Republic of the Philippines

TARLAC STATE UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY
DEPARTMENT OF HOSPITALITY AND TOURISM MANAGEMENT
Tarlac City

APPROVAL SHEET

This thesis entitled “Customer Retention Practices of Coffee Shops in Tarlac City”, which is
prepared and submitted in partial fulfillment of the requirements for the Degree of Bachelor of
Science in Hospitality Management is hereby accepted.

__________________________________
JOHN EDWARD S. ESTAYO, MBA LPT
Adviser

BOARD OF PANELIST

_________________________ __________________
PRINCES CAROL FELICIANO EMMERY BALBAS
Member Member

____________________________ __________________
FERDINAND Y. SILARAN, CHE JOSE PALOMIANO
Member Member

Accepted and approved in partial fulfillment of the requirements for

TPC 8 Research in Hospitality.

_________________________________ _____________________
DR. CRISELDA A. TONELADA, CHE DR. FABIAN T. SEGUIRA
Chairperson, HTM DEPARTMENT Dean, CBA
Subject Teacher

DECEMBER 2021
CUSTOMER RETENTION PRACTICES OF COFFEE SHOPS IN TARLAC CITY

A Thesis Proposal
Presented to the Faculty of the Department of Hospitality and Tourism Management
College of Business and Accountancy
Tarlac State University

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

Hospitality Management

Bognot, Alexander G.
Martin, Blessie Mae E.
Mercado, Dalton Mayo D.
Papa, Maria Angelika DC.
Pascual, Kara Mina E.

DECEMBER 2021
 ACKNOWLEDGMENT

We would like to take this opportunity to express our sincere and heartfelt gratitude to all

the people who helped and made this research possible. To our Subject Teacher Dr. Criselda A.

Tonelada and our research adviser Sir John Edward S. Estayo, we thank them for their

continuous support, advice, guidance, valuable comments, and suggestions that benefited us in

the completion and success of this study.

We are thankful to our board of panelist, headed by Sir Ferdinand Y. Silaran CHE, to be

followed by Sir Jose Palomiano, Ma’am Princes Carol Feliciano, and lastly Ma’am Emmery

Balbas for the approval of our work and exemplary recognition.

We are extremely grateful to our dear parents, who have been our source of inspiration and

gave us strength when we thought of giving up, who continually provide their moral, spiritual,

emotional, and financial support.

Our thanks and appreciation also go to our respondents who willingly helped with their full

cooperation which has made the research study achieve its smooth completion. We would like to

give thanks for the time and knowledge that you have given us to conduct this study.

And lastly, we would like to thank the Almighty God, for his showers of blessings

throughout our research and its successful completion.

Once again, we thank all those who have encouraged and helped us in preparing this

research and who have extended us much understanding, patience, and support.
 DEDICATION

If you believe in yourself and have dedication and pride – and never quit – you’ll be a winner.
The price of victory is high but so are the rewards.”

-Bear Bryant

We dedicate this work to our Family

As well our friends and classmates
For their uncounted support.

Above all, To God Almighty.

 TABLE OF CONTENTS
Page

APPROVAL SHEET ...........................................................................................................

TITLE PAGE .............................................................................................................
ACKNOWLEDGEMENT..................................................................................................
DEDICATION ..............................................................................................................
TABLE OF CONTENTS.....................................................................................................
LIST OF TABLES..............................................................................................................
LIST OF FIGURES...........................................................................................................vii

Chapter

1. THE PROBLEM AND ITS BACKGROUND .......................................................1

Introduction .............................................................................................................1
Statement of the Problem.........................................................................................
Significance of the Study.........................................................................................
Scope and Delimitation of the Study.......................................................................
Definition of Terms..................................................................................................

2. REVIEW OF RELATED LITERATURE AND STUDIES ............................11

Review of Related Literature.................................................................................11
Related Studies.......................................................................................................20
Foreign...................................................................................................................20
Local......................................................................................................................26
Conceptual Framework..........................................................................................33
Paradigm of the Study…………………….........………….………....….……….35

3. METHODS OF STUDY AND SOURCES OF DATA....................................36

Research Design.....................................................................................................36
Respondents of the Study.......................................................................................36
Data Gathering Procedure......................................................................................40
Instruments ...........................................................................................................41
Statistical Treatment..............................................................................................41

4. RESULTS AND DISCUSSION .........................................................................44

Business Operation................................................................................................44
Type of Business....................................................................................................44
Business Employees...............................................................................................45
An Assessment of Customer Retention Practices of Coffee Shops.......................46
Ranking of Customer Retention Practices.............................................................49
Customer Retention Practices Continued After Lockdown...................................51
Implementation of New Customer Retention Practices.........................................52
 5. SUMMARY OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS...................................................................................55
Summary of Findings ..........................................................................................55
Conclusions..........................................................................................................56
Recommendations................................................................................................57

BIBLIOGRAPHY......................................................................................................

APPENDICES…………............................................................................................

Request Letter..................................................................................................65
Survey Questionnaire.......................................................................................66

CURRICULUM VITAE. ..........................................................................................

 LIST OF TABLES

Table Page

1. Distribution of the Respondents of the Study.................................................................

2. Interpretation Guide for the Assessment of Customer Retention Practices.....................

3. Business Operation.........................................................................................................

4. Type of Business............................................................................................................

5. Business Employees.......................................................................................................

6. An Assessment of Customer Retention Practices of Coffee Shops.......................

7. Ranking of Customer Retention Practices................................................................

8. Implementation of New Customer Retention Practices..........................................

 LIST OF FIGURES

Figure Page
1. Paradigm of the Study...................................................................................................

2. Customer Retention Practices Continued After Lockdown...........................................

 Chapter 1
THE PROBLEM AND ITS BACKGROUND

Introduction

A café is sometimes known as coffee- house, tea shop, or coffee shop. It is usually a

small place, and a type of restaurant that serves coffee, other beverages, light meals, snacks, and

baked goods. Café have been the gathering places for people to talk, work, sip coffee, read, and

socialize whether individually or in small groups.

According to Sette 2020, before the pandemic the fastest growing coffee market in the

world is Asia. The Asian coffee market is growing between 4% and 5% a year, says Sette, while

the rest of the world is growing at between 2-2.5% a year. Before the pandemic, the United

Kingdom had a thriving coffee shop culture, with approximately 26,000 coffee shops across the

country. However, by the end of March 2020, many coffee shops had closed or were only open

for takeout Jennifer Ferreira, 2020. Cafés or coffee shops also had become one of the important

places in many people’s lives as it serves as a place for some to get a drink or caffeine fix on

their way to work, a gathering place for others to meet with friends, a place to relax and a place

to work. (theconversation.com, 2020)

The coronavirus disease COVID-19 has shocked the world, regional and national

economy, by surprise. The disease has spread with alarming speed, and it has affected all corners

of the world. People's lives and economic activities have been severely restricted to protect

health and control the spread of the virus Gössling et al., 2020.

Café businesses made temporary changes in the early days of the pandemic, and it has

substantially changed the normal living conditions of the people, resulting in a "new
normal”. Café and coffee shops was quickly affected financially because of the pandemic. Most

owners in the UK (46%) said the coronavirus have impacted their revenue by over £50,000,

while 30% estimated it to be between £20,000 - £49,999. When the pandemic started, some were

on the stage of closing and there were few remained, however in restricted operations. Based on

the article from World Coffee Portal, 92 % of coffee shop operators in the UK had to temporarily

close at some point in 2020. When other café starts to open their business, many of them were

forced to adapt in new or unexpected ways like they reduced their menus, switch to takeaway

and online sales, and limit their operating hours. As they start to recover from the pandemic and

new protocols were implemented, they think strategies on how their business bring more

customers and get back to regular sales (perfectdailygrind.com, 2021).

Starbucks owns licenses in roughly 30,000 locations in about 78 global regions, and the

largest US coffee businesses operate stores abroad, mostly through licensing agreements. The

United States, Brazil, Germany, Japan, are the world’s top coffee consumers. Another study by

Allegra World Coffee Portal shows that the coffee shop industry in US includes more than

35,500 stores with combined annual sales of about $45 billion (Allegra World Coffee Portal,

2020). The Specialty Eatery Industry, in which coffee shops are part of, also includes outlets

specializing in products such as ice cream, frozen yogurt, donuts, and bagels.

In the Philippines the coffee retail is developing. The number of the specialty coffee shops

continues to grow over the recent years. Third-wave coffees or Specialty coffees are type of

coffees that are grown, harvested, and processed using a special way to preserve its natural

attributes. Although it can be heard often that the third wave coffee and specialty coffee are used

interchangeably, there is a difference between the two. Third-wave coffees is the result of
everyone’s hard work in which the increasing coffee quality, a greater emphasis on sustainability,

more direct trade, innovative brew methods and lighter roast profiles are all essential. On the other

hand, specialty coffee separates from third wave coffee as it features coffee scores on a 100-point

scale through the Specialty Coffee Association (SCA). Coffees that have score of 60 points or

above are considered commercial grade while scores reaching 80 points or above are graded as

“specialty”. (perfectdailygrind.com, 2017). In Metro Manila, Coffee shops now operate with

recognition from SCAE or SCAA (Specialty Coffee Association of American (SCAA) or Europe

(SCAE) and some of these stores double as a barista school. (IPL.com, 2020)

In Cebu, the café and roastery owner of The Good Coffee Cup Co, who also won the

Philippine Brewer Cup Competition last 2020, shares how they cope up with the crisis from the

pandemic. Gio, the owner, shares that his staff that no need the physical presence on the shop

specifically those on administration, sales and marketing side are “working from home”, while the

staff on the operating side needs to comply on the strict safety protocols. Before the virus started to

spread, their first solution was to offer takeout and delivery service. And when the pandemic

started the café “migrated operations online” so that the shop could focus on “online selling”. More

online orders were being placed, as people started to settle into quarantine. They noticed that sales

started to spike in March and April in which they observed were stronger than other months

because they were starting to cover a bigger market outside of the café. Gio mentioned that aside

from buying online, the best way for consumers to support locally owned businesses during this

time is for them to share the experiences with the business or café through leaving reviews and

posting on social media platforms as this creates a chain reaction where consumers are

encouraging others to purchase from these small businesses which “helps sustain [them] long-

term” and “helps build customer trust.” (www.sovdacoffee.com, 2020)

 Here in Tarlac City, there are lots of accessible cafés to choose from such as Starbucks,

Café Isabela, Urban Brew, Bean on Me, Mr. White Home Brew, Café Al Fresco, Café Maja Rica,

The Shed, Abuelos Café and The Shepherd’s Tent Specialty Coffee. These are mostly the famous

cafés in Tarlac City and their goal is to give us different taste of coffees, teas and other drinks

suitable for the needs of our taste buds and they make sure that the drinks they serve are a good

quality one.

The study aims to grasp a view from the customer retention practices of coffee shops in Tarlac

City. Through this study, we will be able to determine how’s the café industry in Tarlac City is doing

which may help other small businesses to improve their services in this new normal. There are certain

practices show as follow such as building a customer database, tracking customer complaint, face to face

interaction, loyalty programs, phone/Email/ SMS marketing, using social media, restaurant website, menu

engineering, card tracking, employee training, corporate tie –up, service quality. Along with these, it is

strongly believed that not enough study was conducted yet in the locality. Thus, the researcher

found the study imperative and relevant.

Statement of the Problem

The study aimed to look into the customer retention practices of coffee shops in Tarlac City.

Specifically, the study seeks to determine the following:

1. How can the coffee shops in Tarlac City be described in terms of:

1.1 Years of operations

1.2 Type of business

1.3 Number of employees

 2. How are the customer retention practices of coffee shops in Tarlac City be described in

terms of:

2.1 Create a Customer Database

2.2 Tracking Customer Complaints

2.3 Interaction in Person

2.4 Loyalty schemes

2.5 Marketing via phone/email/SMS

2.6 Making Use of social media

2.7 Website for a restaurant

2.8 Card Tracking

2.9 Engineering

2.10 Employee Training

2.11 Corporate Collaboration

2.12 Service Excellence

3. What implications can the results of the study present to coffee shop management and

operations?

Significance of the Study

The findings of the study may benefit the following shareholders as follows:

Researchers: Researchers will be the direct beneficiaries of this research’s findings, since they

want to know what the effects of Covid-19 Pandemic to customer retention practices in Tarlac

City are.
Future Researchers: The next generation will also benefit the findings of this study, since they

want to know how coffee shops in Tarlac City dealt with the issues, they faced during the Covid-

19 Pandemic.

The students: They are students pursuing a degree in Hotel Management. They are regarded as

the study's second major problem. It is critical for Hotel Management students to understand how

coffee shops dealt with the pandemic.

To The Cafe manager - Since each business industry in Tarlac City has a different strategy for

inviting more customers, this study will be very beneficial to the Cafe Manager since he/she will

be able to come up with a fresh idea and implement it to welcome more people to their cafes.

To The Coffee Shops - the result of this study may provide a new idea in other coffee shops

when it comes to having new flavors, the different strategies that they can use to attract the

customers attention and offering essential goods that they can sell to improve their coffee shops.

To The Customers -The outcomes of this study may serve as a reference for clients who wish to

know how a coffee shop coped and made modifications during a pandemic.

Because patrons were not permitted to go in the cafe when the covid-19 outbreak, they had no

idea of the many procedures that a cafe in Tarlac City engaged in.

Scope and Delimitation

This research study aims to determine the customer retention practices of coffee shops in

Tarlac City and induce opportunities to have more sales in the means of promoting their

businesses. Primarily, the authors consider (67) coffee shops including the following as the top
Starbucks, Café Isabela, Urban Brew, Bean on Me, Mr. White Home Brew, Café Al Fresco, Café

Maja Rica, The Shed, Abuelos Café and The Shepherd’s Tent Specialty Coffee. The respondents

will evaluate the customer retention practices of coffee shops in Tarlac City be described in

terms of: building a customer database, tracking customer complaint, face to face interaction,

loyalty programs, phone/Email/ SMS marketing, using social media, restaurant website, menu

engineering, card tracking, employee training, corporate tie –up, service quality. Furthermore,

the extent of the influence of these factors regarding the formulated practices of the cafes in

Tarlac City will also be assessed. The inclusion criteria qualified respondents are: the

owners/managers of the business itself. Due to the huge population, a total of 67 respondents will

be involved in this study using a survey profiling with the set of questions to be answered

accordingly developed by International Journal of Future Generation Communication and

Networking Vol. 14, No. 1, (2021) pp. 1783-1793, and the data gathered will be processed

statistically to attain the objectives of the study.

Definition of Terms

Building a customer database: This is a popular strategy in many restaurants that allows them

to reach many people while also avoiding losing customers. This date base is crucial for reaching

out to existing clients when launching a new product or advertising a new deal.

Cafe: It's also called a coffee house, a tea shop, or a coffee shop. Its usually a tiny establishment

that provides coffee and other beverages, as a well as light meals, snacks, and baked goods.

Chain: Is a restaurant chain that has numerous locations with the same name and concept.

Through franchising they might be owned by the same company or by individuals.

Customer Retention: Zineldin defines this as “the customer liking identification, commitment,

trust, willingness to commend, and repurchase intentions, with the first four being an emotional-

cognitive retention construct and the latter two being a behavioral intention” (read in Alketbi,

2020).

Face to face interaction: Many organizations believe that direct interaction with customers helps

them better understand their needs. This practice rapidly resolves the problem, making it one of

the most important customer retention practices.

Franchise: Is a restaurant trademark for which you would have paid a royalty fee as the owner.

The franchisor is the firm that permits you to use their brand name, and you are the franchise,

who has purchased the right to use the brand name in a specified region.

Independent: is a proprietor-run firm that is not associated with any corporate chain. 

The restaurant's proprietor has complete control over all aspects of the business.

Loyalty program: It is the one of the most significant strategies for attracting customers to

redeem their points or earn additional points by returning to the restaurant.

Menu engineering: Menus are more than just a list of dishes to serve at a restaurant; they are

also an important instrument for generating revenue. This methodical strategy aids the employee

in comprehending inventory, ways, profit and lost, food costs, fast moving dishes, slow moving

dishes, and dishes that can be promoted to different category to boost profit. Finally, the

contribution margin for each item on the menu is calculated.

Restaurant’s website: Customer may readily access the website, which is utilized to market the

firm.

Tracking customer complaint: Tracking customers complaints in a timely manner makes them

feel valued, and its also aids in the improvement of service and product quality. It also helps to

spread the positive word of mouth about the firm.

Using social media: In today’s technologically advance world, the hotel business is also eager to

adopt technology. Today’s generation is heavily influenced by social media. It is incredibly

simple to contact potential clients. Organizations that use these services follow a strategy and

strive to improve customer satisfaction every quarter, which eventually leads to customer

retention. (Upadhye, N., Shingare, D., and Upadhye, N. 2021)

 Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents and provides a profound review on the related literature and related

studies regarding coffee shops. It also discussed here the relevant theories and models that are

involved with the coffee shops practices and other stimulation and will serve as the groundwork

of the study. In addition to that, this literature review will help the readers to have a clear and

better understanding with regards to this study.

Related Literature

A café is a small, unpretentious restaurant, often with exterior seating on a patio or

extending onto the sidewalk. This type of small and informal food establishment originated from

France in 1780-1790 and is known to serve various refreshments such as coffee and other light

meals or snacks such as baked goods (Brittanica, 2001). Products that are offered in a Café are

usually in a casual atmosphere which also serves as a place to unwind or a place where people

can casually talk. Cafés were historically known to be a “coffeehouse” and usually featuring a

limited menu. This type of establishment served only coffee back then and it is believed that the
first café to have opened in France was around 1700s (Cafe Florian, 1720). Nowadays, the goal

of every cafe is centered primarily around the customer as they aim to establish a balance

between the universal desires of patrons, such as comfort and privacy, and accounting for

individual differences in user needs, such as independent workspaces (Cornell, 2011). Moreover,

this type of Restaurant became so popular and have been so successful in the modern era due to

its “Relaxed Social Space” - where people feel at ease and at open feel. Cafes became a favorite

social spot for everyone, not just in France, but mostly in all countries for it offers a uniquely

calm atmosphere where people can gather with family and friends up over a coffee or some light

meals and snacks (Anderson, 2001). There is a psychological benefit to working in café or coffee

shops it is because it provides “just enough distraction” means it is easier to stay track with your

assignment because the constant movement of the people and the noise in the background allows

for the mind to be more productive. Another plus of working at a coffee shop is the aesthetically

pleasing atmosphere, which can greatly decrease stress (The Atlantic 2016).

Although Cafés have become a huge success in the Restaurant Industry, an integral

organization is fundamental in order for it to have a long run. Behind a successful Café is a

successful owner which are not just made - they are either brewed, percolated, or pressed. As the

owner, you have the responsibility and accountability for the establishment’s attainment. One

sure thing about running a successful café is that owners run profitable cafés. There are three

possible options for an aspirant café owner that exist for them to start their own café: (1) Buy

into a franchise. This is just one of the many major decisions that will be made for the aspirant

owner. For a franchise fee, you are provided with a turnkey business in a location selected by the

provider of the franchise.; (2) Buying an existing business. It is said that this is another way to

acquire a turnkey operation. However, finding a profitable business for sale is not an easy task,
and; (3) Starting a Café from scratch. This means starting an establishment with all of your

patented works and will require the aspirant owner the most efforts. Yet, starting a café on your

own has the most flexibility and the best potential to maximize profits (R. Aussie, 2010). Aside

from that, to be a successful café owner means he/she must know about good location and

reasonable rent for it is the location that also a factor on what makes a cafe popular as well.

Other factors when opting for a good location is the vehicle trafficking, parking and of course, its

accessibility to its target customers. In Tarlac City, Cafes are usually located in the downtown

areas nearby schools, universities as well as shopping stores and malls.

Every company or enterprise, including Restaurants such as Cafés are also experiencing

setbacks to their business. Owning a Café is a career of hard work, long hours, and challenging

finances (T.H Chan, 2018). Unfortunately, some of the cafés fail for reasons from poor

management, lack of sales to cover cost, bad employees, and service, as well as having too much

debt. Cafés in Tarlac City have attained the eminence of wealth throughout the years. But some

of it had to close due to such reasons mentioned or due to the ongoing Covid 19 Pandemic. The

recent quarantine or last year’s nationwide “lockdown” have drastically affected many

establishments and other industries such as the Cafés. Today, some of them are reopening while

others tend to shut down the whole business for, they cannot cover or gain profitable sales any

longer.

Cafés and coffee shops were quickly affected financially because of the pandemic. There

are three challenges of coffee shops during pandemic. (1) Less Income. During lockdown café

closed their doors that meant sales completely dropped off, reopening does not mean it will

return to normal because they need to follow new guidelines which is the capacity limits to

protect themselves and customers. Fewer sales for cafés mean lower income. In these trying
times, café owners said that it is not about profitability but its survival. (2) More Costs.

Additional costs for the café owners, as they need to invest higher quantity of cleaning supplies

and hand sanitizer for the safety of the customers and the staff. (3) Operational Changes in

Coffee Shops. Many cafés have adapted in order to survive in this time of pandemic, good

hygiene must be practiced at all times and strict safety protocols must be followed. Some cafés

were forced to adapt in new or unexpected ways like they reduced their menus, switch to

takeaway and online sales, and limit their operating hours.

Square x Specialty Coffee Association (SCA) Coffee Report said that coffee business is

now turning to pickup and delivery service because health and hygiene have been important

that’s why they are avoiding cash transactions across the board. When other cafés start to open

their business, it is important to be adaptable and flexible to be able to run the business

successfully. By following all the protocols that implemented by the government they can reopen

their café shop. This will mean that everyone, from staff to customers, can continue to be safe

and caffeinated (Guera, 2020).

As the café business became more successful and more competitive, so did the number of

competitors. Each cafe had a different idea and technique on how to be superior from their

competitors and other challenging factors such as how to have high sales during a pandemic. One

of the most essential things to do in order to gain sales is to consistently serve a high-quality

product. Given the demands of discriminating customers, there is a little chance a cafe business

will attract a regular clientele and thrive unless you can constantly serve the best regular

specialty coffees, teas, and snacks (Café Coach, 2018). This will be possible by being thorough

with regards of choosing the finest fresh-roasted beans, buying high-quality equipment, serving

fresh baked goods, pastries, snacks and other light meals, utilizing only trained staff such as good
barista or even a good baker/patisserie, and creating innovative products such as alternative

foods that promote healthy eating and living. A café should offer or provide an excellent of

selection of healthy alternatives of their refreshments, snacks, and other light meals (Coach

Café, 2018). This is very crucial most particularly in today’s Covid 19 Pandemic - wherein

customers are aiming to take a good care of their health carefully. People nowadays, even the

youngsters are becoming more health conscious such as utterly choosing their meals and

beverages, as well as having not just pleasant, but a clean and hygienic place to eat out. Having

said that, keeping the café’s trendy and relaxing atmosphere while maintaining its cleanliness for

customers who wish to dine inside is a big good impression or factor for attracting more

customers. Preparation of ordered meals in advance as much as possible will also leave a good

impression for them. Lastly, one of the most trend in maintaining regular customers is the

offering of “Loyalty Cards” which is good platform that will help the Cafe to build up a clientele.

It encourages regular customers to come and dine in more often as well as to spend more and in

return, giving them points for every discounted purchase (W. Bilen, 2014). With these being

said, the most significant strategy on how to gain more sales is to make sure that the employees,

as well as the owner serve on the front line. Every personnel of an establishment that offers

whether goods or services must always show courtesy to one another as well as to its customers

and must be fully engaged with their business as much as possible. The organization’s hand on

presence will eventually lead to a good output particularly when demonstrated by the owner or

the manager. A pleasant behavior of the leader of the organization is essential.

Customer retention refers to a restaurant's or coffee shop's capacity to keep or retain exist

ing customers rather than losing them to a competitor. Customers keep 
returning because it reveals whether a coffee shop's goods or service quality pleases the

customers (Olson, 2020).

Customer retention is important because it shows how well establishments such as cafes,

satisfy their customers and keep them coming back or ordering deliver. Keeping clients is one of

the most cost-effective ways to grow business. According to

a Bain & Company study, a 5% improvement in client retention can  lead to a 25 percent to 95

percent increase in profitability. It’s a big range, but even at the low end, it’ll be reinvesting in

the company (Constantino, 2020).

Small businesses, such as coffee shops, will benefit from increased customer 

retention. To develop longterm customer connections, provide individualized quality 

service, communicate effectively, reward loyal customers, and offer new products and 

services. Data analytics software may be beneficial to a company in order to have a better unders

tanding of its clients. Customers 

who are pleased with the company are easier to retain (Quickbooks, 2019).

Service quality is vital, according to Ahmad A 2015,"Customer Retentio" in Asian Social 

Science. Consumer satisfaction is influenced by the quality of the food. Even 

service quality has a favorable impact. Customer satisfaction is influenced. The quality of the foo

d offered has a big impact on customer happiness. The expectation of service

quality can be measured by comparing it to the actual quality of service. Customer 

satisfaction appears to be a primary determinant of repurchase intent, and word of mouth

increases client loyalty.

 Customer relationship managers can find out what customers want and anticipate, making 

it easier to serve and handle complaints quickly and meet the needs of customers. The most

critical part of developing a loyal relationship is customer retention. Customer retention is crucial

for most restaurants because the cost of obtaining a new customer is higher that the cost of

maintaining a connection with an existing customer (Martey, 2014).

Customer retention is a measure of a coffee shop's ability to create loyal

repeat customers. A multitude of factors influence customer retention, including the menu,

service performance, and marketing insights. Customer retention is critical for all firms, and

these tools were created to assist business owners in not only tracking but also improving this

crucial number. While customer retention is critical at anytime, it is more important now, as

many cafes are struggling to stay afloat. Existing clients must be satisfied; they are lifeblood of

the company, providing a consistent stream of revenue and generally outstanding newer

customers. Business owners, on the other hand, must acquire new clients in order to increase

revenue. They have some fantastic news for businesses: if they prioritize customer retention, the

customers they keep will help them spread the word recruit new customers (Resendes, 2020).

How does a café keep its customers coming back? In a coffee business, there are

eight ways to increase client retention. (1) Establish a café in an ideal location. Customers value 

convenience above all else when choosing a café, especially during the week when they are racin

g to get to work or school. As a result, choosing a convenient location for 

the café is crucial to its success. Customers are more inclined to visit a store that is

conveniently located. It's crucial to choose your position wisely, especially in such a crowded are

a where cafés and coffee shops abound. Customer like convenience, so, if at all possible, situate
your café near office buildings, academic institutions, bus stops, metro stations, or other high

traffic areas. The shop will see the same customers on a regular basis  (Oliver, 2021).

(2) Allow customers to place preorders. You can allow clients to place orders 

ahead of time by opening an online business. Take a cue from Starbucks, which allows 

loyalty program members to skip the wait by ordering and paying ahead of time. 

Customers may order their favorite drink or snack fast and pick it up via a café's app or 

online store.

(3) To keep customers coming back, coffee shops must understand what they 

want. Too many businesses, on the other hand, fail to seek out and heed client feedback. Custom

er profiles must be used to collect information about their preferences in order to get to know the

ir clients and deliver better service. They'll be able to keep track of their 

purchases as well as make notes on their preferences, which they may use to upsell and 

deliver a more personalized experience later. They should also read online reviews, listen to what 

customers have to say, or send out email surveys to get feedback.

(4) Establish a customer loyalty program. When clients sign up for a loyalty 

program, give discounts, birthday transactions, or unique deals to entice them to return. 

Keep in mind that they must strike the right balance between too few and too many points to

receive the reward. Because the owner or manager wants the customer to buy more, having too

few points may result in a revenue loss. Similarly, having too many points devalues the loyalty

program for customers, making them less likely to participate.

(5) Provide outstanding client service. Exceptional customer service will go a long way in

sustaining customer loyalty. According to this report, customer service is very important to 95
percent of customers when picking a brand and staying loyal to it. Hire customer focused

employees who are welcoming and friendly, and train them on how to upsell and retain

customers for example, train employees to ask every new customer to join the loyalty program

without coming across as pushy (“Would you like to join our loyalty program and receive 15%

off your order today?”. Its good to try to upsell and get more information form customers but

coming across as pushy or overly scripted can be a big turn off for a customer. Attempt to strike

the right balance. Also, if the company makes a mistake, don’t be afraid to make apologies by

offering to pay their payment or giving them a coupon for a free treat on their next visit. If you

give your guests something in return for their time and trouble, they are more likely to forgive

bad service, mistakes, or oversights.

(6) Maintain contact with customers. Create a social media profile for your 

business so that customers can keep informed about new menu items and special 

discounts. Post fun, engaging content to encourage customers to visit the store and to 

follow you on social media. Similarly, email marketing is one of the most effective ways to incre

ase customer retention.When soliciting consumers to join the loyalty program, request their emai

l address so that you can send them exclusive offers. 

(7) Take into account dietary constraints. Customers with dietary sensitivities or

specific diets, such as gluten intolerance, nut allergies, or vegetarianism, have a difficult

time finding coffee shops that meet their requirements. If shops have a good selection of vegan

free, or nut free products, customer who are vegan, gluten free, or nut free will come again and

again.

(8) Set up a referral system. This is especially true if your company caters or hosts events. 

While word of mouth will spread the word about the quality of the service and 
products, having a referral program in place where existing customers can receive a 

discount for referring other businesses and new customers can receive a discount for 

being referred could provide that extra incentive to get more business.

Related Studies

Foreign

It is said in the study of J. Douglas 2019, that those factors that United Kingdom

independent coffee shop and cafe owners perceived as being critical to the success of their

business, as well as factors that they perceived as being barriers to running a successful business.

In addition to that, it also sought here to identify the criteria being used by cafe owners and

managers to measure their business performance; So as it opens to more doors toward

opportunities for the said business to expand and become more successful.

According to Teng et al, 2011, the most important factors contributing to business

success are employment, training, retention of high-quality staff, prevalence of good products,

services and optimum timing in introducing them into marketplace as well as excellent

relationships with customers and top managers with good leadership qualities. Bove and

Johnson, 2000 in Dagger, T.S.  and O'Brien, T.K. 2010, said that in cafes, service quality , and in

particular, the interpersonal skills of the service provider, is a key element of customers

perceptions and will have a major influence on customer intentions with regards to return visits.

A survey done by Mintel, 2017 shows that when coffee shop or cafe customers were asked what

factors motivated them to visit an independent food establishment over a branded one, the most

cited response was friendly customer service (73%) followed by cleanliness (55%).
 Chouke and Armstrong 2000 in Laura Galloway, John Sanders, David Deakins 2011,

found that the most successful companies or establishment, whether big or small just like cafes

were those where staff felt ownership of the organization or felt they were partners within it.

Based on what the owner or managers think there are four categories of success: (1) Growth and

Profitability, (2) To be happy at work, (3) Collective sense of achievement and respect from the

marketplace, and (4) A personal sense of achievement and recognition. It appears here that many

owners are more interested in providing quality services and products than making large profits.

On the other hand, Numerous studies such as the Qu, 1997; Kivela, Reece & Inbakaran,

1999; Pettijohn, Pettijohn & Luke, 1997; Lee, 2004 in Abraham Pizam, Valeriya Shapoval and

Taylor Ellis 2016, have shown that food quality, atmosphere, service quality, convenience, and

price and value have a favorable effect on dining satisfaction and return intention as it has been

related to increase sales, revenue, and customer loyalty.

Customer satisfaction can be increased by giving customers what they want from a produ

ct. This can lead to consumer loyalty to a product's brand Bayunitri,2017. As a result, client happ

iness is a long-term strategy for businesses to be successful and long lived. Customer satisfaction

research has been widely undertaken and has become a major research issue in marketing

management because of its importance to the company’s performance. Several studies have

found that satisfied customers are less process sensitive, competitive, and loyal to brands for

longer periods of time than dissatisfied customers (Ercis et al., 2021; Rahmah et al., 2018).

According to Oliver in Hyun Jeong Kim 2011, customer satisfaction is the embodiment of

consumers’ psychological satisfaction, and consumers experience is the basic function of

products or services. In the context of the resulting degree of pleasure. Customer satisfaction
belongs to the category of emotional factors produced by comparing the post-consumer sensory

system with the level of psychological expectations. The level of customer satisfaction depends

on consumers’ evaluation of service quality, which in turn affects consumers’ willingness to

consume next time (TQM J. 2020).

Customer retention, according to Eriksson and Vaghult as cited in Martey, 2014 is at the

heart of the business development and is dependent on satisfaction. It is obvious that if a

customer is dissatisfied with the amount he spends in a restaurant, it is impossible to predict the

he will choose the same restaurant again despite a terrible experience, which is not good for

business development.

The degree to which service performance meets or exceeds the clients expectations has

been defined as customer satisfaction in service’s Kumar 2012; Lombar 2009; Santouridis &

Trivellas 2010. Satisfaction according to Hui and Zheng 2010, is an evaluative judgement of a

single transaction based on perceived quality. Client retention, on the other hand, was defined by

Danesh, Nasab, and Ling 2012, as “the future propensity of a customer to continue with the

service provider.”

Client pleasure, they claim, is not the sole factor that determines customer

retention. Customer retention is described by Ramakrishnan 2006, referenced in Molapo & Mu

kwada, 2011, as the marketing goal of preventing a customer from migrating to a 

competitor."Customer retention demonstrates the customer's propensity to repurchase a 

service from the service provider," according to Edward and Sahadev 2011. They employed cust

omer retention as a metric for determining whether or not a customer intends to remain loyal to

the service provider. Customer happiness and service quality are major antecedents of customer

retention for them.

 According to Edward Markwei Martey 2014, customer relationship managers can find

out what customer required, their expectation depending upon that it is easier to serve and solve

the complaint on time and fulfil customers' needs. Customer retention is the main focal point in

creating a relationship that leads to loyalty. Customer retention is important for most of the

restaurant because the cost of obtaining a new customer is higher than the cost of maintaining a

relationship with the old customer. Staff politeness, adequate and timely information, handling

customer complaint, best prices of drink and food, better service can influence customer

satisfaction.

According to Huda H. Dulaim Bshara M. Qalanzi 2020, the hotel and restaurant

industry has been forced to explore new trends and opportunities to strengthen brand loyalty and

customer retention, which helps to increase market share and brag value. Customer retention is

critical for any business, but keeping existing customers is the key to success. Because its costly

to keep a new customer, you’ll want to do everything you can to keep them.

On the other hand, according to Pyne as cited in Martey 2014, is defined as the ratio

between the number of customers who remain at the beginning and the number of customers

who remain at the end of the term. Furthermore, customer retention for a longer period of time is

only attainable when the company makes an attempt to use technology.

Yuksel and Yuksel, 2002 in Young Hoon Kim, Jen Duncan, Byung Woong Chung 2015,

mentioned that foods and beverages in establishments such a the cafes play a key part but by no

means is the only part in satisfying the customer. Previous studies reported that restaurant service

was a blend of tangible and intangible components. The service encounter is an individually

experienced process where production and consumption activities take place at the same time.

Moreover, there is also a concept called “moment of truth” which can be defined as the “time
and place” and the “when and where” the service provider has the opportunity to show the

customer the quality of its service. Therefore, what happens in these interactions will obviously

have a significant impact on customer satisfaction within service organizations.

Stevens, Knutson, & Patton, 1995; Kievela, Reece, and Inbakaran, 1999; Qu, 1997 in

Abraham Pizam, Valeriya Shapoval and Taylor Ellis 2016, said that it is generally accepted that

multi-attribute scales is appropriate for use in measuring customer satisfaction. A study done by

Dube, Renaghan, & Miller, 1994 in Matacano L.T 2017, attribute importance scores to find out

the relative importance of various Food Establishments’ attributes to determine customers’

repeat purchase intentions - which are the multiple elements of the dining experience such as the

atmosphere, helpful server, menu variety, waiting time, consistent food, and tasty food. Cafes

are mostly patronized by the customers for its casual and light ambience as well as its good

interiors perfect for taking a short break, relaxation, or even just to have casual talks with friends

and families. It is also said to be the right place for people wanting to have a nibble of not so

heavy meals and for people craving for a sip of refreshments.

Cheng-I Hou, 2013 tackles on her book “Study on Decision-Making for Cafe

Management Alternatives” about the different types and styles of cafe business in Taiwan.

Taiwanese prefer modern and unique styles than the traditional one for them to attract customers.

It is also mentioned here that not all of the new cafes tend to be successful but people keep on

trying those who dream of entrepreneurship. However, as there are many types of cafes in the

market, some of the customers do not have enough knowledge or familiarization regarding the

style of cafes which are the most suitable for them. Hence, it must also be assessed in this study

the variety, flexibility, and uniqueness they might possess in order to gain more customers from

the public.
 Neeti Gupta 2008 in Aries Susanty, Eirene Kenny 2015, also have started a research

pertaining to the new trend of every Cafes called “Grande Wifi: Understanding What Wifi Users

Are Doing in Coffee Shops” that the relationship between cafes or specifically coffee shops and

internet has been emphasized during the launch of wireless hot spots or Wifi in some cafes in

America. The said research aims to explore the implication of Wifi in coffee shops and online

interviews and surveys with internet users in cafes.

Local

In the said study done by Rogo 2008, coffee drinking, both in-home, coffee, school, and

casual coffee drinking outside in Metro Manila has turned out to be as a common practice as

dining. This is illustrated by the proliferation of cafes all around the metropolitan areas and

outskirts, and the increase sales of instant coffee variants. In addition to that, there is an

increasing number of people who are learning to appreciate refreshments such as coffee drinking

not just as “after dining” practice or a morning ritual, but as part of an emerging lifestyle.

According to the article of Rappler, 2015, “Coffee remains Filipinos Staple Beverage”,

driving the sales of coffee mixes are the National Capital Region (NCR), South Luzon, and

Mindanao markets. This has also lead to opening various coffee shops and cafes that add up not

just coffee in their menu, but also a variety of refreshments such as the fruit beverages and milk-

based drinks. Later on, these local cafes have added meals and other light snacks on their menu

list such as pastries, baked goods, and even some European staple such as pizza and pasta.

On the other hand according to Nurin, traditional bank funding was always in favor of

major restaurants and nations. The large restaurants received attention from most bank fund
providers. Only 5% of small and independent restaurants received funding support. Many

restaurants’ businesses feel suffocated because of COVID-19 resulting in stopping a company’s

operation, as well as a loss of income. Workers were laid off, while others relied on government

assistance. According to the results on the Impact of Covid-19 on restaurant business in

Cabanatuan City study, 100% of the respondents were affected by the pandemic, 36% restaurant

sector were closed expect to the industry that includes fast-food chains. Because the restrictions

on gatherings to a specific number of people have had a significant impact on dine-in

establishments. There are still strategies that may be used to keep restaurants afloat and improve

their performance.

The COVID-19 pandemic has had a significant impact on Ilocos Norte's small and

medium-sized companies (SMEs). According to the findings of a poll conducted in the

Philippines in February 2020, over 65% of respondents expected that the COVID-19 pandemic

will have a substantial impact on the national economy. Lockdowns imposed by the authorities

around the country have damaged people's livelihoods (Statista,2021). It harmed the restaurant

industry which resulted in increased closing of businesses. It impacted companies and industries,

it aimed to specifically target business owners as its core audience to communicate the need of

being prepared to cope with these sorts of situations.

Due to the spread of COVID-19, the government will implement a month-long enhanced 

community quarantine across Luzon from 17 March to 13 April 2020. As a result, some of our fa

vorite coffee shops will have to stop brewing our favorite coffee  beans. Starbucks Philippines

has decided to temporarily close all of its branches in Luzon, effective March 17, in order to the

safety of its personnel and customers. In light of the quarantine, Coffee Bean & Tea Leaf

Philippines has chosen to close all of its locations. However, although Starbucks Ph is only
closing in Luzon locations, CBTL Ph has chosen to close all of its locations nationally

temporarily (Starbucks and Coffee Bean Ph, 2020).

A business will not succeed without a crew. This pandemic prompts most nations

throughout the world to implement lockdown for safety precautions. Workplaces order the

suspension of operations to adhere to health regulations, hurting many people's jobs, including

restaurant companies. It affected not just the business itself but also the employees. Fast-food

restaurants are among the most profitable and well-known businesses on the market, making

them an excellent choice for newcomers to the business world. Given that many fast foods are

popular and satisfy a person's physiological needs, it also benefits the unemployed and part-time

workers. As a result, it is the primary source of employment in the food and beverage industry

worldwide, with over a million employees in large multinational food and beverage

manufacturing companies – fast food service crews (Geneva, 2007).

Among the COVID-19 pandemic, the food business confronts two significant challenges.

The first is a lack of stable demand for food. The majority of restaurant and hotel businesses deal

with a lot of food waste and stale food. People are concerned about food safety during this

pandemic because of the widespread dread and panic on social media. The second challenge is to

reestablish people's trust in food. These restrictions on people's rights and disruptions to the food

system provide even more reason to guarantee that everyone has the right to healthy food and the

right to health.

The COVID-19 pandemic wiped off everyone and caused way too many difficulties. It is

a scary thought, and people are aware of how it may influence their life. It had the highest job

losses and concern. Furthermore, many businesses went out of business, and many individuals

lost their employment. In this situation, it has been tough to find work. Nonetheless, despite their
low earnings, many individuals continue to labor. According to Omar, Vaamonde, and Salessi

(2019), most fast-food employees are involved in their jobs.

Today's situation has pitted people against the COVID-19 virus, which has already

claimed over a million human lives worldwide and counting. The COVID-19 pandemic is not

simply a worldwide health issue; its consequences are complicated and far-reaching. Social

habits, religious gatherings, and economic situations have all been affected. It affected not only

reaching out with other people, but also it affected restaurant businesses. It is difficult to be kind

and sincere in the wellbeing of employees during this pandemic, when the firm itself is losing so

much profit. Doing business, particularly in relation to worker performance, must be evaluated

differently (Buchanan et al. 2005). While workers are conscious of the necessity to secure their

employment in the middle of the pandemic, substantial concern is also given to the security of

the company premises itself (Obal and Gao 2020).

According to the study “Impacts of Coffee Shop Business to Tourism Industry in Three

Cities of Batangas, Philippines” the impact of coffee shop enterprises on the tourist industry may

be viewed as a development tool and an opportunity to improve people's quality of life. Coffee

shops are being used as a hub for socializing and a location to meet. Coffee shop businesses are

now valuable to the tourist sector in a variety of ways and considerations. As stated by Villegas,

2016, Tourism is one of the world's fastest expanding industries, and it has risen to the top of

most governments' priority lists. The travel and tourism sector contributes significantly to the

Philippine GDP.

The studies discussed below have similarities and differences with the current study.

These related literature and studies may be way similar closely and related with this studies.

Furthermore these studies presented contribute additional informational ideas and data about the
Impact of Pandemic to Cafes, such as the different strategies that we can use: C, L et al. (2021)

on the relationship between approaches used in adjusting business models in response to the

dining restrictions put in place due to COVID-19; Jungkeun Kim, Jacob C. Lee, (2020) the

strategy for the restaurant industry to recover from the negative effects of the COVID-19

pandemic; Zandonadi, R.P et al. (2021) on the overview of the self-service buffet restaurant

operational system in the context of the SARS-CoV-2 pandemic; Degand, Moise et al. (2021) on

the the readiness and the optimization of restaurant delivery systems; Shruti Agrawal et al.

(2020) on the retention practices on Indian speciality restaurant in Pune City; Jaewook Kim et al.

(2021) on the Uncertainty risks and strategic reaction of restaurant firms amid COVID-19; Lai,

H. B. J et al (2020) on the key adaptations of SME restaurants in Malaysia amidst the COVID-19

Pandemic; Kwangji Kim et al. (2021) on the appropriate types of clean safety message framing

targeted to consumers who are skeptical to dine-in or order from restaurants; Phillipneris et al.

(2020) on the strategues and challenges of small scale online food businesses in the Philippines;

Myra V. de Leon (2020) the main objective of this study is to determine how the food industry

and the government should address the sustainability and financial recovery particularly the

affected F&B places; Mendoza et al. (2018) on the Quality of Work Life of Food Chain

Employees in Region XI; Olson, (2020) on the Customer retention of a restaurants or coffee

shops capacity to keep or retain existing customers rather than losing them to a competitor;

Constantino, (2020) on the importance of customers retention how well establishments, such as

café, satisfy their customers and keep them coming back or ordering delivery. Keeping clients is

one of the most effective way to grow a business; Quickbooks, (2019) on developing long-term

customer connections, provide individualized quality service, communicate effectively, reward

loyal customers, and offer new products and services. Data analytics software may be beneficial

to a company in order to have a better understanding of its clients.

Customers who are pleased with the company are easier to retain; Ahmad A (2015) on

providing service quality; Martey, (2014) on handling customer relationship managers to find out

what customers want and anticipate (1) making it easier to serve and handle complaints quickly

and meet the needs of customers such as; Resendes, (2020) customer loyalty; Oliver, (2021) how

can a coffee shops keeps the customer coming back.; Edward Markwei Martey (2014)

customers relationship; Huda H. Dulaim et al. (2020) exploring new trends and opportunities to

strengthen brand loyalty and customer retention, which helps to increase market share and brag

value.

Customer retention is critical for any business, but keeping existing customers is 

the key  to success; Rogo, (2008) coffee drinking, both in-home, coffee, school, and casual

coffee drinking outside in Metro Manila has turned out to be as a common practice as dining;

Rappler, (2015) Coffee remains Filipinos Staple Beverage”, driving the sales of coffee mixes are

the National Capital Region (NCR), South Luzon, and Mindanao markets. This has also lead to

opening various coffee shops and cafes that add up not just coffee in their menu, but also a

variety of refreshments such as the fruit beverages and milk-based drinks; Mark Raguindin

Limon et al. (2021) on the food safety practices of food handlers at home engaged in online food

businesses during COVID-19 pandemic in the Philippines.

The study also did not focus on the strategies but also on the threats as a result of the

pandemic; Yang, Y et al. (2020) on the COVID-19 and restaurant demand: early effects of the

pandemic and stay-at-home orders; Lu J et al. (2020) on the outbreak associated with air

conditioning in restaurant, Guangzhou, China.

 The following study are also different from the study of Jungkeun Kim, Jacob C. Lee,

(2020) and Yang, Y et al. (2020) thus it also talks about the pandemic's impact and disaster;

Madeira, A.; Palrão et al. (2021) The COVID-19 pandemic is responsible for a health crisis and,

at the same time, for a sharp drop in activities of economic sustainability, particularly in tourism

management, and has consequences in most countries that are still difficult to measure. The

objective of this research is to identify restaurant entrepreneurs’ perceptions about the future,

government measures, strategies they will apply, and lessons learned for the future after the

mandatory lockdown of restaurants and hospitality establishments related to pandemics. It is also

different from the research of Kwangji Kim et al. (2021)because it talks about the results of the

different appropriate types of clean safety message framing targeted to consumers who are

skeptical to dine-in or order from restaurants, because they need to put the customers safety first

above all; Ahmed, I. et al. (2021) on the contextual study of customers’ mistreatment and

counterproductive work behavior at coffee cafés; Hyoung Ju Song et al. (2021) on the Impact of

the COVID-19 pandemic: Evidence from the U.S. restaurant industry; Oliver,  (2021) setting up

a referral system; Oliver, (1981) customers satisfication; Kumar et al. (2012) customers

psychological satisfication; Ramakrishnan et al. (2006) Client pleasure; Nan J (2020) Under

Covid-19, Challenges and Opportunities for Hospitality and Tourism Industry of China. Because

of its similarity to the following studies, the current study bears a close likeness to them ; Vigilia,

Aileen et al (2021), Parilla, E. S. (2021), Pabalan, J.M.G.P et al (2021), Alec Nicole Suarez et

al. (2017), Cagurangan Glen C (2017).

Conceptual Framework
 This study aimed to determine the customer retention practices of coffee shops in Tarlac

City be described in terms of: building a customer database, tracking customer complaint, face to

face interaction, loyalty programs, phone/Email/ SMS marketing, using social media, restaurant

website, menu engineering, card tracking, employee training, corporate tie –up, service quality.

The respondents were also described the strategies being done to invite more customer such as

other delivery services to enter the market and also consider nutritious food value while

practicing food safety and hygiene.

Figure 1

Customer Retention Practices

• Create a Customer Database

• Tracking Customer Complaints

• Face to face Interaction

How can the coffee shops in
Tarlac City be described in • Loyalty Programs
terms of: • Phone/email/SMS Marketing
•Years of operation • Use of Social Media
•Type of business • Restaurant Website
 Generate Customer Customer
Retention Satisfaction

Paradigm

The study determined how can the coffee shops in Tarlac City be described in terms of:

years of operation, type of restaurant, number of employees and how are the customer retention

practices of this coffee shops be describe in terms of: building a customer database, tracking

customer complaint, face to face interaction, loyalty programs, phone/Email/ SMS marketing,

using social media, restaurant website, menu engineering, comment card tracking, employee
training, corporate tie –up, service quality. Based on the findings, the researchers formulated a

plan of action to determine the impact of the pandemic to cafes in Tarlac City.

Chapter 3

METHODS OF STUDY AND SOURCES OF DATA

Research Design

The study uses a descriptive research design. It was descriptive because it describes the

customer retention practices of coffee shops in Tarlac City. There are certain practices provided
as follow to implement customer retention such as building a customer database, tracking

customer complaint, face to face interaction, loyalty programs, phone/Email/ SMS marketing,

using social media, restaurant website, menu engineering, card tracking, employee training,

corporate tie –up, service quality.

Respondents of the Study

The respondents of the study were the 67 owners/managers of coffee shops and small

restaurant businesses in Tarlac City out of 87 restaurant businesses according to the data of

www.tripadvisor.com.ph we reach them out by sending request letters through there business

emails and Facebook pages to assure there cooperation they are the ones who still operating in

this time of pandemic. Complete enumeration of the respondents was employed to attain

substantial data for this research.

From the sampling website Raosoft, that uses the formula;

x=Z(c/100)2r(100-r)n=N x/((N-1)E2 + x)E=Sqrt[(N - n)x/n(N-1)]

where N is the population size, r is the fraction of responses that you are interested in,

and Z(c/100) is the critical value for the confidence level c.

Using a margin of error 5%, a confidence level of 90% and using a population size of 87 we

arrived that the recommended sample size is 67 respondents to get a correct answer on your

survey.
 Table 1 presents the distribution of the respondents:

Table 1

Distribution of the Respondents of the Study

Cafe Address f
1914 Milk tea Bar JJJ Revita Building Mc Arthur Highway 1
Tarlac City

1998 Cafe Sitio Tanpoco, Vin-zel building 1

Matatalaib Tarlac City
348 Cafe Macabulos Drive San Vicente Tarlac City 1
Abuelos Cafe Ligtasan Tarlac City 1
Bad Barista Sto Nino Village Juan Carlos Street 1
Tarlac City

Bastea Cafe Calle Fausta Gate 3 San Sebastian Tarlac 1

City
Bean On Me Cafe 3M Square Building Ligtasan Tarlac City 1
Beliza Coffee Shop 47 David Avenue San Sebastian Village 1
Gate 2 Tarlac City
Black Dope Cafe Gate 3 Capitols Garden cor. Gardenia 1
Avenue Zamora Street San Roque Tarlac
City
Bon Tea Zone 3A Maliwalo Tarlac City 1

Brewers-Box Coffee Shop Sitio Centro Aguso Tarlac City (Along 1

highway)
Brewpod Café Sitio Centro Matatalaib Tarlac City 1

Brewsko Bypass Road San Vicente Tarlac City 1

Cafe Al Fresco The Junction Bypass Road Fairline 1
Subdivision Tarlac City
Café Avery Transients Home P. Burgos Street San 1
Isidro Tarlac City
Café Griego P Burgos St. Tibag Tarlac City 1
Cafe Isabela Westwood Farm Zone 6 Barangay Care 1
Tarlac City
Cafe Lucho Conrey Square Bypass Road San Vicente 1
Tarlac City
Cafe Maja Rica La Maja Rica Hotel Tarlac City 1
Café Negro Mc Arthur Highway Barangay Maligaya 1
Tarlac City (Beside RCS Supermarket)
Cafe Teodora Unit 2 L Square Building San Rafael 1
Tarlac City
Chaps Diner KCT Mc Arthur Highway (Infront of SM) 1
Chill & Bite Romulo Blvd. Cut Cut 1 1
Coffee-Meet Zone 4 Barangay Maliwalo Tarlac City 1
Coffeenest Mc Arthur Highway San Nicolas Tarlac 1
City

Coffee, Please Kapehan Barangay Care Zone 5 Tarlac City 1

Caution Cafe B3 L6&8 San Sebastian Village Tarlac 1
City
Cush Cafe 2 Floor City Walk Mall San Roque
nd
1
Tarlac City
Diversitea Tarlac Zamora Street Tarlac City 1
Farron Cafe SM City Tarlac 1
Gio e Magia Block 23b Lot 9 8th Street Fairline 1
Subdivision Barangay San Vicente Tarlac
City

Gran Coffee Specialty Shop Getha Road Barangay San Sebastian 1

Tarlac City Tarlac City
Greenview Cafe Zone 1 Barangay Bantog Tarlac City 1
Halo Cafe LC Building San Roque Tarlac City 1
Happy Snow SM City Tarlac 1
Hey Brew Cafe Bypass Road San Vicente Tarlac City 1
Heima Cafe Mangga 2 Matatalaib Tarlac City 1
Highlands Coffee City Mall 1
Iliupan Mc Arthur Highway Zone C Camp 1
Aquino San Miguel Tarlac City (In front
of Petron Gass Station Paraiso)
It’s Worth Tea 30 Zone C Mc Arthur Highway San 1
Miguel Tarlac City

Kapehan Barangay Capehan Tarlac City (Infront of 1

Aquino Center)
Life Box Cafe Pase de Tarlac Ligtasan Street Tarlac City 1
Mama Tea Diner Zone 3 San Isidro Tarlac City 1

Metro Mocha Casa Amelita Cut Cut 1 Tarlac City (Near 1

Tarlac City Hall)

MighTEA Cup Snack Bar 414 Centro Tibag Tarlac City 1

Milk Fridge KHS Building Barangay Cut Cut Tarlac 1
 City
Mountain Bean Coffee Unit 4 One Rizal Building Espinosa Street 1
Barangay Ligtasan Tarlac City
Mr. White Home Brew City Walk Avenue Zamora Street San 1
Roque Tarlac City
Nosherie Block 70 Lot 24 Sto. Domingo Street 1
Fiesta Communities San Rafael Tarlac
City
Pawnski 463 Immaculate Tibag Tarlac City (Near 1
KKK Gasoline Station

Randy’s Kitchen Café 65 Mc Arthur Highway Tarlac City 1

Star Frappe Snack Bar & Cafe Romulo Blvd. Cut Cut 1 Tarlac City 1
Starbucks SM City Tarlac 1
Starbucks Robinson’s Luisita Mc Arthur Highway Robinson’s Luisita 1

Teacoff Klatch Bypass Road San Sebastian Tarlac City 1

Tha Spot Coffee Shop Matatalaib Tarlac City 1
The Baryu Cafe 216 Block 2 San Jose Tarlac City 1
The Gentle Sparrow Café by West Gate Las Haciendas de Luisita San 1
Luisita Golf Miguel Tarlac City

The Royal R Milk tea Station- Block 3 San Miguel Tarlac City 1

The Shed FJF3+5F8 Tarlac City 1

The Shepherd's Tent Specialty Unit 2 Cluster 4 Ripples Building Talon 1
Coffee City Plaza, Bypass Road San Vicente
Tarlac City
Third Space Unit 1 2nd Floor R Avenue Bypass Road 1
San Vicente Tarlac City
Town Cafe Cuaresma Residence San Juan de Valdez 1
San Jose Tarlac City
Urban Brew Terazza Building 30 Romulo Blvd Tarlac 1
City
Vella Coffee Shop 15a 27 Malaga Street Camella Homes 1
Tarlac City

Vita Bella Zone 4 Sta. Rosa Road Barangay 1

Maliwalo

Wild Spices Café 17 Ma. Gomez Avenue, Village San 1

Vicente Tarlac City
Total 67
Data Gathering Procedure

Researchers use an online survey method in these studies, wherein researchers distributed

an online survey through a questionnaire in Google Form with the help of social media platforms

like Messenger, where they could answer questions by selecting the answer that best fits the

most. Researchers focus on the owners of coffee shops. Respondents are asked about their

experiences during the COVID-19 pandemic. After collecting all of the information that the

researchers gathered, they are going to help the researchers as well as future researchers.

Instruments

The study adopted an instrument developed by Nilesh Upadhye, Dhiraj Shingare, 2021

International Journal of Future Generation Communication and Networking Vol. 14, No. 1,

(2021) pp. 1783-1793 of the research entitled "To Study the Effect of COVID-19 on Customer

Retention Practices Implemented at Indian Specialty Restaurant in Pune City". The instrument

attempts to identify specially the real time data of coffee trend information, brand profiles and

strategic analysis. The instrument to collect data used was Google Forms, an online platform

commonly used for conducting online surveys. Questions were sent in a Google Forms format

through Gmail or Messenger to maintain the stay-at-home protocol during this time of pandemic.

The respondents were told to answer the Google Form questionnaire by clicking or selecting

their chosen response/answer and/or type them if necessary; the submit button was at the latter
part of the form and that the responses will be automatically sent to the researchers for tallying

and analysis.

Statistical Treatment

The following statistical tools were used to treat the data that we are able to gather to

solve the problems posed in the study: To determine the customer retention practices of coffee

shops in Tarlac City and for the (café managers/owners) to implement customer retention, in

terms of: building a customer database, tracking customer complaints, face-to-face interaction,

loyalty programs, phone/Email/SMS marketing, using social media, restaurant website, menu

engineering, card tracking, employee training, corporate tie-up, and service quality. Frequency,

percentage and ranking were used. The following formula was used in percentage:

P=(f / n) (100)

Where;

P= percentage

f= total frequency of responses

n= total number of cases

To describe customer retention practices the following scale was utilized.

1= Strongly disagree
2= Disagree

3= Neutral

4= Agree

5= Strongly agree

Table 2

Interpretation guide for the assessment of customer retention practices

Numerical Rating Range Description

5 4.3-5 Strongly agree
4 3.5-4.2 Agree
3 2.7-3.4 Neutral
2 1.9-2.6 Disagree
1 1-1.8 Strongly disagree
 Chapter 4

RESULTS AND DISCUSSION

This chapter presents, interprets, and analyzes the data gathered with the procedures and

statistical treatments described in Chapter 3. The data were arranged in accordance with the

statement of the problems raised.

From the Coffee Shops in Tarlac City, 67 responses were gathered from the Coffee

Shop owners/managers. Following interpretation is of the same collected responses converted

into pie and bar diagram for easier understanding.

Table 3

Business Operation

Business Operation f
1 to 6 months 11
7 months to 1 year 21
1 year and above 35
Total 67
 Data given above was showing how long those 67 respective coffee shops had been in

operation, 35 which is equivalent to 52.2% got the highest answer which means that a lot from

them had been in operation from 1 year and above that means even before the lockdown

happened, they’ve been in business operation already and they gain a lot of experiences upon the

operating their business. The next one had a 21 which is equivalent to 31.3% answer the 7

months to 1 year in business operation all of them had been a witness and suffered because of the

lockdown. Lastly, was the 1 to 6 months in business operation which had a 11 equivalent to

16.4% answer they are the newbies in the business operation who operates right after the

lockdown.

Table 4

Type of Business

Type of Business f
Independent 52
Chain 5
Franchise 10
Total 67

Data shown above was the type of business those coffee shop establishments are and

most of them are Independently owned answered by 52 respondents which means the business

operation that being implemented on that specific business is controlled like the decisions being

made the new ideas and new practices to be use is going to decide by the owner itself. The next

one got an answer of 10 which is the franchise meaning this business establishment is being

owned by someone originally and they are letting you to buy a franchise and being able to be

part of their expanding success at some point there are certain conditions that you should follow

as a franchisee but nonetheless you are to decide what practices you are able to use in order of
course to retain your customers. Lastly, is the chain who had only 5 answers this are those

business establishments that owned by a big corporation or company they control the rules and

terms of your business because they own it at the first place you are just there to work all the

practices are provide, they are the one to decide what to do and you are just there to implement

it.

Table 5
Business Employees

Business Employees f
1 to 5 50
6 to 10 13
11 to 15 2
16 to 20 1
21 and above 1
Total 67

Data given above shows the number of employees do the respective coffee shops had, 50

respondents answered they only had 1 to 5 employees because some of them are just small and

new to the business, to be followed by 13 respondents who answered 6 to 10 employees they are

the once who had a bit bigger business establishment which need an extra manpower to operate

properly. There are 2 respondents answered 11 to 15, namely hey brew café and teacoff klatch

which are one of the biggest and beautiful coffee shops here in Tarlac City. 1 respondent

answered 16 to 20 namely the Café Isabela they garnered the second highest number of

employees because it’s an extension of Westwood Farm Events and Accommodation which is a

very beautiful private establishment and another 1 respondent answered 21 and above namely the
Café Teodora they garnered the highest number of employees because they are not just like a

coffee shop business establishment they also operate as an extension to L square Hotel.

Table 6

An Assessment of Customer Retention Practices of Coffee Shops

Practices WM Description
Customer database plays an important role to reach existing 3.63 Agree
customers during the launch of a new product or while
promoting the new offer.
By tracking customer complaint on time it helps to retain the 3.78 Agree
customer and by doing so it will help to spread the positive
mouth publicity about the organization.
Direct interaction helps to understand the need of the 4.09 Agree
customer. This practice resolves the issue immediately
therefore it is also one of the vital customer retention
practices.
A well-designed and well-executed loyalty programs can help 3.82 Agree
you retain existing customers, attract new customers, reduce
turnover and drive profits.
An effective digital marketing holds huge potential in 3.84 Agree
attracting new orders, as well as solidifying your relationship
with your existing customer base.
The use of social media specially on a business has a huge 4.22 Agree
impact on today's generation. It is very easy to reach to
potential customers.
Using a restaurant website, it gives you control over the image 4.03 Agree
of your restaurant. It gives a restaurant the platform to tell
their own story, in their own words (unlike third party sites).
Customers will get a good idea of who you are, as well as get
an idea of the overall atmosphere of the restaurant.
Some items are more costly than others, but most 3.85 Agree
establishments will have a range of prices that all the menu
items fit into. Menu engineering is important to balance the
menu so that the low and high food cost items work together
 to help you reach your target food cost.
Using a comment card tracking is a best way on how you can 3.39 Neutral
get your customer's opinions about their experience. Knowing
that customer feedback can be crucial if you're a business
owner.
Not only is it a real investment for the restaurant but well- 4.10 Agree
trained employees help to build a better reputation for the
establishment.
The partnership between corporate and developer has always 3.60 Agree
been a win-win venture for both sides. It help complement
your skills and create the necessary balance between strengths
and weaknesses.
High quality services are an important factor leading to the 4.18 Agree
business success. Thus, understanding restaurant customers
and heaving in mind the importance of service attributes are
important criterions for gaining competitive advantages in
restaurant marketplace.
Grand Mean 3.56 Agree

The data shown above shows the 12 practices that the coffee shops were able to use to

satisfy and retain customers in their coffee shop business. There are 67 respondents being asked

to choose which of those practices they think have been helpful for them. By answering in the

form of a likert scale form of question, they can choose between 1 to 5 answers, representing

numbers 1 as strongly disagree, 2 as disagree, 3 as neutral, 4 as agree, and 5 as strongly agree.

The result of the customer retention practices being answered that they believed and agreed with

was the following: the use of social media has the highest answer with a total of (4.22). They

believe that the impact of social media on their business is huge, especially in this generation,

and that it is easier to reach and retain lots of customers by the means of this platform. Second,

with a 4.18 rating, it is a high-quality service. They believe that having this attribute is very

important to practice and enhance even more to have a good impression on your customers,

which can lead to customer satisfaction and retention. The third practice that had the most

strongly agreed answer was employee training (4.10). They believe that it is a real investment,
but most especially that it helps to build a better reputation in your business. Direct interaction,

which had a 4.09, explains why it is the most vital customer retention practice. It helps one

another communicate properly and solve any issues immediately, and we are glad that we can

now practice this but in a new, normal manner. Using a restaurant website had a (4.03). They

believe that having your own platform gives you the ability to control how you present yourself

to specific customers. They believe that balancing your menu can help you lower your costs,

which means you can gain more profit from proper product costing, and they had (3.85) answers.

Having an effective digital marketing strategy helps you to attract your customers and stay in

touch with them. If you have their information, it’s easy for you to reach them. It had a 3.84%

answer. Respondents believe that a well-designed and well executed loyalty program can make

your customers comeback and even invite new ones once it has a (3.82) answer. By tracking

customer complaints, you can monitor and change what's good and bad in your services, and

they believe that it’s a huge help in order to not make any unnecessary mistakes towards your

customers. It has a (3.78) answer. Respondents believed in what customer databases can give and

the benefits they can bring towards promotion of your business and a lot more. By keeping all of

this data, you can implement a new plan towards your business, and it has a (3.63) answer.

Respondents believe that having a partnership makes you feel supported, especially when you’re

new to this industry. Others decide to make a partnership with someone as a better option and it

has a (3.60) answer. Lastly, is using comment card tracking. It is also a digital way of gathering

opinions about your customers, but somehow our respondents are not choosing it as the most

vulnerable way to retain customers. It had a (3.39) answer.

With an average mean of 3.56, the respondents generally "agreed" in terms of the

customer retention practices in their business establishments.

 Table 7

Practices f Rank
Building a Customer Database 26 5.5
Tracking Customer Complaint 17 11
Face to Face Interaction 25 6
Loyalty programs 20 10
Phone/Email/ SMS marketing 22 8
Using social media 29 4
Restaurant website 23 7
Menu Engineering 26 5.5
Comment Card Tracking 21 9
Employee Training 36 2
Corporate Tie –up 32 3
Service Quality 51 1
Ranking of Customer Retention Practices

According to the data presented and gathered above, there are five practices being

identified that had the greatest impact on customer retention. Data collected from 67 respondents

who are coffee shop owners or managers in Tarlac City revealed that out of the total respondents,

51 answered that service quality had a greater impact on customer retention because they

believed that having a high quality of service in your business establishment may lead you to a

good impression towards your customers and every moment that they were able to visit you was

a good experience, which may cause a possible comeback sooner or later. Out of 67 respondents,

36 answered employee training. Making sure that all your employees have undergone proper

training, such as correct manner, mastery of what they are doing, and boosting their confidence
to communicate with customers in a highly polite manner is a very important practice to consider

as an owner. In our situation right now, we are restrained to follow the safety protocols

implemented by our location government unit here in Tarlac City. Out of 67 respondents, 32

answered corporate tie up because they believed that having a partnership with large names helps

them, especially the ones that are just starting to put up a little business of their own and need

support to provide them with capital and a line of the name of that developer towards their

business to be easily recognized by a lot of people and potential customers. Out of 67

respondents, 29 said that using social media for business is a huge help in making a good

impression on this platform because, nowadays, it is one of the easiest ways to approach and

promote your business. Out of 67 respondents, 26 answered menu engineering and customer

database because they believed that those two practices had an impact on customer retention in a

way that in menu engineering is the way that you balance your pricing to fit the exact amount of

price your products should be. It helps you to be organized in the money that comes in and

comes out of your business. On the other hand, a customer database helps you reach out to your

customers in a way that you can collect all their data upon buying your products, which can lead

you to a plan to change or improve your services if something is not working for you anymore to

retain your customers and possibly attract a new one.

 Figure 2

Customer Retention Practices Continued After Lockdown

Based on the data given above, most coffee shops in Tarlac City use social media as a

main platform to promote their business, which had a total of 63 answers, equivalent to 94%. It

plays a vital role, especially in this time of pandemic, when many business establishments have

been really affected by the implementation of the lockdown. It's hard to retain customers after

what happened, but with the help of social media, little by little, you will see a huge factor in

terms of customer retention and potential customers noticing our business again. Service quality,

which had 62 answers equivalent to 92.5%, is always being considered by customers every time

they visit a business establishment like a coffee shop. High quality services are the ones they

look up to, aside from the products that you can offer them. That is why you need to maintain to

practice this accordingly. Direct or face-to-face interaction had a 54 answers equivalent to

80.6%, although the new normal limits the interaction between employees and customers with
the reopening of the coffee shops after following all the restrictions. A better understanding is

achieved by the means of this process. That’s why it is always considered the best way to

customer retention. It is as important as using social media because the power of technology

nowadays is very useful and advantageous towards anything else, especially in business. By

using a restaurant website, you can monitor your business and control the image of your business

establishment that you’ve wanted to share on your website, which can be seen by a lot of people.

Phone/E-mail/SMS Surveying is another effective way to strengthen your personal connection

with your customers. Employee training had a 40-answer equivalent to 59.7%, corporate tie-up

had a 32-answer equivalent to 47.8%, and loyalty programs had a 31-answer equivalent to

46.3%, which are very helpful practices to retain customers. Menu engineering had 28 answers

equivalent to 41.8%, tracking customer complaints had 27 answers equivalent to 40.3%, building

a customer database had 25 answers equivalent to 37.3%, and comment card tracking had 12

answers equivalent to 17.9%, which had the most list answers.

Table 8

Implementation of New Customer Retention Practices

Implemented New Practices f

Yes 34
No 33
Total 67

The data given above shows that apart from the practices that are being presented, did

they implement any new ones in the new normal business operation? 33 respondents answered

"No," equivalent to 49.3%, meaning they retained all the practices that were used all throughout
their business operation before the lockdown ended and 34 respondents answered "Yes,"

equivalent to 50.7%. Upon answering "Yes," a follow-up question is being asked to know what

new customer retention practices their organization has been implementing after the lockdown.

As per the responses being gathered from the respondents, they started to execute the safety

protocols implemented by our local government unit to fully operate after the lockdown. Such as

wearing a facemask and face shield practice, as well as the 1-meter social distance, providing a

thermal scanner, alcohol for sanitation, and, of course, having enough customers who are

allowed to enter your business establishment. There are also many coffee shops that have

adapted to online delivery services and have partnered with online delivery services such as Food

Panda, Grab Food, and others to help their businesses, and some are well-known for their health

products. They offer or share information that will help people achieve their health during these

times. Their probiotic products had given them a stronger reputation for their care in the

community.

Table 8 shows that among the respondents who answered that they would implement new

practices after the lockdown, a lot of them chose to use the online delivery service platform and

follow the safety protocols implemented by our local government unit. Therefore, we can totally

draw an implication that the customer retention practices lead the coffee shops to continually

operate even though the situation is different because of the COVID-19 virus. It makes the coffee

shop owners and managers more versatile and flexible in terms of implementing new practices

towards their respective business establishments to satisfy and retain their customers and even

invite new ones.

Chapter 5

CONCLUSION AND RECOMMENDATION

Summary of Findings

The findings of the study were summarized according to the statement of the problems

stated in Chapter 1:

1. The researchers found out that most of the coffee shops had been in operation for 1 year and

above with a total of 35 answers. For the question what type of business operation those 67

coffee shops are most of the answers are Independent with a total of 52 answers. For

business employees most of the answers are from an average of 1 to 5 employees only.

2. The researchers found out that among those 12 practices that are given to the 67 respondents

they generally agreed with a total of 3.56 mean average in terms of the assessment of

customer retention practices. In ranking those customer retention practices service quality

leads the top spot that had greater impact on retaining customers while comment card

tracking was on the bottom spot, they somehow found it as the least to consider in terms of

the retention of customers. While the result of the figure 2 which among those practices

they’ve continued in the new normal business operation still service quality leads the highest

answers with 62 (92.5%) and the least is comment card tracking as well with 12 (17.9%)

answers. The respondents are also asked if the implemented new practices in the new normal

business operation 33 respondents answered No while 34 respondents answered Yes, they

did upon answering Yes, a follow up question is being asked what those practices are, they

answered using the online delivery services, following the safety protocols and offer or

shares information that will help the people achieve their health during these times.

3. The respondents found out that those practices are being helpful for them to operate and

manage properly their business specially those who got the highest percentage and average
 of answers. These practices are important whether the situation is in the new normal or not

the coffee shop owners/manager will always find a way to satisfy and retain their customers.

Conclusions

The following are the conclusions made based on the findings obtained:

1. Majority of the Coffee Shops in Tarlac City have been operating for about a year and

above. The managers/owners of Coffee shops in Tarlac City preferred to have fewer

employees such as 1 - 5 only than to have more.

2. Management of these Coffee Shops believed that the use of social media platforms were

able to promote and persuade more customers in their coffee shop businesses - wherein

social media platforms play a huge role and give a great impact to everyone using it.

Majority of the respondents from the Coffee Shops agreed that service quality has a

greater impact on customer retention because they believed that having a high quality of

service in your business establishment may lead you to a good impression towards your

customers and every moment that they were able to visit you was a good experience,

which may cause a possible comeback sooner or later. Respondents showed that apart

from the practices being presented, almost half of them have agreed that there are also

new practices being used to help the coffee shops retain their customers in the new normal

business operation.

3. Customer retention practices are helpful for the coffee shop owners/managers to satisfy

and retain customers.

Recommendations:
Based on the findings and conclusions, the following are recommended by the researcher:

1. Cafe managements must promote employee engagement even if they only have 1-5

employees. Employee engagement is defined as an individual's good attitude toward their

business and its culture. Because a genuinely engaged employee understands the business

environment and collaborates with all stakeholders to improve both individual and

organizational performance.

2. The organization should solicit feedback from its customers every year to see if the

business is doing a good service and good food quality so that the business will know

what they need to improve. And a prompt reaction to a customer complaint will assist to

keep the customer.

3. Since social media has a significant impact in promoting coffee shop businesses,

businesses should continue to use it as their platform to attract more customers. By

publishing on their social media pages, cafe restaurants may advertise its deals, discounts,

and promotions. It assists the consumer in gaining further knowledge and information

about the organization.

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restaurant
 Appendix A

TARLAC STATE UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY
DEPARTMENT OF HOSPITALITY AND TOURISM MANAGEMENT
Lucinda Campus, Tarlac City

November __, 2021

Dear Respondents:

We the undersigned students are currently undertaking research entitled:

Customer Retention Practices of Coffee Shops in Tarlac City in partial fulfillment of the
subject Research in Hospitality (TPC 8).

In this regard, we the undersigned would like to solicit your outmost cooperation
by answering the attached questionnaire to generate the data to achieve the objectives of
the study.

Rest assured that any information gathered will be used for research and your
identity with be kept with outmost confidentiality.

Thank you very much for your great support and contribution to this study.

Truly yours,
Bognot, Alexander G.
 Martin, Blessie Mae E.
Mercado, Dalton Mayo D.
Papa, Maria Angelika DC.
Pascual, Kara Mina E.

Noted by:
Dr. Criselda Alamo-Tonelada, CHE
Subject Teacher/ Program Chairperson,TSU-HTM Department

Appendix B

Dear Mr. and Ms.,

We are 4th year Hospitality and Management students from Tarlac State University. As
a course in Research in Hospitality (TPC 8), we are conducting a research entitled,
Effects of COVID-19 Pandemic to Costumer Retention Practices of Coffee Shops in
Tarlac City as our thesis paper. Your participation can support us to gain data for the
effects of COVID-19 pandemic to managers/owners of coffee shops. Rest assured that
the information you would be giving out will be confidential.

Thank you so much for your valuable support.

Questionnaire for the coffee shop manager/owner.

1. Name of the manager/owner? (optional)

2. Name of the coffee shop?

3. How long has your business been in operation?

a) 1-6 months
b) 7 months- 1 year
c) 1year and above

4. What type of restaurant is your business?

5. How many employees do you have in your business?

a) 1-5
 b) 6-10
c) 11-15
d) 16-20
e) 20 and above

6. An Assessment of Customer Retention Practices of Coffee Shops

Practices Strongly Disagree Neutral Agree Strongly

Disagree Agree
Customer database plays
an important role to reach
existing customers during
the launch of a new
product or while
promoting the new offer.

By tracking customer
complaint on time it helps
to retain the customer and
by doing so it will help to
spread the positive mouth
publicity about the
organization.

Direct interaction helps to

understand the need of the
customer. This practice
resolves the issue
immediately therefore it is
also one of the vital
customer retention
practices.

A well-designed and well-

executed loyalty programs
can help you retain
existing customers, attract
new customers, reduce
turnover and drive profits.
An effective digital
marketing holds huge
potential in attracting new
orders, as well as
solidifying your
relationship with your
existing customer base.

The use of social media

specially on a business has
a huge impact on today's
generation. It is very easy
to reach to potential
customers.

Using a restaurant website

it gives you control over
the image of your
restaurant. It gives a
restaurant the platform to
tell their own story, in
their own words (unlike
third party sites).
Customers will get a good
idea of who you are, as
well as get an idea of the
overall atmosphere of the
restaurant.

Some items are more

costly than others, but
most establishments will
have a range of prices that
all the menu items fit into.
Menu engineering is
important to balance the
menu so that the low and
high food cost items work
together to help you reach
your target food cost.
Using a comment card
tracking is a best way on
how can you get your
customer's opinions about
their experience. Knowing
that customer feedback
can be crucial if you're a
business owners.

Not only is it a real

investment for the
restaurant but well trained
employees help to build a
better reputation for the
establishment.
The partnership
between corporate and
developer  has always
been a win-win venture for
both sides. It help
complement your skills
and create the necessary
balance between strengths
and weaknesses.

High quality services is an

important factor leading to
the business success. Thus,
understanding restaurant
customers and heaving in
mind the importance of
service attributes are
important criterions for
gaining competitive
advantages in restaurant
marketplace.

7. Which of the following customer retention practices has more impact on customer
retention? (please rank them accordingly 1st is most important and 12th is the least
important

1 2 3 4 5 6 7 8 9 10 11 12

Building a Customer Database

Tracking Customer Complaint
Face to Face Interaction
Loyalty programs
 Phone/Email/ SMS marketing
Using Social Media
Restaurant website
Menu Engineering
Comment Card Tracking
Employee Training
Corporate Tie –up
Service Quality

8. Which of the following customer retention practices your organization has

continued after the lockdown?

Building a Customer Database

Tracking Customer Complaint
Face to Face Interaction
Loyalty programs
Phone/Email/ SMS marketing
Using Social Media
Restaurant website
Menu Engineering
Comment Card Tracking
Employee Training
Corporate Tie –up
Service Quality

9. Apart from above practices do you implement any new practices in the new normal
business operation?

a) Yes
b) No
 10. What are the new customer retention practices implemented at your organization
in the new normal business operation?

CERTIFICATE OF EDITING

This is to certify that the paper titled

CUSTOMER RETENTION PRACTICE OF COFFEE SHOPS IN TARLAC

CITY
Written by

Alexander G. Bognot
Blessie Mae E. Martin
Dalton Mayo D. Mercado
Maria Angelika DC. Papa
Kara Mina E. Pascual

Has been checked, proofread, and edited for the accuracy of language and grammar use.

Neither the research content nor the authors were altered in any way during the editing

process.

Given this 16th day of May 2022.

LESTER VIC A. PASCUA, LPT

Language Critic
 Curriculum Vitae
Kara Mina Ensoy Pascual
Leader
Home Address: Purok 2 Palacpalac, Victoria, Tarlac
Contact Number: 0956-8539-518
E-mail Address: gkaramina08@gmail.com

___________________________________________________________________
Career Aim: I am looking forward for a suitable and challenging employment, one that will build my skills
and/or experiences and gives me the opportunity of developing it.

EDUCATIONAL BACKGROUND
Bachelor of Science in Hospitality Management
College of Business and Accountancy

Tarlac State University

Tarlac City

2018 at present

Senior High School Diploma

Technical Vocational Livelihood – Home Economics

Victoria National High School

San Gavino, Victoria, Tarlac

Completed 72 units

2017-2018

Junior High School Diploma

Victoria National High School

San Gavino, Victoria, Tarlac

2015-2016

Elementary School Diploma

Palacpalac Elementary School

Palacpalac, Victoria, Tarlac

2011-2012

WORK EXPERIENCES

Student Assistant
Jose V. Yap Library
Tarlac State University Lucinda Campus
Binauganan, Tarlac City
August 2019 – December 2019

Jojo’s Catering and

Services
Work Immersion
San Fernando, Victoria, Tarlac

November-December 2017

SEMINARS

Project 3B: Building from the Ground Up: Begin, Believe, Become
Hospitality and Tourism Management

College of Business and Accountancy

Tarlac State University

Via Zoom

November 28, 2020

Advancing Career Beyond Regions

College of Business and Accountancy
Tarlac State University

Via Zoom

October 28, 2020

Journey of a Millennial Business Professional

College of Business and Accountancy

Tarlac State University

Via Zoom

October 28,2020

Leadership and Self-Employment

College of Business and Accountancy

Tarlac State University

Via Zoom

October 22, 2020

WORKSHOPS

Seminar- Workshop on
Emergency
Preparedness and Response
Tarlac State University

TSU Lucinda Campus Covered Court, Binauganan, Tarlac City

March 02, 2019

Molding the Competencies towards the Development of our Youth

Vista Marina Hotel and Resort Subic Bay
Subic, Zambales
November 18, 2018

Pre-Employment Orientation Seminar- Workshop

Department of Labor and Employment
Philippine Overseas Employment Administration
 Victoria National High School

San Gavino, Victoria, Tarlac

November 13, 2017

TRAININGS ATTENDED

Values Integration and Promotion- Civic Welfare Training Service I and II

National Service Training Program

Tarlac State University Gymnasium, Tarlac City

May 27, 2019

National Certificate Level II in “BREAD AND PASTRY PRODUCTION”

Technical Education and Skills Development Authority

Certificate No. 17036902004247

Issued on: May 11, 2017

DISTINCTIONS/CITATIONS

With Honors
Senior High School

Victoria National High School

San Gavino, Victoria, Tarlac

2017-2018

With Honors
Palacpalac Elementary School

Palacpalac, Victoria, Tarlac

2011-2012

PERSONAL DATA
Nickname : Kara
Date of Birth : March 08, 1999
Place of Birth : Bulacan City
Height : 5’2” (157.48 m)
Weight : 99. 208 lbs.
Blood Type :O
Citizenship : Filipino
TIN No. : 772434218

CHARACTER REFERENCES

 CHRISTIAN TELL YAP

Municipal Mayor
Victoria, Tarlac

 MR. ANGELITO MAGAT

Principal
Victoria National High School San Gavino, Victoria, Tarlac

 BONIFACIO FRANCISCO
Barangay Captain
Palapalac, Victoria, Tarlac

I hereby certify that all information is true and correct to the best of my knowledge.

Kara Mina E. Pascual

Applicant’s Signature

Member
Curriculum Vitae

BOGNOT, ALEXANDER G.
Contact Details:
Home Address: Blk. 3 San Jose, Tarlac City
Contact Number: 09638942814
E-mail Address: ugabognot@gmail.com

_____________________________________________________________________________________
_____________

Career Aim: “To acquire a long-term career that allows utilization of my skills and capabilities thereby
achieving personal and organizational goals.”

EDUCATIONAL BACKGROUND

Tertiary
Bachelor of Science in Hospitality Management
Tarlac State University
Tarlac City
2018-Present

Senior High School

Accountancy and Business Management
Our Lady of Ransom Catholic School
Tarlac City
2018

Junior High School

Our Lady of Ransom Catholic School
Tarlac City
2016

Elementary School
Sto . Cristo Integrated School
Tarlac City
2012
WORK EXPERIENCES
Radio Maria
Work Immersion
2018

SEMINARS
Anti-bullying, Our Lady of Ransom Catholic School, 2015
Drug Awareness, Our Lady of Ransom Catholic School, 2016
“Leadership Seminar, STEP TSU” Tarlac State University, Lucinda Camp, 2018
Forum on Nuclear Energy, 2020

PERSONAL DATA

Nickname : “Bogs”
Date of Birth : November 7, 1999
Place of Birth : Tarlac City
Gender : Male
Civil Status : Single
Citizenship : Filipino
Blood type : O
Religion : Catholic
Height : 5’5”
Weight : 85kgs

CHARACTER REFERENCE/S
Sir Renato Dugo
High School Teacher
09555321825

Sir Alan Cawigan

High School Teacher
09638942814
 I hereby confirm that the information above are true and correct to the best of my knowledge.

ALEXANDER G. BOGNOT
Applicant’s Signature

Member

Curriculum Vitae of

BLESSIE MAE ESGUERRA MARTIN

Contact Details:
Home Address: Bobon 1st, Camiling, Tarlac
Contact Number: 0921-4987-079
E-mail Address: blessiemartin45@gmail.com
______________________________________________________________________________

Career Objective: To enhance and develop my skills in my chosen field as well as to gain
new experiences for personal growth.

EDUCATIONAL BACKGROUND

 Tertiary
Bachelor of Science in Hospitality Management
Tarlac State University
Romulo Boulevard, Tarlac City
2018- Present

 Senior High School

Accountancy and Business Management
Camiling Catholic School, Inc.

Arellano Street, Camiling, Tarlac

2016 – 2018

 Junior High School

Accountancy and Business Management
Camiling Catholic School, Inc.

Arellano Street, Camiling, Tarlac

2012 – 2016

 Primary School
Bobon 1st Palimbo Proper Elementary School
Bobon 1st Camiling, Tarlac
2006-2012
WORK EXPERIENCES

 Work Immersion
Local Government Unit of Camiling (Business Permit & Licensing Office)

Camiling, Tarlac

January 2018

SEMINARS

 Forum on Nuclear Energy

Tarlac State University
October 2020

 Project 3B: Building from the ground up: Begin, Believe Become
Tarlac State University
November 2020

PERSONAL DATA
Nickname : Mae
Date of Birth : March 22, 2000
Place of Birth : Camiling, Tarlac
Height : 5’5” (165.1 m)
Weight : 110 lbs.
Civil Status : Single
Passport : P2017251A

CHARACTER REFERENCES
Mr. Rojen Agustin
 Tarlac State University (TSU) IT Instuctor
Malvar Strret Poblacion B, Camiling, Tarlac
09152589810

Mrs. Jennifer Ulanday

Facial Specialist at Vain AESTHETIC & Spa
Quezon Avenue Poblacion A, Camiling, Tarlac
09275048153

I hereby certify that all the information stated above are true and correct to the best
of my knowledge and belief.

BLESSIE MAE E. MARTIN

Applicant’s Signature

Member

Mercado, Dalton Mayo D.

Contact Details:
Home Address: Cope Alfonso Concepcion Tarlac
Contact Number: 0915-9183-758
E-mail Address: daltonmayomercado40@gmail.com
Career Aim: To secure a challenging position in a reputable organization and to expand my
learnings, knowledge, and skills.

EDUCATIONAL BACKGROUND

 Tertiary
Bachelor of Science in Hospitality Management
Tarlac State University
Tarlac City
2018-Present
 Senior High School
Accountancy and Business Management
Concepcion Catholic School
Concepcion Tarlac
2018
 Junior High School
Concepcion Catholic School
Concepcion Tarlac
2018
 Elementary
Concepcion North Center Elementary School
Concepcion Tarlac
2012

WORK EXPERIENCES
 Production(Work Immersion)
 Assistant Manager
 Seller(Part time job)

SEMINARS
 HIV AWARENESS (CONCEPCION TARLAC)
 FORUM ABOUT NUCLEAR ENERGY,2020(TARLAC STATE UNIVERSITY)
 EMPOWERING THE YOUTH AGAINST CYBERBULLYING

PERSONAL DATA

Nickname : Ton
Date of Birth : May, 13, 2000
Place of Birth : Concepcion, Tarlac
Height : 5’5
Weight : 49kg
Blood Type :O

CHARACTER REFERENCES

 Dianne Melo D. Mercado

Bank Teller
 Renato Mercado
Teacher, Tarlac State University

I here by certify that all information is true and correct to the best of my knowledge.
 DALTON MAYO D.
MERCADO
Applicant’s Signature

Member

Curriculum Vitae of
MARIA ANGELIKA DC. PAPA
Contact Details:
Home Address: Manaquem Camiling, Tarlac
 Contact Number: 0956-2831-185
E-mail Address: papamariaangelika@gmail.com
_____________________________________________________________________________________

Career Aim: To make use my interpersonal skills to achieve goals of a company that focuses on
customer satisfaction and customer experience.

EDUCATIONAL BACKGROUND

 Tertiary
Bachelor of Science in Hospitality Management
Tarlac State University
Romulo Boulevard, Tarlac City
2018-Present

 Senior High School

Accountancy and Business Management
Camiling Catholic School, Inc.
Arellano Street, Camiling, Tarlac
2016-2018

 Junior High School

Camiling Catholic School, Inc.
Arellano Street, Camiling, Tarlac
2012-2016

 Primary
Camiling Central Elementary School
Camiling, Tarlac
2006-2012

SEMINARS

 PROJECT3B: BUILDING FROM THE GROUND, UP: BEGIN, BELIEVE, BECOME

Via Zoom
November 28,2020
WORK EXPERIENCE
 TRAINING/ OJT ( ON THE JOB TRAINING )
Office of the Municipal Treasurer
Camiling, Tarlac
2017

PERSONAL DATA
Nickname : Lala
Date of Birth : September 15, 1999
Place of Birth : Camiling, Tarlac
Height : 5’0 (152.4 m)
Weight : 99.21 lbs.
Civil Status : Single

Passport : P4251051B

CHARACTER REFERENCES
 MS. VIMMAE MOHAM R. PAGATPATAN, LPT
High School Teacher
09954999050
Camiling Catholic School, Inc.

 MR. JAYSON E. MARTIN

Project Engr. Smart Communication. Inc.
Makati
09217368141

I hereby certify that all information is true and correct to the best of my knowledge.
Maria Angelika DC. Papa
Applicant’s Signature