ANALYZING THE VARIABLES INFLUENCING THE SALES PERFORMANCE OF THE POTATO

CORNER TABACO BRANCH

A Case Study Analysis

In Partial Requirements in Strategic Management

B.A 2

Members

Madelyn B. Bermas

Christian M. Buere

Jane Carla C. Borromeo

Rex C. Quicay

Emmarie Bayaban

Cristel M. Caño

Pamela Jean Trilles

Jhon Cris Buella

FM-3D

MARIAN LOU B. BERMILLO

Instructor

Introduction

Potato (Solanum tuberosum ) is grown in 130 countries worldwide including the Philippines.
It is grown for its tubers, which are rich in phosphorus and vitamins B1, B2, and C. Reports

showed that a potato crop produces more edible energy and protein per hectare and per unit of
time than practically any other crops (DOST, 2007). The major potato production in the

Philippines is concentrated in high elevations particularly in Benguet and Mountain Province with a

temperature below 21oC. This temperature is suitable for development of quality potato tubers.

The major potato producing municipalities of Benguet Province are Atok, Bakun, Buguias, Kabayan,

Kibungan and Mankayan and Bauko, Mountain Province. Benguet is represented by different agro-

ecological zones suiting the production of high value vegetable crops that are globally competitive.

Potato is one of the important high value crop in Benguet and some parts of Mountain Province.

However, at present Philippine production cannot meet the demand due to the increasing number of

fast-food chains, hotels, and local potato-based snacks food manufacturers. Potato is generally a

cool-season crop grown in areas with elevation ranging from 1000 to 8000 meters above sea level.

The growth of potato is greatly affected by temperature, day length, humidity, and soil conditions

Potatoes are used for a variety of purposes, and not only as a vegetable for cooking at home. In fact,

it is likely that less than 50 percent of potatoes grown worldwide

are consumed fresh. The rest are processed into potato food products and food ingredients; fed to

cattle, pigs, and chickens: processed into starch for industry; and re-used as seed tubers for growing
the next season's potato crop. (www.ijeas.org)

In October 1992, Potato Corner opened its first outlet in the Philippines and started franchising the

year after. Today, in malls, schools, hospitals, bus stations, amusement parks, and even tourist
destinations in multiple countries, it has developed from small carts into in-line stores found in almost

every corner of the world. In every corner of the world, somebody wants Potato Corner. CINCO
HOLDINGS CORPORATION developed POTATO CORNER, the home of the original flavored fries. In

SM Megamall Bldg., the first business outlet on October 16, 1992, Potato Corner has won several
awards over the years, many acknowledging its outstanding business model and well-loved brand. In

2003, the Philippine Franchise Association and the Department of Trade and Industry won the
Franchise Excellence Hall of Fame Award. For three consecutive years, they won the best Franchise

of the Year and most recently won the Global Franchise Award acknowledged by the same
organization. Potato Corner is truly an iconic kid and kids-at-heart brand and a distinguished

entrepreneurial growing business. In 2001 Potato Corner branched out by franchising, the
organization plans to give everyone a chance to become entrepreneurs. ( pdfcoffee.com ). In 2010

the first Potato Corner store opened in Sta. Los Angeles, Anita in the United States and at the same
time by February, at The Columns in Makati, the first "SPUDDINER" Potato Corner opened, serving
both

Potato dishes and potato-based soup. And now at present in the Philippines, Potato Corner has
crossed over 700 stores and over 120 stores globally. (coursehero.com)

Last October 2022, potato corner was the first French fries business who introduced flavored fries to
its customers here in Tabaco City. Free tasting of their French fries is something that Potato Corner

offer for new clients. By using this tactic, they can introduce new customers to their products, and if
those customers find Potato Corner's French fries to be superior to those of other establishments,

they will eventually return and purchase the company's goods. Since the newly opened potato corner
stall here in Tabaco City is inside the LCC, it will be one of the factors that will affect their sales since

it is located in a hidden location. Another factor affecting their source of income is their small space,
which is why they don't have many customers because they don't provide tables and chairs for their

customers to sit on so they can feel comfortable unlike other restaurants that serve French fries, such
as Jollibee, McDonald's, and food park stalls, which provide comfortable seating and good ambiance.

The availability of the supply of goods is also considered as one of the factors that affect the sales
performance of potato corner.

To improve the sales performance of the potato corner, the management should find a large and open

area where many people can see it. Management should also provide a welcoming and comfortable
environment for customers. To avoid the shortage of supply, the management must have an

alternative supplier that will provide the same quality of the product in case the supply of the main
product used by the potato corner is lacking.

Potato Corner must be consistent in providing a good service in order to keep their company
successful and give the customers satisfaction in order to remain competitive in the franchising
industry.

Potato Corner, the first and the original Flavored French Fries prides itself in being a Global Brand
that serves the best-flavored fries to its customers, and by providing limitless opportunities for its
Franchises. Potato Corner follows a mission that makes and offer good to go, affordable a la carte
refreshments and consumables through franchise kiosks and serve fast, prompt, and customer-

prioritizing catering services. The company vision was to operate as the leading franchise company in
the Philippines, while maintaining standard processes and expanding menu and catering services for
every person, regardless of social status or education, to enjoy quality and innovative food concepts.
In the celebration of our 24th year, Potato Corner embodied the theme: Championing the Game,

which essentially means working our hardest to ensure that we provide quality products to our
customers and excellent service to our franchises. Our Cheese, Barbecue, and Sour Cream flavored
fries have been a staple snack for many Filipinos, as well as our friends around the world. It is our
standard to maintain top quality French Fries with the right crispiness and texture, which is then

shaken to perfection with the customer’s preferred flavor. It is because of our customers that we can
succeed as a brand. We take pride in giving our franchisees an opportunity to grow with us; we make
sure that we work together with them in ensuring that their branches reach optimum sales while

maintaining the quality of products and services that we provide our most loyal customers. With this,
we make sure that as we grow, our franchises grow with us.

Background Information

Potato Corner is to ensure that franchises have an in - depth understanding of a business and

operational techniques to use, and hand -down to employees. They need to plan so that the
organization can grow and increase their sales performance. Potato Corner, dubbed by numerous
people as the Best Flavored Fries, the outlet offer French fries with wide range of different flavors.
Potato Corner has been a leading brand in the food industry in over 25 years with more than 500

branches in the Philippines, and around the world and it is a fast food concept of Cinco Corporation,
which is based in the Philippines. Potato Corner has grown from small carts into in-line stores found
in almost every corner of the world in malls, schools, hospitals, bus stations, amusement parks, and
even tourist destinations in multiple countries. In every corner of the world, people want Potato

Corner. Potato Corner is truly an iconic brand for kids and kids-at-heart and a distinguished Business
venture for entrepreneurs. Potato Corner product is the Flavored French Fries. The first opening of
the business is through a food cart business. Usually, a food cart is shown as a mobile food set up on
the street to offer and sell street foods to passer-by.
The factor that affecting their sales is the small space and their location which is located in a secluded
area. Because of their limited space, they can only fit a small amount so only few people can go
there, and another reason is that there is no food court where customers can eat. Due to the
decreasing sales of potato corner they

came up to an idea that they should offer more flavors for the customer that they will surely like as
well as meeting the satisfaction they desired. Because the result in October was 100%, as in

exceeding the expected sales, it can be said that it was really achieved in November; however, it was
not as high as in October. The steps to take to ensure that Potato Corner has a great sales
performance are that the taste should be the same as what the taste of the first sale should be. And
then, in order to get more recognition for their business, they need to be active on social media.

According to the survey, 90% of students, employees, and netizens enjoy French fries because they

are good for our bodies, while only 10% dislike them. Their work was impacted by the pandemic, so
Potato Corner devised a strategy to grow their business. We interviewed some students; most of
them liked it, but others, such as employees and others, did not. According to an interview with a
Potato Corner employee, their sales are dependent on customers. As we constantly consider new
ways to serve our customers, we also pursue creative strategies to retain them, as any food business

should, and to overcome the challenges of the pandemic in the playful and fun manner for which the
brand is known.

Potato Corner originated in The Philippines in 1992 as a cart business. It has since expanded to
countries all over the world including; Australia, South East Asia, Kuwait, Panama, and The United
States. In 1993 opened its first franchise outlet at RAE Recto. 1995 Sour Cream & Onion flavor was

introduced PC expanded operations in Visayas Region(history of potato corner in 1992 ).1997 started
to peak established office & commissary in Bacolod City and operated more than 100 outlet
nationwide.

2001 in the other brands were introduced, PC branch out through franchising. 2007 is 1st
international outlet was opened in Jakarta, Indonesia. 2010 1st potato corner " Squid Diner" was
opened of The Columns Makati serving all potato dishes & potato based soup. 2011 is grown to 317

outlets in nationwide. 2014 is opened in Australia. 2015 reached the 500 store mark. 2016 opened in
Thailand and Panama, reached 700 stores in PH & over 200 stores internationally. In 2017 PC
opened its 1st company owned store overseas in Singapore, 1st concept store in Glorietta, Makati
which is “Potato Corner Lab", ended the year w/ more than 1,100 stores locally & 193 stores
international. 2019 opened in Myanmar & Canada (Genevieve T. Alianza 2007 Document).

Potato Corner, dubbed by numerous people as the Best Flavored Fries, the outlet soffer French fries
with wide range of different flavors. Potato Corner has been a leading brand in the food industry in

over 25 years with more than 500 branches in the Philippines, and around the world and it is a fast
food concept of Cinco Corporation, (potato corner 1992) which is based in the Philippines. Potato
Corner has grown from small carts into in-line stores found in almost every corner of the world in
malls, schools, hospitals, bus stations, amusement parks, and even tourist destinations in multiple

countries(October 1991). In every corner of the world, people want Potato Corner. Potato Corner is
truly an iconic brand for kids and kids-at-heart and a distinguished Business venture for
entrepreneurs (International Franchise brand) Potato Corner the product is the Flavored French Fries.
The first one opening of the business is through a food cart business. Usually, a food cart is

shown as a mobile food set up on the street to offer and sell street foods to (passer-by.hyper-growth
era 1993)

Another factor affecting their sales is the small space. And their location is in a small space, so few

people can go there, and another reason is that there is no food court where customers can eat.

Even though their potato corner sales decreased, because of that, more ideas came to the potato

corner for things that could be done, like adding flavors. Because the result in October was 100%, as
in exceeding the expected sales, it can be said that it was really achieved in November; however, it

was not as high as in October. The steps to take to ensure that Potato Corner has a great sales

performance are that the taste should be the same as what the taste of the first sale should be. And
then, in order to get more recognition for their business, they need to be active on social media.

We have interviewed 20 people in Tabaco City who buy at Potato Corner, usually students from
Tabaco National High, college students, employees, and others. So how often do they buy at Potato

Corner? There are 5 consumers who buy often, 10 consumers who buy sometimes, and 5 people

who buy rarely. There are 15 consumers who said that something good can be done to our bodies
because it is a vegetable, and there are 5 consumers who said it does not because it has chemicals.
The reason why they eat potato dishes is because it satisfies their taste, and some say that it is a

good source of energy.

Based on the interview, there are 90% of students, employees, and netizens who like their French
fries because they have good effects on our bodies, and only 10% don't. Based on the interview, due

to the pandemic, their work was affected, so Potato Corner made a plan to increase their business.
We interviewed some students; most of them liked it, but others didn't, like the employees and others.

Based on the interview with an employee of Potato Corner, their sales depend on customers (Tabaco

branch 2022). As we constantly think of new ways to serve the customers we also pursue creative
strategies to keep them as any food business should and hurdle the challenges of the pandemic in a

playful and fun way the brand is known for. Potato Corner thought not only entertaining its market as

the leading french fries franchise in the country, but also aiming to drive in a novel way consumer
enthusiasm for the food industry.

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Survey Questionnaire

Name ___________________________________________

Basic Instruction:
Please put a check (∕) on the space provided that best fit your answer and give the necessary

information in the blank provided if choices not given.

1. Demographic Profile of the Respondents

Age:

Gender:

____ Male ____ Female

2. General Questions Direction:

Read each question carefully. Answer the following questions by marking check (∕) to the space
provided.

1. How often do you buy potato dishes?

____Very often

____ Often

____ Sometimes

____ Rarely

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2. Why do you eat potato dishes?

____It satisfies your taste

____It is a good source of energy

____It is affordable

____It is one of the top trending foods

____It has varieties

3. How do you determine what to choose and purchase?

____ Price
____ Flavor

____ Quality

____ Texture

____ Size If other, please specify: ____________________

4. Where do you usually purchase potato dishes?

____ Fast-food chains

____ Food stalls

____ Corner stores

____ Restaurants

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5. When do you eat potato dishes the most?

____ Breakfast

____ Lunch

____ Dinner

____ Snacks

6. What type of potato dishes do you usually prefer?

____ Potato strips (potato fries)

____ Potato mojos

____ Baked potato

____ Mashed Potato

7. How willing are you to eat potato dishes with Toppings, Sauces and add-ons?

____ Very much willing

____ Much Willing

____ Willing

____ Not much willing

____ Not willing at all

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8. Sauces: (Choose only one)

____ Tomato

____ Cream

____ Barbeque

____ Cheese

____ Gravy If other, please specify: ___________________

9. How do you want us to reach you?

____Flyers

____ Posters

____ Tarpaulin

____ Social Media

10. Does potato corner satisfied your taste?

_____ Yes

_____ No

_____ Slight
 14

Alternatives

The business of Potato Corner's sales performance is a low income because their business is in a

hidden place, so people cannot see it even though they use social media to encourage people to
notice it, but that is not enough. So it is necessary to persevere and think of ways to increase their

sales performance at the potato corner. Food Stall (Potato Corner) are indicated the improve

strategies and planning for the company like they decide by adding new location while retaining
existing ones to maintain a market share or to prevent their competitors from entering the market and

also implicate numerous strategies by concerning priorities capacity, processes, flexibility, cost,

quality of work, customer contact and especially the company image, organizational management
levels that considered strategically, tactically and operationally, and implementing strategies like

services audit which the services should critically review the current delivery of services through a
comprehensive examination of existing policy in terms of corporate guidelines and standards and also

resources audit which the company resources should concentrate on the skills of people, the

capability of providers and the status of all procedures and technology. They are also aware of its
responsibilities for health, safety, and security extend beyond its personnel also they use a

maintenance method by Planned preventive maintenance (PPM) which allows maintenance to be

organized and carried out with forethought and control, based on a predefined plan informed by the
results of condition surveys and inspections. It aims to avoid or mitigate the consequences of failure

and minimize consequential costs. Market organizers believe

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there is very little stallholder or consumer food waste at farmers markets (though they feel consumer
waste is greater than stallholder waste). The majority of stallholders believe they don’t create food

waste (avoidable or unavoidable). They aim to help every Filipino own and operate a viable business

and make a substantial income from a well proven franchised system, noting that their years of
experience have enabled them to learn of the 7 P’s or Franchise Marketing which are; Product, Price,

Promotion, Place, Profile of Franchisor, Potential, Prayer of which brought them to where they stand
today.
Potato Corner to be stable, a plan B is needed to be prepared for what happens. Must have its own
location, have its own dining room, and have simple space for customers. Can move to a crowded

place, because in a hidden place there is a greater chance of business failure. One thing that can be

done to increase the sales of the potato corner is to find a place where more people can buy it, for
example, the food park in Tabaco. We know that they have space for eateries; the place is also visited

because of the street foods, etc. People don't see their business if it's just inside a mall; they can
move to the food court because it's popular with diners.

Build a business where there are many buyers and where they have been for a long time. Because

the business to be built can be seen and explored. Aside from that, a customer should be taken care

of because the first customer is more valuable than making or breaking a business because when
they enjoy it or like it, a customer will be loyal, and not only that, he can share it with his family and

other people who are satisfied with a business.

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The main competitor of Potato Corner is Jollibee and McDonald's. Where in Jollibee System wide
sales in the Philippines grew 54.2 percent in the third quarter alone while international business

expanded by 47.5 percent. Global same-store sales grew by 30.9 percent while restaurant expansion

and the acquisition of Milksha contributed 13.8 percent, McDonald's revenue for the twelve months

ending September 30, 2022 was $23.265B, a 3.27% increase year-over-year. while the Potato Corner

has more sales because they provide 11 varieties of flavors, including the best sellers: cheese, sour

cream, and BBQ, as well as special flavors like chili BBQ chili cheese, sweet corn, wasabi, truffles,
wasabi, white cheddar, and sour cheese. Jollibee and McDonalds don't have a choice in their fries, so

the sales of the potato corner are higher.

McDonald's and Jollibee are Potato Corner's primary rivals. Whereas Jollibee’s foreign business grew

by 47.5 percent while overall sales in the Philippines increased by 54.2 percent in the third quarter

alone. McDonald's revenue for the twelve months ending September 30, 2022, was $23.265B, an

increase of 3.27% year over year. Global same-store sales increased by 30.9 percent, while

restaurant expansion and the purchase of Milksha contributed 13.8 percent. The Potato Corner, on
the other hand, generates more sales due to their 11 flavor options, which include the top-selling

cheese, sour cream, and BBQ flavors as well as unique ones like truffles, wasabi, white cheddar, and

sour cheese. Since Jollibee and McDonald's don't provide a selection of fries, the potato corner sees

increased sales.
 17

In order to identify solutions to the problems and challenges, it is important to specify the strengths,

weaknesses, opportunities and threats of Potato Corner. The SWOT Analysis has been obtained from
several researches of other people that had devoted their time in analyzing Potato Corner as a

company.

The Strength of potato corner is the Established brand name that is really known worldwide. The Low

Cost / pricing ability that causes people to visit because of its prices that are very affordable. The

Crews' expertise and low investment risk that plays a significant role in the potato corner's success.

They also have customized flavors and there is a wide variety of choices in sizes and prices of

products which has been the reason why loyal customers keep coming back because they are
satisfied with the products of potato corner.

Weaknesses also come in the form of restrictions and limitations imposed by the franchisor. These
include limited product offering are Few products, lack of advertising, Customer need to wait for the

Product, Low product awareness, Lack of online presence, and Not all products are available in

every outlet. Inability to look for cheaper sources of supply due to sole sourcing from franchisor and
standardized price setting.

Opportunity is to take advantage of an occurrence in the market to begin a business of Potato Corner
are New products, Online Marketing, Take advantage of new trends, and Technological advances. It

involves some kind of favorable condition which exists in the potato corner.

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Threats are risks in laws and regulations and uncertainty in the economy. The new competitors are
like Milk tea Shop with fries as a product, so there is competition, especially since their main

competition is Jollibee and McDonald's. The rise of cheap substitutes is the rise of expensive

products. Rising material prices, Customers’ preferences change because their tastes are different.

Proposed Solution

Potato Corner is one of the finest and leading brands that was recognized locally and globally due to

its exceptional and appetizing flavored French fries. Even with its business competitors like Jollibee
and McDonald’s, Potato Corner still remain to be finest and leading French fries brand because the
potatoes, flavoring, spices, and the process of frying is hard to imitate. As Jose Magsaysay, Jr. stated,

“Sometimes you have to change a strategic plan and you have to be very flexible in that” (Forbes

Philippines, 2016, p. 46), and thus he came up with a diversification plan. Potato Corner produced

new products, capturing consumers’ attention and causing the business to receive a great

improvement in addition to its profit. Indeed, Potato Corner’s marketability to millennial has made it
the most prominent and outstanding French fries brand locally and internationally. Additionally, Potato

Corner is a “public company” because 75% of its stores are franchised. Potato Corner is continuously

a megahit most particularly to millennial proving its sustained marketability due to its effective flavored

French fries concept and offering. (iishavanablog.wordpress.com2016)

19

Since the potato corner had a new branch here in Tabaco City and based on our research we found

out that the potato corner is currently located in a relatively crowded area that’s why people don't visit

it very much. It also does not offer a lovely ambiance and comfy area with chairs and tables where the

customers can eat, this is one of the main problems that we will provide a solution to maintain the

high income and good performance of the potato corner. The researchers also advertise the franchise
business Potato Corner with the used of Social Media such as Facebook Advertising, Instagram, and

other mode of social media. In this day social media platform has a greater impact in the business

world. It helps to attract more customers, get customer feedback and build customer loyalty. We also

promote the traditional advertising to promote franchisee business by giving flyers to the people. With

this it will have a significant impact on the business, making their company well-known.

Recommendation

The market attracts people from many backgrounds. Provide information in multiple languages

whenever possible. For food, provide cooking or serving ideas, especially for items that may be

unfamiliar to customers. Select recipes that highlight your products and print them on paper with your
business name, logo, and contact information. Neatness is a huge factor in a customer’s perception

of your stall and your business. If your stall is neat it sends customers a positive message about the

quality, cleanliness and safety of your products. Getting customers to buy is much easier when you

have them inside your stall. If there are many people in your sales

20
area, it will attract other customers. People are naturally curious. If they see a cluster of people

gathering at a particular spot they will want to know what is creating the interest. And make sure that

you are inviting people into the stall. Do not block customers from entering. Use a combination of

loose bulk displays and pre-packaged displays. Customers have different interests and expectations.
Some customers prefer a quick and convenient option. Some customers prefer to take time and

personally select their products. According to market research, customers buy more when there is a

choice of displays than if they are restricted to a bulk display only or a pre-packaged display only.

Many people choose to visit this kind of market because they want to know the people who grow,

create, and make their products. Be open and welcoming. Always wear your biggest smile. Make eye
contact to the customer and always great your customer. Building relationships with your customers

will increase your sales, and there is no better advertisement than the word of a happy customer.

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21

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