THE RELATIONSHIP BETWEEN GREEN BUSINESS PRACTICES

AND PROFITABILITY OF RESTAURANTS IN CARIGARA, LEYTE

A Research Proposal

Presented to the Faculty of Jugaban National High School

Jugaban, Carigara, Leyte

In Partial Fulfillment

of the Requirements for Practical Research 2

by

KAREN C. BARDELOSA

RONJE L. GALANZA

LEA MAE I. LIANZA

AIVY D. NIVERA

JELIEROSE E. PADRON

JENELYN J. SALVACION

January 2024
 CHAPTER I

INTRODUCTION

Background of the Study

Due to its susceptibility to climate change impacts, the Philippines faces crucial

challenges in preserving biodiversity and managing resource depletion and pollution. It

highlights the importance of sustainable business practices in response to the growing

demand for environmentally friendly products among aware consumers (Austen et al..

2021). In response to these challenges, businesses expectation are increasingly growing

to act responsibly and play a role in mitigating their environmental impact. This

expectation stems not only from regulatory mandates and the demands of various

stakeholders, including customers, employees, investors, and the broader community

(Bandiola, 2019). One of the most noteworthy shifts in this landscape has been the

increasing emphasis on sustainability and environmentally responsible green business

practices.

The environmental impact of consumer purchases has become a growing concern

for modern consumers, specifically the younger generation. According to a survey

conducted by Pulse Asia (2023), 80% of Filipino consumers consider sustainability when

deciding about what to buy, and 8 out of 10 Filipinos are willing to pay more for

sustainable products and services. Furthermore, as Smith (2022) indicates that 60% of

Filipinos refrain from purchasing a specific product or service due to its adverse

environmental impacts. As a result, compared to similar goods and services that do not
negatively impact the environment, 75% of consumers now choose those that do (Trid,

2018). With that said, sustainability is now a significant factor influencing consumer

choices, and consumers are more willing than ever to pay a premium for sustainable

products and services. The emphasis on being environmentally friendly has forced the

restaurant business to modify its offerings as well in order to satisfy patrons' evolving

demands.

Restaurants that embrace this new way of thinking about customers will probably

draw in a devoted and expanding clientele. For instance, Trinidad's (2021) study stated

that many consumers patronize sustainable restaurants . However, some customers who

will not eat at restaurants they believe are environmentally unsustainable (Hemensberg.

2018). These figures demonstrate how the most of Filipinos have altered their purchasing

habits due to their increased sustainability awareness. By adopting sustainable practices

such as sourcing local, organic ingredients, reducing food waste, and energy-efficient

equipment, restaurants in the Philippines can differentiate themselves in a crowded

market and cater to the majority of eco-conscious consumers, exemplified by many

restaurant owners joining green associations like the Green Restaurant Association

(GRA).

The susceptibility of the Carigara, Leyte region to climate change impacts

necessitates an examination of the current business practices adopted by local restaurants.

The path towards sustainability in the restaurant industry is multifaceted. In the locality

of Carigara, Leyte, restaurants incorporate sustainable sourcing and local ingredients into

their practices as a powerful way to contribute to the movement towards a greener, more

sustainable future. By prioritizing ethical farming, seasonal produce, and community

partnerships, restaurants not only reduce environmental impact but also support the health

and well-being of their customers and the local community of Carigara, Leyte.

Additionally, some studies suggest that implementing green business strategies

can enhance profitability in the restaurant industry while ensuring compliance with

environmental regulations (Nero et al., 2019). While existing research has explored

various aspects of sustainability in businesses, there is a gap in understanding how these

practices specifically impact restaurants profitability in the context of Carigara, Leyte. It

is an important gap in the literature, as it is unclear whether green business practices are a

cost or a benefit to restaurants. As a result, the objective of this study is to explore the

relationship between green business practices and the profitability of restaurants in

Carigara, Leyte, to determine whether adopting environmentally friendly strategies is a

viable approach for enhancing the economic outlook of these establishments. By

investigating this relationship, this study will provide valuable insights into the economic

benefits of adopting green business practices in the restaurant industry.

Furthermore, this research will be able to determine and emphasize sustainable

practices that is being adopted to the restaurants and how it affects to the profitability of

business. Through that, it will be able to answer the existing gap about how green

business practices affects profitability on the restaurants of Carigara, Leyte.

Statement of the Problem

 This study aims explore the relationship between green business practices and the

profitability of restaurants in Carigara, Leyte. It aims to determine whether adopting eco-

friendly practices leads to improved financial performance, thereby offering a viable

approach for enhancing the economic outlook of these establishments.

Specifically, it seeks to answer the following questions:

1. What is the demographic profile of employees in small restaurants in Carigara, Leyte?

1.1 Age

1.2 Gender

1.3 Highest Educational Attainment

1.4 Job Title

2. What is the level of green business practices implemented in Carigara, Leyte in terms

of:

2.1 Energy Efficiency

2.2 Waste Reduction

2.3 Water Conservation

2.4 Sustainable Sourcing

2.5 Environmental Education and Engagement

3. What is the profitability of the business in Carigara, Leyte after the implementation of

green business practices?

4. Is there a significant relationship between green business practices and the profitability

of restaurants in Carigara, Leyte?

Research Hypothesis

H0: There is no significant relationship between green business practices and the

profitability of restaurants in Carigara, Leyte.

Ha: There is a significant relationship between green business practices and the

profitability of restaurants in Carigara, Leyte.

Conceptual Framework

Independent Dependent
Variable Variable
Green Business Profitability of
Practices Restaurants

Figure 1. Conceptual framework of the study.

The framework provides a clear visual representation of the conceptual

framework for this study exploring the relationship between green business practices and

profitability. Green business practices represent environmentally friendly strategies

implemented by restaurants, while profitability pertains to their financial performance

and ability to generate profits. The single arrow pointing from the box containing the
independent variable to the box of the dependent variable suggests a hypothesized

directional relationship.

Particularly, it is expected that the environmentally sustainable practices adopted

by restaurants could influence their financial performance. This framework serves as the

foundation of the study, providing a clear visual outline of the hypothesis that the

research intends to explore.

Scope & Delimitations of the Study

The proposed study aims to explore the relationship between green business

practices and the profitability of restaurants in Carigara, Leyte. The specific time frame

for this study will be from January 2024 to December 2024. The research will be carried

out exclusively in Carigara, Leyte, a municipality in the Eastern Visayas region the

Philippines known for its vibrant restaurant industry. The study will focus on examining

the demographic profile of employees in small restaurants, including their age, gender,

educational background, and job title. The findings of the study will be limited to the

context of Carigara, Leyte, and may not be generalizable to other regions or types of

restaurants.

Significance of the Study

 Owners/Managers. By understanding the potential benefits of green business

practices, the restaurant owners can make informed decisions about implementing these

practices in their own establishments.

Employees. Greener restaurants can provide a more positive and sustainable work

environment, which leads to increased in job satisfaction, engagement, and motivation for

employees.

Customers. Customers who are concerned about the environment can choose to

support the restaurants that are implementing green business practices.

Local community. A more sustainable restaurant industry can create jobs, boost

the local economy, and improve the quality of life for residents.

Environment. By reducing their environmental footprint, the restaurants can

contribute to a more sustainable and healthier planet.

Future Researchers. Future researchers can build upon this study's findings,

replicate it in different contexts, investigate additional variables, develop new

interventions, and contribute to theory development, which ultimately enhancing the

restaurant industry's sustainability and profitability.

Definition of Terms
Energy Efficiency. The way in which a restaurant reduces energy waste and promotes

sustainable energy practices by measuring how well it uses energy resources to run its

operations.

Environmental Education and Engagement. The process of teaching restaurant

employees about environmental issues, getting them involved in green activities, and

helping them realize how their actions affect the environment.

Financial Performance. The valuation of a restaurant's financial sustainability and

health by taking into account its income, costs, and profitability.

Green Business Practices. The use of sustainable and eco-friendly methods to several

areas of restaurant operations, including energy usage and waste disposal.

Profitability of Restaurants. A restaurant's total financial performance, which shows

how profitable it is while taking into account income, costs, and financial sustainability.

Sustainable Sourcing. The process of getting food and other supplies for the restaurant

in a way that supports social responsibility, worker ethics, and environmental

sustainability.

Waste Reduction. The strategic efforts to minimize and manage the amount of waste

generated by a restaurant, encompassing practices such as recycling, composting, and

efficient waste disposal methods.

Water Conservation. The efforts to use less water in restaurant operations by practicing

responsible water management, and implementing employee awareness initiatives.

CHAPTER II

REVIEW OF RELATED LITERATURE

In this chapter, the researchers delved into the extensive body of existing

knowledge, literature, and studies that serve as the foundation for the study. Through a

comprehensive review of relevant literature, the researchers aim to explore the varied

dimensions of green business practices and their influence on profitability. This literature

review not only synthesizes the essential findings and insights from previous studies and

identifies gaps and areas where our research can make a valuable contribution. Moreover,

this chapter lays the groundwork for the subsequent chapters, offering a roadmap for our

study's methodology and analysis.

Environmental Responsibility in Restaurants: Green Business Practices

Customers globally express heightened concern about environmental issues,

urging industries to reconsider operations and embrace sustainable practices (Denit,

2021). The restaurant sector, accounting for one-third of yearly greenhouse gas

emissions, faces unique challenges like narrow profit margins, perishable goods,

seasonality, and ever-evolving trends, pushing it towards a distinctive journey for a more

sustainable future.

Research indicates that modern eco-friendly appliances in restaurants offer the

potential for cost savings, as demonstrated by Energy Star tools calculating long-term

savings (Hemek, 2023). Understanding time-of-use rates becomes crucial for restaurants

aiming to reduce energy expenses, with afternoon operation often more economical

(Katie McCann, 2023).

Restaurants actively participating in eco-friendly practices can differentiate

themselves from competitors, creating a significant competitive edge. Indian consumers

are increasingly willing to pay a premium for restaurants dedicated to ecological efforts

(Hevikla, 2019). The industry grapples not only with environmental concerns but also

with challenges related to food wastage and consumer health, emphasizing the shift

towards improved food handling and preparation practices (Lexicon, 2019).

The motivation for restaurant owners adopting green practices extends beyond

environmental concerns; it's also about establishing a unique image in the market. These

restaurants are redefining their stance on environmental and nutritional matters,

implementing changes to foster a healthier environment and offer more nutritious food

options, including the integration of organic foods into their menus.

The multifaceted approach of the restaurant industry towards sustainability,

encompassing environmental awareness, cost-saving measures, and addressing evolving

challenges, implies potential implications for the present study. The emphasis on a good

image through green practices suggests a link between adopting sustainable measures and

gaining a competitive advantage.

The global trend of consumer influence on environmental concerns aligns with

the present study's focus on how green business practices in Carigara, Leyte, respond to

increasing demand for sustainability. Insights on cost-saving measures and potential

competitive advantages from environmental commitment inform the present study's

exploration of the relationship between green practices and restaurant profitability.

Understanding challenges related to food wastage and consumer health in the restaurant

industry provides a context for the present study's examination of profitability factors in

restaurants in Carigara, Leyte. Motivations for adopting green practices, such as

establishing a unique image and addressing environmental and nutritional matters,

contribute to the present study's exploration of the drivers behind adopting eco-friendly

strategies.

Profitability in the Restaurant Industry

The restaurant business, fueled by the flame of passion, demands resilience from

restaurateurs as they pursue aspirations closely tied to profit margins. However, the
sustainability of these aspirations faces challenges as profit margins in the industry are

dwindling. In Philadelphia, two decades ago, profit margins flourished at a substantial

15-20%, but presently, this culinary hub experiences contracted margins at a modest 4 to

7%, aligning with the national average (Rankin, S., 2023).

Effective cost management strategies become imperative for restaurant enterprises

navigating intensely competitive market conditions and the fragile financial structure of

the industry. Research highlights elevated prime costs, covering food and salary

expenses, as a significant challenge for full-service restaurant establishments, leading to

lower profitability compared to their limited-service counterparts. The enhancement of

operational efficiency in full-service restaurants requires adept cost-cutting skills, striking

a delicate balance between productivity, revenue generation, and maintaining quality.

The size of the establishment plays a pivotal role, with larger firms benefiting

from economies of scale that reduce food costs. However, managers of limited-service

restaurants, especially in larger firms, are advised to prioritize enhancing food quality

over relying solely on advertising effects to maximize profits (Mun et al., 2018).

The industry's shrinking profit margins highlight the pressing need for effective

cost management strategies to ensure the long-term sustainability of restaurants.

Additionally, the differentiation between full-service and limited-service establishments,

particularly in terms of prime costs, holds promise for understanding how various

restaurant types in Carigara, Leyte, navigate expenses and maintain profitability. This

industry backdrop sets a relevant context for our study, as we explore how green business

practices may influence the profitability of restaurants in Carigara, Leyte. The challenges

faced by the broader restaurant industry in sustaining profit margins provide valuable
insights for our examination of how environmentally conscious practices might impact

financial outcomes in a local context.

Moreover, the insights gained from understanding effective cost-cutting skills and

achieving a delicate balance between productivity, revenue generation, and quality

maintenance offer parallels for our study. As we delve into the factors influencing

profitability in our local context, these insights provide a valuable reference point.

Considering the dynamics of larger firms benefiting from economies of scale

aligns seamlessly with our study's consideration of the size and scale of restaurants in

Carigara, Leyte. This understanding offers potential implications for the adoption of

green practices, providing a pathway for improved profitability, especially in

establishments.

Green Business Practices adoption in Restaurants

Mendoza & Santos (2021) shed light on the depletion of natural resources in the

Philippines' economic growth, prompting entrepreneurs to consider environmental factors

in their business endeavors. As a result, the adoption of Green Business Practices (GBPs)

in restaurants has gained momentum, driven by the recognition that sustainability aligns

with both ecological responsibility and economic viability. The study revealed that such

environmentally conscious practices not only contribute to mitigating environmental

impact but also have a positive correlation with the profitability of businesses (Mendoza

& Santos, 2021).

 This implication echoes findings from a broader context, where Garcia (2019) and

Tolentino et al. (2021) emphasize the pivotal role of green practices in fostering a

positive environmental image and attracting environmentally conscious consumers. The

positive impact on profitability stems from consumers' increasing preference for eco-

friendly establishments, translating into enhanced brand loyalty and increased patronage

(Garcia, 2019). This aligns with the present study's focus on the profitability of

restaurants in Carigara, Leyte, suggesting that the implementation of GBPs may lead to

similar positive outcomes in this specific locality.

In relation to our study, the documented success of GBPs in other regions

provides a foundation for anticipating favorable results among restaurants in Carigara,

Leyte, as they adopt environmentally friendly practices. The ecological challenges

outlined by Mendoza & Santos (2021) in the broader Philippine context underscore the

relevance of our investigation in Carigara, as the local restaurant industry may play a

vital role in contributing to both environmental conservation and economic prosperity.

The Impact of Green Business Practices on Restaurant Profitability

Bautista et al. (2018) conducted a comprehensive survey involving 197 restaurant

patrons in the Philippines to explore the influence of green business practices on

customers' perceptions and future behavior. Their findings highlighted intriguing

dynamics within the restaurant industry. When restaurants implemented green practices

related to both food and environmental concerns, it significantly shaped customers'

perceptions of the restaurant's eco-friendly image, influencing their intentions for future

behavior.

Interestingly, the study discovered that the perceived quality of the restaurant was

not significantly impacted by green practices, revealing a nuanced relationship between

sustainability initiatives and customer perceptions. The relative impact of these two

aspects of green practices varied based on the type of restaurant. In upscale casual dining

establishments, initiatives focusing on green practices related to food proved more

effective in enhancing a green brand image and eliciting positive behavioral intentions

compared to those emphasizing environmental factors. Conversely, for casual dining

customers, the effects of green practices with an environmental focus were more

persuasive in terms of improving a restaurant's green brand image and eliciting positive

behavioral intentions compared to initiatives centered around food.

Moreover, the study delved into self-perception, revealing that diners with high

health and environmental consciousness responded more favorably to restaurant green

practices than those with a low self-perception in these areas (De Guzman, 2019).

To sum it up, Implementation of green practices significantly influences

customers' perceptions of a restaurant's eco-friendly image and their intentions for future

behavior. It also perceived that the quality of the restaurant is not significantly impacted

by green practices. Implications are the effectiveness of green practices varies based on

the type of restaurant, suggesting a need for tailored sustainability strategies and

understanding the nuances of customer self-perception in health and environmental

consciousness provides insights for targeted green marketing.

Understanding Sustainability

Sustainability, as initially defined, involves "meeting the needs of the present

without compromising the ability of future generations to meet their own needs." This

concept arose from the concern that economic growth should not harm the environment

or jeopardize the well-being of future generations, advocating for a new form of

economic development. For a society to be sustainable, it must fulfill three conditions:

the use of renewable resources should not exceed their regeneration rates, the

consumption of non-renewable resources should align with the development of

sustainable substitutes, and pollution rates should not surpass the environment's capacity

to absorb it. Sustainability has evolved beyond economic development, becoming a

broader principle applicable to governments, businesses, and individuals. It emphasizes

that our actions should not limit the options available to future generations. Sustainable

businesses aim to minimize their impact on the Earth, developing products, services, and

technologies contributing to larger societal efforts for sustainable living. In Business

Sustainability Models, Companies embracing sustainability may exceed minimum

environmental regulations, prioritize employee well-being, and invest in sustainably

sourced or ethically produced goods and services. Contrary to short-term profit sacrifices,

studies indicate that such practices often pay for themselves, and in some cases, enhance

profitability. Many firms demonstrate that it is both possible and profitable to "do well by

doing good." While in Operationalizing Sustainability in Business, two approaches to

operationalize sustainability in business are prevalent. The first adopts a "triple bottom

line" method, measuring corporate performance based on social, environmental, and

economic factors. The second encourages businesses to "gear up" by incorporating

sustainability at increasingly pervasive levels.

Implementing sustainable practices in business not only aligns with ethical

considerations but can also lead to enhanced profitability. Studies suggest that a triple

bottom line approach and gearing up for sustainability contribute positively to corporate

success. Companies adopting these models not only contribute to environmental and

social well-being but also position themselves for long-term economic viability.

In examining the literature relevant to the relationship between green business

practices and restaurant profitability, previous studies have provided valuable insights

into the potential benefits of eco-friendly initiatives. While existing research has explored

various aspects of sustainability in businesses, there is a gap in understanding how these

practices specifically impact restaurants profitability in the context of Carigara, Leyte.

This study contributes to the existing body of knowledge by delving into the local

dynamics, assessing the demographic profile of employees, gauging the level of green

practices implemented, and ultimately evaluating the financial outcomes. The findings of

this study aim to inform restaurant owners, policymakers, and stakeholders about the

potential economic advantages of incorporating sustainable practices in the local context,

thereby fostering environmentally conscious decision-making and contributing to the

overall prosperity of the community.

 CHAPTER III

METHODOLOGY

Presented in this section are the discussions on research design, research locale,

research instrument, data collection, and the statistical treatment of data appropriate on

the study.

Research Design

This study employed a quantitative design utilizing correlational research as it

aimed to investigate the correlation between green business practices and the profitability

of restaurants. According to Fraenkel and Wallen (2009), correlational research is a type

of research whose purpose is to find out the relationship between two or more variables

and their cause and effect. Additionally, Creswell (2012) states that correlation is a

statistical test to determine the tendency or pattern for two (or more) variables or two sets

of data to vary consistently. In line with Creswell, Axy et al. (2010) also assert that

correlational research explores the relationship or correlation between variables in

positive or negative correlation, and the level of correlation is determined by the

coefficient of correlation. It can be said that the detection of correlation among variables

is based on their correlation coefficient.

Research Locale

The research will take place in the town of Carigara, located in Leyte, Philippines.

This research will focus on studying the culinary scene and unique local industries of the

area. Carigara, Leyte has been chosen as the research location due to its diverse culinary
offerings and the presence of unique local industries that contribute to the town's food

culture. The town's food establishments reflect a variety of culinary styles and influences,

making it an ideal setting for the study of regional cuisines and food industry practices.

Respondents of the Study

The respondents of this study consisted of 60 employees from selected restaurants

in Carigara, Leyte. The selection of respondents was carried out using a randomized

process, which emphasized fairness and impartiality. Simple random sampling was

employed as the method for selecting the respondents, ensuring that each member of the

population had an equal probability of being chosen (Hayes, 2003).

To obtain a comprehensive and representative sample, the researchers obtained a

list of employees from the restaurants in Carigara, Leyte. The allocation of the sample

population to each restaurant in Carigara, Leyte was determined using Slovin’s formula:

N
n = 1+(N )(e)²

Where:
n = Sample Size
N = Population
e = Degrees of Freedom

70
n = 1+(70)(0.05)²
 n = 59.5 ≈ 60 Samples

Number of Employees
Restaurants
N n Percentage
El Garahe 8 7 11.67
Kusina Estela F&B 6 5 8.33
House
Zasaru Foodhaus, 5 4 6.67
BBQ
RAQ Farm Food 27 25 41.67
Garden
Ch3ckpoint Diner 6 4 6.67
K House Grill 5 4 6.67
Silvino's Grill & 13 11 18.32
Restaurant
TOTAL 70 60 100%

Research Instrument

The research will utilize a questionnaire as the primary tool for data collection. Its

aim is to explore the relationship between green business practices and the profitability of

restaurants in Carigara, Leyte. A questionnaire, as defined by Cresswell (2019), is a

structured set of questions crafted to elicit information from respondents. The

questionnaire will consist of five sections, focusing on the demographic profile of

employees, the level of implementation of green business practices, the changes in

profitability experienced by the restaurants, the relationship between green business

practices and the profitability of restaurants, and respondents’ comments.

To gauge respondents' perspectives, a scale range and interpretation below will be

employed:

LEGEND SCALE INTERPRETATION

 Scale Verbal Interpretation
4.20 – 5.00 Fully Implemented
3.40 – 4.19 Largely Implemented
2.60 – 3.39 Moderately Implemented
1.80 – 2.69 Slightly Implemented
1.00 – 1.79 Not Implemented at All

LEGEND SCALE INTERPRETATION

Scale Verbal Interpretation
4.20 – 5.00 Increased Significantly
3.40 – 4.19 Increased Moderately
2.60 – 3.39 Stayed about the same
1.80 – 2.69 Decreased Moderately
1.00 – 1.79 Decreased Significantly
LEGEND SCALE INTERPRETATION
Scale Verbal Interpretation
4.20 – 5.00 Strongly Agree
3.40 – 4.19 Agree
2.60 – 3.39 Neutral
1.80 – 2.69 Disagree
1.00 – 1.79 Strongly Disagree

Data Collection

In this study, the researchers will seek permission from restaurant owners or

managers in Carigara, Leyte, to conduct the study. Once permission is secured, a

questionnaire will be developed to collect data on green business practices and their

projected impact on restaurant profitability. The questionnaire will be administered to 30

respondents from the selected restaurants. After finalizing the questionnaire, a

representative sample of restaurants will be chosen to participate in the study. The

researchers will personally administer the questionnaire to the selected employees,

explaining its purpose and ensuring confidentiality. The data collection process will take

place within a specified timeframe of 9 weeks. Completed questionnaires will be

collected, and the data will be entered into a computerized database for analysis.

Statistical methods and software will be employed to examine the relationship between

green business practices and profitability, with a specific focus on the Pearson correlation

coefficient (Pearson-r) to quantify the variables.

Statistical Treatment of the Data

The following statistical procedures were used to interpret the data gathered from

the respondents of the study.

1. Simple Percentage. The demographic profile variables of the respondents were

analyzed using the simple percentage with following formula:

F
Simple Percentage P= x 100
N

Equation 1. Simple Percentage

Where:

P = Percentage

F = Frequency for each category

N = Total number of respondents

 100 = Constant multiplier

2. Weighted Mean. This statistical tool was used to compute the weight of the

responses in the questionnaire assigned by the respondents during the actual data

gathering procedure.

The formula for the weighted mean is as follows:

∑ WᵢXᵢ
i=1
Weighted Mean x̄ weighted = n

∑ Wᵢ
i=1

Equation 2. Weighted Mean

Where:

x̄ weighted = Weighted Mean

Σ = Summation Symbol

n = Number of terms to be averaged

Wi = Weight applied to x values

Xi = data values to be averaged

The following are the corresponding verbal interpretations for the weighted mean.

Weighted mean/Equivalent and their corresponding remarks:

4.20 - 5.00 = Not Implemented/Increased Significantly/Strongly Agree

3.40 - 4.19 = Slightly Implemented/Increased Moderately/Agree

2.60 - 3.39 = Moderately Implemented/Stayed/Neutral

1.80 - 2.59 = Largely Implemented/Decreased Moderately/Disagree

1.00 - 1.79 = Fully Implemented/Decreased Significantly/Strongly Disagree

LEGEND SCALE INTERPRETATION

Scale Verbal Interpretation
4.20 – 5.00 Fully Implemented
3.40 – 4.19 Largely Implemented
2.60 – 3.39 Moderately Implemented
1.80 – 2.69 Slightly Implemented
1.00 – 1.79 Not Implemented at All

LEGEND SCALE INTERPRETATION

Scale Verbal Interpretation
4.20 – 5.00 Increased Significantly
3.40 – 4.19 Increased Moderately
2.60 – 3.39 Stayed about the same
1.80 – 2.69 Decreased Moderately
1.00 – 1.79 Decreased Significantly
LEGEND SCALE INTERPRETATION
Scale Verbal Interpretation
4.20 – 5.00 Strongly Agree
3.40 – 4.19 Agree
2.60 – 3.39 Neutral
1.80 – 2.69 Disagree
1.00 – 1.79 Strongly Disagree

3. Pearson Correlation Coefficient. The researchers conducted a Pearson

correlation analysis to examine the strength and direction of the relationship

between GBPS and Profit Margin.

 Pearson (r) r=
∑ ( xi−x)( yi− y)
√∑ ( xi−x ) ∑ ( yi− y ) ²
2

Equation 3. Pearson (r) of the study

Where:

r = Pearson correlation coefficient

x and y = The variables being studied (In this study, green business practices and

profitability).

X̄ and Ȳ = Respective means (averages) of the x and y variables.

Σ = Summation symbol

This formula allows the researchers calculate the strength and direction of the

linear relationship between green business practices and profitability in the study.
 SURVEY QUESTIONNAIRE

Name: _________________________
Restaurant Name: _______________
Thank you for participating in this survey. Your input is valuable in assessing the
implementation of green business practices in restaurants in Carigara, Leyte, and their
impact on profitability. Please answer the following questions honestly and to the best of
your knowledge.
Instruction: Using the scale shown below, rate the following questions by placing a
check in the box. Please answer the question honestly. Do not leave each item
unanswered.
Section 1. Demographic Profile of the Employees in Small Restaurants in Carigara,
Leyte
Under 18-24 25-34 55 and
18 above
Age

Male Femal Others Prefer Not

e to Say
Gender

Highest Educational Attainment (Please Specify):

Job Title (Please Specify):

 Section 2. Green Business Practices Implementation
NA SI MI LI FI

1. To what extent does your restaurant implement

energy-efficient practices?
2. To what extent does your restaurant practice
waste reduction and recycling?
3. To what extent does your restaurant conserve
water and minimize water wastage?
4. Have you implemented a policy to ensure the
ethical and sustainable sourcing of products or
materials?
5. Does your business actively engage with the
local community or customers to promote
environmental awareness and action?
Legend: NA-Not Implemented at all; SI-Slightly Implemented; MOI-Moderately Implemented; LI-
Largely Implemented; FI-Fully Implemented

Section 3. Changes in Profitability

1. Since implementing green business practices, IS IM S DM DS
have you noticed any changes in the following
financial aspects of your restaurant? Please select
one of the following options for each:
1.1. Revenue (Sales)

1.2. Net Income (Profit before Taxes)

1.3. Net Profit (Profit after Taxes)

Legend: IS-Increased Significantly; IM-Increased Moderately; S-Stayed about the same; DM-
Decreased Moderately; DS-Decreased Significantly

Section 4. Relationship Between Green Business Practices and Profitability

SD D N A SA

1. In your own perspective, do you believe that the

implementation of green business practices has
positively influenced the profitability of your
restaurant?
2. Do you think the positive impact of green
business practices on profitability is sustainable in
the long term?
 3. I have made significant changes to my menu or
product offerings to align with sustainable and
environmentally friendly practices.
Legend: SD-Strongly Disagree; D-Disagree; N-Neutral; A-Agree; SA-Strongly Agree

Section 5. Additional Comments

Is there anything else you would like to add regarding the implementation of

green business practices and their impact on the profitability of restaurants in Carigara,

Leyte? If so, what is it?

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

__________________

Thank you for taking the time to complete this questionnaire. Your responses will

contribute to a better understanding of the state of green business practices in Carigara,

Leyte, and their relationship with restaurant profitability.