INDUSTRY

A fast food restaurant also known as quick service restaurant(QRS) Is a limited menu establishment
which lends itself to production line techniques of producing food that is served packaged for
immediate consumption on and off the restaurant premises .fast food customer normally order at the
counter and pay before eating. It also aids franchises in selecting a place based on population
density,traffic patterns market statistics and proximity of shopping centers. Its goals is to be widely
available to the customers to penetrate the market and generate huge amount of profits

Fast food franchisee will benefit not only from continous support ,knowledge and experience of the
franchise but also benefit and take advantage of the public’s recognition of the brand developed by the
franchiser.

2016 Annual Survey of Philippine Business and Industry (ASPBI) - Accommodation and Food Service
Activities Sector.

The preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for the
formal sector of the economy showed that a total of 5,971 establishments with total employment (TE) of
20 and over were engaged in Accommodation and Food Service Activities.

Restaurants and mobile food service activities led the sector with 4,312 establishments accounting for
72.2 percent of the total number of establishments. This was followed by short term accommodation
activities with 1,279 establishments (21.4%) and beverage serving activities with 285 establishments
(4.8%). Combined total number of establishments for event catering and other food service activities,
and other accommodation was registered at 95 (1.6%)..

Income-expense ratio stands at 1.18; event catering and other food service activities industry
generates the highest returns

Income-expense ratio, the income generated per peso expense stood at 1.18. This means that for every
peso spent, a corresponding income of PHP1.18 was generated.
By industry group, event catering and other food service activities recorded the highest returns of 1.25,
followed by short term accommodation activities with 1.21. The lowest returns was recorded by other
accommodation with 1.05 income per expense ratio.

At the regional level, CAR recorded the highest returns of 1.36, followed by Bicol region with income-
expense ratio of 1.30.

Forecast Market Value and Growth of Philippine Foodservice by Subsector, U

2013 2014 2015 2016 2017 CAGR

Consumer Foodservice 10,195.3 10,760.4 11,364.3 11,996.7 12,660.5

(Total)

Fast Food 3,086.0 3,312.2 3,547.3 3,788.7 4,036.5

Full-Service Restaurants 2,451.6 2,549.7 2,654.6 2,767.2 2,887.7

Cafés/Bars 2,280.3 2,383.5 2,500.3 2,621.7 2,748.8

Street Stalls/Kiosks 2,042.6 2,155.3 2,274.7 2,400.5 2,534.0

100% Home 334.8 359.7 387.5 418.7 453.6

Delivery/Takeaway

Pizza* 483.5 518.2 554.6 593.1 633.3

Source: Euromonitor, 2014. CAGR = compound annual growth rate

Filipino’s are food lover whether its breakfast lunch dinner or even mid night snacks raw or cooked , you
name it Filipinos eat many varieties of food. They adventurous food eaters but they are also health
conscious and prefer food s that are healthy fresh and safe.
Restaurants must keep up with the demand as it grows, so the franchise suppliers must fulfil the need of
the franchise subscribers to prevent the loss of a potential revenue and keeping the business
operations run smoothly. The suppliers have a big impact on on the pricing, menu,and development of
the business and the customers perception of the business and its success.

Business form significant amount of expenses when developing new products and reaching new
locations for the business to operate and addressing the customers subconscious demand for new
amenities and products .

Opening new restaurants and expanding affects the entity’s financial capabilities creating an impact in
banking and financing sectors. When banks tighten credit availability expansion of the business are
ceased and restaurants can’t meet the demands of the customers which results to loss of potential
revenues.

Fast service, affordable pricing and fast-casual concept are one of the forces that’s drives the markets to
meet consumers appeal for good food experience. In which the concept provides more upscale menu
and good ambiance because consumers are always looking for something unique, new and good food

Convenience and value

For fast food restaurant it’s about high quality and good service .it’s always about strengthening areas of
value, convenience and speed of service to have an edge in the industry