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AEC 405 Business Case Study
AEC 405 Business Case Study
Date of Project Approval: January 18, 2024 Last Revision Date: January 18, 2024
Revolutionizing the way Filipinos eat and appreciate comfort food, Cabalen Group of
Companies is the leading Filipino buffet and casual dining restaurant in the Philippines with a total
of 57 outlets and growing. A dominant player in the Philippines, Cabalen enjoys significant market
share in the buffet segment. The company has also embarked on expansion in the US, with its first
branch in San Bruno, California.
Established by its President and founder, Ma. Estela “Maritel” O. Nievera, Cabalen started as
a cook-to-order eatery “Ituro mo, Iluto ko” in Pampanga. It later grew into an eat-all-you-can buffet
restaurant in West Avenue, Quezon City, which opened in 1986.
At Cabalen, the dining experience doesn’t stop at just good food – diners also get to enjoy
time with family, making it top of mind restaurant for important family occasions and celebrations.
Cabalen introduced the best way to enjoy Kapampangan cuisine through an array of freshly cooked,
beautifully presented food in a buffet line. At present, the Cabalen boasts of 41 branches located
strategically around Metro Manila, North and South Luzon, Visayas and Mindanao.
As the Cabalen brand grew, the group eventually came up with other restaurant concepts
like Thai Restaurant Soi, Kapampangan Concept Mangan, Eatspinoy, BKK Express, Filipino-
Spanish Restaurant Cerveseria, Cusina Estela by Chef B, and later partnered with global brands
such as Tsurumaru, Suki-Ya, and Mr. Chaixi.
Business Information
Website: https://cabalengroup.ph/
E-mail: marketing@cabalen.ph
Primary location: Barangay Marilag, 54 J.P. Rizal Street, Project 4, Quezon City, Metro Manila,
Philippines
Cabalen Buffet Restaurant is facing challenges in maintaining its competitive edge and
meeting changing customer preferences. The menu lacks diversification, and the restaurant's digital
presence is limited, hindering customer engagement and reach. This project aimed to make a project
proposal for Cabalen’s menu diversification and digital transformation.
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MARKETING GOALS and OBJECTIVES
Mission
Customers
To serve our customers with the highest level of integrity and satisfaction by providing value for
money and quality food and services.
Partners
To work collaboratively with each other and strengthen partnerships through our credibility,
integrity, and honesty.
Employees
To provide our employees a stable work environment with equal opportunity for learning and
professional growth through the Cabalen Culinary Training Institute.
To take part in saving the planet by implementing company-wide, eco-friendly, and sustainable
practices. To give back to the community establishing Cabalen Para sa Kabataan, which helps less
fortunate children.
Vision
To continue to grow, evolve, and solidify its place in the food business as the number one Filipino
buffet concept in the Philippines. By consistently providing the highest quality of food and service
that are attuned to global standard, Cabalen endeavors to bring the best of Filipino heritage cuisine
to the world while improving the lives of its employees and doing its part in saving the
environment.
Objectives/Goals
Embrace culinary innovation to meet evolving customer preferences while preserving the
essence of traditional Filipino recipes;
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Expand market presence by exploring new locations, both domestically and internationally,
to reach a broader audience;
To master an indisputable focus on excellence-in food as in business-as the driving force
behind iconic success; and
To improve that basic value of integrity, which is applied to delivering on promises and
exceeding customer satisfaction as the standard for excellent Filipino Cuisine.
MATRICES ANALYSIS
External Assessments
Table 1-1 Competitive Profile Matrix (CPM)
Max's
Cabalen La Fiesta Kamayan Vikings Restaurant
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Total 1.00 3.05 2.87 2.92 3.12 2.95
Note: (1) The ratings values are as follows: 1 = major weakness, 2 = minor weakness, 3 = minor
strength, 4 = major strength. (2) As indicated by the total weighted score of 2.87, La Fiesta is
weakest. (3) Only nine critical success factors are included for simplicity.
In this matrix, the three most important factors to being successful in the industry are “variety of
food”, “advertising” and “price”, as indicated by weights of .20 and .15 respectively.
A word on interpretation: Just because one firm receives a 3.12 rating and another receives a 3.05
rating in a Competitive Profile Matrix, it does not follow that the first firm is 20 percent better than
the second. Numbers reveal the relative strengths of firms, but their implied precision is an illusion.
Numbers are not magic. The aim is not to arrive at a single number, but rather to assimilate and
evaluate information in a meaningful way that aids in decision making.
It allows strategists to summarize and evaluate both opportunities and threats in economic, social,
cultural, demographic, environmental, political, governmental, legal, technological, and competitive
information.
Note that each factor weight that ranges from 0.0 (not important) to 1.0 (very important). The rate
between 1 and 4 to each key external factor indicates how effectively the firm’s current strategies
respond to the factor, where 4 = the response is superior, 3 = the response is above average, 2 = the
response is average, and 1 = the response is poor. Ratings are based on effectiveness of the firm’s
strategies. Ratings are thus company-based, whereas the weights in Step 2 are industry-based. It is
important to note that both threats and opportunities can receive a 1, 2, 3, or 4. Regardless of the
number of key opportunities and threats included in an EFE Matrix, the highest possible total
weighted score for an organization is 4.0 and the lowest possible total weighted score is 1.0. The
average total weighted score is 2.5. A total weighted score of 4.0 indicates that an organization is
responding in an outstanding way to existing opportunities and threats in its industry. In other
words, the firm’s strategies effectively take advantage of existing opportunities and minimize the
potential adverse effects of external threats. A total score of 1.0 indicates that the firm’s strategies
are not capitalizing on opportunities or avoiding external threats. (Refer to chapter 3- External
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Assessment, page 80 on the book of Fred R. David – Strategic Management for the steps and how
the matrix is weighted.)
Threats
1. Area’s big brands 0.07 2 0.14
2. Home delivery options 0.05 2 0.10
3. Bad ratings on review sites 0.09 2 0.18
4. Lack of differentiation 0.05 2 0.10
5. Competition taking customers – direct competitors 0.03 2 0.06
such as Kamayan, Vikings and La Fiesta; indirect
competitors like Jollibee, McDo, and other fast-
food chains
6. Economic downturn 0.05 3 0.15
7. Changing customer preferences 0.10 3 0.30
Note that the most important factor to being successful in this business is “Capitalizing on special
events and occasions” as indicated by the 0.12 weight. Also note that Cabalen is doing excellent in
regard to handling two factors, “Economic downturn” and “Changing customer preferences.” As
you’ve read on Cabalen’s pricing strategy, their buffet rate is average and affordable for their target
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customers. Finally, note that the total weighted score of 2.52 is just above the average (midpoint) of
2.5, so this buffet business is doing pretty well, taking advantages of the external opportunities and
avoiding the threats facing the firm. There is definitely room for improvement, though, because the
highest total weighted score would be 4.0. As indicated by ratings of 2, this business needs to
capitalize more on the “health-conscious trend,” opportunity and the “competition taking
customers” threat.
Internal Assessments
This strategy-formulation tool summarizes and evaluates the major strengths and weaknesses in the
functional areas of a business, and it also provides a basis for identifying and evaluating
relationships among those areas.
Note that each factor represents a major weakness (rating = 1), a minor weakness (rating = 2), a
minor strength (rating = 3), or a major strength (rating = 4). Weight that ranges from 0.0 (not
important) to 1.0 (all-important) to each factor. (Refer to chapter 4 page 122 on the book of Fred R.
David – Strategic Management for the steps and how the matrix is weighted.)
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Weaknesses
1. Similar cuisine types 0.08 1 0.08
2. Poor online presence 0.05 1 0.05
3. Pricey home delivery 0.02 2 0.04
4. Limited food choices leading to a bait advertising 0.09 1 0.09
5. Food quality consistency 0.11 1 0.11
6. Slow food replenishment 0.09 1 0.09
7. Existing competitors 0.04 1 0.04
8. Few businesses outlet 0.02 2 0.04
Total 1.00 2.50
Note that the two most important factors to be successful in a buffet industry are its “authentic
dishes” and “diverse menu”. Positive authenticity and diversity rates in this industry can have a
positive impact on maximizing income potential. Also note that Cabalen is doing best on
maintaining its “Loyal customers”. The restaurant is having major problems with its “Food quality
consistency”, “Limited food choices leading to a bait advertising”, and “Slow food replenishment”
factors that leaves negative customer reviews online. Note also that the matrix contains substantial
quantitative data rather than vague statements; this is excellent. Overall, this institution receives a
2.5 total weighted score, which on a 1-to-4 scale is exactly average/halfway, indicating there is
definitely room for improvement in its operations, strategies, policies, and procedures. The IFE
Matrix provides important information for strategy formulation. For example, Cabalen might want
to improve its food quality consistency, address its false advertising by updating the menu regularly,
the branch manager can also ask its staff to be mindful about the food replenishments.
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Figure 1-1 Strength, Weaknesses, Opportunities, and Threats (SWOT) Matrix
b
S W
b
b
O b
T
Strength Weaknesses Opportunities Threats
Authentic Filipino Similar cuisine types Social media Area’s big brands
cuisine Poor online presence campaigns Home delivery
Diverse menu, options
including Thai, Pricey home delivery Health-conscious
Bad ratings on
Japanese, and Limited food choices trends review sites
Western dishes Lack of
leading to a bait Expand locations
Guest first approach differentiation
Experienced advertising High exposure
Competition taking
management team Food quality location customers – direct
Local staff
consistency More personalized competitors such
Premium location –
as Kamayan,
branches are inside Slow food guest experience
SM malls Vikings and La
replenishment Capitalize on special Fiesta; indirect
Special promo for
birthday celebrants Existing competitors events and occasions competitors like
Loyal returning Jollibee, McDo,
Few businesses outlet Increase good
customers (especially and other fast-food
reviews chains
OFW’s)
Established brand Consider customer Economic
Acquired Global salaries in the downturn
Partnership with Changing customer
Chaixi Group of product pricing
preferences
Thailand & Suki-Ya
Group of Singapore
SO-WO-ST-WT Strategies
A schematic representation of the SWOT Matrix is provided in Figure 4-2. Note that a SWOT
Matrix is composed of nine cells. As shown, there are four key factor cells, four strategy cells, and
one cell that is always left blank (the upper-left cell). The four strategy cells, labeled SO, WO, ST,
and WT, are developed after completing four key factor cells, labeled S, W, O, and T.
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Figure 1-2 The Four (4) Types of Strategies derived from the SWOT Analysis
Strengths Weaknesses
1. Authentic Filipino 1. Similar cuisine types
cuisine 2. Poor online presence
2. Diverse menu, including 3. Pricey home delivery
Thai, Japanese, and 4. Limited food choices
Western dishes leading to a bait advertising
3. Guest first approach 5. Food quality consistency
4. Experienced 6. Slow food
management team replenishment
5. Premium location – 7. Existing competitors
branches are inside SM 8. Few businesses outlet
malls
6. Special promo for
birthday celebrants
7. Loyal returning
customers
8. Established brand
9. Acquired Global
Partnership
Opportunities SO Strategies WO Strategies
1. Social media campaigns 1. Leverage authentic 1. Improve online presence
2. Health-conscious trends Filipino cuisine (S1, S2, (W2, O1)
3. Expand locations O2) 2. Price optimization for
4. High exposure location 2. Diverse menu expansion home delivery (W3, O8)
5. Capitalize on special (S2, O3, O6) 3. Menu expansion and
events and occasions 3. Social media campaigns customization (W4, O6)
6. More personalized guest (S6, O1) 4. Enhance food quality
experience 4. Expand locations (S5, and consistency (W5,
7. Increase good reviews O3) W6, O7)
8. Consider customer
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salaries in the product
pricing
Threats ST Strategies WT Strategies
1. Area’s big brands 1. Differentiation and 1. Competitive analysis
2. Home delivery options unique value proposition and differentiation (W1,
3. Bad ratings on review (S1, T4) T4)
sites 2. Customer loyalty 2. Online reputation
4. Lack of differentiation programs (S6, S7, T5) management (W1, W4,
5. Competition taking 3. Strategic partnership T3)
customers (S9, T1) 3. Market research and
6. Economic downturn adaptation (W2, T7)
7. Changing customer 4. Economic downturn
preferences preparedness (W3, T6)
Improve market share and revenue by leveraging digital transformation to expand the
Alternative Solution
1) Introduce a wider variety of vegetarian, vegan, and healthier menu options to cater to
implementing online reservation systems, and partnering with food delivery platforms.
3) Consider collaborating with local suppliers to support sustainable and locally sourced
ingredients.
4) Implement customer loyalty programs to incentivize repeat visits and increase customer
retention.
5) Enhance the customer experience through staff training, ambiance improvements, and
personalized service.
Benefits
b) Expanded customer base and revenue through improved online visibility and accessibility.
customer preferences.
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d) Streamlined operations and improved efficiency through online reservation systems and
digital ordering.
Timescales
Cost
a) Menu Diversification:
b) Digital Transformation:
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Projected revenue increase from menu diversification 500,000.00
Risk Assessment
Conclusion
transformation holds great potential for Cabalen. By expanding their menu offerings and embracing
digital technologies, Cabalen can effectively adapt to changing customer preferences and enhance
Menu diversification will allow Cabalen to cater to a broader range of tastes and dietary
requirements, attracting a larger customer base. By introducing new and innovative dishes while
maintaining the essence of traditional cuisine, Cabalen can captivate both loyal patrons and new
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Furthermore, embracing digital transformation will enable Cabalen to streamline their
operations, enhance customer engagement, and optimize overall efficiency. Implementing online
ordering systems, mobile applications, and digital marketing strategies will provide customers with
convenient and seamless dining experiences while expanding Cabalen's reach beyond physical
locations.Additionally, the utilization of customer data through digital platforms will enable
Cabalen to gain valuable insights into consumer preferences, allowing them to tailor their menu
offerings and marketing campaigns effectively. This data-driven approach will enhance customer
Overall, the combination of menu diversification and digital transformation will position
Cabalen as an industry leader, catering to evolving consumer demands and leveraging technology to
provide exceptional dining experiences. By embracing these strategies, Cabalen can unlock new
growth opportunities and secure a sustainable future in the competitive restaurant landscape.
Recommendation
Based on the analysis, it is recommended to proceed with the menu diversification and digital
transformation project. This will address the identified problems, enhance customer satisfaction and
loyalty, and position Cabalen as a competitive player in the market. Mitigate risks through careful
planning, monitoring, and stakeholder engagement. Regularly measure and evaluate project
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Online reviews from different Cabalen outlets, retrieved from TripAdvisor, Google reviews
and YouTube.
o Saf7670 – foreigner (Ali Mall) (2022)
Standard Filipino buffet fare
I have visited a few Cabalen branches around the Philippines, so stopped by for dinner. Quite busy
which was a good sign, and there was a reasonable selection of dishes. I love sisig and this was so
tasty, I was tempted to order more. The sushi selection was weird rice with mayonnaise centre sushi!
Overall a good buffet meal.
Beware chairs slide on the tiled floor, it was difficult to sit without sliding across floor
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o Righty B (SM Fairview) (2023)
The worst buffet experience I’ve ever tried. Their sisig is just fats and tokwa. Their chicken dishes
taste like three days old. Their kare-kare are tasteless without the bagoong. Is this really a
Kapampangan restaurant???
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TEA of p70. We were NOT INFORMED about it.. We thought that the buffet cost of PhP338+Vat
(which cost around PhP378).
WE ARE NOT COMING BACK! BAD EXPERIENCE! MISLEADING ADVERTISEMENT!
POOR BUSINESS STRATEGY!
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