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An Exposition of Some Traditional Practices and Beliefs of Bulacaos
This simple exposition is purely based on personal experiences of the author as a Bulacao and some research made by Dr. Gagelonia, Pedro, Filipino anthropologist and historian. This article tackles some some facts about the social life and practices of Bulacao in Norzagaray.

November-December November-December 2006

Menu Pricing and Strategy

Ms. Josephine Navoa

Menu Pricing is one element of guest satisfaction. It represents the final judgment in balancing the required profitability against that is allowed by competitive pressures. In menu pricing, one of the factors to be considered is that it should cover the cost of food and labor and additional operating costs including rent, energy, and promotional advertising. Other important factors to be considered when menu prices are set are the perception of value and competition. Of all the business decisions operators make, determining menu prices is among the trickiest and most perplexing. Deciding when and to what extent to increase prices is a dicey, even agonizing task for both new and experienced restaurateurs. Price too low and the difference between your actual prices and what you could be charging comes right off your bottom line. Price too high and you may lose customers wanting a better deal. Today, menu pricing is generally computerized. Menu and portion count can be entered into the program; it will calculate

portion sizes, selling prices, item costs and the raw food and mark-up percentages. Pricing Methods: 1. Factor also known as markup method. Menu Sales = Price Raw Food Cost X Pricing Factor

The principal disadvantage of this method is that costs other than food are not known until the end of the month. This method also disregards perception of value and the fact that customers will not pay a uniform markup on all menu items. Prime Cost consists of raw food cost and direct labor cost of those employees involved in the preparation of a food item but not service, sanitation, or administrative costs. As an example, in examining financial records the FS manager finds that for every Php 100.00 spent for raw food, 47.50 pesos are spent for direct labor, making the prime cost total Php 147.50. The manager decides that 40%

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d. e. f.

recover full costs, or in an unsatisfactory and unpredictable margin. Competitors pricing considers the prices on what the competitors in the market are charging. Follow the leader pricing implies that there is a leader or dominant players whose price structure and changes are followed by others in the market. Psychological Pricing is based on customers perceived value. Cost Plus Mark-Up Pricing is determined by adding a mark-up to the product cost. Product Cost Percentage Pricing is estimated by getting the target food cost percentage and the potential cost.

Pricing Psychology
Source: http://www.statam.com/files/Pricing.html

of the selling price of a food item would be raw food cost and 8% for direct labor, leaving an operating margin of 52%. This percentage is the proportion of the selling price with a margin of 52% is 100 / 55, or 1.923, as a multiplier for the prime cost to yield the selling price. The prime cost of Php 147.50 multiplied by 1.923 gives a selling price of Php 283.6425 = Php 283.75 3. Actual Cost is used in operations that keep accurate cost records. This is to established the food cost from the standardized recipes and labor costs which are the principal variable costs. Other variable costs, fixed costs and profit can be obtained as a percentage of sales from the profit and loss statement. Menu price consists of: actual food cost actual labor cost + other variable costs + fixed cost + profit. It has the advantage of including all costs and the desired profit in the selling price of menu item. Method of Menu Pricing Traditional Pricing a. Intuition establishing prices based on intuitive feelings can result in failure to
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1. Odd- cents pricing follows the basic philosophy of creating illusion of a bargain. The so called magic numbers supposedly to stimulate consumer to buy. Kreul identified three (3) methods practice in odd-cents pricing. These are the following: a. Price ends in an odd number (e.g. Php 14.75) b. Price ends in a number other than zero ( e.g. Php 14.77) c. Price is just below zero ( e.g. Php 14.99) 2. Pricing by the Ounce is used in some onsite food service operations, especially for salads and sandwich bars. It is also popular for salad bars in supermarkets. The initial step in using this pricing system requires estimation of the total amount of raw food needed to serve an anticipated number of customers to determine the raw food cost per ounce. The selling price per ounce is computed by multiplying the cost per ounce by a markup factor.

3. Two-Tier Foodservice is being used in a number of healthcare centers around the country as hospitals compete for patients. Upscale amenities and menus are being prepared for patients who are willing to pay for special food items and elegant service. Ala Carte menu is actually not a separate type of menu but a method of pricing a menu. Menu items are priced, offered and selected separately by customer. Table Dhote menu group several food items together and offer them at the fixed price. The menu is a complete meal with several courses and the only choices might be soup, salad or dessert. Procedure in Examining the Problem in the revision of the price: 1. Have prices changed recently? If so, what effect on the volume of sales could be attributed to the price changes? 2. Is there a noticeable long run trend in prices? If so, what is it? 3. What types and amounts of discounts are offered in your restaurant? 4. To what extent do your prices, discounts and terms of sales differ from those of your competitors? Is there any price leadership in operation? 5. What volume changes would you need in order to compensate for any price changes? 6. What information are available or could be attained to show the reaction to price changes of your actual and potential competitors? 7. Where are the breakeven points? To what extent is the restaurants target attained? 8. To what extent do the current contributions per item differ from their potential contribution? 9. What is your market share in each of these areas served? Is it increasing, steady, or declining? Do you therefore need to change the menu entirely? LCCM Research Digest

10. What is the current cost structure of the product? Has there been any departure from the recipes or costing methods? 11. Did the cost changes you have experienced also affect your competitors? 12. What are the present limits of productivity capacity? To what extent is the capacity currently utilized? If the restaurant is operating at or near capacity, could extra capital be found to increase capacity and at what cost? 13. Have any of the unit factor cost changes and to what extent? Menu Engineering Menu engineering provides a quantitative method in evaluating the success of a new menu as compared to previous ones. It includes selling prices, sales counts of each menu item and direct product costs. It also includes testing for price elasticity. An Inelastic price is when the quantity sold does not vary with price increases or reductions while an elastic price is when sales counts can be dramatically affected by price increased or reductions. Menu Profitability Analysis
Items selling price Items recipe cost Tuna Items sold 50 pcs. Selling price Php 18.75 Recipe food cost 0.93 Garnishes 0.40 Vegetable, starch, roll & 1.00 butter Total Cost Php 2.33 Contribution Margin Php 16.42 CM = Sales price recipe cost x no. of item sold

Menu Popularity Analysis POPULARITY = no. of item sold / total no. of items sold

Basic Menu Engineering Approach 1. Factor in the variable cost of labor preparation or prime cost rather than simple food cost. How long does it take to prepare this item? 2. Factor in butchers costs, taking consideration differing costs for pre-cut and in-house butchering. 3. Rank menu items by combination of food cost percentage and contribution margin.

Kreul, L.M. (1982). Magic Numbers: Psychological Aspects of Menu Pricing. Ojugo, C. ( 1999). Practical Food and Beverage Cost Control. NY: Delmar Publishers. Perdigon, G. ( 1989). Foodservice Management in the Philippines. QC, Philippines. Spears, M. and Gregoire, M. ( 2004). Foodservice Organizations: A Managerial and Systems Approach. 5th ed. New Jersey. Pricing Methods www.about.com. Retrieved from

After knowing all the important factors in pricing, the following are some of the guidelines on how to combine all of these factors in determining a price for a product or service.
The price of the product/service must

Ms. Josephine Navoa

Faculty School of HRM and Tourism Research Interests: Quality Service, Food processing and Nutrition Contact Number 736-02-35 local 141

be adequately higher than costs to cover reasonable variations in sales volume. If companys sales forecast is inaccurate, how far can the company be and still be profitable? Ideally, an owner wants to be able to be off by a factor of two or more (sales are half of forecast) and still be profitable.
Every one in the business has to make

La Consolacion College Manila Quality Policy The administrators and personnel of La Consolacion College Manila are committed to continuously improve its quality management system, meeting student clientele and regulatory requirements This objective shall be accomplished through the application of the following: 1. Student Clientele Satisfaction. We perform task with the student-clients in mind to provide quality education and academic services. Continuous Improvement. We seek to continuously improve our services and processes, promote individual and holistic excellence through technical and professional competence, communication skills; religious- values education and information technology, and enhance safety in our community and environment. Effective Quality system. We will comply with the requirements of the international standard for quality system.

a living. Have you figured salary for yourself in your costs? If not, your profit has to be adequate for you to live on and still have money to reinvest in the company.
Price should almost never be lower

2.

than costs or higher than what most consumers consider "fair". This may seem obvious, but many entrepreneurs seem to miss this simple concept, either by miscalculating costs or by inadequate market research to determine fair pricing. Simply put, if people won't readily pay enough more than your cost to make you a fair profit, you need to reconsider your business model entirely. How can you cut your costs substantially? Or how can you change your product positioning to justify higher pricing? References LCCM Research Digest

3.

The Research Digest is now accepting contributions for the Jan.Feb. Issue. Feel free to visit us for inquiries.

An Exposition of Some Traditional Practices and Beliefs of Bulacaos

Mr. Teodolfo Santiago

When I started gathering my materials for this topic, I tried to pause for a couple of minutes and tried to recollect my years of formative experience living in my home-town province in Norzagaray, Bulacan.

(Father Side)
Looking at the mirror in our sala, I tried to recapture some family influences which came to my mind. You will observe this while I read and share this simple exposition about Some Practices/Belief of the Bulacaos. Here, suddenly my happy memories returned to my younger treasured years when I was still living with my Grand Parents somewhere in the barrio of Norzagaray. There the flash back began. This simple exposition is purely based on my personal experiences as a Bulacao and some research made by Dr. Gagelonia, Pedro, Filipino anthropologist and historian. Also from a special study by Agustin, Demetrio which was published in Philippine Sociological Review Vol. IV, issued April-July 1956, Nos 2-3. The works of historiananthropologist F. Landa Jocano are also a part of this exposition.

(Mother Side)

(My Parents)

Figure 1. Family Set-Up Some Traditional Practices and Beliefs of Bulacaos A.) Some Facts about Social Practices of Bulacaos Life and The set up of the future families of the children will have the same diagram. The grandparents, traditionally, are very important and highly respected. One family value is respect/ care for the elders. In most decision-making, the elders (Grandparents to the youngest member of the family are being observed).

The Bulacaos are typically clannish. They have a very close family set up. This is illustrated through this diagram:

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Figure 2. Traditional Banquet Setting

During the banquet, both the farther and mother are at the ends of the table. The children are arranged according to their sexes and age. At the right side of the father, all the males are seated from the eldest to the youngest son. At the right side of the mother, all the ladies are seated from the eldest to the youngest daughter. However because of the fast changing world, this typical traditional set-up during the banquet is no longer commonly observed today. One of the reasons is the influence of the new environment and the influx of the new set- up of furniture like the round table. This is illustrated again in the new set-up of the table banquet setting with a round table.

Moreover, at meal time, the father, the father and the mother facilitate during the conversation. Most of the time, the dominant voices that can be heard are the voices of the father and the mother indicating that they are the heads of the family. The mother assisting the father in doing the tasking, reminding the children about their respective responsibilities or household chores. During meal time a lot of things are being sort out. Most of the things talked about among them are the issues which pertain to their relationship with one another in the family. After sorting out their respective dealings with one another, their respective duties and obligations are also thresh out to determine whether they are doing well or needs help from each other. From this typical family exercise, the bonding within the family becomes stronger and the challenges or any problem becomes lighter and bearable. This kind of practice is still being observed up to now in most families in Bulacan. In addition, at meal time, the spiritual aspect of the whole family is also being discussed with care, assurance and guidance by the mother. This time, the mother is the one sorting-out the familys religious affairs, or religious practices within and outside their house. The mother is the teachercathechist assisted by her eldest daughter in the family. All the females of the family are expected to know many basic prayers and religious rituals which concern the family spiritual nourishment. The mother and the female members of the family usually lead the prayers during special liturgical celebrations. Whereas, the father and all the males are expected to know and share the tasks and responsibilities during the said special liturgical celebrations like, the para-liturgy for buhos tubig ( prebaptism) of a newly born child, lamay ( wake) or funeral wake of their dead, panata ( intense novena) or novena prayers, processions, etc.

Figure 3. Round -Table Set Up

Based on Figure 3 , the new set up of table banquet setting shows that in spite of the above mentioned changes, the close family tie set-up is observed. LCCM Research Digest

B. Some Special Liturgical and ParaLiturgical Celebrations 1. Buhos- Tubig ( Pre- Infant Baptism) The less than one month old baby will undergo pre-infant baptism. The Bulacaos believed that the newly born infant should undergo buhos-tubig to prevent bad spirits in roaming around the house and playing with the infant. Sometimes this comment can be heard, the guardian angel is playing with the infant. 2. Binyag ( Baptism) After the baptisms liturgical ceremony, the one holding the baby will rush toward the main door of the church. The goal is to be ahead among those who just received baptism. They believed that if they will be the first one to come out from the door the infant will have the benefit to be always ahead in everything among the newly baptized infants at the baptism. 3. Kasal ( Wedding/ Marriage) Some guidelines for those who are going to marry based on the siblings order (from eldest to youngest). a) No pre-wearing of wedding gown by the future bride. If done, the wedding will not happen. b) One week before the actual wedding, the future husband should not go out from his resident house. If done, the future husband will meet an accident. c) At wedding time, both candles standing at the sides of the groom and the bride should be lighted well and keep the flames burning intensely. If the flame of the candle is off, the one at the side of that candle will die ahead. d) After the wedding ceremony, upon returning and entering the house, the groom should come in first and should not allow the bride to step on his shoes. If the bride entered ahead of the groom
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and the bride steps on the shoes of the groom, the groom will always be under the caprices/ wishes of the wife. e) On throwing the brides bouquet, all the unmarried ladies assisting the bride will line up at the back of the bride and will aim to catch the bouquet of flowers thrown by the bride. The one who catches the bouquet will be the next one to marry. f) On the first night, after the wedding, during sleeping time up to walking time, the husband should not allow the wife to cross over him while lying down on the bed. If done, the husband will become under de saya during his entire married-life. Similar to the consequence as stated in letter d. g) On transferring to the new house, the husband and the wife should fill up all the different containers with water, sugar, salt, and rice before moving to the new house. If done, the husband and the wife will always have a prosperous, peaceful, good, and pious life. Their entire married life will be alright and guaranteed in all aspects. If not observed, the opposite will happen. h) On the first salary given by the husband to his wife, the wife should save or keep some of the money inside their cabinet or aparador during their entire marriage life. If done, the consequence will be similar to letter g. 4. On Funeral Wake In most cases, the Bulacaos would like to watch over the body of their dead in their own house for a period of days which include the nights. At the funeral wake, guests, such as, their relatives, neighbors and friends are around to convey their condolences to

the grieving family. Usually, they wear black, gray or white colors to sympathize with the family. Some Ceremonies during the Funeral Wake a) The Tatlong Gabi (3 days and nights). From the day of death until the 3rd day of funeral wake or lamay, the immediate family and their relatives gather during the night to have a special prayer for the dead. At prayer time, most elder women are the ones leading the ceremony. After the prayers, food are serve to those who attended the ceremony. b) The Siyam (9 days and nights). The siyam takes place on the ninth day either counting from the day of death or burial. Again, most elder women are the ones leading the prayers for the eternal repose of the soul of their dead. The people who attended the nine days of prayer are invited to dine or to eat with the immediate family of the dead. c) The Apat-napung Araw (40 days and nights). The Apat-napung Araw takes place on the 40th day counting from the day of death or burial. The mood is festive. There are singers of psalms or Cantoras to pray for the eternal repose of the soul of the dead. Food is serve during and after the ceremony. d) The Babang Luksa (1 year death anniversary). At this time, the immediate family members of the dead are now ready to discard the wearing of black clothes. Again, the mood is festive and there are plenty of food, drinks, and desserts for the guests. There are joyful songs to be echoed to cast out sorrow in the house of the dead. The dead is believed to be with God after those long ceremonial-para-liturgies for the dead. The immediate family of the dead will start wearing joyful colors indicating the babang luksa or discarding the black clothes.

However, looking at the younger generations of Bulacaos nowadays, one could hardly notice those practices and beliefs being observed. Why? The influences of modern living and the influx of new mind set brought by the speed of communication, modernization of life style, enchanting futuristic technology and the demands of our new age, push our young Bulacaos to embrace the new sets of life values. These occur because they are appealing to our very being as persons creatively responding to the call of new age. There is a need to become conscious that our own heritage can be tremendously lost, once personal origin is taken for granted.
Mr. Teodolfo Santiago
Faculty School of Arts and Sciences Research Interests: Philosophy, Theology and Oriental Studies Contact Number 736-02-35 local 163

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