Professional Documents
Culture Documents
CHAPTER 2 DRAFT - SANTOS Alexander C.
CHAPTER 2 DRAFT - SANTOS Alexander C.
INTRODUCTION:
managers and the survival of firms on the long run. More specifically, external
environment is one of the central themes of organization theory and the relevant
studies) Primarily propose that managers essentially consider the influential external
factors that create uncertainty, diversity and volatility while making their decisions.
factors such as customers, rivals, and vendors that have a great potential in creating
of identifying the needs and expectations of customers, and developing and improving
products and service perfectly fit to those needs and expectations. Additionally,
pricing, promoting and distributing the products and services should also be consistent
with the customers' needs and expectations on the one hand, and with the firm's
objectives on the other hand. Thus, in the restaurant context, it is imperative that menu
pricing, designing, distributing and promotional decisions which are also the main
capability to grow bigger and even bigger in the food industry. Most of it is a home-
based, a small space is needed to accommodate your kitchen equipment and one two
small tables for your customers could complete a carinderia business. Finding a good
location for your food kiosk is extremely important. A place very near or easily
accessible to your target customers would be ideal. Decide how many meals you will
serve for the day and prepare a menu plan for at least a week. Some carinderia owners
stick to a fixed menu plan particularly if they already established best-selling dishes.
observed type of business in the Philippines. Whether you’re near the market, schools,
bus terminal, or office buildings, a karinderya is not difficult to find. And it’s not too
difficult to start the business either. With accessible sources of ingredients, a complete
set of utensils, and available space, you can even begin your eatery business right at
Eatery is a food stop commonly seen by the road side of a frequented place, came
from the word kari, the Tagalog word for curry. Before the term was coined in the
1920s, it was said to be called as karihan, where native Filipino dish kare-kare is being
served. Karehan originated back in the time where Indians, or sepoys, who married
Filipinas and resided in Taytay and Cainta, sold curry dishes by the street.This is why
it isn’t a surprise that, before various popular eating hubs carved their names in the
food industry; they came from their carinderia roots, which they uphold up until today.
After all, what inspired many of these are that they ate and grew up with right in the
up a plan to open your own business. To help you create a recipe for success, we’ve
put together a how-to-get-started guide to make sure you have all the ingredients you
need to open your restaurant with confidence. While starting a restaurant is exciting,
it’s also time-consuming and one of the toughest businesses to successfully launch.
In fact, 60 percent of restaurants fail in the first year. We’re not telling you this to temper
your passion. We’re merely pointing out that if you want a successful restaurant, you’ll
Your investment should be able to cover the lot, store renovations, equipment,
inventory, and expenses. Assess the lot size you have and identify how much space
is available for the kitchen and dining area. Most of the usual equipment that is used
are a wok fryer, 2 burner stove top, Bain Marie (display tray for the food), rice cooker,
and a refrigerator. Unlike restaurants, you do not have to follow a strict guideline on
food safety, but it is still advised to maintain quality in the meals you serve. You may
buy your equipment second hand, but be aware of the risks of maintaining and
No one wants go where there’s no guarantee to safely eat your dishes. Aside from
reputation, legalizing your business may make you eligible for tax incentives or
exemptions as well as acquiring better terms with your creditors and suppliers. For
sole proprietorships and partnerships, you can register with the Department of Trade
and Industry (DTI). For corporations, you must register with the Securities and
Carinderias often follow a set list of food to be prepared for the week. A schedule
can help you organize your ingredients better for their allocation for a specific day and
avoid wastage. The main attention-grabber for this business is the variety of dishes
you can serve which can cater to many different customers of varying taste.Popular
breakfast options are the “silog” dishes and champorado. For lunch, you can choose
to cook afritada, adobo, sinigang, longanisa. The most common merienda served is
goto and arroz caldo. Dinner can be just a similar set-up as lunch. Important to thing
to remember, is to taste your food as this will be what customers will be coming for
and if they taste something that shouldn’t be there, be prepare for a barrage of
complaints. Customers deserve quality food to be served, so the least you can do is
taste your own dishes to gauge their tastefulness. (Pinoy Negosyo, 2021)
good idea to set up where is high foot traffic. Your usual customers will be office
workers, blue-collar workers, students, and adjacent neighbours. You can annex your
carinderia beside your house if you are able to, as this will save you from rent, capital,
A common issue that is rampant among these types of businesses are rodent
and insect infestation, so much that they may contaminate the food or be accidentally
cooked with the dish. You must guarantee that your food is safe to eat as your
customers will be wary for these types of establishments. Things like sanitizing your
utensils in hot water with anti-bacterial solutions, disposing your garbage immediately,
proper segregation of equipment to avoid contamination, sweeping the floor often, and
keeping out stray animals are just one of the few things you can do to avoid a health
We’re not telling you this to temper your passion. We’re merely pointing out that if
you want a successful restaurant, you’ll need to invest some serious time and money.
What’s the biggest reason for failure? Lack of planning. Before you ever make dinner
for a customer, you’ll spend a lot of time figuring out every detail of your restaurant.
From kitchen appliances and menus to floors plans and staff selections, the planning
You can’t scratch a business plan out on a cocktail napkin. You need a detailed
business plan that charts the course for your success. That said, we suggest beginning
with a Lean Plan that keeps the business planning process simple. Think of your
business plan as a living document that you return to regularly to help you plan for
growth and measure your progress. Your business plan should include market
audience, an outline of your marketing plan, and a solid financial and budgeting
projection. To get you started, check out these templates specifically for restaurant
planning, or check out LivePlan business planning software, that will walk you through
the process. As you think about what you want your restaurant to look like, don’t forget
to keep an eye on industry trends. As with any start-up, timing is key. (Furgison, 2018)
featuring your proposed menu where you ask people for their honest feedback. But
don’t just invite your closest friends and family members. You might love the taste of
a certain dish, but if customers won’t pay for it or aren’t keen on its taste, you won’t
make money. When you ask for feedback, consider using a method that allows
anonymous comments so that you get people’s honest reactions. Do your market
research. Visit another eatery to get a sense of appropriate pricing. (Furgison, 2018)
Generate startup capital: As with every business, make sure you know how much
money you need to get your restaurant off the ground.You’ll need three pools of
money. The first pool is for one-time costs like equipment (check out this calculator to
help you figure out startup costs). The second pool is to cover the restaurant expenses
for at least six months, and the third pool is to cover your personal bills for at least six
months. You’ll want to have at least six months of cushion because you’ll probably find
that your expenses outpace your revenue for at least that long. Plan to lose money for
the first six months: Restaurants aren’t profitable overnight. It takes time to market
your new place, attract a crowd, and get people to come back for more. Some say you
shouldn’t plan on making money for at least the first six months. Plan for bumps in the
road: It’s easy to go over budget when you’re first starting out, so make sure that you
have some additional money to cover the unexpected. If you’re not sure about how to
do this, consider a business line of credit. When you do hit a bump, evaluate the
numbers and your processes, Lambrine Macejewski says. For example, when she first
opened her restaurant, she realized her food costs were too high. She called her
vendors and switched from a five-day delivery schedule to a two-day schedule. She
saved the money she needed by investigating the problem and looking for a solution.
Watch your food cost: You’re in the business of making food, but if your food costs are
out of line, you’ll end up losing money. Make sure you keep track of your inventory,
prepare food well, avoid waste, and keep prices competitive. (Furgison, 2018)
You can’t depend on repeat customers, so you’ll need to keep your marketing efforts
up to make sure your revenue stream doesn’t thin out. Establish a strong social media
presence, try an ad in your local paper, participate in the local fair, or host a small non-
profit get together at your restaurant to keep marketing your business. (Furgison,2018)
To be successful, you’ll invest a lot of time and money so make sure that starting a
restaurant is your passion, not just a business venture you hope will make money. “It’s
harder than you can imagine,” says Omer Orien, “but people do it all the time. It’s not
at all dreamy.” In these early days, it’s also a good idea to figure out what you want
your restaurant to look like. What will be your restaurant’s aesthetic? What furniture
will you need to purchase to fit the theme? How will you lay your restaurant out? Trent
Furniture, a British furniture company, has a great article on the topic to help you get
started. “A lot of it has to do with figuring out what kind of environment you want to
work in, what will make you feel the way you want to feel. It also doesn’t hurt to have
people in your life who have an eye for design.” Orien sat down with his co-founders
and built a 3-D model to plan the layout of their first location. And ultimately, they did
Concept)
The purpose of this systematic review is to highlight some of the business model
operations in order to not only stay in business but also to better serve their employees
corporations across the country varied in response. For some restaurants, the decision
was much easier than for others, fast-food, fast-casual, and casual dining restaurants
were already acquainted with to-go/carry-out operations and the pivot happened
seamlessly (Luna, 2020). For others such as fine dining, where delivery or carry-out
were never a part of their business model, the task seemed insurmountable. While
others opted to close completely, amongst them Union Square Hospitality Group,
Craftworks Holdings (Luna, 2020) And many other smaller chains (Adams, 2020),
citing reasons such as to protect their employees and to take social distancing as far
Many restaurants that opted to make the pivot to delivery/carry-out only models
eventually ended up closing temporarily, the most often cited reason was for the safety
of their employees and customers alike (He, 2020). First Watch CEO, Chris Tomasso
noted that the primary motivation for closing their restaurants was employee safety
and easing the burden on those that chose to continue working (Ruggles, 2020). Yet,
others expressed they were outmatched as Johnny Nunn of Verdigris says “I'm a cook.
I'm not qualified to make decisions about people's wellbeing in the face of a crisis”
(Feldmar, 2020).
operations, a variety of reasons were provided, most often citing the desire to keep
employees working and to support their suppliers, especially the farmers whose
collected, 82 dealt with the shift in operations towards carry-out and delivery
new/limited menus, online ordering and third-party delivery, collaboration and lastly
In an effort to maintain social distancing and limit contact points, many restaurants
launched online order platforms for their websites, expanded their third-party delivery
determine preferred method of food ordering during the pandemic finding that 43% of
consumers said drive-thru is the preferred method followed by takeout and curb side
pickup at 33%, third-party delivery was the least popular, consumers said they would
and Uber Eats and says that “delivery and mobile orders have become key channels
for the business” (Luna, 2020). With the only option for generating sales being delivery
or carry-out, many corporate chains including Noodles all launched free delivery
promotions (Luna, 2020). Wingstop Inc. saw same store sales increase 30% in April
due to the free delivery promotion (Ruggless, 2020). Many restaurants signed up for
delivery partners not only as a way to feed the community but also to continue to
The Coronavirus pandemic however is bringing to the surface the myriad of issues
with third-party food delivery apps and forcing some restaurants to consider direct
delivery. Chain restaurant, Noodles and Co. and even independent restaurants such
as delivery in March as it generates more revenue for the company by avoiding the
commission fees from third-party delivery apps (Adams, 2020). found that in the first
week of the direct delivery launch, orders increased drastically (Adams, 2020). The
Uncaged Chefs in Washington D.C. found that doing direct delivery allowed them to
hire their own drivers and therefore provide work for restaurant employees who were
Some independent restaurants are using the down time to permanently pivot to fast-
casual or to-go formats adding drive-thru lanes, walk-up windows for take-out and grab
and go counters (Canavan Dixler, 2020). A few corporate restaurant chains are
opening to-go restaurant concepts, Buffalo Wild Wings opened a “go” model
restaurant in May which featured a walk-up counter for orders and heated takeout
lockers for those who ordered online (Ruggless, 2020). Brands restaurants are others
that are also experimenting with to-go locations (Ruggless, 2020). The decisions that
are made will be individual to each operation based on location, market presence,
capital, consumer demand and staffing levels. Delivery either through third-party app
or direct through the restaurant has been a key to success for some restaurants.
changes is critical. Social media platforms have helped many operators keep their
operation. Slap fish founder Andrew Gurel said they have been able to keep sales
providing them what they need” (Thorn, 2020). Underbelly Hospitality group in
Houston in response to the question “how did you advertise to customers, what got
the best response,” noted they used their newsletter, social media and traditional
media and that “social media response from our guests was very strong” (Brown,
2020). Bryan Davis of Agricole Hospitality Group stated, “established businesses did
well with social media, newer businesses did better with guerrilla advertising” (B.
Davis, 2020).
Aaron Corsi, owner of 8th Wonder Brewery and Distillery in Houston in a phone
interview indicated, “continual, clear and honest communication” not just from the top
down but back and forth communication with the employees as a best practice (A.
Corsi, 2020). Indiana based Patachou restaurants launched an open information site
which has become the hub for the dissemination of critical information during this time
(Hoover, 2020). Bryan Davis of Agricole Hospitality Group, in response to the question
“if you could go back in time, what is one piece of advice you would give yourself?” he
said, “I wish we had the ability to communicate with all employees across a single
communication with local health and government officials has been vital for North
Carolina based chef Ashley Christensen. She says, “we've been in constant contact
with the governor and county reps; any time any document is produced, we have direct
many health and government agencies have not been able to provide all the answers
restaurant owners seek, being the first to know what is coming next is vital during the
initial phase of closures and regulations that are changing almost daily.
The expansion and in some cases addition of to-go style service has created new
opportunities for restaurant owners and chefs to keep income flowing for not only the
restaurant but also the employees whose livelihood depends on it. The themes that
were uncovered in these articles shed some light on best practices and can be
adjusted for any style of operation. Some restaurants went a step further and used
innovative thinking to adjust their business models to ensure their survival during the
pandemic.
In March when state governments were implementing new rules and closing dining
rooms, grocery stores had an influx of bulk buying and were running low or out of stock
on many staple items. The restaurant community found a way to solve three problems
at once:
Grocery stores were out of stock on staple items restaurant suppliers could not move
large amounts of stock due to depleted demand decreased sales. By turning dining
rooms into pop-up corner markets, restaurants could continue to employ staff, support
suppliers, create additional revenue and provide additional value to their customers by
limiting the number of trips outside the home (Houck, 2020). Several large chain
restaurants jumped on this trend including Panera, Subway, California Pizza Kitchen,
Big Boy, Just Salad, Potbelly Sandwich Shop and Dog Haus, (Kelso, 2020). Andre
Vener Co-owner of Dog Haus said, “grocery stores are being decimated, but
restaurants and their distributors are sitting on so much product that it would be a
shame to not find a way to still feed our guests” (Kelso, 2020).
Many independent restaurants are also embracing this trend from Sandwich shops
to award winning restaurants, using their network of suppliers to open their storerooms
to customers and selling some popular restaurant items in packaged form. For many
this includes dubbing the pop-up market with a new name, Olmstead in New York City,
an exclusive fine dining restaurant is operating as Olmstead Trading Post, selling pre-
packaged popular menu items as well as produce from local farms (Warerkar, 2020).
prepared foods and pantry items (Brien, 2020). The Grill in Washington D.C.
Phil Lempert a food and drink writer for Forbes, muses if this is the beginning of a new
concept (Lempert, 2020). Noting that grocery stores have moved into the foodservice
arena as “grocerants” with success, offering fresh soup and salad or sushi bars,
restaurants are now doing the same to create additional revenue and added
packaged take and bake meal options. Rouses Market in New Orleans is featuring
popular dishes from local favourites, Commander's Palace, Saba, Ye Old College Inn
and Bywater Bakery. Famous chefs have always had a home in grocery store aisles,
“but it's much rarer for them to make fresh items to be sold in deli sections” (Maynard,
2020). To local restaurants to supply take and bake dishes. In an interview with
supplying take and bake items to grocery stores said the biggest considerations they
had to make in executing this idea was “how to package the items – what materials to
use and whether we could purchase enough. Also, which dishes would work best as
take and bake items and how to get them delivered to each store” (L. Brown, email,
May 5, 2020). The partnerships have been beneficial to restaurants who have been
able to re-hire staff and capture revenue through this new channel of selling goods
(Maynard, 2020)
3.5 Family meals/meal kits
Some restaurants specialize in family meal style of service, however for the greater
majority family meals never had a place on their menu until COVID-19 forced many to
re-evaluate their menu and offerings. Family meals have gained popularity as people
are stuck at home and are losing motivation when it comes to cooking (Maynard,
2020d). Family meals provide the consumer with easy dinner solutions, something for
the whole family instead of selecting individual items for each person, which also
creates ease for the restaurant in preparation and packaging. In conjunction with the
idea of limited/rotating menu items, Boka in Chicago, is offering three family meals per
day including one vegetarian option (Selvam, 2020). Different variations of the family
meal exist as some restaurants are creating quarantine meals, with more of an
individual person in mind. is selling jars of their specialty items like five spice tofu or
spicy beef sauce which can be paired with noodles, rice or dumplings and can create
four to five meals at home (Kravitz Hoeffner, 2020). Similarly, is focusing on three-
In addition to prepared family meals, meals kits have become increasingly popular
during quarantine. All the necessary ingredients are provided to be assembled and
prepared by the individual and in some cases include video call conferences with chefs
who provide guided instructions on how to assemble the contents to create the meal
(Adams, 2020). For the budget conscious, fast food restaurants like Chick-fil-A,
offering chicken parmesan meal kits and Shake Shack launched cook-at-home burger
kits, selling more than 8,000 in the first two-weeks (Kelso, 2020c). Or for those seeking
organic, locally sourced ingredients, Fat Rice in Chicago meal kits which are designed
to feed two adults and includes 30-min or less recipes with videos posted online for
customers to follow along (Selvam, 2020). Other operations are upping the ante by
offering their meal kits along with rolls of toilet paper or hand sanitizer (Kravitz
Hoeffner, 2020).
For both those that have become a pop-up market or selling family meal/meal kits
articles. The subscription service would allow customers to enrol in the program and
receive a box of products each week from the restaurant. The Hitchcock Restaurant
Group in Seattle created an 8-week subscription for produce boxes to support local
farms (Flaherty, 2020). Provisions, a weekly subscription that includes butcher's boxes
Zingerman's Deli launched a weekly subscription that includes ingredients from nine
The road to becoming a successful restauranteur has its ups and downs. While you
will celebrate a lot of milestones and successes, you’ll also have to overcome various
problems. Here are the most common restaurant problems and solutions that will help
you nip them in the bud. From kitchen problems to budget issues, what do restaurant
owners struggle with, and what can they do about it? (Voicu, 2021)
The problem is One of the main factors affecting the restaurant business is the
will you be bringing new that your competitors don’t already have? How will you stand
out? The solution regardless of whether you want to open a casual dining or a fine
dining restaurant, having good food and excellent customer service is not enough.
The problem is the food security being one of the main ethical issues in food service.
Since food is at the center of every restaurant, you should treat it with the utmost care.
As a restauranteur, you can encounter many foods transportation issues such as the
contaminated. These can lead to other poor food safety problems like customers or
staff getting sick. The solution Restaurant problems that have to do with food have to
be tackled one step at a time. First, find a trustworthy food transportation company in
your area. Take your time researching a few to find one that won’t break the bank but
also won’t compromise on quality. Next, train your staff on proper health and hygiene
practices and make sure they abide by them. Everyone who comes into contact with
the food must wash their hands, wear gloves, hairnets, clean clothing, and use the
proper tools. The equipment and tools must be cleaned and sterilized, and the
surfaces sanitized. When in doubt, always do the right thing by your customers –
there’s no in-between. For instance, if your fridge breaks down and you don’t know
precisely when, you have to throw away perishables even if it means it will cost you
more. You don’t want to risk getting anyone sick. (Laura, 2020)
The problem the truth is even if you know how to manage restaurant staff, you won’t
have the time to do that and also keep a close eye on day-to-day operations. The
solution is you can’t do it all as a restaurant owner. You need a manager or a
management team that you can trust. They will keep things running smoothly and
come up with much-needed restaurant staff rules, while also helping the restaurant be
profitable. That is not to say you shouldn’t be involved. On the contrary, you should try
to be there every day, especially in the first year. To avoid chaos and money waste,
schedule the workforce carefully. You don’t need five servers when the restaurant is
empty, nor can you manage with two when the restaurant is bustling. Both instances
will lose you money and potentially prompt negative reviews. When you’ve found the
perfect balance, train your staff on how to handle different situations. Offer them
materials and incentives if they do a good job and reach individually established goals.
You also need to inspire them, keep them motivated, and align them with your
restaurant’s philosophy and concept. Everyone should have a clear view of their
managers shouldn’t be the owner’s concern, but that depends heavily on finding
someone you feel comfortable letting take the reins. Any HR issues in restaurants
should be their responsibility, and they should have a strong work ethic. Remember
that even assigning shifts can be an ethical problem. They should be allocated on
skills, performance, and seniority, not based on whom the manager likes more.
The problem is plenty of restaurant problems and their solutions have to do with
customer service. To turn customers into return customers, you need to keep them
happy and offer them a flawless dining experience. This can be particularly challenging
when they’re disrespectful or disruptive, such as when they’re clearly inebriated and
are asking for more alcohol. The solution is customer problems in a restaurant can
escalate quickly. Train your staff to be accommodating but firm. If the customer is
perfectly pleasant, treat every step of the dining experience with the same care. It’s
not just the food that matters Keep in mind that customers might leave you online
reviews. If you get a lot of negative ones, it can impact your popularity and
trustworthiness online. That said, no number of good reviews is worth anything if the
customer is rude or even aggressive toward the wait staff. Over serving alcohol is
another ethical issue restauranteurs encounter. What do you do when a customer has
had enough? Do you cut them off? When? How? As a restaurant owner, you should
empower your staff to make their own decisions when it comes to stop serving alcohol.
After doing so, they should inform the customer of their decision and offer to call them
a cab. You don’t want to sacrifice your guests’ and staff’s well-being over getting more
money. (Laura,2020)
The problem is when you think of restaurant problems and solutions, marketing is
probably not in the top three. Still, marketing is something you cannot go without as a
restaurant owner. If you don’t have a dedicated marketing budget, you don’t
necessarily have to get one. You can promote your restaurant for free and still get
great results. The solution is Bad reviews on websites like Yelp and TripAdvisor can
damage your online reputation. The trick is to learn from these reviews and use them
to improve your business. Always reply to them and do your best to solve the problem.
To market your restaurant online, you first need a restaurant website. The website
should be optimized and responsive to give the customers exactly what they’re looking
customer satisfaction is the way that leads to long term customer retention because
that it's this consumer’s fulfilment result. It's a ruling that a products or services feature,
or this products or services per serve, comes with a pleasurable level of intake linked
fulfilment. In other words, it does not take total level of wellbeing that has a service
Top quality includes 2 main factors: (1) the merchandise fulfils wants or even (2)
around those levels it truly is free from insufficiencies. Service is kind of performance
that's proposed by 1 get together to an alternative and also within corporeality can be
an ought to part of it. Through acknowledged the necessity associated with methods
associated with program excellent quite a few scientists most often make use of
service quality. More you are reliable in terms of your product quality more customers
will be satisfying with your product. It is the part of Customer relationship management
that how much your customer depends upon reliability of your core product. Once
5.4 Price
Price has a significant role in selecting a product. For company point of view price
declare that people answer areas along with two generals, and also opposite, types of
actions: strategy or even prevention It is advised of which besides the actual physical
physical layout of the organization can also influence the amount associated with
accomplishment consumers attain after within. This involves research about the
“ambiance” which is “artificial environment” and also how it influences both clients and
SYNTHESIS:
methods from such nutritive substances as proteins or their component amino acids,
carbohydrates, fats, vitamins, and trace elements. Synthetic and artificial food
products usually imitate natural food products in appearance, taste, and Odor.
Synthetic food products are derived from chemically synthesized food substance. This
research offers several practical implications which will assist the industry should
another similar event occur in the future. The systematic analysis describes and
documents some suggestions as well as practices to be mindful of in preparing