygienic measures

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mitigate this negative effect on one hand while directly promoting service quality

performance on the other. This leads to higher satisfaction and more favorable intentions of

visit and recommendation. In addition, the paper emphasizes that, in terms of consumers’

expectations, hygiene is, henceforth, the most demanded dimension of the service quality.

Restaurants across the state and country have suffered and continue to suffer financial
losses since the start of the COVID-19 outbreak. Restaurant operators have had to focus on
finding safe and sustainable ways to maintain serving while the pandemic persists. One of the
biggest issues of the pandemic is that it is continually developing. One day, restaurants were
open as usual, and the next, everything changed. Restaurant owners may become concerned
about their business's future as the pandemic progresses.been It's a difficult year for
restaurants, what with the sudden closures, limited reopenings, and now ensuring compliance
with COVID guidelines.Many local restaurants are small businesses, and they don't have the
deep pockets that larger chains do.(Szatkowski,M., 2020)

Food enterprises that rely significantly on these sectors are facing a struggle as

restaurants close and businesses active in food service, such as catering, as well as hotels,

airports, and events, experience a sharp downturn. In most nations, restaurants and cafés are

closed to dine-in customers, but alternate delivery alternatives such as take-out and home

delivery are permitted. The food industry is extremely important. This means that, even in the

event of a pandemic such as COVID-19, the negative impact on this sector will be limited

compared to other industries such as tourism and aviation, which are not as important to daily

life. While some food producers are experiencing financial difficulties as a result of the loss

in sales, others are working around the clock to fulfill the increasing demand from stores.

One key worry that all food firms have is their employees' health and availability. With

increased retail pressure, food businesses require all of their capacity to sustain production

and fulfill rising demand. (Foodware, 2020)

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According to Ruggless,R., (2021) as stated by the National Restaurant Association,

as many as 110,000 restaurants have closed since the pandemic was declared, and foodservice

sales have fallen $255 billion in the year since.impact COVID-19's on the restaurant industry

was quick and deep.The National Restaurant Association said in October that the

pandemic-induced economic crisis had reduced restaurant staffing by 2 million jobs, and that

foodservice sales had fallen $255 billion in the year since.

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Research Literature

In this part of the study, this will include different finished thesis that is related to the

topic to prove and to know how to solve the problem of the research.

As stated to the Canadian Journal of Agricultural economics (April 2020) The

demand shock for food manufacturing at the start of the pandemic stems from a sharp spike

in derived retail demand and a sharp fall in foodservice demand for processed food. Many

food processing enterprises will undoubtedly shift supply efforts from foodservice to retail

channels in the face of demand slumps from restaurant closures and export slowdowns due to

border controls by some nations. Travel restrictions and border closures are expected to

hinder processors' access to imported raw materials, depending on the intensity and duration

of the pandemic.

Some food companies are facing issues as a result of a decline in revenue, while

others are working hard to meet store demand. Several painful decisions had to be made

during the current COVID-19 outbreak, including the temporary shutdown of several

enterprises. The fact is that this pandemic highlighted how tightly different corporations from

various industries are linked all around the world. (Sebastian, 2020; Shahidi, 2020)

As indicated by the investigation of (Kachanoff, F. J., Bigman, Y. E., Kapsaskis, K.,

and Gray, K., 2020), COVID-19 undermines lives, occupations, and community

establishments. Albeit prohibitive general wellbeing practices like social separation help deal

with its effect, these practices can additionally cut off our associations with individuals and

foundations that avow our characters. This pandemic can also be a bridge for the business

losses because of unstable money that they received.

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According to (Tran, B. X., Nguyen, H. T., Le, H. T., Latkin, C. A., Pham, H. Q.,

Vu, L. G., and Nguyen, Q. T., 2020). The data included monetary ascribes, the impact of

COVID-19 on family pay, prosperity status, and prosperity related individual fulfillment.

Being female, having continuous conditions, and living in a family with 3–5 people were

identified with lower HRQOL scores. A broad examination of the effect of COVID-19 close

by broad prosperity interventions, especially passionate prosperity programs, should be

completed to direct the antagonistic effects of this pandemic on the financial status and

individual fulfillment of inhabitants.

As expressed by (Barrafrem, K., Västfjäll, D., &Tinghög, G., 2020), The spread of

the COVID-19 might be a worldwide crisis for individuals lives and wellbeing. At the

indistinguishable time, the episode effectively affects the economy both for individuals and

countries. This monetary plunge is a path more awful than during the monetary emergency in

2008 and it makes it the most noticeably awful downturn since the pleasant Depression. At

the beginning COVID-19 episode we reviewed individuals in regards to how they survey the

more drawn out term monetary circumstances, hindrances in the business, inside their family,

country, and the world as an entirety.

Regardless, the scale of the COVID-19 reaction's work stun is unknown and will

remain so for months, if not years. The COVID-19 emergency will have far-reaching

ramifications for jobs and financial intervention in the long run. The COVID-19 reaction's

effects would not be felt in the same way by the general public. Furthermore, according to

our findings, the lower an individual's payout, the more likely their job is in jeopardy as a

result of COVID-19 and the infection's overall health reaction. We estimate that about 40% of

working youth will lose their jobs as a result of the COVID-19 closure and spatial removal.
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Also, in the callings and areas commonly affected by COVID-19's response, women are

disproportionately addressed. (Coates, B., Cowgill, M., Chen, T., and Mackey, W. 2020)

According to (Botha, F., de New, J., de New née Kassenboehmer, S. C., Ribar, D.

C., & Salamanca, N. (2020). Utilizing an online review of Australian inhabitants, we inspire

the possible effects of COVID-19 related work market stuns on an approved proportion of

monetary prosperity. Encountering a decrease in hours and income, going into joblessness, or

petitioning for joblessness benefits during the pandemic is unequivocally and fundamentally

connected with diminishes in the monetary prosperity, in spite of different government

measures to lessen such impacts. Unequivocal quantile relapse investigations show that the

contrary COVID-19 work market impacts are felt the most by individuals in the least

percentiles of the monetary prosperity circulation. Counterfactual distributional examinations

and dispersion relapse show a moving of the monetary prosperity circulation leftwards

welcomed by those enduring any of the previously mentioned work markets stun,

demonstrating expected emotional expansions in monetary prosperity impediment and

disparity.

After controlling for weather factors and restaurant business restrictions, a two-way

fixed-effects model revealed that COVID-19 significantly affected restaurant demand. Based

on the foot traffic restaurant visit model, we found that a 1% increase in daily new

COVID-19 cases led to a 0.0556% decrease in restaurant demand while stay-at-home orders

were associated with a 3.25% demand decline. More specifically, our results show that the

negative effect of COVID-19 was smaller for fast-food restaurants compared to full-service

establishments. (Yang yang, Hongbo,L., and Xiang, C., 2020)

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(Chen,M., 2020) stated that the global spread of the Covid-19 pandemic exerts great

influence on the global economies, and among the economic sectors which are suffering

losses, the service industry, especially fast food restaurants, are greatly impacted. Before the

outbreak of the Covid-19 pandemic, fast food restaurants benefited a lot from the process of

globalization, while they lost the benefit when the pandemic caused a lot of limitations on the

cross-border flow of commodities and people. By taking KFC as an example, based on the

analysis, it is found that the reasons behind such impact include slowed globalization,

customer’s reducing income and government bans.

The COVID-19 pandemic has disrupted the global economy and wreaked havoc in

many sectors. Continued production and distribution of food is essential for human

well-being, but the food sector has faced a number of difficulties maintaining the health and

productivity of its workforce during the pandemic. Many workers in the food sector operate

in close proximity to 18 other workers and customers, making social distancing particularly

difficult and the risk of infection especially troublesome. This is an important concern for the

food sector both during the current pandemic and for future viruses. We find significant

evidence of workers previously employed in food manufacturing and grocery stores

becoming considerably less likely to continue at work in the same industry during April

2020. (Ortega 2020).

(Cho,S.J., Lee,J.Y., and Winters,J. 2020) addressed that individual-level analysis

confirms that the COVID-19 infection rate in an individual’s local labor market has

significant effects on employment changes. Importantly, we document that the employment

changes are not just due to unemployment during facility closures. Previous workers exiting

the labor force play an especially important role, and the labor force exit rate strongly
 27

increases with the severity of the COVID-19 infection rate in their local area. The

considerable risk of infection has inclined many previous food sector workers to stop

working and not look for alternative work. We also find massive employment decreases in the

restaurant industry. Many of these workers will never return to the restaurant industry, and

many restaurants will not recover from the COVID-19 pandemic.

In the short term, the impacts of COVID-19 pandemic include more expired products,

shortage of working capital and hence difficulty in carrying out operational expenses, delay

in opening LCs, and closures of distributors’ operations. The impacts will no doubt continue

for a more extended period, and in the medium-to-long term, those impacts are likely to

include a reduction in ROI, job cuts in the industry, negative relationships with traders, a

restructuring of supply chains focusing on online trade, and an overall decrease of the

industry’s contribution to GDP. (Chowdhury,T., Sarkar,A., Paul,S.K., and Moktadir,A.,

2020)

The majority of consumers are unconcerned with how the food on their tables is

produced. Concerns over food safety in the midst of a global epidemic, on the other hand,

have focused attention on the massive infrastructure and workforce necessary for ensuring a

secure and reliable food supply around the world. Consumer demand for food has increased,

particularly at the start of this global crisis, and some store shelves have been temporarily

emptied, resulting in excess purchases of essential products. Despite this extraordinary

demand, the food supply chain remained strong, thanks to the efforts of various supply chain

participants, including farmers, producers, distributors, and retailers, to replenish shelves.

(Nicola et al., 2020; Watts, 2020).

 28

During the COVID-19 epidemic, four key issues in the food sector and food supply

chain have surfaced. To begin with, people tend to eat a healthy diet in order to protect

themselves and their immune systems (Rodríguez-Pérez et al., 2020). As a result, demand

for functional meals containing bioactive substances has surged. Second, food safety has

gotten increasing attention in order to avoid coronavirus transmission among producers,

merchants, and consumers. Finally, due of the people under lockdown constraints, food

security problems have developed. Finally, in the era of pandemics, food sustainability issues

have arisen (Galanakis, 2020).

Despite the fact that many manufacturers rely on their core inputs, the majority of

them are more vulnerable to disruptions because they must get their supplies from domestic

marketplaces. Due to their limited shelf life, high-value items are further weakened by

logistical impediments that disrupt food supply networks (Shahidi, 2020; FAO, 2020j, FAO,

2020k).
 29

Chapter III

RESEARCH AND METHODOLOGY

This chapter contains the methods, procedures and instruments that were used to

achieve the goal of the study.

Data collection

The researchers used a survey questionnaire as the instruments to achieve the

objectives of the study, through questionnaire, the researchers were able to know the

perceptions and preferences of the respondents and their responses are great help on the

objectives of this research.

 30

Data Gathering Procedures

In order to gather information, researchers thought of possible references. The

researchers got some related information about the said topic. The researchers had searched

in such online books, by surfing the internet. And the researchers looked for the important

data and phrases that can be used to construct the survey questionnaires. Then, the validation

of it and the distribution to the selected respondents. Collecting the answered questionnaire

was the next process.

 31

Sample and sampling method

The respondents of the study were the selected well known food business owners of

Calaca Batangas. The researchers were required to have respondents using five percent (5%)

margin of error. To get the sample size, the researcher used the Slovin’s formula,

𝑁
n= 2
1+𝑁𝑒

Where:

n = sample size

N = population

e = margin of error

Solution:

250
n= 2
1+(250)0.05

n = 154

The total population of food business owners in Calaca, Batangas is 250. Therefore,
the sample size is 154 using the Slovin’s formula.

Simple Random Sampling

The researchers use simple random sampling in selecting the right respondents. This

technique allows the respondents to select a small group of subjects from a large group. Each

member is given an equal chance to be chosen as a respondent and chosen entirely by chance.

Every possible sample of a given size has the same chance of selection.
 32

Statistical Method and Data Analysis

After gathering the data from the survey questionnaires that the researcher will be

conducting, they will immediately proceed in analyzing the answers of the respondents. Then

will analyze and interpret the information obtained from the survey participants. To test the

results of the survey, the following statistical approaches were utilized as tools.

Frequency and Percentage. This technique is used to determine the percentage of

our respondents out of the total population in terms of frequency of their responses on the

given questions. Through this, the researchers also determined the percentage of the

respondents with respect to its frequency. The formula for frequency and percentage is:

P = f/n x 100

Where: p= percentage

F = frequency

N = number of respondents

Ranking. This study used ranking to determine the most and least common impact of

Covid19 to the respondent's financial well-being.

Weighted Mean. This method was used to interpret the data from the respondents

about the impact of Covid-19 world wide pandemic on financial well-being of selected food

business owners.
 33

Scale Interval. In analyzing and interpreting the responses of the respondents, the

research used the scale interval on the impact of Covid-19 world wide pandemic on financial

well-being of selected food business owners from the questionnaire items given in this study

with the following conditions:

Assigned Weight:

5- Strongly Agree

4- Agree

3- Moderately Agree

2- Disagree

1- Strongly Disagree

Pearson’s Correlation. This was used to determine if there is a significant

relationship between the Impact of the COVID-19 world wide pandemic to the financial

well-being of the food business owners.

Where:

= correlation coefficient

= values of the x-variable in a sample

= mean of the values of the x-variable

= mean of the values of the x-variable

= mean of the values of the y-variable

 34

APPENDICES

Republic of the Philippines

BATAN GAS S TAT E U N I V E R S I TY
BatangasCity
College of Accountancy Business Economics
and International Hospitality Management

Impact of COVID-19 World Wide Pandemic on

Financial Well-Being of Selected Food Business Owners

of Calaca, Batangas Year 2021-2022

QUESTIONNAIRES

I. RESPONDENT PROFILE:

Directions: Please fill up the blanks with the necessary information.

NAME: ______________________________

AGE: ______

Individual Monthly Income;

Previously: ₱__________

Currently: ₱___________

II. QUESTIONNAIRES REGARDING THE IMPACT OF COVID-19 WORLD

WIDE PANDEMIC ON FINANCIAL WELL-BEING OF SELECTED FOOD

BUSINESS OWNERS

Directions: Put a check ( ) based on what you actually think in the given statements using

the following scales:

 35

Legend:

5- Strongly Agree 2- Disagree

4- Agree 1- Strongly Disagree

3- Moderately Agree

STATEMENTS
Impact of Covid-19 world wide pandemic on financial 5 4 3 2 1
well-being of selected food business Owners

1. Resulting in a drop in customer numbers, fewer purchases

and consumer demand.
2. Has a negative impact on service quality, resulting in
customer dissatisfaction
3. Lacks of sufficient funds to keep the company afloat,
resulting in bankruptcy
4. Supply constraints due to an increased panic buying and
hoarding of food supplies
5. Food businesses that provide food services such as catering
at hotels, airports, and gatherings have seen a dramatic drop as
a result of the pandemic.
6. Decrease in the Return on Investment (ROI)
7.Barely maintained productions, facing shortage of materials
or lack of supply.
8.Volatile demand-supply conditions and apprehensive
9.Fluctuating price range
10.Given the health hazards, widespread fears about the
pandemic coronavirus have had a significant detrimental
impact on the global functioning of the food business as well
as consumer attitudes.
 36

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