CHAPTER I

THE PROBLEM AND ITS SETTING

Introduction

In our market economy today, every individual have the freedom to establish any
legal business they choose. However, they must learn to adhere with all the factors that
might affect the growth of their business. The successful growth of businesses depends
on how businessmen and women cope with the factors that may affect their business such
as the needs and wants of the customers.

A café is a small restaurant selling light meals and drinks 1. In cafés, they usually
serve coffee and snacks. You can read newspapers and magazines there, or chat with
other customers. It is known as a place where information can be exchanged. In some
countries, cafes more closely resemble restaurants, offering a range of hot meals, and
possibly being licensed to serve alcohol.

In the recently years, café business has boomed and became a big hit to
customers. More and more people are choosing to eat out. Since the 1950’s, commercial
food service sales have continued to rise as more and more people find that eating away
from home suits their lifestyle. As time pass by, the increase in the number of people
preferring to eat in cafes continues. They are becoming more and more of a food lover
and they need cafes to suffice their cravings. Compared to fast food chains, cafes are
much in demand. While fast food chains are growing at a rate of 2% each year, café
chains grow more than 10% annually2.

Owning and managing a café business is not easy. Just like other businesses, there
are many factors that we need to adhere to in order to keep our café business growing.

Australia’s vibrant coffee culture supported the strong growth of cafés and coffee
shop industry over the past five years. Their industry revenue is expected to grow at an
annualize 5.1% over the five years through 2017-2018, boosted by a large spike in 2013-
2014 as positive consumer sentiment and growing incomes encouragedconsumers to visit

1
cafes and coffee shops. Industry revenue is expected to increase 2.7% in 2017-2018, to
total 8.3 billion dollar. Australia’s coffee culture and its growing number of specialty
cafes and coffee shops have contributed to high industry competition, low barriers to
entry and low industry concentration3.

In the Philippines, café businesses are sprouting like a mushroom and that is
because of Filipinos undying love for food and coffee. Filipinos are known to be food
lovers. Delicious food and coffee has always been inextricably woven into the fabric of
Filipino culture. This love for food and coffee resulted to some business minded Filipinos
integrating their creative café ideas into real life. Various types of café came to life.
There are cafes for pet lovers, hello kitty lovers, internet lovers, and book lovers. The
birth of cafes in the Philippines not only reflects the culture it brought along but also the
social hierarchy and exclusions of these so called luxuries4.

Establishing your own business became much easier in Sorsogon. Through the
launching of Go NegosyoCenter, registering businesses at the local level became much
easier and faster. The Go NegosyoCenter is linked to the Philippine Business Registry
System (PBRS) which is a government project that integrates the services of all agencies
involved in business registration such as the Department of Trade and Industry, Securities
and Exchange Commission, Bureau of Internal Revenue, Social Security System, Home
Development Mutual Fund (Pag-IBIG), Philippine Health Insurance Corp. and other
permit and license-issuing agencies to facilitate registration 5. This center ensures a one-
stop registration to entrepreneurs. With this, we should not anymore doubt the increase in
number of businesses in Sorsogon, like the rise of many café establishments anywhere in
Sorsogon.

This prompted the research to identify the factors that affect the growth of a café
business in Sorsogon. The result of this study served as the basis in formulating different
strategies and action plan that will help café business owners cope with the factors that
affect the growth of their business.

2
Statement of the Problem

This study is aimed to determine the factors that affect the growth of a café
business in Sorsogon.Specifically, it sought answers on the following sub-problems:

1. What are the common factors that contribute in the growth of café businesses in
Sorsogon?
2. What are the strategies applied by the growing café business owners in
maintaining their business?
3. What are the problems encountered by café business owners in Sorsogon that
hinders the growth of their business?

Scope and Delimitation

This study was conducted to determine the factors that affect the growth of the
café business in Sorsogon City. To enhance this study, the researchers conducted an
evaluation through questionnaires and survey. The respondents of the study were the café
business owners in Sorsogon City.

Significance of the Study

The researchers found out that this study has the significance to the following:

Café Business Owners. This study will benefit café business owner for they will be
aware about the different factors that might affect and is already affecting the growth of
their business.

Aspiring Café Business Owners. This study will give knowledge to those aspiring
café business owners about the factors that could possibly affect the growth of their
future business and this will encourage them to prepare and equip their business
beforehand.

3
Future Researchers. The result of this study will help the future researchers to
have a source of knowledge for their future research endeavor and this will help them to
improve their own study.

Definition of Terms

For better understanding of the terms used in this study, several words were either
conceptually or operationally defined:

Café. This refers to a small restaurant selling light meals and drinks 6. In this
study, café is an establishment which offers food, beverages, and other services to
customers such as free use of internet.

Artisanal. This pertains to a product, especially food or drink made in a traditional or

non-mechanized way7.

Affluent. Having a great deal of money; wealthy8.

4
 NOTES

1
www.merriam-webster.com/dictionary/cafe

www.bplans.com/cafe_bistro_coffehouse_business_plan/market_analysis_summary_fc.p
hp

3
www.ibisworld.com.au/industry-trends/market-research-reports-/accommodation-food-
services/cafe-coffe-shops.html

4
palistinian.wordpress.com

5
www.google.com/amp/s/sorsogoncity.wordpress.com/2015/11/12/negosyo-center-set-
up-in-sorsogon/amp/?espv=1

6
www.merriam-webster.com/dictionary/cafe

7
https://www.google.com.ph/search?
q=artisanal+meaning&oq=artisanal+meaning&aqs=chrome..69i57j0l5.6659j1j7&sourcei
d=chrome&ie=UTF-8

8
https://www.google.com.ph/search?
q=affluent+meaning&oq=affluent+meaning&aqs=chrome..69i57j0l5.4183j1j9&sourceid
=chrome&ie=UTF-8

5
 CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents the gathered information from foreign to local literature. This
provides insight and relevant information to the researchers which are of great help in the
pursuit of development in this study.

Foreign Literature

The following are the foreign literature gathered that will support the main idea or
the concept of this study.

According to an article in the Straits Time Asia written by ArlinaArshad, the

Indonesian’s love for coffee triggered the surge of cafes in Indonesia. Hundreds of
artisanal cafes have sprouted in capital Jakarta and major cities like Medan, from fewer
than a dozen five years ago1. To the affluent urban customers that cafes serve, sipping
premium coffee and savouring cakes in a tastefully designed, comfortable setting have
become a must-do. It does not only satisfy their taste buds but also gives them relaxation
because of the environment.

In the article crafted by Social Agents entitled Social Enterprise cafes: Why
they’re so popular – four reasons were stated why cafes are a booming business venture
nowadays; (1) It provide skills development for employees; (2) Gives a sense of
belonging to customers; (3) Compassionate to any community as they provide an easy
way for community as they provide an easy way for community members to support
something good; and (4) They are an effective channel of encouraging tolerance and
inclusion to those people who are derived of something good 2. When looking to blend
purpose and profit, cafes have proven to be a successful model. Social enterprises are
compassionate businesses, driving social and environmental impact through business
activities. Social enterprise business models vary but the café/coffee shop is definitely

6
one of the most popular. They show importance not only to customers but also to their
employees.

In the article written by Craig Berman, four factors were highlighted as keys to
success for a café or coffee shop business; (1) Product; (2) Customers; (3) Employees;
and (4) Marketing3. When it comes to the products that you will offer you need to be able
to make a reasonable claim that your products are better than you competitors. You also
need to figure out who your customers are likely to be and make sure that there are
enough of them located near your business to make the numbers work. Like in any other
business, your frontline employees are your business’ prime connection to the customer.
Friendly and pleasant employees can be a huge asset to your business. Lastly, you can
serve the best food and beverage in the world, but it won’t do your business any good if
nobody knows you’re there. Advertising lets everyone know about your products and
gets them in the door. Once your products are in there, it’s up to them to do the rest.

Local Literature

The following are the local literature gathered that will support the main idea or
the concept of this study.

Filipino entrepreneurs are known to be creative. According to Euromonitor

International, new players in the café business industry favoured opening new concepts
and putting to life their own ideas instead of franchising. As a result, independent
cafes/bars in the Philippines continued to dominate the business industry category in
2016, with an 88% value share4. This domination will likely continue the coming years,
with new players entering and exiting as consumers enjoy discovering new concepts and
venues for relaxing and socializing5. Supported by their increasing levels of income and
sophistication, consumers will respond positively to new concepts, especially those for
bats and specialist coffee shops, and will welcome discovering new places. This gives
independent players the biggest advantage because they possess the most flexibility in
terms of conceptualization and locations. Players will experiment with new concept

7
combinations, new locations and new design schemes for the pleasure of middle-to-high-
income consumers.

According to Stephanie F. Esguerra from Entrepreneur Philippines, when putting

up a café you must consider; (1) Creating a unique concept; (2) Having a culinary
background; (3) Determining the price of your products; (4) Location; (5) Offering
unique menu; (6) Kitchen layout; (7) Finding trusted suppliers; (8) Sources of inspiration;
(9) Looking for dependable staffs; and (10) Developing good relationship with
customers6. These things are essential to a coffee shop or café business. If you didn’t
comply with just one of these your café business won’t completely succeed.

8
 NOTES

1
www.straitstime.com/asia/se-asia/hot-shot

2
http://www.socialagents.co.za/social-enterprise-cafes-theyre-popular

3
http://smallbusiness.chron.com/key-success-factors-coffee-business-68398.html

4
http://www.euromonitor.com/cafes-bars-in-the-philippines/report

5
Ibid.

6
www.entrepreneur.com.ph/startup-tips/10-things-to-conside-when-putting-up-a-coffee-
shop-page/1

9
 CHAPTER III

RESEARCH DESIGN AND METHODOLOGY

This chapter covers the method used in the study, the respondents, the description of the
techniques, the instruments used, and the procedures of the researchers.

Research Design

This study used the descriptive method of research to determine the

various factors which affect the growth of cafe businesses. Descriptive research is used to
describe characteristics of a population or phenomenon being studied 1. It utilized the
questionnaires to take precise and relevant information to produce a satisfactory result of
the study. The questionnaires were distributed to the selected respondents who owned or
managed small business in Sorsogon.Due to the limited cafe business owners willing to
accommodate the researchers in their research, they were only able to have a few number
of respondents.

Research Instrument

The main instrument used in this study is a survey questionnaire which provided
necessary data to become the basis for the researchers’ substantial findings, conclusions,
and recommendations. The questionnaire has four parts to include. The first part covers
the questions which ask the profile of the owner - the gender of the owner and the
number of years of experience of the owner in the café business field. On the second part,
the researchers used the descriptions strongly agree, agree, disagree and strongly disagree
to find out the respondent’s degree of agreement towards the different factors which
contribute to the growth of their café business. This involves all the possible legal, social
and environmental factors which affect businesses. The third part covers the question
which asks the common problems that café business owners encounter in their business.

10
The fourth and last part covers the questions which ask the different strategies of the
owners in order for them to gain more profit and to maintain the growth of their business.

Data Gathering

To obtain answers to the sub-problems, the researchers used questionnaires.

Questionnaires were distributed to the chosen respondents who are owners of cafe
businesses in Sorsogon. The questionnaires were comprised of questions and checklists
that helped in obtaining the answers to the sub-problems and the necessary data related to
the topic. Before distributing the questionnaires, the researchers asked permission and
approval to be able to give out the questionnaires to the respondents outside the school
premises. After the approval of the principal, the questionnaires are given personally to
the identified respondents. After a week, the questionnaires were retrieved personally by
the researchers and the data collected were tallied and tabulated.

Sample and Sampling Techniques

In this study, the researchers used purposive sampling. In purposive sampling, the
sample is chosen based on the objective of the research, thus it includes the people with
relevance to the topic and exclude those who do not suit the purpose 2. The researchers
used this method because they have their own target population which would help them
have a contrast in their study.

The Respondents

This study had a total of 10 respondents and they are the cafe business owners of
Sorsogon. The breakdown of the number of respondents is shown in the table below.

Table 1

The Respondents

Demographics Number of Respondents

Female café business owner 4

11
 Male café business owner 2
TOTAL 6
Statistical Treatment of Data

The information gathered were tabulated and processed manually and with the aid
of computer to determine the precise interpretation of the results. Tables and graphs were
made to organize, summarize, and analyze the data gathered for easy determination of its
difference from each other.

Data were tabulated and analyzed. The following statistical tools were used in the
analysis of data.

Frequency - Refers to the number of occurrences of a repeating event per unit

time3. Frequency was used to compute the weighted mean.
Percentage - It is a rate or proportion per hundred 4. The formula of percentage
used in this study is given below:
Percentage = frequency / number of respondents
Ordinal Data Using Likert Scale System - The responses to the questions in the
variables strongly agree, agree, strongly disagree, and disagree were scaled using
the Likert Scale System. Likert-type scales measure levels of agreement or
disagreement5.
Rank Method – Rank consists of arranging number of increasing or decreasing in
size6. The variable with the highest percentage or frequency was given the highest
rank.

12
 NOTES

1
http://study.com/academy/lesson/descriptive-research-design-definition-examples-
types.html

2
https://www.thoughtco.com/purposive-sampling-3026727

3
James, G. (2014) An Introduction to Statistical Learning. USA, Springer Publishing

4
https://www.google.com.ph/search?
ei=BBMHWpXxJ4uU8wX5hq_QAw&q=what+is+percentage&oq=what+is+percentage
&gs_l=psy-ab.3...14891.18520.0.18993.8.8.0.0.0.0.138.635.0j5.5.0....0...1.1.64.psy-
ab..3.5.631...0i7i30k1.0.HRK6ZwCwHjw

5
https://www.simplypsychology.org

6
http://changingminds.org/explanations/research/measurement/rank_ordering.html

13
 CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the analysis and interpretation of the data gathered from the
questionnaire. Tables are shown to guide the researchers in the interpretation of data that
have been gathered.

I. Common factors that contribute in the growth of café businesses in Sorsogon

There are many factors that contribute in inflicting change to small businesses, be
it in terms of earning their income, the operation of their business, or generally the
growth of their business. These factors are divided into three and are classified as legal,
environmental, and social factors. Legal factors include all regulatory and law
determinants that can negatively or positively affect results of market actions and
decisions of management of a business functioning in a particular country. It should be
noted that legal environment is constantly changing, laws are not set in stone and may
change according to political climate. Legal factors are connected to tax and custom
regulations, general economic policy, laws and regulations connected to employees’
protection, and consumer protection legislations 1. Environmental factors, which are also
sometimes called ‘ecological factors’ refer to variables regarding the physical
environment (the climate of Earth, for example). This can include things like consumer
health, climate change, the availability of energy, or any direct consequences of these
things. From the sound of it, it may seem that environmental factors have very little to do
with business. On the contrary, though, environmental factors can affect many different
important aspects of business. Examples include customer willingness to buy a product,
employee efficiency, and resource availability2. Social factors focus on the forces within
the society like family, friends, colleagues, neighbours and the media. These factors can
affect our attitudes, opinions and interests. So, it can impact sales of product and
revenues earned. The social factors shape who we are as people. It affects how we behave
and what we buy or patronize. A good example is how people’s attitude towards diet and
health is changing in UK. Because of this, UK businesses are seeing some changes. More

14
people are joining fitness clubs. There is also a massive growth in demand for organic
food. Businesses should be able to offer products and services which aim to benefit
people’s lifestyle. The offerings should complement customers’ behaviour. Not reacting
to changes in the society can be a costly mistake. Businesses might lose market share.
Demand for their products and services will fall 3. Tables 1.1, 1.2, and 1.3 show the
different legal, environmental and social factors which affect the growth of café
businesses in Sorsogon.

Table 1.1

Legal factors which affect cafe businesses

Factors Frequency Description Rank

A. Legal Factors
Health and Safety Law 4 Strongly Agree 1st

Employment Law 3 Strongly Agree 2.5th

Economic Policy 3 Strongly Agree 2.5th

Tax 2 Strongly Agree 4.5th

Consumer Law 2 Strongly Agree 4.5th

Copyright Law 2 Strongly Agree 4.5th

Politics 1 Strongly Agree 6th

Table 1.1 shows the legal factors that affect the growth of cafe businesses in
Sorsogon.The data shows that health and safety law is the most common legal factor
which affects the growth of café businesses with a frequency of 4 out of 6. Second in
rank are employment law and economic policy with a frequency of 3 out of 6. Fourthin
rank are tax, consumer law, and copyright law all with a frequency of 2 out of 6. Sixth
and last in rank is politics with a frequency of 1 out of 6.

15
 Table 1.2

Social factors which affect cafe businesses

Factors Frequency Description Rank

B. Social Factors
Lifestyle 4 Agree 1.5th

Social Trends 4 Agree 1.5th

Customers’ Attitudes 3 Agree 3.5th

Population Growth Rate 3 Agree 3.5th

Family Size and Structure 3 Agree 3.5th

Religion and Beliefs 2 Agree 5.5th

Health Consciousness 2 Agree 5.5th

Table 1.2 presents the social factors that affect the growth of café businesses in
Sorsogon. The data shows that lifestyle and social trends are the most common social
factor affecting the growth ofcafé businesses in Sorsogon with a frequency of 4 out of 6.
Third inrank are customers’ attitudes, population growth rate, and family size and
structure all with a frequency of 3 out of 6. Fifth and last in rank are religion and beliefs
and health consciousness both with a frequency of 2 out of 6.

16
 Table 1.3

Environmental factors which affect cafe businesses

Factors Frequency Description Rank

C. Environmental
Factors
Location of the business 5 Strongly Agree 1st
Seasons/Holidays 4 Strongly Agree 2nd
Weather 3 Strongly Agree 3rd

Table 1.3 shows the environmental factors that affect the growth of café businesses in
Sorsogon. The figures present that location of the business is the most common
environmental factor affecting the growth of café businesses in Sorsogon with a
frequency of 5 out of 6. Second in rank are seasons/holidays with a frequency of 4 out of
6. Last in rank is weather with a frequency of 3 out of 6.

II. Strategies applied by growing café business owners in Sorsogon in

maintaining their business

Any business can use a number of business strategies and methods, depending on its
situation. For example, new businesses may face different challenges than businesses that
are more established. Therefore, the business strategies they implement may be different
from those of key competitors4. Tables 2.1 and 2.2 show the different strategies practiced
by cafe business owners which help them gain more profit and maintain the growth of
their business.

17
 Table 2.1

Strategies practiced in order to gain more profit

Strategies practiced to gain Frequency Percentage Rank

more profit
Developing new products 5 83% 1.5th
Increase productivity of your 5 83% 1.5th
staff and conduct trainings to
enhance their skills
Promos 4 67% 3.5th
Giving people 4 67% 3.5th
knowledge/information about
your product
(advertisements, flyers, etc.)

Table 2.1 presents the different strategies practiced by cafe business owners in
Sorsogon in order to gain more profit. These are developing new products, increase
productivity of their staffs and conduct trainings to enhance their skills, promos and
giving people knowledge/information about their product (advertisements, flyers, etc.).
The most common strategy practiced by café businesses to gain more profit are
developing new products and increase productivity of their staffs and conduct trainings to
enhance their skills with a frequency of 5 out of 6. Promos and giving people
knowledge/information about their product both ranked third with a frequency of 4 out of
6.

Table 2.2

18
 Strategies applied in maintaining the growth of the cafe business

Strategies to maintain the Frequency Percentage Rank

growth of the café business
Showing appreciation to the 6 100% 1st
customers / good customer
service
Imposing proper training to 4 67% 2.5th
the employees
Endorsement in social media 4 67% 2.5th
platforms
Evaluation of marketing 3 50% 4.5th
tactics which helps in
increasing customer base
Keeping an eye on the budget 3 50% 4.5th

Table 2.2 presents the different strategies performed by cafe business

owners in order to maintain the growth of their business. These strategies are imposing
proper training to the employees, keeping an eye on the budget, showing appreciation to
the customers/good customer service, evaluation of marketing tactics which helps in
increasing customer base, and endorsement in social media. The main strategy applied by
café businesses in Sorsogon is showing appreciation to customers/good customer service
with a frequency of 6 out of 6. Both in second rank are imposing proper training to
employees and endorsement in social media platforms with a frequency of 4 out of 6.
Fourth and last in rank are evaluation of marketing tactics which helps in increasing
customer base and keeping an eye on the budget with a frequency of 3 out of 6.

III. Problems encountered by café business owners in Sorsogon which hinder the
growth of their business

Setting up and running a café will never be an easy job. With so many unique
challenges and problems to overcome, it can all seem a bit daunting 5. Aside from the

19
branding and the endless paperwork that owners have to make progress on, there are also
other challenges that café business owners will face. According to an often quoted study,
60% of businesses fail in the first year because of these challenges and problems. The
food industry is a high-risk business proposition. There is a lofty level of competition and
lots of details which needs to be perfected 6.Owning your own cafe business isn’t just
about fulfilling a passion, it’s about knocking down all the unexpected problems and
obstacles that come within the territory. Table 3 shows the different problems
encountered by cafe businesses in Sorsogon.

Table 3

Common problems of cafe businesses in Sorsogon

Common Problems Frequency Percentage Rank

of Business
Competition 3 50% 1.5th
Lack of customers 3 50% 1.5th
Sensitive customers 3 50% 1.5th
Price of raw supplies 2 33% 3.5th
Low Raw Supply 2 33% 3.5th

Table 5 shows the different problems being encountered by cafe business owners
in Sorsogon. These problems are competition, price of raw supplies, lack of customers,
low raw supply and sensitive customers. The most common problem that café businesses
in Sorsogon encounters are competition, lack of customers and sensitive customers all
with a frequency of 3 out of 6. Price of raw supplies and low raw supply are both in third
rank with a frequency of 2 out of 6.

NOTES

1
http://pestleanalysis.com/legal-factors-affecting-business/

2
http://pestleanalysis.com/environmental-factors-affecting-business/

20
3
http://pestleanalysis.com/social-factors-affecting-business/

4
http://smallbusiness.chron.com/different-types-business-strategies-4634.html

5
www.ordermentum.com

6
https://restaurantengine.com/common-problems-restaurants-face/

CHAPTER V

SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

21
This chapter presents the summary of the study, the presentation of the findings,
formulation of the findings and recommendations derived from the analysis and
interpretation of data.

Summary

This study entitled “Factors that Affect the Growth of Cafe Businesses in
Sorsogon” finds out the different factors which affect the growth of café businesses in
Sorsogon City. It discovers the strategies practiced by cafe business owners in
maintaining the growth of their business as well as the problems they encounter along the
process. At the same time the study suggests strategies that will help cafe business
owners in coping with the different factors which affect the growth of their business.

Specifically, it sought to answer the following sub-problems:

1. What are the common factors that contribute in the growth of café businesses in
Sorsogon?
2. What are the strategies applied by the growing café business owners in
maintaining their business?
3. What are the problems encountered by café business owners in Sorsogon that
hinders the growth of their business?

The respondents of this study were the cafe business owners in Sorsogon. There
were 10 respondents, 6 of which are males and 4 are females.

The descriptive research method best fit to give an in-depth interpretation of the
data from the respondents. Collected data were interpreted with the use of frequency,
percentage, ranking and Likert Scale System.
Findings

22
 With the statistical analysis of data, the researchers established the following
findings:

1. There are varied factors that affect the growth of cafe businesses in Sorsogon. In
legal factors, health and safety law is the most common factor which affects the
growth of café businesses with a frequency of 4 out of 6. Second in rank are
employment law and economic policy with a frequency of 3 out of 6. Fourth in
rank are tax, consumer law, and copyright law all with a frequency of 2 out of 6.
Sixth and last in rank is politics with a frequency of 1 out of 6. In social
factors,lifestyle and social trends are the most common factor affecting the growth
of café businesses in Sorsogon with a frequency of 4 out of 6. Third in rank are
customers’ attitudes, population growth rate, and family size and structure all with
a frequency of 3 out of 6. Fifth and last in rank are religion and beliefs and health
consciousness both with a frequency of 2 out of 6. In environmental factors,
location of the business is the most common factor affecting the growth of café
businesses in Sorsogon with a frequency of 5 out of 6. Second in rank are
seasons/holidays with a frequency of 4 out of 6. Last in rank is weather with a
frequency of 3 out of 6.

2. There are several strategies applied by a cafe business owner in order to gain
more profit. The main strategies that most café business owners practice to gain
more profit are developing new products and increase productivity of their staffs
and conduct trainings to enhance their skills with a frequency of 5 out of 6.
Promos and giving people knowledge/information about their products both
ranked third with a frequency of 4 out of 6. Also, cafe business owners practice
various methods or strategies in order to maintain the growth of their businesses.
All of the respondents said that showing appreciation to customers/good customer
service, with a frequency of 6 out of 6, are the most common strategies practiced
by café business owners in order to keep their business afloat in the market. The
second most common strategies that café business owners practice in order to
maintain their business are imposing proper training to employees and
endorsement in social media platforms with a frequency of 4 out of 6. Fourth and

23
 last strategy in rank are evaluation of marketing tactics which helps in increasing
customer base and keeping an eye on the budget all with a frequency of 3 out of 6.

3. There are multiple problems encountered by cafe business owners in Sorsogon.

The most common problem being encountered by cafe businesses are
competition, lack of customers and sensitive customers all with a frequency of 3
out of 6. Price of raw supplies and low raw supply are both in third rank with a
frequency of 2 out of 6.

Conclusions

Based on the aforementioned findings, the following conclusions are drawn:

1. There are 3 factors that affect cafe businesses; these are legal factors, social
factors and environmental factors. The legal factors that affect cafe businesses are
health and safety law, employment law, economic policy, tax, consumer law,
copyright law, and politics. The social factors that affect cafe businesses are
lifestyle, social trends, customers’ attitudes, population growth rate, family size
and structure, religion and beliefs, and health consciousness. The environmental
factors that affect small businesses are the location of the business,
seasons/holidays and weather condition.

2. The three main strategies practiced by café business owners in Sorsogon in order
to maintain their business and to be able to gain more profit are developing new
products, increasing productivity of staffs and conduct trainings to enhance their
skills, and showing appreciation to customers or good customer service.

3. Competition, lack of customers, and sensitive customers are the most common
problems encountered by café business owners in Sorsogon.

Recommendations

24
The following recommendations are derived from the findings and conclusions:

1. Cafe business owners are encouraged to have full awareness about the different
factors that might or is already affecting their business.

2. Make innovations on their products and business strategies.

3. Discussion of the different laws and regulations of the government concerning

cafe businesses during business seminars.

4. If planning to expand their business, cafe business owners should strategically

locate their business in places where customers have an easy access.

5. Conduct an entrepreneurial research regarding the customers’ buying behaviour

and their perceptions about the products.

6. Business owners should provide proper trainings to the employees on how to

properly handle critical situations like conflict with customers.

RESERVED FOR ACTION PLAN

25
RESERVED FOR ACTION PLAN

26
RESERVED FOR ACTION PLAN

27
BIBLIOGRAPHY

28
A. Book:

James, G. (2014) An Introduction to Statistical Learning. USA, Springer Publishing

B. Websites:

http://changingminds.org/explanations/research/measurement/rank_ordering.html

http://pestleanalysis.com/environmental-factors-affecting-business/

http://pestleanalysis.com/legal-factors-affecting-business/

http://pestleanalysis.com/social-factors-affecting-business/

http://smallbusiness.chron.com/different-types-business-strategies-4634.html

http://smallbusiness.chron.com/key-success-factors-coffee-business-
68398.htmlhttp://www.euromonitor.com/cafes-bars-in-the-
philippines/reportwww.entrepreneur.com.ph/startup-tips/10-things-to-conside-when-
putting-up-a-coffee-shop-page/1

http://study.com/academy/lesson/descriptive-research-design-definition-examples-
types.html

http://www.socialagents.co.za/social-enterprise-cafes-theyre-popular

https://restaurantengine.com/common-problems-restaurants-face/

https://www.google.com.ph/search?
ei=BBMHWpXxJ4uU8wX5hq_QAw&q=what+is+percentage&oq=what+is+percentage
&gs_l=psy-ab.3...14891.18520.0.18993.8.8.0.0.0.0.138.635.0j5.5.0....0...1.1.64.psy-
ab..3.5.631...0i7i30k1.0.HRK6ZwCwHjw

https://www.google.com.ph/search?
q=affluent+meaning&oq=affluent+meaning&aqs=chrome..69i57j0l5.4183j1j9&sourceid
=chrome&ie=UTF-8

https://www.google.com.ph/search?q=artisanal+meaning&oq=artisanal+meaning&aqs=chrome..69i57j0l5.6659j1j7&sourceid=chrome&ie=UTF-8

29
https://www.simplypsychology.org

https://www.thoughtco.com/purposive-sampling-3026727

palistinian.wordpress.com

www.bplans.com/cafe_bistro_coffehouse_business_plan/market_analysis_summary_fc.p
hp

www.google.com/amp/s/sorsogoncity.wordpress.com/2015/11/12/negosyo-center-set-up-
in-sorsogon/amp/?espv=1

www.ibisworld.com.au/industry-trends/market-research-reports-/accommodation-food-
services/cafe-coffe-shops.html

www.merriam-webster.com/dictionary/cafe

www.merriam-webster.com/dictionary/cafe

www.ordermentum.com

www.straitstime.com/asia/se-asia/hot-shot

30
APPENDICES

St. Louise de Marillac College of Sorsogon

Senior High School Department
SY 2017 – 2018

31
Ms.FrenieAjero
Principal, SHS Department

Through Mrs.CasimiraJarabo
Academic Coordinator

Dear Ms.FrenieAjero,
We, the Group 3 of ABM – Chastity, are conducting a research entitled Factors
that Affect the Growth of Café Businesses in Sorsogon as a requirement of our Capstone
Project subject. We are seeking for your approval to conduct our survey through
questionnaire to our target respondents.
Thank you very much for your approval!

Grade 12 ABM – Chastity

Maria Rochelle Jaylo
Dannah Mae Caballero
JenelEspectacion
NiccaDeniega
CrizzaJapon
Mikaela Antonio
Kristine Sare
Mark Peulo Nicolas

Noted:

Ms.Rubee Anne JanabanMrs.CasimiraJaraboTeacher, Capstone Research Academic

Coordinator

APPROVED

Ms.FrenieAjero
Principal, SHS

St. Louise de Marillac College of Sorsogon

Senior High School Department
SY 2017 – 2018

32
Greetings of peace!
We the researchers of St. Louise de Marillac College of Sorsogon,Grade 12 students will
conduct a research on Factors That Affect the Growth of Café Businesses in Sorsogon
City. With this we would like to request your café as one of the participants of this
survey.

Please share us your time in answering the questionnaire.

Your cooperation in answering this survey is very much valued. Thank you and God
bless!

Grade 12 ABM – Chastity

Maria Rochelle Jaylo
Dannah Mae Caballero
JenelEspectacion
NiccaDeniega
CrizzaJapon
Mikaela Antonio
Kristine Sare
Mark Peulo Nicolas

Noted:

Ms.Rubee Anne Janaban

Teacher, Capstone Project

Approved:

Ms.FrenieAjero
Principal, SHS

St. Louise de Marillac College of Sorsogon

Senior High School Department

33
 SY 2017-2018

QUESTIONNAIRE

MagandangAraw!

Angmgamananaliksik, ika-12 baitang ABM-Chastity ng St. Louise de Marillac College

of Sorsogon ay
nagsasagawangpananaliksiktungkolsaMgaSaliknaNakakaambagsaPaglagongmga Café
Business sa Sorsogon City. Kami ay
humihilingnainyongmaibigayangmgakasagutannakakailanganinsapananaliksiknaito.

Anginyongpartisipasyonsasarbeynaito ay lubos naming ika-gagalak. Maramingsalamat!

I. Profile

Pangalan: _________________________________________ Edad: _____________

Gender:____ Highest Educational Attainment: _______________________________

No. of years of experience in business: ________________________________________

MGA TANONG: Lagyanng TSEK anginyongnapilingkasagutan.

II.

1. Anoangmgasaliknanakakaambagsapaglagongiyong café business?

Lagyanng TSEK angnaangkopnakategoryangiyongkasagutan.

FACTORS MahigitnaSuma Sumasangayon Hindi Mahigitna

sangayon Sumasangayon Hindi
Sumasangayon
A. Legal Factors
1. Buwis
2. Pulitika
3. Economic
Policy

34
4. Consumer Law
5. Copyright Law
6. Health and
Safety Law

7. Employment
Law

Ibangkasagutan, pakilahad:
_________________________________________________

B. Social Factors MahigitnaSumasa Sumasang Hindi Mahigitna

ngayon ayon Sumasang Hindi
ayon Sumasang
ayon
1. Kamalayansakalusugan
2. Pag-
uugalingmgamamimimili
3. Relihiyon at Paniniwala

4. Laki at
estrukturangpamilya

5. Mgabagongkinahihiliganng
lipunan
6. Pagtaasngpopulasyon
7. Pamumuhayngmgatao

Ibangkasagutan, pakilahad:
_________________________________________________

C. Environmental MahigpitnaSum Sumasangayon Hindi Mahigpitna

35
 Factors asangayon Sumasangayon Hindi
Sumasangayon
1. Lokasyonng
negosyo
2. Panahon
3. Seasons/
Holidays

Ibangkasagutan, pakilahad:
_________________________________________________

III.

2. Anoangmgaproblemangkadalasannakakaharapngiyong café business?

Kakulanganngmgahilawnasangkap
Presyonghilawnasangkap
Kakulangansa customer
Teknolohiya
Kakulangansamgabihasangmanggagawa
Kompetisyon
Mgasensitibong customer
Pagkakautang

IV.

3. Anoangmgaestratehiyangiyongisinasagawaupangmakalikomng mas mataasnakita?

Pagsasagawangmga promo
Paggagawangmgaproduktongbagosapanlasangmgatao
Pagbibigayngdagdagkaalaman at pagsasanaysamgamanggagawa

36
 Pagpapalaganapngimpormasyonukolsamgaproduktongiyongbinebenta
(advertisement, flyers, etc.)

4.
Anoangmgaestratehiyangiyongisinasagawaupangpanatilihinangpaglagongiyongnegosyo?

\ Pagtuunanngngpansinangbadyet
Pagbibigaynghalagasamga customer / magandangserbisyosa customer
Pagsasanaysaempleyado
Pagiindorsosa social media
Pagsurisamgataktikaupang mas dumamiangtumangkiliksamgaprodukto at
serbisyo

CURRICULUM VITAE

Name: Maria Rochelle L. Jaylo

Birthday: September 10, 1999
Address: 161 J. Reyes Street Talisay, Sorsogon City
Parents: Maria Juana L. Jaylo, Danilo J. Jaylo

37
School Attended
1. Elementary:Sorsogon Pilot Elementary School
2. Junior High School: St. Louise de Marillac College of Sorsogon
3. Senior High School: St. Louise de Marillac College of Sorsogon

Achievements
Honors/Awards Received:
1. Nursery – 8thhonors
2. Kindergarten – 6thhonors
3. Grade 1 – 4thhonors
4. Grade 2 – 6thhonors
5. Grade 3 – 5thhonors
6. Grade 7 – Merit Awardee
7. Grade 11 – With Honors
8. NCIII Passer

CURRICULUM VITAE

Name: Mark Peulo G. Nicolas

Birthday: January 13,2000
Address:Brgy. Guinlajon, Sorsogon City
Parents: Mary Ann G. Nicolas, Edmon F. Nicolas

38
School Attended
1. Elementary: San Policarpo Central School
2. Junior High School: St. Louise de Marillac College of Sorsogon
3. Senior High School: St. Louise de Marillac College of Sorsogon

Achievements
Honors/Awards Received:
1. NCIII Passer

CURRICULUM VITAE

Name:Mikaela G. Antonio
Birthday: July 5, 1999
Address:TablacMatnog, SorsogonCity
Parents: Carmen G. Antonio, Fernando T. Antonio
39
School Attended
1. Elementary:Tablac Elementary School
2. Junior High School:Matnog National High School
3. Senior High School: St. Louise de Marillac College of Sorsogon

Achievements
Honors/Awards Received:
1. Grade 6 – 7thhonors
2. NCIII Passer

CURRICULUM VITAE

Name:Dannah Mae D. Caballero

Birthday:May 6, 2000
Address:Sampaloc, Sorsogon City
Parents:Dante S. Caballero, Agnes D. Caballero

40
School Attended
1. Elementary:Sorsogon East Central School
2. Junior High School: Sorsogon National High School
3. Senior High School: St. Louise de Marillac College of Sorsogon

Achievements
Honors/Awards Received:
1. NCIII Passer

CURRICULUM VITAE

Name:Jenel G.Espectacion
Birthday:May 1, 2000
Address:Block 15 Lot 19 Imperial Homes Ridgeview Subdivision, Sorsogon City
Parents:JelitaEspectacion, Ricardo Espectacion

41
School Attended
1. Elementary:Sorsogon East Central School
2. Junior High School:Sorsogon National High School
3. Senior High School: St. Louise de Marillac College of Sorsogon

Achievements
Honors/Awards Received:
1. NCIII Passer

CURRICULUM VITAE

Name:Crizza Joy M.Japon

Birthday:December 21, 1999
Address:Barangay Road, Balogo Sorsogon City
Parents:Celso M. Japon, Josephine M. Japon
42
School Attended
1. Elementary:Sorsogon Pilot Elementary School
2. Junior High School:Sorsogon National High School
3. Senior High School: St. Louise de Marillac College of Sorsogon

Achievements
Honors/Awards Received:
1. NCIII Passer

CURRICULUM VITAE

Name:NiccaH. Deniega
Birthday:February 21, 1999
Address:Macabog, Sorsogon City
Parents:LestinaDeniega, HonorioDeniega

43
School Attended
1. Elementary:Sorsogon Pilot Elementary School
2. Junior High School:Sorsogon National High School
3. Senior High School: St. Louise de Marillac College of Sorsogon

Achievements
Honors/Awards Received:
1. NCIII Passer

CURRICULUM VITAE

Name:Kristine B.Sare
Birthday: December 19, 1999
Address:Balogo, Sorsogon City
Parents:Melanie B. Sare, Rogelio Ares B. Sare

44
School Attended
1. Elementary:Magallanes North Central School
2. Junior High School:Sorsogon National High School
3. Senior High School: St. Louise de Marillac College of Sorsogon

Achievements
Honors/Awards Received:
1. NCIII Passer

45