Professional Documents
Culture Documents
A Thesis
Submitted to the Faculty of the
College of International Tourism and Hospitality Management
Lyceum of the Philippines University Manila
OCTOBER 2020
CHAPTER I
THE PROBLEM AND ITS BACKGROUND
Introduction
discovered coronavirus.” (WHO, 2019). Wuhan, China was the country that the virus was
first tracked in last December 2019. China alerted the World Health Organization that
there were cases of pneumonia with an unknown cause that may have even started way
back in November which caught the attention of the world. (The Guardian International,
2020). From China to eight European nations, it had risen to one hundred fourteen
Ghebreyesus, it was the first time since H1N1 “swine flu” outbreak that the organization
has called an outbreak pandemic. There is a lot of evidence that shows that the virus
spreads between people through both direct and indirect or even close contact with
persons that are infected by the disease, therefore lockdown or self-isolation was
implemented throughout; forcing the world to change its ways. Specialists have diverse
points of view regarding the lockdown implications, but as cases rose quickly here in the
Philippines, the authorities imposed these restrictions for, we cannot afford a Wuhan-like
situation. Efforts to flatten the curve oblige us to change our lifestyles as we cannot live
the way we used to before the Pandemic started. Dr. Tedros stated that the virus would be
for a long time and that we have a long way to go. “New normal”, which pertains to a
world that they perceived as a healthier one, safe and better, will soon be our reality as
we are left with no choice but to embrace the changes for us to continue living our lives
and hopefully survive this Pandemic. It has made a considerable impact on the global
economy, making both Hospitality and Food & Beverage vulnerable. They are one of the
most significant socio-economic sectors that has made a massive contribution to the
economy.
With the global spread of the COVID-19 pandemic comes the decelerating of the
economy, and it’s not new news that one of the most affected industries is the Food and
Beverage industry. From the smallest of food chains to restaurants, are all significantly
affected by COVID-19 and have been shoved into uncertainty. The estimated number of
more than half a million employees in the Food and Beverage Industry is greatly affected.
(Tatler Philippines) The spread of this virus drives manufacturers and food entrepreneurs
to come up with new and innovative ways and trends to help meet the need in catering to
their customers, which includes tailoring their existing menus into be ideal to sell through
delivery.
One of the most common ways used by the industry nowadays is the use of food delivery
apps. The food and beverage industry is thriving with the help of these apps. Rather than
having customers eat their meals at the restaurant, establishments have developed a way
of delivering food for the customers to enjoy them in the comfort of their homes.
However, with these new trends and approaches in the industry, customers must be
willing to pay more for the additional charges such as delivery fees, food containers, and
The use of the digital and delivery approach in the food and beverage industry was
already rampant even before the global Pandemic. Since the start of the spread of
COVID-19, the first concern of the citizens is their safety; some establishments like those
who offer samgyeopsal buffets have developed their innovative way of catering to
customers such as delivering their ready-to-cook meals for consumers to make them their
own. Huge chains are now selling their raw stocks in bulk in grocery stores, including
pizza parlors like Shakey’s — which is such a thoughtful and innovative approach in
down, whether it is a big company or not. Every business is vulnerable in this kind of
situation. For instance, "Shakey's", one of the country's leading pizza parlors, reportedly
suffered a financial loss. In the first quarter of 2020, Shakey's profit loss weighted at 35%
According to Vicente Gregorio, Shakey's President and Chief Executive officer stated in
an interview that the abrupt closing of stores as a response to the pandemic made them
lose money. Still, the health of the workers is his priority. Due to the difficulty in
transportation and social distancing protocol, Food delivery services had been in demand
since then. Grab food, made up to 4 times the increase in demand. Most of the delivered
foods are comfort foods such as milk tea, coffees, pizzas, etc. Adapting to these changes,
Pizza Hut started an initiative called "Sealed for Safety" stickers, which aims to make the
customers less anxious about their safety against the virus. The staff of the pizza hut
underwent a series of medical tests to ensure the safety of the customers as well as the
staff. Shakey's, on the other hand, postponed its expansion plans and focused on its online
services. According to Vicente Gregorio, after the enhanced community quarantine and
the arrival of new normal, they are slowly getting up on their feet, From 24 branches to
95 percent or 267 branches. They are set to fully recover from financial losses for the
next two to three years. Businesses are forced to adapt to the Pandemic, and the customer
needs in this pandemic crisis, drastic change in menu, workflow, and other necessary
measures to make sure they can open up and serve to take out to the customers and help
and adapt the new guidelines to prevent and minimize the damage of this disaster. One of
the most affected during this time is the hospitality industry. When all places are put on
lockdown, all hotels and restaurants are also forced to shut down. Food is a necessity for
every individual, and who would’ve thought that the food industry would collapse in just
a blink of an eye. According to Dr. Siddhartha Jain, Ph.D., the food industry is not the
only one who would suffer even after this Pandemic. Still, as the whole travel and
tourism will be affected, because everyday interaction with other people needs to be
Closure of restaurants are made to slow down the spread of the virus, but it has been the
cause of the abrupt losses of all restaurants and businesses. Today, restaurants are slowly
recovering and have started serving and delivering goods to their customers, with certain
conditions and guidelines that they need to follow. The purpose of this study is to identify
how Pizza Parlors cope up with the new normal and what are the strategies they have
come up with to regain the losses of the business. There are some articles posted online
that show and prove that Pizza Parlors is one of the most affected during this pandemic
and has already lost millions in the last months. For the previous months that they were
forced to shut down, Restaurants have now been permitted to operate again. However,
they are required to adjust and adapt to the new normal, which includes the proper
protocol in ensuring the safety of the food they served, producing limited menus,
shortening store operation hours, limited customers, and reducing work staff.
Parlors amidst the Pandemic, for the reason that we aim to identify how this disaster
affected the Food Industry and how they use this opportunity to produce new strategies
and products that are timely and relevant to the current situation. We aim to know how
this entrepreneur uses their strategies in regaining their losses while following the
protocols and guidelines provided by the government, and at the same time, trying to
make profit despite the situation. This Pandemic may be the cause of the fall of Pizza
Parlors and other restaurants, still, this disaster or crisis may somehow give them a
different perspective, and give them new ideas on how to continue the business and use
this crisis to recover and improve their marketing strategies. The food industry is always
changing and no matter what the crisis or disaster, food will always be a necessity. These
Pizza Parlors and other restaurants have indeed come up with new strategies to continue
serving and providing services together with their most sincere efforts.
around the world and millions of deaths, Covid-19 posts as a threat to every individual
and business. The Philippines has a record of a little over three hundred thousand cases as
of September 2020 which leads to closures or shutdown of establishments for almost six
months. After having one hundred days of lockdown and the longest in the world,
Businesses are now slowly starting to open to recover the abrupt losses they have
Pizza parlors are one of the favorite go-to foods of many Filipinos. Due to lockdown,
people are forced to stay at home and businesses to shut down, they cannot gain income
and that leads to the loss of businesses. Pizza parlors and other food establishments are
now allowed to open, on condition that they would follow the government safety
trying to adjust to the new normal, food establishments like pizza parlors have their way
These food establishments are one of the most affected because viruses can be passed
through food. Food establishments and pizza parlors should guarantee that the food they
serve to customers is safe from the virus. Also, these entrepreneurs who own businesses
like pizza parlors should come up with strategies that will attract customers to trust in the
Implementation of social distancing protocol to allow pizza parlors to open their store for
dine-in is a challenge for both the customer and the business, cutting the dine-in capacity
to fifty percent is a disadvantage to the business, and customers being anxious dining
inside the store is also a problem for the business. Given the situation, pizza parlors are
forced into cost-cutting and devising strategies to recover from the losses in the past
months. Having a smaller number of staff and reduced store hours compared to regular
days before the pandemic are two of the solutions pizza parlors took in preparation to
It is a challenge to all businesses on how they would take advantage of this crisis or
disaster to introduce and innovate new products that might attract both frequent and new
customers. Entrepreneurs should come up with strategies that are timely for the situation.
Businesses should start operating again to regain their losses, they could use different
strategies and methods that would attract consumers, even at the time of the pandemic.
They can put and advertise their business in different food delivery applications or even
offer promos.
1. What is the level of impact in terms of the challenges and dimensions of well-
being:
a. Physical
b. Mental
c. Social
d. Financial
a. Ways of Coping
b. Changing-Adjusting Dimensions
in terms of:
a. Service Continuity
b. Service Hibernation
hope of profit. The conception of this study would be of outstanding contribution to vast
knowledge concerning food entrepreneurs’ awareness. Critical results of this study could
To the Consumers, this study aims to attract and guarantee their satisfaction through
To Food Entrepreneurs, the results of the study may enable entrepreneurs to provide
This will give them choices and seek opportunities amidst a natural disaster.
To Business Consultants, the outcome of the study will enable them to construct
effective and operative strategies and distinctive approaches to lead food entrepreneurs in
To the Government Authorities, this study will help the authorities determine the ways
businesses open up to new opportunities, even amidst a natural phenomenon. This will
Also, the findings of this study may impact a lot of food businesses. This study would
help them develop strategies to reduce apprehended risks that affect consumer trust and
satisfaction negatively.
The scope of this research is to identify the changes made by the pizza parlors in
terms of service and sanitation of dine-in customers and changes made in promos/bundles
for delivery services. The research also opted in the workforce, before the Pandemic and
current Pandemic situation. All information gathered is only limited to 5 Pizza Parlors
The research is limited to changes or made from March up to September, wherein it will
help the researchers determine the changes it went through. The changes are identified
Theoretical Framework
As Coronavirus starts to spread around the world, many industries have been
affected. One of the most affected is the hospitality industry, to be specific to the food
sector. Many businesses have been affected and are forced to shut down in order to
prevent and minimize the spread of the virus. Different challenges and problems are very
common to the industry because the industry offers service, but due to the outbreak of
Coronavirus, the whole industry stopped. As many individuals have also been affected,
we should know how to protect our own selves from the virus. Because the prevention
starts from ourselves, we should learn how to be disciplined during this time, we should
be careful in any possible disaster that may happen, and with that case, we can help
prevent the virus. Due to the high demand in the whole hospitality and food industry,
businesses are slowly re-opening. Businesses have provided different ways of adjusting
to the new normal. First is the work-based adjustment, it is when an organization and its
employees need to change their ways, process, and even the environment while at work.
business, some changes are needed to be made. For example, the social distancing, the
is when businesses reflect and look at the future of their operations because due to the
changes in rules and regulations to prevent the spread of the virus, some employees may
have to change their lifestyle in order to continue working, for example, they can no
longer be near their family since they are exposed and had contact with other people. All
these changes are ways of coping up and getting back on track for the hospitality firms.
Among all disasters and challenges, this COVID-19 has greatly affected the industry.
Given that every type of business has been struck by the pandemic which leads to multi
million loss in businesses worldwide and researchers tackle different angles of topics
concerning how to cope up with the current situation and how to save businesses from the
possibility of bankruptcy. Presented with these research, bot of them are relatively the
same in terms of coping up with the pandemic situation by adjusting work schedules,
government and other factors that affects the operation of the business. Both research
mainly focus on two subjects, welfare of the consumers and staffs and the integrity of the
business in this pandemic situation. Significantly, these two researches are correlated
with their main goal on coping up with the challenges presented. For instance cutting
down staffs to minimum requirement to operate is one way of coping up with the loss of
the business in the past months of being lockdown but at the same time maintaining the
quality of service and making it more safe for consumers. The research approach in using
building strategies, this type of condition is seen on cutting manpower in order to keep
The COVID-10 Pandemic has knocked over the lives and well-being of everyone,
but most especially, the wellbeing of employees. As there is still no definite cure for the
virus at the present time, authorities had to implement lockdowns to prevent further
spreading of the said virus, but social distancing is the main game-changing strategy that
cancellations, impacting innumerable employees around the world. There are numerous
factors that affect the way service entrepreneurs decide for their businesses. According to
Delvin (2020) and Ermas (2020), due to a massive loss in profit brought by the
This, however is also a challenge for operators since they have to consider the wellbeing
of their employees – physical, mental, social and financial wise. While need for contact-
intensive industries such as food industry depleted drastically, the demand for services
like online shopping and delivery has grown. The hibernation or continuity of an
hardships are not the only thing that is affecting them, but also the stress caused by the
constant worrying of conceivably being infected which may negatively pull on their
As the authorities narrowed down the business decisions to hibernation and continuity,
Food Industry is one of the most affected industries by it. While half of the world's
businesses choose to hibernate to survive, some chose to take risks and start to open for
takeaways and deliveries. Businesses who choose to continue despite the pandemic had
to operate under protocols that have been passed down by the government to them. This
virus has its devastating implications towards businesses and their employees, in this case
it needs multiple ways to examine a starting point for a business. It should also consider
the wellbeing of its employee amidst this pandemic for the health of employees are the
pathway to the success and failure of the business. It can vary from every individual’s
physical, mental and emotional health on how to perform on their jobs. That's why it is
advisable that the company should take good care to its employees, and the employees
will take care of the external guest of the company. Every business should take
Conceptual Framework
Research Objectives
1. The changes made by the Pizza Parlors in terms of dine-in in compliance with the
3. How will they deal with the post-pandemic situation in the future?
Definition of Terms
Mechanism” and the rest will be used. To ensure that all readers are interpreting these
terms in the same manner the researchers intended, the following terms are offered.
Contact Tracing Sheet (to edit) lists down viral information to help the
COVID 19 also known as coronavirus which was first found in China in December
2019.
Market Entry is an organized strategy for how businesses should enter a target
market.
RoadMap is used to organize thoughts, plans or ideas that are beneficial to a person
or an organization.
Sanitation different behavior and practices that eliminate and minimize the spread
Skeletal Workforce refers to having least amount of staff to work, enough to keep
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Map: Tracking The Spread Of The Outbreak. Retrieved from npr.org:
https://www.npr.org/sections/goatsandsoda/2020/03/30/822491838/coronavirus-world-
map-tracking-the-spread-of-the-outbreak
Alfonso, A., Kok, S., Bressan, A., O’shea, M., Sakellarios, N., Koresis A., Solis, M.,
Santoni, L., (2020, October), COVID-19, aftermath, impacts, and hospitality firms: An
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The similarities of the journals utilized in this study are being subdivided based on the
needed information in order to determine the entrepreneurial opportunity recognition of
pizza parlors amidst pandemic. First, the impact of COVID-19 to the consumer based on
the challenges and dimensions of their well-being specifically with their physical, mental,
emotional and financial status. The studies of Jenna Wilson et. al., (2020) concluded that
health status, other COVID-19 experiences, and anxiety symptoms, greater job insecurity
due to pandemic was related to greater depressive symptoms. Similarly, the conclusions
made by Tarek Hassen et. al., (2020), the pandemic made an impact to the behavior of
consumers when it comes to food consumption. Further studies contains and determined
the influence of the pandemic based on the well-being of the respondents, Emily
Belarmino et. al., (2020), many expressed nervousness about COVID-19 causing a
“disruption,” “breakdown,” or “collapse” of the food system leading to critical shortages
or widespread illness. Second, the impact of the pandemic with the food industry
specifically on how the food businesses will cope-up regarding the onslaught of the
pandemic and how they will adjust with the new normal being implemented as the
environment adapts with the ongoing COVID-19. The studies of Alexander Bartik et. al.,
(2020), Noor Fabeil et. al., (2020) and Ashima Bansal et. al., (2020) specifically
emphasized about the impact of the pandemic with the different food industry and
restaurants that are greatly affected. More so, these researches was able to conclude the
different coping mechanics and adaptation of the food industry amidst the COVID-19.
Similarly, Xiaowen Hu et. al., (2020), concluded in their study that employees’ deep
compliance with safety procedures includes a four-stage psychological process, and this
process is underpinned by both management safety practices and organizational crisis
strategies. Lastly, the terms of agreement of the entrepreneurial opportunity recognition
based on the service continuity and service hibernation. Knowing on how the COVID-19
devastated and changed everything, the inquiries of Fei Hao et. al., (2020) and Zeina
Nakat et. al., (2020) identified on how the entrepreneurs in the field of food businesses
would stand amidst of this pandemic, and even in post-pandemic agenda whether they
will continue or hibernate first their services. Similarly, Elke Stedefedldt (2020) stated
that in the commercial restaurant sector, resilience efforts are primarily intended to
protect the health of both those who consume food and those who produce it. These
results would also aid this study to supplement the results specifically about the
entrepreneurial opportunity recognition of pizza parlors amidst pandemic. On the other
hand, when it comes to the impact of advertisements that would affect the decision-
making of the consumers Kumar & Raju (2013) and Ramzan Sama (2019) concluded that
there is a significant effect. Furthermore, Yan Mao et. al, (2020) and Solomon Biwota
(2020) stated some effects and impacts in the field of Hospitality Management and
Tourism. All in all, the journals utilized in this study are all similar and essential in order
to determine the entrepreneurial opportunity recognition of pizza parlors amidst
pandemic. They sought to identify the needed information and data for this inquiry.
Moreover, the categories made are to define the specific target of each journal that would
contribute in determining the main inquiry of this research and answer the statement of
the problem imposed in this study.