For decades, the restaurant industry has always been providing good food for a

reasonable cost in this thriving society. Our customer-driven economy leads to the

success of many restaurant businesses. In addition, many households today prefer eating

out or ordering ready-to-eat homemade food rather than cooking it for themselves. In the

2019 Annual Survey of Philippine Business and Industry (ASPBI), it was revealed that

among different sectors, restaurants and mobile food services industry activities

contributed the highest share amounting to PhP 643.79 billion or 70.1% of the total

revenue (PSA, 2022). This opportunity was seized by many entrepreneurs, including the

owner of Baka Kainan Puerto Princesa City. However, just like any kind of businesses, if

it’s not managed well, it will eventually become a failure.

Failure is a situation where a venture becomes unable to continue its operation

under the current ownership and management, it is the endpoint where an entity totally

ceased its operation (Pretorius, 2009). According to Parsa et al. (2005), there are three

types of restaurant failures from different perspectives which are economic, marketing,

and managerial. Economic perspective is a category wherein restaurants cease to operate

due to economic reasons such as inflation, decreased profits, and voluntary and

involuntary bankruptcies. Marketing perspective is a category involving restaurants that

fails to keep their doors open in a specific location for reasons including market

consolidation to gain market share, meeting unrealized demand for new services and

products, and rearrangement of product portfolio, which necessitates unit closures.

Lastly, Managerial perspective is a category that consists of restaurant failures caused by

managerial limitations and ineptitudes. This includes owner burnout and loss of

motivation emanating from operational issues of manpower; changes in the personal life
of the owner; and legal, technological, and environmental changes that requires

operational readjustments.

In this regard, the researchers aims to identify significant factors that contributed

to the failure of Baka Kainan and to determine the best management and marketing

strategies to be used in their reopening as well as to help them find a better business

location for the revival of their business.