COVID-19 PANDEMIC: BUSINESS CHALLENGES AND COPING MECHANISM

AMONG FOOD BUSINESS ESTABLISHMENTS IN TACURONG CITY

__________________________________________________________

A Research Proposal
Presented to the Faculty of
Hospitality Management Program
STI College, Tacurong City

_________________________________________________

In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Hospitality Management

____________________________________________

By

Shekaina Keren B. Formacion

Chanchine C. Alicer
Rogie A. Reyes
Jaysan B. Sacbibit

October 2021
 RESEARCH PROPOSAL APPROVAL SHEET

This research proposal entitled: Covid-19: Pandemic: Challenges and Coping

Mechanism Among Food Establishment in Tacurong City prepared and submitted by

Shekaina Keren B. Formacion, Chanchine C. Alicer, Rogie A. Reyes and Jaysan B.

Sacbibit, in partial fulfillment of the Bachelor of Science in Hospitality Management, has been

examined and is recommended for acceptance and approval.

MR. NOEL G. RAMOGA, MBA

Research Adviser

MR. NOEL G. RAMOGA, MBA

Research Coordinator

MS. AIMEE MARIE P. TAYSON, MBA

Program Head
 ACKNOWLEDGMENT

The researchers would never have been finished their research proposal without the

guidance and support of the following persons:

To their teachers, Sir Noel G. Ramoga, MBA, Sir Michael Flores, and Ma’am Aimee

Marie P. Tayson, MBA, for the intellectual insights, persistent support, guidance, and for

patiently correcting his manuscript. Without her, this proposal would not have been successfully

completed.

To Ma’am Mary Jubimille O. Casuyon, and Ma’a,m Kristine Maulit, for the moral

support he supplies and for uplifting the researchers’ spirit most especially on tight and rough

times, their advice will always be cherished by the researchers;

To their beloved and supportive parents, Mr. and Mrs. Eduardo L. Formacion, Mr. and

Mrs. Dominador Alicer, Mr. and Mrs. Saniya Sacbibit, and Mrs. Jenalin Reyes, for all their

financial, moral supports, and encouraging words despite of the ups and downs on their financial

capabilities;

Most of all, to the Almighty Father God, who continuously believe in them, for giving

them the wisdom that they need to go through to this study.

 ASBTRACT

This study aimed to identify the challenges faced by food business industry in Tacurong

City during the COVID-19 pandemic.

This study adopted a descriptive research design using a survey method. Frequency

distribution will be used for the interpretation of the Background Profile of the Respondents

while mean and grand mean will be used for the interpreting the results for the challenges faced

by the food business industry, their coping mechanism to continue their business, and the impact

of COVID-19 towards their production, sales and marketing, and employment.

After this study, the researcher aims to present the result to all concerned especially

business owners as it may be used as basis for their business.

 TABLE OF CONTENTS

Title Page

Title Page ……………………………………………………………………….. -

Endorsement Form for Final Defense ……………………………………….. -

Approval Sheet ……………………………………………………………….. i

Acknowledgments ……………………………………………………………….. ii

Abstract ……………………………………………………………………….. iii

Table of Contents ……………………………………………………………….. iv

List of Tables ……………………………………………………………….. v

List of Figures ……………………………………………………………….. vi

List of Abbreviations ……………………………………………………….. vii

Chapter I (Introduction) ……………………………………………………….. 1

Chapter II (Review of Related Literature) ……………………………………….. 5

Chapter III (Theoretical/Conceptual Framework) ………………………………. 9

Chapter IV (Research Methodology) ………………………………………. 12

Chapter V (Presentation and Discussion of Findings) ………………………. -

Chapter VI (Conclusion and Recommendation ………………………………. -

List of Tables
List of Figures
List of Abbreviations
 CHAPTER I

INTRODUCTION

On March 13, 2020, the Philippine government imposed enhanced community quarantine

(ECQ) all over Luzon to address COVID-19 pandemic.

Following the orders imposed by the nationwide lockdown, many business

establishments are forced to close including the food industry sector. Many food business owners

opted to continue and thrive shifting to different alternatives, from serving walk-in guests to

delivery and online selling methods.

In this study, the researchers will focus on the challenges faced by the food industry

during the pandemic. Moreover, this research aims to identify the different challenges, its coping

mechanisms to continue their business, and its impact to the business production, sales and

marketing, and employment. This research will employ a descriptive research design using a

survey method. Moreover, simple random sampling procedure will be used in identifying the

samples.

Tacurong City is a landlocked component city in the coastal province of Sultan Kudarat.

The city has a land area of 153.40 square kilometers with a population of 109,319 (PSA 2020

Census). Considering its large population and its booming economy, many business owners and

investors are established both agriculture, industry and even food business. Since 2020, various

food chains like the Jollibee, Mc Donalds and KFC were seen is some areas catering the needs of
its citizens. Also, various thriving businesses like restos, bars, carenderia and eatery can be found

all throughout the city.

However, COVID-19 has greatly affected not just the entertainment industry, but also the

food industry sector most especially those small-scale food establishment. This research will

focus on how these business sectors being affected and thriving during the pandemic, while

many are forced to close.

Background of the Study

Due to the Public Health State of Emergency in relation to the COVID-19 pandemic

declared on March 8, 2020 the government imposed ECQ all over Luzon, which subsequently

imposed nationwide including Tacurong City. This measure includes suspension of classes and

other school activities, prohibited mass gatherings, instituted home quarantine with movement

limited to access necessities, enforced restrictions on land, domestic air and sea travel, and

imposed curfews.

With the emerging health crisis in the world, the economy is the most affected, especially

the business sectors. Employment is at risk and it is an inevitable phenomenon in every corner of

the world. Tacurong City, in the local context is not excused of the effect in economic down-

turn. Imposing of lockdown greatly affects the movement of people and goods, which highly

have a significant effect on all levels of agricultural market chains. As students, this issue

concern as in the perspective that it has an adverse impact to the food business sectors.

According to the Rapid Assessment of the Impact of COVID-19 on Food Supply Chains

in the Philippines, a study conducted by the Food and Agriculture Organizations of the United

Nations – Philippines (2021), the agri-food system of the country was already contending with

serious pest and disease outbreaks. It was furthermore facing the fundamental development
challenge of tepid growth, impoverished livelihoods among SFFs, even as consumers were

deriving poor nutritional outcomes from the agri-food system. In particular, an inefficient

logistics system was excluding many SFFs from agri-value chains, as well as many poor

households from affordable foods.

Research Questions

This study aims to know the challenges and coping mechanism among food industry in

the city of Tacurong with the following questions:

1. What are the challenges faced by food industry during the COVID-19 pandemic?

2. What is the coping mechanism done in order to continue the industry; and

3. What is the impact of COVID 19 pandemic to the food industry given the

intervention done in terms of the following:

a. Production – describe the production trend before and during the pandemic

b. sales and marketing – describe the sales and marketing status before and

during the pandemic

c. employment – describe the employment status before and during the

pandemic

In order to identify the challenges and impact of the pandemic to their business, the

researcher will look into figures to answer questions stated in the statement of the problem.

Significance of the Study

The study will be significant to the following organization:

 To the Business Owners. As the main respondents of this study, results will be very

beneficial in planning especially in making countering challenges. It will also be very helpful in

coping with the situation, allowing food business to continue without sacrificing revenues and

employment.

To the Suppliers. Closures of some food business establishments also affect many

suppliers especially the local suppliers in the industry. Results may be used as a guide on how to

cope with the decline of the demands of basic raw materials needed by the food industry.

To the Department of Trade and Industry. The Department of Trade and Industry

should organize programs that may help and provide interventions among local food business

owners.

To the Local Government Unit (LGU). It can also be used as basis for Local

Government Unit (LGU) to organize and implement interventions and measures to help the food

industry without sacrificing health and safety of its constituents.

To the Researchers. As students of Hotel and Restaurant Management, this study will

give us a broad knowledge on how the food business industry works. Also, this will serve us as a

benchmark and a guide as we pursue this nature of business in the future.

Future Business Owners/Entrepreneurs. This research will give them the scientific

basis on how food business owners thrive in the new normal, and coping the challenges in the

market.

Objectives of the Study

The study aims to:

1. Identify challenges faced by food industry during the COVID-19 pandemic;

 2. Identify the coping mechanism done by food business establishments to continue

operating; and

3. Determine the impact of COVID 19 pandemic to the food industry in terms of:

a. production

b. sales and marketing

c. employment

Scope and Limitation

This study will be conducted at Tacurong City covering local food business

establishments and will be randomly selected the participants of this study. In the event, there

will be establishment that will refuse and reluctant to become the respondent of our study.

However, the researchers will opt to select another target enterprise in order to complete the

sampling as participants in the research.

 CHAPTER II

REVIEW OF RELATED LITERATURE

The “COVID-19”, is an airborne disease that is very dangerous and highly contagious

and is known to be caused by SARS-CoV-2 which is short for Severe Acute Respiratory

Syndrome Coronavirus 2. The fact that Covid-19 has rocked the entire world and brough it down

to a standstill is an understatement. An infected person can experience zero to severe symptoms

including: cough, loss of smell and taste, muscle pain, fever, difficulty in breathing, headache,

nasal congestion, and sore throat. While these symptoms take a few days to show from the first

day the person is infected, it takes up to two weeks for the person to get rid of them.

Unfortunately, some other victims of COVID-19 have had to deal with the impact of this

infection for a longer period to become completely cured if they are lucky. If not, they could also

be left with severe respiratory problems needing continued medical assistance. In some other

instances, patients, especially elders have not been able to beat back this disease and lost their

lives in an untimely manner.

The Philippines had its first confirmed COVID-19 case on January 30, 2020. By mid of

March of 2020, Luzon, was already in lockdown, domestic travel by land, air, and sea were
suspended, and Enhanced Community Quarantine (ECQ) was imposed by the government most

notably in the National Capital Region (NCR). By August 2020, The Philippines recorded the

greatest number of COVID-19 cases in Southeast Asia.

During the COVID-19 crises, people started panic-buying food and medical supplies

which caused major shortages and supply chain problems. In addition, events and functions of all

kinds were postponed or cancelled, educational institutions closed their campuses and switched

to online classes, and a great deal of businesses were forced to close and shut down either

temporarily or permanently. Closure of restaurants and other dine-in places also fall into this

category. About 1.1 trillion pesos was lost due mainly to cancelled flights and closures of

airports, malls, retail trade, and non-food and non-health manufacturing services.

Tacurong City is one of the business hubs of Region XII with tourism and agriculture as

the top growing industry is adversely affected by the imposed lockdowns due to COVID-19. As

such, many business sectors from entertainment, tourism, transportation, and food and beverage

businesses are forced to close which greatly affect the majority.

The COVID-19 Impact on Philippine Businesses: Entrepreneur Survey

On the study conducted by the Asian Development Bank (2020), the enhanced

community quarantine and other quarantine/lockdown measures (henceforth referred to as ECQ)

dramatically limited business activities throughout much of the Philippines. After the 16 March

2020 lockdown of the NCR, Calabarzon, and other regions, most Philippine enterprises faced the

immediate closure of business or limitation of business operations. According to the survey,

65.9% of enterprises surveyed temporarily closed their business after the ECQ came into effect

(Figure 9). Limited operations continued in 29.1% of the enterprises surveyed. Among those

with limited operations, onefifth reported more than 50% of their business continued, while
78.4% reported less than 50% of their business operational (Figure 10). Only 4% of those

surveyed remained fully open. Meanwhile, 1.1% closed permanently.

Closed Businesses Status in the Philippines

According to the report by the Department of Trade and Industry (DTI) Secretary Ramon

Lopez reported on July 7, 2021, that the number of enterprises that closed their operations amid

the coronavirus disease 2019 (Covid-19) pandemic went down to 10 percent in June.

Moreover, reference to the article posted in the Philippine News Agency, closed

businesses in March were only at 4.3 percent, those in partial operation at 39.3 percent, and those

in full operation at 56.4 percent. Aside from a lower number of closed businesses with easing of

restrictions, Lopez said the number of companies that reported decline in sales slowed down to

53.8 percent in June from 61.7 percent in May and 67.8 percent in March (Crismundo, 2021).

  The trade chief said the latest unemployment rate in June at 7.7 percent showed that the

impacts of the pandemic have eased as the economy reopens.

  Lopez said the movement of the NCR Plus toward general community quarantine has

reduced the estimated displaced workers to 765,454 workers from more than 1.4 million

displaced workers during the MECQ.

  “As we are reopening, we are able to bring back jobs and basically be able to reduce the

unemployment figures,” he added. (PNA.

COVID-19 IMPACT TO THE PHILIPPINE EMPLOYMENT

 According to the Asian Development Bank report in 2020, in terms of employment,

66.2% of Philippine MSMEs reported temporary staff cuts, followed by Laos (53.5%), Indonesia

(51%), and Thailand (42.3%). The study also noted that the work-from-home setup is “not a

serious option for MSMEs,” with only 13% to 21% of businesses in the 4 countries adopting the

scheme. This means that small businesses adapted to the pandemic through temporary layoffs,

rather than implementing work-from-home schemes that governments have encouraged.

The Impact to Food and Beverage Manufacturing Sector

From the study conducted by Arnesh Telukdarie 1,*, Megashnee Munsamy 1 and

Popopo Mohlala 2 (2020), on the Impact of COVID-19 on the Food and Beverages

Manufacturing Sector, he globe has been subjected to an unprecedented health challenge in the

form of COVID-19, indiscriminately impacting the global economy, global supply chains, and

nations. The resolution of this unprecedented challenge does not seem to be in the short-term

horizon but rather something the globe has to live with. Initial data provides for some insights on

responses, precautions, and sustainability protocols and processes. The Food and Beverages

Manufacturing sector in South Africa (SA) and globally is an expeditious respondent to the

COVID-19 challenge. Food is essential for human existence, but the food value chain is

subjected to significant COVID-19 risks. The Food and Beverage Sector Education and Training

Authority is responsible for skills development in the Food and Beverages (FoodBev)

Manufacturing Sector in South Africa and seeks to quantify Foodbev sustainability. This

research paper reviews global literature, performs a high-level knowledge classification, with the

aim of expedited awareness, knowledge sharing, and most importantly, quantification of an

expedited response, within the FoodBev Manufacturing sector in SA. The research is

contextualized via a SA sector-based instrument deployment and data analysis. The paper
provides insights into COVID-19 impact, adaptations, and responses in the SA Food and

Beverages Manufacturing sector.

Shenggen Fan, et, al (2020) conducted a study on “Food system resilience and COVID-

19 – Lessons from the Asian experience” which studied the impact of the COVID-19 pandemic

on the food system and has exposed the vulnerabilities of the supply chain, although the extent of

disruption varies widely, globally and in Asia. However, food systems in Asia have been proven

relatively resilient when compared with other regions. This paper considers the immediate

effects of the COVID-19 pandemic on the food system, particularly in Asia, and initial responses

of governments and global agencies to manage the crisis. A major focus of the paper is on the

outlook for food system resilience in a post-COVID-19 environment and likely long-term effects

of the pandemic. There is always a possibility of such shock events occurring in the future, hence

it seems prudent to look at lessons that may be learned from the responses to the current

pandemic.

The above related studies stress how global economy suffered from down trend of

revenue and some had really stopped from operation. The government has actually instituted

intervention efforts to mitigate the worsening impact of COVID 19 pandemic but still the effect

is hurting almost all industries especially food business.

COVID-19 has had a major impact on most food businesses. Some are thriving, some are

in lockdown and others are making significant changes to the way in which they reach customers

in order to continue trading. In almost all cases, businesses are having to adopt new ways of

working in order to manage both existing and COVID-19 related risks (B. Salmon 2020).

Food businesses must continue to adhere to their legal duties, such as an employer’s duty

to protect their employees’ health and safety and the health and safety of customers, including in
relation to food safety and hygiene regulations. At the same time, food businesses must also

abide by the government’s current restrictions. To support food businesses in their efforts to

comply with their legal requirements and adapt to the restrictions, both the Health and Safety

Executive (HSE) and the Chartered Institute of Environmental Health (CIEH) have published

separate guidance to assist with managing risk and ensuring food businesses trade safely during

this time (B. Salmon 2020).

On a study conducted by A. Telukdarie, et al. (2020), results provide significant insights

into SA Food and Beverage Manufacturing sector alignment with current global trends on

COVID-19. The initial reliability tests indicate strong reliability of data. The data indicates a

very strong alignment to most categories of COVID-19 responses as extracted from global

literature. Essentially, SA FoodBev companies have responded in alignment to global literature

trends in most areas, with some exceptions in HR and climate change. Firstly, and most

importantly, on the issue of COVID-19’s impact, in the SA context, the analysis indicates a

significant number of companies (12 of 106) would likely close with 65% of all companies

predicting some future impact of COVID-19, aligning strongly with literature [8,36]. Companies

need to structure finances to survive, access government grants, and other government

incentives. COVID-19 has a significant impact on operation, including supply chain.

 CHAPTER III

CONCEPTUAL FRAMEWORK

Challenges

Impact to
Production, Sales
and Marketing,
Coping and Employment
Mechanism
 The conceptual framework shown above describes how food business establishment cope

with the challenges brought about by the COVID 19 pandemic and its impact to revenue and

employment.

Conceptual Framework

The Coronavirus disease (COVID-19) pandemic caused major supply chain disruption

challenges across the world, particularly for those within the food and beverage industry.

Changes in consumer buying patterns made demand planning incredibly difficult and some

products experienced unforeseen shortages or surpluses. Companies had to adapt to growing

carrier pricing changes and volume restrictions and limitations, while some were forced to

quickly develop omnichannel shopping experiences and multi-vendor strategies.

Now, almost a year since the start of the pandemic, we can look back on how the

challenges the food and beverage industry faced accelerated the digital transformation journeys

of many companies in the space, and as a result, have set them up for a successful 2021.  

E-commerce grew during the pandemic, and so did the challenges. The widespread

COVID-19 lockdowns in the United States at the start of 2020 drastically increased the already

growing demand for omnichannel experiences. Those businesses not already equipped to manage

multiple sales channels struggled to manage the trend of going   direct-to-consumer as well as the

shift by consumers to food consumption at home, rather than restaurant dining.

The growth in e-commerce also put greater pressure on shipment channels, leading

to increased shipping costs. Customers were not always willing to pay premium shipping fees for

low-priced items and so many businesses were forced to absorb these fees, cutting into their

profits.   
 In addition, carrier limits for how many packages can be picked up each day were

implemented by many shipping companies. This problem was only compounded for those food

and beverage companies that rely on a single carrier for shipments. To address this challenge,

businesses needed to integrate multiple carriers into their network so they could achieve the

flexibility they needed when faced with carrier limitations and changing shipping costs.

Based on the study conducted by Philippneris (2021), her study revealed that some of the

small e-commerce food businesses in the Philippine setting, to understand their operational

structures, strategies and challenges, and analyzed them with the usage of time-tested analytical

models. It was done so not merely with the intention of providing appropriate recommendations

for their future operation and growth-oriented business undertakings, but also to add to the

evolving literature on the impacts and repercussions of COVID-19 crisis that has rocked the

world. Primary data gathered for this purpose allows us to have a better understanding about the

mushrooming small-scale online food businesses within the Philippine context, especially within

the context of Metro Manila and its surrounding regions.

 CHAPTER IV

REASEARCH METHODOLOGY

Research Design

As already pointed out, this study aims to determine the challenges faced by food

industry in Tacurong City during the COVID-19 pandemic. This study will utilize the descriptive

research design using survey method.

Variables of the Study

The variables of the study are the following:

1. Socio-economic profile of the respondents

2. Challenges faced by food industries during the pandemic

 3. Mechanisms done by the business owners during the pandemic

4. Impact of COVID-19 pandemic to the food industries in terms of production, sales and

marketing, and employment

Locale/Setting

This study will be conducted among the selected food business establishments in

Tacurong City. These food business establishments are identified in terms of; local food

business, such as carenderias, eatery and restaurants; operating locally, excluding fast food

chains such as Mc Donald’s, Jollibee, KFC, Mang Inasal, and the like which are established

companies with franchises and branches nationwide; and has been operating since pre-COVID

time.

Participants of the Study

The participants of the study are food establishment owners or managers of the chosen by

the researchers through purposive sampling. A purposive is a type of sampling where the

researcher intentionally selects the sample based on some previous knowledge about the

population or based on a specific objective of the research. The individuals are selected on some

criteria or common characteristics.

Methods of Gathering Data and Bracketing

In gathering the data from the respondents, a self-constructed questionnaire will be

utilized. The researcher will go directly to the identified respondents wherein he will ask the

permission first of the respondents, owners or business managers to answer the survey
questionnaire. These respondents are rest assured of the confidentiality of the data that will be

gathered, thus for educational purpose only.

The researcher will follow the timeline set during the conduct of the study to manage the

time efficiently.

Methods of Sampling

This research will utilize a simple random sampling method in identifying the samples

using the formula below:

n= N

1+ N * (e)2

n= the sample size

N= the population size

e= the acceptable sampling error

Data Analysis Plan

Once the data are gathered, the researcher will tally the data using the frequency

distribution for the socio-economic profile of the respondents. For the data regarding the

challenges faced by the food industry business during the COVID-19 pandemic, coping

mechanisms done by the food business owners to continue its operations, and its impact will be

tallied using the mean and grand mean in identifying its scores.
 Below is the complete interpretation of the challenges of the business owners towards the

COVID-19 pandemic which will be use in the questionnaire together with the corresponding

meanings which is utilized on the said scale.

Numerical
Verbal Description Interpretation
Equivalent
4.51-5.0 Strongly Agree Which means that respondents agree about 81-100%
3.51-4.5 Agree Which means that respondents agree about 61-80%
2.51-3.5 Neutral Which means that respondents agree about 41-60%
1.51-2.5 Disagree Which means that respondents agree about 21-40%
0.51-1.5 Strongly Disagree Which means that respondents agree about 1-20%

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