An Assessment on the Strategic Partnership of Just Chicken Restaurant to Food

Panda and Grab Food during COVID-19 outbreak in Tacloban City

A Case Study

Presented to the Faculty of

ACLC College Tacloban

In Partial Fulfilment of the Requirements

For the degree of

Bachelor of Science in Hospitality Management

By:

Kristel Leigh L. Cabahaga

Presa Alia S. Abad

Karl Anthony Y. Golong

October 2021
 Table of Contents
CHAPTER I ............................................................................................................................. 3
INTRODUCTION................................................................................................................ 3
Background of the Study ..................................................................................................... 5
Statement of the Problem .................................................................................................... 7
The Objective of the Study .................................................................................................. 8
Scope and Delimitation of the Study .................................................................................. 8
Significance of the Study ..................................................................................................... 9
Definition of Terms ............................................................................................................ 10
CHAPTER II .......................................................................................................................... 11
REVIEW OF RELATED LITERATURE AND STUDIES ........................................... 11
Review of Related Literature ........................................................................................ 11
Review of Related Studies ............................................................................................. 13
CHAPTER III ........................................................................................................................ 17
METHODOLOGY ............................................................................................................ 17
Research Design ............................................................................................................. 17
Research Locale ............................................................................................................. 18
Respondents of the Study .............................................................................................. 18
Data Gathering Instrument .......................................................................................... 19

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 Table of Figures

Figure 1 Map of Just Chicken.................................................. Error! Bookmark not defined.

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 CHAPTER I

INTRODUCTION

In the written history for the past several years the world also experienced a

pandemic outbreak namely the Spanish flu, Black death, and Ebola virus, etc. When

time goes by, the effect of every virus mutated in a generation of human life are

getting alarming. The COVID-19 is more aggressive to mutate one person to another

that could rapidly attack the respiratory system of an individual. Which causes to

absence of taste and smell, high fever, cough and colds resulting to a critical condition

that is more dangerous than having flu.

The COVID-19 pandemic affects the hospitality industry especially in the

food and beverage sector and food delivery sector. On the early months of Covid-19

outbreak, a lot of restaurants around the world close their businesses to avoid

spreading the variants of the virus in their workplace. Many employees’ loss their jobs

and countless business owners had a financial loss.

Advances and innovations in electronic commerce, as well as the "online to

offline" (O2O) model, have enabled these developments (Cho et al., 2019, LI, J., &

Mo, W., 2015, Liu et al., 2017, Liu et al., 2017). Online food delivery services cater to

the needs of urban residents by delivering quick and easy meals to their homes during

or after busy working days (Ali et a.,2021). Food delivery has become one of the key

ties between individuals and the outside world as a result of the pandemic and

restrictions on individual contact (Blumtritt, 2020).

In order to continue their businesses during pandemic, the restaurant owner

needs a strategic plan to make use of ecommerce (to advertise their products) and to

collaborate with food delivery company (to reach the consumers).

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 According to Barney (1991), Teece (1992), Zahra et al. (2000), a single

business rarely possesses all of the resources and knowledge required to produce and

market cost-effective and timely products or cutting-edge technology in industries

where rapid technical advancement and severe rivalry are the norms. Within their

existing business, organizations must gain new competencies. Minority equity

investments, joint ventures, and non-traditional contracts which are all indications of

strategic partnerships (Henderson 2014) are highly needed because of the situation

right now. Consumers are more likely to connect by using mobile applications to

order foods and services to their favorite or variety of restaurants at the comfort of

their own home and keeping safe from the corona virus.

According to Lugtu Jr. (2020). “Social media is littered with posts of

consumers looking for a delicious lunch that can be delivered promptly. Home

delivery businesses in the community to go on a bidding rage and reply with pictures

and attractive offerings. This is the nature of the food delivery business industry

now”. The goal is to determine the factors that influenced the restaurant owner's

decision to engage with a delivery service provider. Moreover, the advantages and

disadvantages of doing business with a third party “the delivery service providers”.

Absurd disadvantage this kind of business is to deliver on time without spoiling the

quality of the products. (Belarmino et al., 2021).

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Background of the Study

In the Philippines, selling via walking is highly dominant, in Tagalog we

called it “Paglalako”. Walking vendors is everywhere in our country. They can be

seen in parks, schools, and other public places. “Paglalako” had been traditionally

practised in the market and contributed to the economic growth over time. Hence, it is

the basis of the delivery services. In this study, the researchers want to know about

Just Chicken Restaurant's strategic partnership with Food Panda and Grab Food in

Tacloban City.

Everyone has been exposed to the concept of food delivery since they were

young. Globally, almost every restaurant offers meal delivery services to meet the

needs of their consumers as much as possible. Upon ordering for food from food

restaurants or fast-food stores thru online or telecommunications, the restaurant

prepares the order and requires someone (a delivery man) to deliver the orders to the

consumer’s address. Fast food establishments are particularly fond of food delivery

services known for that are the Jollibee and McDonalds.

The restaurant is very much important for travelers, to those people that don't

have enough time to cook for themselves or their family, and also to those who want

to enjoy and explore foods and/or cooking. Delivery services is much helpful and

convenient to those people who are not capable to go outside to buy food or any

products by themselves. Restaurant and delivery companies collaborate to meet the

needs of the community. They achieve this by broadening the breadth of services and

goods they are willing to offer. Fortunately, this type of reform is suitable to address

the challenges posed by the Covid-19 crisis. Nowadays, consumers are increasingly

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using the supplied services in their convenience and more practical at this time of

distress brought on by the COVID-19 outbreak.

The researchers find Just Chicken Restaurant a perfect subject for the study

cause the establishment began during the pandemic. By identifying the Just Chicken

Restaurant owner’s determining factors in going through partnership with Food Panda

and Grab Food; and taking into consideration the advantages and disadvantages, the

researchers able to come up with the idea of assessing this strategic partnership.

The study will broaden our insights on how the food industry strategically

works with the delivery companies and factors to consider upon doing partnership in

business. As future hoteliers, managers and business owners, going through this study

is much more an eye opening on the business world on how it runs and operates to

have a contribution on our economic growth.

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Statement of the Problem
The study will focus on the assessment on the strategic partnership of Just

Chicken Restaurant to Food Panda and Grab Food. Specifically, the goal is to respond

to the following questions:

1. What is the demographic profile of the respondents as to:

1.1 Position

1.2 Company

2. What are the challenges do Just Chicken Restaurant, Food Panda and Grab

Food confront in the midst of pandemic when providing the product as to:

2.1 Additional Cost for Food Packaging;

2.2 Weather Condition;

2.3 Delivery time;

2.4 Incidental events?

3. What is the impact of strategic partnership of Just Chicken Restaurant to Food

Panda and Grab Food as to:

3.1 Sales; and

3.2 Demand?

4. What is the overall assessment of the strategic partnership of Just Chicken

Restaurant to Food Panda and Grab Food?

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The Objective of the Study
This study aims to assess the strategic partnership of Just Chicken Restaurant

to Food Panda and Grab Food in Tacloban City. Moreover, the study aimed to:

1. Determine the demographic profile of the respondents as to position and

company.

2. To identify the challenges that Just Chicken restaurant, Food Panda and Grab

food encounters when it comes to food delivery amid Covid-19.

3. Determine the impact of the strategic partnership of Just Chicken Restaurant

to Food Panda and Grab Food as to sales and demands.

4. Identify the overall assessment of the strategic partnership of Just Chicken

Restaurant to Food Panda and Grab Food.

Scope and Delimitation of the Study

In general, the study focuses on assessing Just Chicken Restaurant's strategic

partnership with Food Panda and Grab Food in Tacloban City. The researchers will be

going to conduct a survey which is align to the questions stated in the statement of the

problem. The study will not go any farther and will not include personal questions and

protect the proprietor's privacy and delivery agents.

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Significance of the Study

The study's findings were thought to be useful to the following groups:

The Management of Just Chicken. The study offers them insights and ideas

for developing a strategic plan to improve service by providing customers with what

they want while they wait in the comfort of their own homes. To reduce stress and

risk in light of the current situation, which is a pandemic of Covid-19, and to avoid or

prevent the inconvenience of long queues.

The Delivery Company. The study offers a fresh set of ideas for restaurant

partnerships to broaden their business horizons. Allow them to improve their delivery

service and commercial partnership terms as well.

The Future Researchers. The study's findings will be useful to future

academics interested in the study's topic since they will act as a reference and guide

for relevant future investigations.

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Definition of Terms

The following terms and their definitions are used in the study:

Assessment. The systematic collection, review, and use of information about

educational programs undertaken to improve student learning and development.

(Assessment Essentials: planning, implementing, and improving assessment in higher

education by Palomba and Banta 1999)

Bandwagon. The act of dogmatically following a particular point of view or

repeatedly responding in a particular way because it is fashionable, despite its logical

merit. In other words, “Trend”.

Covid 19. An infectious disease caused by the Sars-Cov-2 virus.

Dabbawala meal delivery system. Constitute a lunchbox delivery and return

system that delivers hot lunches from homes and restaurants to people at work in India,

especially in Mumbai.

Food Delivery. A courier service in which a restaurant, store, or independent

food delivery company delivers food to a customer. An order is typically made either

through a restaurant or grocer's website or phone or through a food ordering company.

Strategic Partnership. An arrangement between two companies or

organizations to help each other or work together, to make it easier for each of them

to achieve the things they want to achieve.

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 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

The published research and related literature included in this chapter were all related

to the study's topic. These studies aided the researchers in completely understanding

the situation surrounding the study. Furthermore, the published research served as

both a framework and a reference for the study that was being undertaken.

Review of Related Literature

The online food delivery (OFD) service is a new trend that is growing rapidly

(Chai and Yat 2019). It is expected that food delivery industry will generate USD 956

million in annual sales by 2022 and one of the most rapidly expanding segments of

the food industry (EC Insider, 2018). When the world was turned upside down by the

Covid-19 outbreak, businesses were forced to maintain and create relationships with

customers. Businesses must now balance the need to create revenue during a time of

unprecedented economic distress with the need to recognize the dangers to life and

livelihood that have shifted customer priorities and preferences (Waldron and

Wetherbe, 2020). Although the pandemic had a big impact on many businesses

throughout the world. It's also not the first, there are existed human-caused disease in

the history recorded before such as the Influenza virus, Spanish flu and Ebola virus.

According to Jim Collins, CEO (2021) of Kitchen United says, “The

restaurant sector is in a "colossal state of crisis" as consumers increasingly opt to

enjoy restaurant cuisine at home. He added that restaurants are having difficulty

keeping up with the increased demand because they were created for consumers to

come in and dine rather than for home delivery. The sector's quick transition, he

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claims, has an influence on major, medium, and small chains”. In an online news

briefing, Llena Arcenas, a manager at San Miguel Foods Culinary Center, remarked,

"More restaurants will go digital." "That is why, in contrast to traditional food takeout

or delivery, resto meal kits and the availability of their ingredients will be their

creative advantage". Several restaurants have been forced to close; however, some

have been able to convert their business models to food delivery and through

technology company-created apps (Garcia 2021).

As the online business continues to grow, innovations in the restaurant

industry have resulted in a surge on online food ordering. Different ways are taken by

business owners when providing online ordering services to their customers, with the

goal of making the ordering process easier for the customers (See-Kwong, 2017).

According to Bao Vuong, IBISWorld senior industry analyst, “The food delivery

sector has benefited from consumers’ changing lifestyle trends, including busier lives,

higher workloads and diminishing leisure time. These social trends have helped boost

demand for food delivery services, as time-poor consumers look to cut down on

cooking time and make better use of their spare time”. Restaurants are creating their

own websites, smartphone applications, and text messages to allow consumers to

place orders. There are smartphone apps such as Food Panda and Grab Food that

provide information about various restaurants where customers can place orders,

saving time and effort. It was also claimed that clients like the ease and convenience

of online food ordering because it avoids the inconveniences of poor traffic or bad

weather. Food delivery services have altered the look of restaurants as well as

customers' expectations of restaurants and restaurant food delivery (Neogi 2018).

Restaurant owners come up with a plan in order to be technologically

competent in the food industry right now, they partnered to different kinds of delivery

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companies which will help them advertise and introduce their food product on the

online market. More than 80% of US CEOs are either exploring strategic partnerships

or plan to do so in the near future, according to a 2014 PwC CEO poll. However, only

around 65% of those seeking new strategic alliances have been successful in the last

three years (Henderson et al, 2014). According to Hughes and Weiss (2007),

partnerships aren't just any kind of business collaboration. They demand a high level

of interconnection among firms in order for them to continue to compete in the

market. They demand the ability to navigate and actively harness major differences in

partner capabilities and operational approaches. Hitt et al., (2004) defined those

strategic partnerships can give companies access to fresh information, complementary

resources, new markets, and new technologies, making it easier for them to learn,

develop and upgrade resources and capabilities, and expand their strategic network.

Strategic partnership is a sort of cooperative strategy, are becoming increasingly

popular around the world due to the value provided by these outcomes. Developing

and managing effective partnership demands a series of steps, including the successful

coordination and collaboration of varied resources and expertise across different

companies.

Review of Related Studies

Around the last two decades, hundreds of collaborations have been forged all

over the world. Some have lasted a brief time, while others have been in operation for

a long time. Some are focused on specific local goals, while others are attempting to

coordinate broad policy issues over enormous regions with millions of people living

and working. There are partnerships aimed largely at corporate circles, as well as

those focusing on labor markets or social issues, Brandstetter et al (2006).

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 According to the definition of strategic partnership by (Cambridge Dictionary,

2017), “It is an agreement between two companies or organizations to help or

collaborate in order to make it easier for each of them to achieve their goals. For

example, one way to break into the market is to form a strategic partnership with a

large player who is already successful in the sector”. All aspects of human endeavor,

including entrepreneurship, are characterized by alliances and partnerships. An

alliance is defined as a formal agreement between two or more parties who work

together to achieve a similar goal in order to meet specific commercial demands while

maintaining their independence. The alliance's goal is to maximize the benefits of

mutual collaboration across numerous businesses, in which each partner shares its

knowledge, resources, and risks in order to collectively achieve goals that would have

been impossible to achieve separately. Although the concept refers to alliances, the

explanation applies equally well to strategic partnerships Vanags et al (2018).

In addition to this, on the research findings of Vanags et al (2018), the

technique in forming a partnership should be as clear as possible; Various principles

that might be readily included into the overall approach of SMEs must be suggested;

the partnership model should develop an understanding of different sorts of partner

relationships and classified options, as well as make assessment and discussion of

data easier. The following is a sequence of events leading for a partnership strategy:

an organization should build and maintain alliances both internally (micro) and

externally (macro) to foresee and oversee numerous aspects that influence the micro

and macro environment. Stakeholders are members of organizations and individuals

in the sector (micro level), and internal partners are the firm's personnel.

Moreover, a partnership is most likely ineffective if the ideals and interests of

partners are not the same. It may be difficult to get an agreement on cooperation goals

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as a result of this. Risk, responsibility, accountability, or advantages are not shared.

The disparities in resources and expertise among partners impact their proportional

influence in partnership decision-making. One individual or partner wields complete

control over and/or directs the process. A secret’s outlook that is not revealed to all

partners. The partnership was formed just to "maintain appearances." Members of the

partnership lack the skills to recognize problems or manage internal issues. Moreover,

Partners are not carefully selected, especially if it is tough to "de-partner”, According

to Regina Brandstetter (Austrian Co-ordination Unit of Territorial Employment Pacts

at the Centre for Social Innovation, Vienna, 2006).

Base on the research of Henderson et al (2014), when looking for potential

partners, one of the most typical mistakes firms make is they focus only on a few

options rather than the overall environment of strategic partnerships. As a result,

decentralized and ad-hoc search, screening, and selection processes persist except for

the companies with developed capability and a history of successful strategic

partnerships.

Expert advice is fairly reliable: create a robust business plan that is backed up

by a clear contract. Define measures for evaluating the value your alliance brings to

the table. Having a mutual understanding with your partners and keep a close eye on

how you interact with them. Formalize your processes and structures. All of the

suggestions are reasonable, and you could use them in any work settings (Hughes and

Weiss,2007).

According to a survey conducted by Rakuten Insight in the Philippines, due to

the imposed shutdown of all restaurants during the COVID-19 outbreak as of June

2020, 71% of respondents claimed that they are ordering more through food delivery

apps. Only 4% of those polled said they ordered food online because they couldn't

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cook. Many restaurant owners strategically partnered to different kinds of delivery

company in the Philippines. To be able to cope up the primary need to adjust on the

online trend and what costumers fond of doing so. Costumers like to use delivery

mobile apps to buy personal necessity instead of going to a crowded place and avoid

having infected by corona virus.

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 CHAPTER III

METHODOLOGY

In this chapter, you'll find more information about the study's research design,

respondents, research locale, research instrument, and research processes. The

instruments that the researchers used to collect all of the data or information they

needed for the study were explained in this chapter.

Research Design

The study used the survey approach of conducting research, specifically, the

quantitative research utilizing cross-sectional face-to-face descriptive procedures. The

principal purpose of the researcher was to assess the effectiveness and efficiencies of

the Just Chicken Restaurant management's strategic plan in working with Food Panda

and Grab Food. In this study, data are gathered at as single point in time from the

management, food panda agents, and grab food agents through questionnaire-

checklist.

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Research Locale

The Just Chicken Restaurant is located in 707 corner San Isidro, Cavite East,

Palo, Leyte and has a branch in the opposite side of Primark, 2nd floor (above of

Sushi Point), Caibaan Road, Barangay 95, Tacloban City.

Figure 1 Map of Just Chicken

Respondents of the Study

The respondents of this study are Just Chicken Restaurant's management and

staffs; and Food Panda and Grab Food's delivery agents and/or riders. The researchers

will conduct a questionnaire-checklist on 20 sample respondents from Just Chicken

Restaurant's management and staffs; 8 sample respondents from Food Panda’s agents

and/or riders; and 8 sample respondents from Grab Food’s agents and/or riders.

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Data Gathering Instrument

The main instrument in data gathering is the survey questionnaire-checklist for

Just Chicken Restaurant's management and staffs; and Food Panda and Grab Food's

delivery agents and/or riders. The questionnaire was divided according to the

independent variables such as the additional cost of food packaging; weather

condition; delivery time; and incidental events to distinguished how it affects the

dependent variable such as the sales and demand.

The questionnaire separated into two parts. The first part was to find out the

personal profile of the respondents which included position and company. The second

part assessed the independent variables such as the additional cost of food packaging;

weather condition; delivery time; and incidental events to distinguished how it affects

the dependent variable such as the sales and demand. Each independent variable has a

minimum of 4 indicators. The researchers employed the rating scale which has the

following descriptions or verbal interpretation:

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Statistical Tool

To answer the research problems, the following statistical methods are to be

employed:

1. Percentage. This is to get the proportion of the whole.

Formula: Percentage (%) = f/N x 100

Where: f – stands for the frequency of responses

N – number of respondents

ℎ𝑖𝑔ℎ𝑒𝑠𝑡 𝑚𝑒𝑎𝑛−𝑙𝑜𝑤𝑒𝑠𝑡 𝑚𝑒𝑎𝑛

2. = 𝐈𝐧𝐭𝐞𝐫𝐯𝐚𝐥
𝑁𝑜.𝑜𝑓 𝐶ℎ𝑜𝑖𝑐𝑒𝑠

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