CHAPTER I

INTRODUCTION AND ITS BACKGROUND

A customer is an organization’s most valuable but cheapest kind of advertising tool. They do this by
marketing through words of mouth. This is possible if customers are all happy and satisfied with the service.
Keeping customers happy should be the foremost principle of every restaurant. The primary focus of every
restaurant is its customer service by having good feedback and making customers’ satisfied. Good service is
vital for any restaurant and can be shown building a strong customer base. There are many ways a restaurant
can offer good customer service to patrons. It does not matter how fabulous the restaurant decoration is or how
delicious the food is, if the service does not meet or exceeds customers’ expectations, then there is a chance that
they will not come back anymore. Customer satisfaction covers different aspects of restaurants’ day to day
operations.

According to Gadais (2005), every customer is the foundation of any business' success. The primary
focus of every restaurant is its customer service by having good feedback and making customers’ satisfied.
Good service is vital for any restaurant and can be shown building a strong customer base. There are many
ways a restaurant can offer good customer service to patrons. It does not matter how fabulous the restaurant
decoration is or how delicious the food is, if the service does not meet or exceeds customers’ expectations, then
there is a chance that they will not come back anymore. Customer satisfaction covers different aspects of
restaurants’ day to day operations. By prioritizing the needs of the customers, there will be an increase of
customers’ retention. The whole staff should be involved in achieving a good customer satisfaction feedback
such as clean restrooms, good food, and a friendly and inviting atmosphere.

According to Gunderson, heiden and Olsson (2002) customer satisfaction

commonlydescribe as a post consumption valuate judgement as for specific product or service.
A. Historical Background

Mang Inasal is one of the most prosperous fast-food chains in the Philippines. Founded by Edgar
“Injap” Sia II, it started its operations in Iloilo City, Philippines, and the number of branches
currently continues to grow in number. Right from the start, Mang Inasal was already able to
catch the attention of the Filipinos since its products are mostly, if not entirely, Filipino in nature.
Because of its increasing number of branches around the country, Mang Inasal provides
numerous job opportunities to many, whether the available opportunities are on the supplier, the
management, or the employees. To date, Mang Inasal has over 450 stores nation wide and
counting. The brand has garnered numerous awards over the years, including the Outstanding
Fast Growing Local Food Company from the 19th Annual National Consumers Awards in 2008,
the Most Outstanding Quick Service Restaurant and Most Outstanding Chicken Inasal restaurant
from the 2010 Dangalng Bayan Awards, and the Outstanding Filipino Franchise Award from the
2015 Franchise Excellence Awards. Mang Inasal now lays the foundation for anew era of
prosperity, moving forward to a horizon of possibilities as the brand continues its winning
tradition of excellence.

In making marketing you must need to identify what are the needs and wants of the customer, in
matters of taste that they like, the trend and the unique one. In Mang Inasal the marketing strategy
that they have are the "unli rice" it’s more popular to customer because they can save money for
the extra rice and the other one is the "pagkakamay" instead of using spoon and fork your able to
use your hand in eating and the last one is the free "sabaw" while you are waiting to your order
they served you a hot soup that make you relieve your hunger. This only the few strategies that
they have that are more popular to customers. In terms of food they have a lot of delicious
delicacies the most famous chicken inasal, palabok, sisig weather its pork or fish, halo-halo, miso
soup and a lot of more that are own Filipino foods.

Mang Inasal in Malanday Branch started their operation on April 12, 2017. The franchise cost of
Mang Inasal is six million pesos with its name alone. The branch manager is looking positively
for a return of their investment in at least a year of their existence. They have 17 employees
composed mostly of males because most of the works inside the restaurant are suited for males.
Their target markets are travelers, but on ordinary days, their customers are composed mostly of
students and employees. This study attempts to determine the factors in which Mang Inasal has
low customer evaluations in order to identify the areas needed to be improved.