Competencies among Street Food Vendors:

Hepa Lane in Legazpi City

In partial fulfilment of the requirements in the subject of

Practical Research 1

Submitted to:

Mrs. Dondith T. Gravito

Submitted by:

Alexis Cepeda

Alysa Hilary Solano

Frances Joie Balleta

ABM 11

2020
Introduction

Food is an important part of our lives. It is why understanding and improving the

growth, process, and transportation of food is essential. The food industry mostly covers a

complex set-up of activities concerning the supply, consumption, and catering of foods and

services across the world. Because of its compound activities it employs a huge number of

skilled and unskilled workers. Food industry also includes finished and partially prepared food

products. ¹

Food industry is a complicated global set of businesses that supply the food the world

consumes. This involves agriculture, where the raising of crops, livestock and seafood are done.

Also, manufacturing of food, known as farm machinery and supplies, is done. Furthermore,

food processing is also implemented, where the raw ingredients are converted to food. If there

is food processing, marketing is also present in which between the food company and consumer,

events occur. Now, food service takes place wherein, regulations are also implemented for the

consumer’s health and the marketer’s image and reputations.

Food industry is responsible at providing food for everyone. Street food vending is on

hand with providing food to low-and-middle-income consumers, in urban areas on a daily basis.

Food industry plays a wide range of satisfying the needs of the people, under this is the selling

of street foods to attain the hunger of an individual. Street food vendors continues to develop the

economy of food industry by offering cheaper-priced foods to everyone especially to people

who are not able to afford other expensive foods just to lessen their eagerness when it comes to

food consumption.
 Consumption is a procedure which consumes items such as food, non-food and services.

According to Piekut, 2009 its main objective is to satisfy human needs, however it should be

acknowledged that it has also become an important representation of the living standards, the

criterion of structuring culture, and the manner in which consumers ' identity is expressed today.

Nowadays, people are more practical in choosing food that will satisfy their hunger and

desires. Instead of spending their spare money on buying foods from restaurants and fast food

chain, people choose to spend it on street food. Hence, street food offers an accessible source of

food to subordinate people. Hiamey et al. (2013) found in a study investigating street food

consumption in Ghana that people buy street food because of its convenience, sensory appeal

such as great taste and pleasant smell, quality of nutrition, cost savings, and social benefits

achieved such as being stylish and trendy. They stated that every socioeconomic group intakes

street food six times a week on average. In another survey by Vieira-Cardoso et al. (2014) with

1004 Brazilian respondents, researchers found that at least once a day 1/3 of the consumers

purchase street food.

Street foods frequently represent local traditional cultures and operate in endless variety.

The raw ingredients as well as the production of street food beverages, snacks and meals are

very diverse. Vendors ' stalls are usually located outside and under a roof that is easily

accessible from the street. They have minimal-cost seating facilities that are often basic. Their

marketing success is highly based on place and word-of-mouth promotion (Winarno and Allain,

1991). ²

Street food vending has various types it may be the selling of food beverages, snacks

and meals but they are all known as prepared and ready to eat foods. Such foods are located
anywhere as it is known as street food so they are found along the street. Street foods are bought

by some people at a very low cost. Costumers more prefer to buy cheaper and easy to find foods

nearby to satisfy their need in food rather than spending their money for expensive foods that

are only limited and not enough. Street food vending's good development will depend on the

location and costumer's perception.

According to Tinker (1999), street food is known as a trend in developing countries

providing easy, accessible, and cheap food to low- and middle-income consumers. It is also

regarded not only as an alternative for the poor but as a source of unique tourist gastronomic

experience (Torres-Chavarria & Phakdee-auksorn, 2017).

Selling street food is found all over the world, but varies widely between regions and

cultures because it reflects the tradition and culture people. FAO (1989) defined street food as

ready-to-eat foods and drinks prepared and sold by hawkers, especially in streets and other

similar places of the public. Most of the street food is classified as fast food and finger food.

They're preferable to other average restaurant meals. It is often sold from a portable food booth,

food cart, food truck, and is intended for immediate use. Street food is also known as delicious

and affordable food.

Street food is, therefore, more than just a cheap food, it compresses a wider sociological,

political, and economic range. Every street food business is usually small in size, needs simple

skills, minimal facilities and small amounts of capital, thus they are very numerous and have

significant income that it found to be a source of a family meal. Selling in the streets has job

creation potential also for some of those who find work in the street food industry, are having a

difficulty in obtaining jobs in the formal sector.

 “Many people lack proper housing and cooking facilities,” explains economic journalist

Ian Steele as to why the street food industry is proliferating, particularly in Asia. “With

increasing costs and the difficulty of procuring fuel, the only immediate alternative is to turn to

street foods. As more women work outside home, there is less time for cooking.” Women play a

very significant role in the street food industry worldwide. Surveys showed that women were

engaged in 90% of Philippine businesses, 53% in Senegal and 40% in Indonesia (Tinker and

Cohen, 1985).

Because of its low cost and convenience, millions of low- and middle-income consumers

eat street food especially in rural areas. It also leads to authentic tourist culinary experiences,

offering a connection between food, place, and tourism. Tacio (2012) stated that it is an integral

part of the landscape and culture of Filipinos. They are known to enjoy the average three meals a

day plus merienda (snacks). They race to the streets to satisfy their hunger for their favorite street

foods for a few pesos. Street food is more than just a convenient food source in the Philippines.³

STATEMENTS OF THE PROBLEM

1. What strategies do the food stalls employ to stand out among all the other stores that have

the same business as them?

2. Why are the reasons for choosing that kind of business?

3. How can these food stalls maintain and/or increase the rate of their income/sales?

OBJECTIVES OF THE STUDY

 In making this study, the researchers have the following objectives:

1. To be able to identify what strategies do the food stalls employ to stand out among all

the other stores that have the same business as them.

2. To know what are their reasons for choosing that kind of business.

3. To know on how can they survive the competencies with the other street food vendors

with the same products.

4. To know the factors that affect their business.

SIGNIFICANCE OF THE STUDY

The study is carried out to the benefit of the street food vendors, future researches,

businessmen and future businessmen.

Street food vendors. The outcome of this study will improve their marketing practices and will

help them identify the best way to meet the demands of the customer/s.

Future researchers. It can provide existing data for enhancement.

Businessmen. The study can act as a framework for performing and conceptualizing businesses

that offer unique strategies and solutions to the target market.

Future businessmen. This study will give them an idea on how to run a small business and how

to overcome circumstances that they might face.

Project Scope
This study examines the competencies of street food vendors as sources of competitive

advantage that would be good for micro businesses. It was based on interviews with specific

respondents as well as questionnaire among 10 street vendors particularly in Hepa Lane

located at Brgy. Kapantawan, Legazpi City. The interview was followed by extensive review

and examination of the literature. The research was implemented during a field work in 2020.

Review of the literature and study of the findings of the field work were carried out in the

following period.

The proposed business is the Fruity Cupcake with filling. The proponent
thought of innovation of cupcake which is a Fruity cupcake. It is one of the best
ways to satisfy the craving of a certain person.

The proposed product, compared to others, is more appealing not by the

structure but the twist inside of it. The Fruit cocktail makes the Fruity Cupcake
more interesting than a normal cupcake. The structure of the product is not
originally conceptualized, but is being improved by the proponents, and taking
into consideration the preference of the target market. The proposed product is
not only for profit making but also a big contributor for a retailer by supplying
and can also make the pastry business in demand, and support the livelihood of
the community.

The target market of the proposed product in supplying is the total

population of the selected school and for the online selling the target market is
the total population of Facebook media user within Legazpi City.

Product
Demand Analysis