DR. FILEMON C.

AGUILAR MEMORIAL COLLEGE OF LASPIÑAS

Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

INVESTIGATIVE ESSAY

“THE STRUGGLE IN THE VIABILITY OF GHOST KITCHENS DURING

COVID-19 PANDEMIC IN LAS PIÑAS CITY.”

In Partial Fulfilment of the Requirements

For the Subject

MANAGERIAL ECONOMICS or
GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY

Name of Contributors

Castroverde, Wency D.

Escalera, Cathlene S.

Estoque, Rico C.

Barolo, Shaina Mae H.

Section: BSA I-1

SENEN V. VILLANUEVA
Instructor
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

“THE STRUGGLE IN THE VIABILITY OF GHOST KITCHENS DURING

COVID-19 PANDEMIC IN LAS PIÑAS CITY.”

ABSTRACT

The study mainly focused on the struggle in the viability of ghost kitchens, the possible
solutions or strategies, and the pros and cons of reopening food business enterprise during
COVID-19 pandemic. The authors surveyed the identified ghost kitchens in Las Piñas City and a
survey questionnaire was constructed for this purpose. Result showed that most of the ghost
kitchen here in Las Piñas City experience losing of customers and their profitability were
undeniably declined when the COVID-19 arrived. Hence, ghost kitchens expressed their
preferred strategies through agreeing on the strategy of food delivery and giving more privileges
to fully vaccinated people in visiting food establishments. Also, the results suggest that
reopening of food business enterprises is still possible if the business has a concrete plan in terms
of strategies and will consider health and safety protocols that were implemented by the
government. The study can be significant to the business operations of the future food business
enterprises or current businesses that are facing the COVID-19 pandemic.

INTRODUCTION
Before the COVID-19 pandemic, business enterprises were continuously growing and
conquering to keep up with the market competition and to attain stability in the Philippines.
However, when the pandemic arrived, everyone was affected by the mentioned worldwide
problem including the business community. According to (Asian Development Bank, 2020),
while preventing the spread of COVID-19, the enhanced community quarantine and additional
quarantine/lockdown measures (hence referred to as ECQ) severely restricted economic activities
over much of the Philippines. Hence, the majority of Philippine businesses were forced to shut
down or reduce their activities. In addition to that, as the COVID-19 emerge in the country,
ghost kitchens became more prominent.
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

Some of the food business enterprises particularly small eateries became ghost kitchens.
To reiterate, “Ghost Kitchens” also known as cloud kitchens is a slang phrase that refers to
businesses that lose their physical customers (who visit their premises before) because of such
protocols and amendments caused by the COVID-19 pandemic resulted in changing into a
delivery-only type of business. According to Cloud Kitchens(n.d), They're becoming more
popular as a less expensive option to running a regular food business enterprise. They're also
concentrating on delivery, which has reportedly increased 300% faster than dine-in since the
epidemic began last year. While the concept is not new, as Chinese restaurants and the pizza
sector have been improving delivery for decades, Colpaart remarked that a delivery-only model
food business has just lately been practical due to changing circumstances and technology
advances. Furthermore, as this subject becomes popular as days go by, an investigation lead by
the researchers is necessary to have a deeper understanding related to the concept of ghost
kitchens that can be significant to the business operations of the future food business enterprises
or current businesses that are facing the COVID-19 pandemic.

In order to descriptively present the struggle in the viability of ghost kitchens during
COVID-19 pandemic, the researchers sought to answer the following questions:

1. What struggles or issues do ghost kitchens face in terms of viability during the
COVID-19 pandemic?
2. What are the solutions/strategies that ghost kitchens use to continue operating?
3. What are the pros and cons of reopening food business enterprises during the
COVID-19 pandemic?

The primary purpose of this study is to investigate the struggle in the viability of ghost
kitchens during the COVID-19 pandemic. It also aimed to explore the strategies used by small
food business enterprises to cope with the current situation and to increase the viability of their
business. Finally, the study aimed to explore the pros and cons of re-opening small food business
enterprises during the COVID-19 pandemic.
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

This investigation will be done by interviewing food businesses in the city of Las Piñas,
an interview will be done in order to collect information about the main focus of the study that
will soon be evaluated and analyzed thoroughly. This study is limited to identifying the struggle
in the viability of ghost kitchens during the COVID-19 pandemic in Las Piñas City.

INVESTIGATION
This investigation is a descriptive survey that is quantitative in nature. The researchers
described the struggles in the viability of ghost kitchens during COVID-19 pandemic, their
preferred strategies to continue operating, and the pros and cons of reopening food business
during COVID-19 pandemic. The participants in this investigation included 5 food business
around Las Piñas City since the variables investigated in this study requires to collect
information from food businesses that has dine-in service before the pandemic. Such information
ensures that the ghost kitchens sampled have had dine-in before COVID-19 pandemic. The
experience of doing investigation allows the food businesses to utilize the experience as a frame
of reference in assessing their views on the variables in this study.

The researchers of this study constructed an instrument for measuring the variables in
this study. A self-report questionnaire was developed for this purpose. The first part of the
survey consisted of an informed consent form informing participants about the study and
requesting them to affix their signature. The first part on the questionnaire contained items on
problems and solutions/strategies of food business during COVID-19 pandemic. The second (II)
part of the questionnaire consist of scale of their views on the questions being asked. Questions
were derived from the discussion/brainstorming among the authors of this paper.

Participants chooses items (Part I) that is most likely the problem they have
encountered, and what they think are the solutions to improve their viability during COVID-19
pandemic. As for Part II, the participants rated each item based on their assessment on how
COVID-19 pandemic affected food business in terms of viability and/or profitability. These
questions were assessed by indicting if the participants are (5) strongly agree, (4) agree, (3)
neutral, (2) disagree or (1) strongly disagree.
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

The results observed from the questions and scale intended to assess the participants’
options and ratings on each question that is identified in this study are presented in tables and
figures below.

Figure 1. The struggles of ghost kitchens in times of COVID-19 pandemic as

reported by participants.

4
4 4

2
2

0
0
Food waste Lack of Customers Profitability Others

The first part of the survey asks the respondents what are the struggles that a food
business encountered during COVID-19 pandemic. The researchers asked the respondents to
choose one or more options that is applicable depending on the business’ experience. Based on
their results (Figure 1), most of the respondents identified Lack of customers and Profitability as
a struggle of ghost kitchens, while 2 respondents said that food waste is also a struggle during
COVID-19 pandemic.
Figure 2. Perceived solutions/strategies of ghost kitchens to continue operating.

2
2 2
1
1
0
0
Lowered quarantine Food delivery Bakuna Bubbles Others
alert level
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

Figure 2 shows the respondents’ views on the possible solution of the ghost kitchens
to improve food business’ viability, and for the business to continue its operating activities
during the COVID-19 pandemic. 2 respondents identified Food delivery as solution, also 2
respondents identified “Bakuna Bubbles” or those vaccinated people are allowed for dine-in as
stated by Philippine News Agency (2021) as the solution, 1 respondent identified Lowered Alert
level as the possible solution, and no one give other solution to improve ghost kitchens’ viability
and its operating activities during COVID-19 pandemic.

Table 1. Participants’ rating on reopening food business in full capacity.

Options Count Interpretation
Strongly Agree 0 None of the respondents strongly agrees on reopening of
food business
Agree 2 2 of the respondents agrees on reopening of food business
Neutral 2 2 of the respondents are uncertain about reopening of
food business.
Disagree 0 None of the respondents disagrees on reopening of food
business
Strongly 1 1 respondent strongly disagrees on reopening of food
Disagree business

Table 1 shows that 2 of the respondents agrees on reopening food business enterprise
in full capacity, also 2 respondents are uncertain on reopening food business enterprise, and only
1 respondent strongly disagree on reopening food business enterprise during COVID-19
pandemic.
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

Table 2. Do alert levels affects the food business’ operating activities.

Options Count Interpretation

Strongly Agree 3 3 of the respondents strongly agrees that Alert levels
affects the viability of the food business enterprise.
Agree 2 2 of the respondents agrees that Alert levels affects the
viability of the food business enterprise.
Neutral 0 None of the respondents are uncertain that Alert levels
affects the viability of the food business enterprise.
Disagree 0 None of the respondents disagrees that Alert levels affects
the viability of the food business enterprise.
Strongly 0 None of the respondents strongly disagrees that Alert
Disagree levels affects the viability of the food business enterprise.

In Figure 2, the researchers asked the respondents about Alert Levels or quarantine
classifications during COVID-19 pandemic, and if it affects the viability of a food business
enterprise. Most of the respondents strongly agrees that Alert levels really affects the viability of
the food business enterprise.

Table 3. The impact of COVID-19 pandemic on food business enterprise in terms of

viability

Options Count Interpretation

Strongly Agree 4 4 of the respondents strongly agrees that the COVID-19 pandemic
affects food business enterprise in terms of viability.
Agree 1 1 respondent agrees that the COVID-19 pandemic affects food
business enterprise in terms of viability.
Neutral 0 None of the respondents are uncertain that the COVID-19
pandemic affects food business enterprise in terms of viability.
Disagree 0 None of the respondents disagrees that the COVID-19 pandemic
affects food business enterprise in terms of viability.
Strongly Disagree 0 None of the respondents strongly disagrees that the COVID-19
pandemic affects food business enterprise in terms of viability.

Table 3 presents the results of the respondents’ take on the impact of COVID-19
pandemic on food business enterprise in terms of viability. Almost all of the respondents said
that it has a huge impact on food business enterprise in terms of the viability.
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

Results showed the respondents views on the struggles in the viability of ghost kitchens,
and the possible solutions/strategies to continue operating during COVID-19 pandemic in Las
Piñas City. Ghost kitchens most likely to struggle on profitability and Lack of customers (as seen
in figure 1). Ghost kitchens know that such solutions/strategies are important in surviving the
business, especially when it’s in food sector. Some of the strategies proposed are Food delivery
and considering the implementation of “Bakuna Bubbles” which give vaccinated people the
privilege to move freely amid the COVID-19. The ghost kitchens value for different approaches
of strategies and solutions could have been acquired from their experiences in running a business
in times of crisis where health and safety are being risked. These leads to an argument whether to
open the food business enterprise in increased capacity of customers or still restrict the business
with a limited dine-in capacity as a normal operating activities of ghost kitchens. Metro Manila is
currently under Alert level 4 until October 15, 2021. According to DILG Secretary Eduardo Año
in an interview, outdoor and al fresco dine-in services in restaurants and eateries are allowed
operate at 30% capacity, regardless of customers’ vaccination status while indoor dine-in
services may be allowed at 10% capacity, only fully vaccinated individuals. But Arnaldo (2021)
argued that, compared to bigger restaurant chains, small food business enterprises are
undoubtedly at higher risk for losses and failures. That is why ghost kitchens seeks guidance
from the government for the business to continue its operating activities and to improve viability
especially in these hard times. The researchers formulated the pros and cons of reopening food
business enterprise during COVID-19 pandemic. The following were derived from the
discussion/brainstorming among the authors of this paper after compiling the results of the
investigation:
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

Pros Cons
✓ The safety and health of the customers
✓ Increase in profitability
aren’t guaranteed or at risks.
✓ Increase in opportunity for
✓ Might cause rapid spreading of virus
employment
resulting on increasing number of cases
✓ Owners can still make money for their
of COVID-19 virus.
family amidst the COVID-19
✓ Cost of reopening might increase
pandemic.
considering the safety protocols that a
✓ Can increase viability if the business
business must meet.
have a concrete plan in terms of
✓ Small profit as compared to pre-
strategies.
pandemic due to restrictions as
implemented by the government.

CONCLUSION

The purpose of this research was to describe the struggles in the viability of ghost
kitchens during COVID-19 pandemic, their preferred strategies to continue operating, and the
pros and cons of reopening food business during COVID-19 pandemic. Based on the analysis
conveyed from the investigation, it is indeed that there are several struggles experienced in the
viability by the ghost kitchens where most of the ghost kitchen here in Las Piñas City experience
losing of customers and their profitability were undeniably decline when the COVID-19 arrived.
Therefore, ghost kitchens expressed their preferred strategies through agreeing on the strategy of
food delivery and giving more privileges to fully vaccinated people in visiting food
establishments. Also, the findings suggest that reopening of food business enterprises is still
possible if the business has a concrete plan in terms of strategies and will consider health and
safety protocols that were implemented by the government.
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

Despite the number of studies that have investigated food business enterprises’ structure
during the COVID-19 pandemic, little study has been conducted within a period, signifying quite
limited generalizability of results. It is of worth to further study not only the food business
enterprises’ structure, but also the ghost kitchens’ struggles, their perceived strategy on the
viability of the business, and the pros and cons of running a food business enterprise during
COVID-19 pandemic. Additionally, the questions posed by this investigation as well as by the
previous studies may not have been fully answered. There are still, for example, the possibilities
of a ghost kitchens’ to be a successful food business enterprise during the COVID-19 crisis and
by when the ghost kitchens can operate in full capacity. It is thus recommended that this study be
conducted again with larger samples, and more sophisticated methodology, i.e., more thorough
survey questionnaire and the use of triangulation method to increase credibility and validity.
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

REFERENCES

Asian Development Bank. (2020, July). The COVID-19 impact on Philippine business key
_______findings from the enterprise survey.
_______https://www.adb.org/sites/default/files/publication/622161/covid-19-impact-philippine-
_______business-enterprise-survey.pdf

Severo, J. M. (2021, August 20). Ghost Month: Pandemic gives rise to 'ghost kitchens'. Philstar
_______global. https://www.philstar.com/lifestyle/food-and-leisure/2021/08/20/2121364/ghost-
_______month-pandemic-gives-rise-ghost-kitchens.

Arnaldo, S. (2021, August 3). ‘Stimulus, not loans’: Restaurants struggle to survive in the
_______pandemic. Rappler. https://www.rappler.com/life -and-style/food-drinks/small -
_______businesses-still-struggle -survive-covid-19-pandemic -2021

Nepomuceno, P. (2021, September 14). NCR under ‘Alert Level 4’ as granular lockdowns start
_______Sept. 16. Philippine News Agency. https://www.pna.gov.ph /articles/1153451

Gita-Carlos, R. A. (2021, September 21) Gov’t still studying proposed ‘bakuna bubble’.
_______Philippine News Agency. https://www.pna.gov.ph /articles/1154202
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

Appendix A. Informed Consent Form

Code: _______________

CONSENT FORM

I agree to participate in this survey research regarding the viability of ghost kitchens during
COVID-19 pandemic in Las Pinas City. I am involving myself as a participant on my own
volition. My participation in this study gives me the chance to experience being a part of a
research study and to contribute to a scientific inquiry that is particularly relevant to courses
entailing research methods. I understand that I am free to decline from participating without
being penalized.

I have read and been informed about the following:

1. Description of the study. This research aims to identify the viability of Ghost kitchens
during COVID-19 pandemic in Las Pinas City.
2. Procedures. I understand that I am expected to accomplish survey questionnaires while
keeping my name confidential. My test data shall only be identified through a code
number during the process of data analysis.
3. Questions and Concerns. The researchers agree to answer questions pertaining to this
study Likewise, the researcher agrees to provide me a written explanation about the
nature of the study and a brief result profile upon my request.

Participant’s Signature Date

over Printed Name

Researcher’s Name:
Castroverde, Wency D.
Escalera, Cathlene S.
Estoque, Rico C.
Barolo, Shaina Mae
BSA 1-1
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LASPIÑAS
Golden Gate Subd., Talon III, Las Piñas City
Tel No. 403-1985, 478-8671, 519-1960

Appendix B. Questionnaire

QUESTIONNAIRE

I.
1. What problems do the business encounter in times of pandemic?

A. Food waste
B. Lack of Customers
C. Profitability
D. Others (Please Specify): ________________

2. What do you think are the solutions and strategies that should be implemented for a food
business enterprise to continue operating?

A. Lowered Quarantine Alert Level

B. Food Delivery
C. Vaccinated people allowed for dine in (Bakuna Bubbles)
D. Others (Please Specify): ________________

II.
Please put a check ( ✓ ) to your decision.

Strongly Agree Neutral Disagree Strongly

Agree (4) (3) (2) Disagree
(5) (1)
Are you in favor of reopening food business
in full capacity?

Does Quarantine classification/Alert level

affect the food business enterprise?

Does the COVID-19 pandemic have a huge

impact in terms of the viability/profitability of
food business enterprise?