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COMPARATIVE ANALYSIS OF
STRATEGIC BUSINESS TECHNIQUES
OF DIFFERENT FOOD STALLS DURING
AND RECOVERING FROM COVID-19
PRESENTER 1 2
PAN GI LI NAN, DI AN E
PI CARRA, SHE RI L YN
QUI LATES, PRI N C E S S JOY
QUI LES, RI ZZA MAE
R ODRI GUEZ , RE N E E JOY CE
COLLEGE OF BUSINESS & ENTREPRENEURIAL & ACCOUNTANCY
CHAPTER 1
THE PROBLEM AND ITS
BACKGROUND
INTRODUCTION
The period of closure and movement prevention policies adopted
by governments in many countries have greatly affected food stalls,
paralyzing their operations, weakening their financial positions, and
exposing them to financial risk (Omar et al., 2020; Oyewale et al.,
2020). As a result, many food businesses found themselves
incapable of dealing with the situation (Ozili, 2020). Some
businesses have stopped their activities and remained closed since
the first months of the outbreak (Bartik et al., 2020).
FEEDBACK
STATEMENT OF
THE PROBLEM
1. Demographic Profile
1.1 Age
1.2 Gender
1.3 District
1.4 Years of business
1.5 Types of Business
2. What is the respondents’ assessment in the
significant changes in food stalls during COVID-19 and
during recovery phase in terms of:
2.1 Performance
2.2 Sales/ Cash inflow
2.3 Strategic Business Techniques
2.4 Consumer’s Behavior
2.5 Expenses/ Cash outflow
STATEMENT OF
THE PROBLEM
3. What is the comparative effect of different
strategic business techniques on the business
performance of food stalls during and recovering
from Covid-19?
CHAPTER 2
REVIEW OF RELATED
LITERATURE AND STUDIES
PERFORMANCE
As the pandemic continues to affect the restaurant
industry, it is not difficult for owners to lose hope.
Some measures they had to take were losing both
customers and staff, adjusting to consumer
preferences and closing their establishments. To
recover, restaurant owners must examine their
strengths and capabilities to come up with
effective recovery strategies. (Bisnar, 2021)
Based on interviews with vendors in Indonesia, the
study found that there has been a decline in
business performance. The study discovered that
restaurants that had not yet permanently closed were
only employing an average of 36% of their regular
capacity, which indicated a major effect on the sector.
(NRA, 2020; Gaffar et al., 2022)
SALES
According to a National Restaurant Association
survey of businesses performed in September
2020, 87% of restaurants reported an overall
drop in sales, with a decline of 36% on average.
However, there were signs of an increase in
food sales as the recovery period got underway.
For instance, grocery store sales rose by 33.8%
in May 2021 compared to the same month in
2020. The same pattern can be seen in
restaurants as well, with revenues in the quick-
service restaurant industry increasing by 3.4%
in June 2021 compared to the prior year.
(Poinski, 2021)
STRATEGIES
Restaurants are kept hanging on to the point of no return
because the quarantine level wasn't supposed to be
lifted until a vaccination was discovered. Up until that
point, businesses used tactics like (1) offering a large
number of online food delivery services to the point
where they were forced to offer (2) ready-to-cook raw
materials, and (3) pick-up or delivery via food couriers,
but the latter option was either an additional cost or a
promotion.
(4) As an alternative to firing workers, businesses have
decided to shift their duties. (5) The creation of
Facebook pages and other currently available internet
platforms—which were seldom ever used in the past—is
the only way for all the marketing methods outlined to
reach the target audience. Vigilia et al., (2021)
STRATEGIC BUSINESS TECHNIQUES
INCREASING WORKFORCE
AS THE SECTOR ENTERS THE LAST MONTHS
OF 2021 AND WELL INTO 2022, OPERATIONAL
COSTS, FOOD AND MENU PRICING, AND LABOR
COSTS WILL ALL CONTINUE TO GROW, STATED
BY RESTAURANTS CANADA.
STRATEGIC BUSINESS TECHNIQUES
CASHLESS TRANSACTION
RESTAURANTS ARE STILL CHOOSING
CASHLESS TRANSACTIONS AS THE COVID-19
OUTBREAK IS BEING CONTAINED. CLICKS ARE
PREFERRED BY RETAILERS AND EATERIES OVER
CASH TO LIMIT STAFF EXPOSURE.MANY
RESTAURANTS HAVE IMPLEMENTED MOBILE
PAYMENTS, DIGITAL WALLETS, AND OTHER
FORMS OF CASHLESS TRANSACTIONS TO
CREATE A SAFER AND MORE CONVENIENT
EXPERIENCE FOR CUSTOMERS.(MODERN
RESTAURANT MANAGEMENT, 2021)
CONSUMER'S BEHAVIOR
RESTAURANT OWNERS ARE ALSO ADVISING WORKERS
TO BE MORE ACCOMMODATING AND TO TAKE THESE
AMBIGUOUS BEHAVIORS FROM C U S T O M E RS INTO
ACCOUNT. IN AN ARTICLE BY MRM (2020) TITLED
"LESSENING EMPLOYEE ANXIETY AS RESTAURANT
D O O R S O P E N " S U G G E S T S T H A T B E P A T I E NT WI T H
INDIVIDUALS AS THEY ACCLIMATE TO A NEW
ATMOSPHERE AND A NEW SET OF STANDARDS FOR
DINING OUT.
FOOD DELIVERY SERVICES HAVE INCREASED, WORRIES
ABOUT PREVENTIVE MEASURES DURING FOOD
PROCUREMENT HAVE GROWN, AND EATING OUT HAS
BECOME A CAUSE FOR ANXIETY. ALL OF THESE
C H A N G E S H A V E A F F E C T E D H O W C O N S U M E R S PE R C E I V E
FOOD, INCLUDING HOW IT IS PURCHASED AND HOW
MANY PEOPLE NOW COOK AT HOME (SOON ET AL., 2021).
EXPENSES/ CASH OUTFLOW
ACCORDING TO AN ARTICLE IN REPLY (2020), SOME FOOD
BUSINESSES HAVE SEEN A DECREASE IN EXPENSES DURING THE
COVID-19 PANDEMIC DUE TO CHANGES IN OPERATIONS. MANY
RESTAURANTS HAVE REDUCED THEIR OPERATING HOURS OR
CLOSED TEMPORARILY, WHICH HAS LOWERED THEIR UTILITY
COSTS. OTHERS HAVE REDUCED THEIR INVENTORY LEVELS OR
ADJUSTED THEIR MENUS, RESULTING IN LOWER FOOD COSTS.
CHAPTER 3
RESEARCH METHODOLOGY
RESEARCH METHOD
The researchers applied descriptive research to provide a
comprehensive understanding of the strategic business
techniques used by the food stalls during and recovering
from COVID-19. Descriptive research is used in this study
to gather detailed and accurate information about the
business techniques used by food stalls during pandemic
and during their recovery. Descriptive research can help the
researchers to provide an accurate and detailed description
of the strategies employed by the different food stalls during
and after the pandemic. The data gathered could then be
analyzed to identify commonalities and differences among
food stalls and to determine how their business techniques
have changed over time. This information can be used to
develop further research questions, generate hypotheses,
and inform future strategies for businesses facing similar
challenges.
POPULATION AND
SAMPLING FRAME
The population for this study consists of 103 food stalls
located in the municipality of Mandaluyong. To obtain a
representative sample, the researchers will use random
sampling. Random sampling is suitable for this study
because it ensures that each food stall in both District 1 and
District 2 has an equal chance of being selected for
inclusion in the sample. This means that the sample is likely
to be representative of the overall population of food stalls
in the city of Mandaluyong. According to Thomas (2020),
simple random sampling is the simplest of all probability
sampling methods because it just includes a single random
selection and requires little prior knowledge of the
population. Because it employs randomization, any research
conducted on this sample should have high internal and
external validity and be less susceptible to research biases
such as sampling and selection bias
POPULATION AND
SAMPLING FRAME
The researchers used the Slovin’s formula to calculate
the appropriate minimum number of respondents needed
from the population. It can be computed by:
Where:
n = number of sample
N = total population
e = error tolerance level
. In substituting the variables, we get:
.
1.2 Age
A large percentage of the respondents were from the age group 26-35 or 36.70%,
Followed by ages 55 years old and above and under 25 years old with 22 or 20.18%
and 19 or 17.43% ,respectively. The rest of the percentage were consist of ages 46-55
with 18 or 16.51% and ages 36-45. with 10 or 9.17%.
1.3 District
More than half of the respondents were from District 2 of Mandaluyong City garnering
58 or 53.21% and 51 or 46.79% were located in District 1.
M a j o r i t y o f t h e r e s p o n d e n t s r e s p o n d e d t h a t t h e y a r e n o t s a t i sf i e d
w i t h t h e i r b u s i n e s s ’ s a l e s w h i c h h a s a n o v e r a l l n e t a g r e e m e n t of
- 6 4 . 5 3 ( D i s a g r e e m e n t ) . M e a n w h il e , d u r in g r e c o v e r y p h a s e m ost of
t h e r e s p o n d e n t s a n s w e r e d p o s it iv e l y t o t h e s u r v e y a n d s t r on gl y
a g r e e d t o t h e f o l l o w i n g s t a t e m e n t s “ T h e b u s in e s s is o n t r a c k t o
r e g a i n i t s c u s t o m e r b a s e . ” , “ T h e b u s in e s s is e f f e c t iv e l y a d j u s t in g i t s
s a l e s s t r a t e g i e s . ” , a n d “ S a t i s f i e d w it h b u s in e s s ’ s a l e s p e r f o r m a n c e .”
w i t h a n o v e r a l l n e t a g r e e m e n t r a t in g o f 9 0 . 2 1 a n d in t e r p r e t e d a s
“Excellent”.
St r a t e g i c B u s i n e s s T e c h n i q u e s
Du r i n g C O V I D - 1 9 , o f f e r i n g c a s h l e s s p a y m e n t w a s t h e m o s t a gr e e d
u p o n b u s i n e s s s t r a t e g y , w h i l e i n c r e a s in g t h e w o r k f o r c e w a s t h e l e a st
a g r e e d u p o n . T h e n e t a g r e e m e n t r a t in g d u r in g t h is t im e w a s
" N e u t r a l " ( 3 . 6 7 ) . H o w e v e r , d u r in g t h e r e c o v e r y p h a s e , t a k i n g
c a s h l e s s p a y m e n t s r e m a i n e d t h e m o s t p o p u l a r s t r a t e g y wi t h a
s i g n i f i c a n t l y b e t t e r n e t a g r e e m e n t r a t in g , f o l l o w e d b y e x p a n d in g t h e
w o r k f o r c e a n d u t i l i z i n g s o c i a l m e d ia p l a t f o r m s f o r m a r k e t in g . Th e
o v e r a l l n e t a g r e e m e n t r a t i n g d u r in g t h e r e c o v e r y p h a s e w a s
"Excellent" (72.48).
SUMMARY OF FINDINGS
Consumer's Behavior
Co n s u m e r b e h a v i o r h a d a n e g a t i v e s h if t d u r in g t h e p a n d e m ic , a s sh ow n
b y a n e t a g r e e m e n t r a t i n g o f - 2 6 . 6 1 . f o o d s t a l l o w n e r s d is a g r e e d w i t h
t h e c l a i m t h a t t h e r e w a s a n i n c r e a s e in t h e f r e q u e n c y o f c o n s um e r v i s i t s
a n d g a v e i t a l o w r a t i n g o f - 4 1 . 2 8 . H o w e v e r , t h e u s e of d e l i v e r y
p l a t f o r m s r e c e i v e d a n e u t r a l r a t in g o f 2 . 7 5 . I n c o n t r a s t , d u r i n g t h e
r e c o v e r y p h a s e , t h e r e w a s a s ig n if ic a n t im p r o v e m e n t in c on s u m e r
b e h a v i o r t o w a r d f o o d s t a l l s , w it h a n e t a g r e e m e n t r a t in g of 7 9 .8 2
i n d i c a t i n g e x c e l l e n t . T h e u t i l i z a t io n o f d e l iv e r y p l a t f o r m s r e c e i v e d a n
o u t s t a n d i n g r a t i n g o f 7 0 . 6 4 , a n d t h e r e w a s a n in c r e a s e in t h e f r e qu e n c y
o f v i s i t s t o f o o d s t a l l s , w i t h a n e x c e l l e n t r a t in g o f 8 7 . 1 6 .
Ex p e n s e s
Du r i n g C O V I D - 1 9 , t h e m a j o r i t y o f r e s p o n d e n t s a n s w e r e d n e g a t iv e l y a n d
d i s a g r e e d t h a t t h e r e w a s a n i n c r e a s e in e x p e n s e s o r c a s h o u t f l ow f or
f o o d s t a l l b u s i n e s s e s . T h e n e t a g r e e m e n t r a t in g f o r t h is w a s - 3 7 .6 1 .
However, during the recovery phase, most respondents agreed with the
s t a t e m e n t s , “ T h e e x p e n s e s / c a s h o u t f l o w o f f o o d s t a l l s s ig n i f i c a n t l y
i n c r e a s e d " a n d “ I n c r e a s i n g t h e w o r k f o r c e h a s c a u s e d a s i gn i f i c a n t
i n c r e a s e i n f o o d s t a l l ' s e x p e n s e s . ” T h e n e t a g r e e m e n t r a t in g f o r t h i s w a s
77.06.
3. COMPARATIVE EFFECT OF DIFFERENT STRATEGIC
BUSINESS TECHNIQUES ON THE BUSINESS
PERFORMANCE OF FOOD STALLS DURING AND
RECOVERING FROM COVID-19 REVEALED THAT:
Using business strategic techniques had a significant There was a noticeable difference in consumer
impact on the performance of food stalls during the behavior between the COVID period and the recovery
COVID-19 pandemic and recovery phase, despite the period when businesses employed strategic
employment of strategic techniques, performance approaches. The mean rank of consumer behavior
during the outbreak was low, as seen by the mean during COVID was 42.25, but it increased to 50.67
rank of 0.00. However, when strategic techniques during the recovery phase.
were used during the recovery phase, the mean rank
of performance increased significantly to 53.50. The expense comparison between the COVID-19
epidemic and the recovery phase shows a considerable
There was a significant difference in sales between variation in the statistics. The mean expense rank for
the COVID-19 period and the recovery period for food COVID-19 was 8.50, which is a lot lower than the
stalls. Using business strategic tactics during both average expense rank for the recovery period, which
periods, the mean rank of sales was 0.00 for COVID- was 55.17.
19 and 53.00 for the recovery period. Interestingly,
the same tactics were employed during both periods,
including cashless payment adoption, workforce
expansion, and social media utilization.
4. SIGNIFICANT DIFFERENCE BETWEEN STRATEGIC
BUSINESS TECHNIQUES USED BY FOOD STALLS DURING
AND RECOVERING FROM THE PANDEMIC COVID-19
GROUPED ACCORDING TO PROFILE REVEALED THAT:
The study found that there was a significant difference between male and female respondents in
terms of their agreement on the changes in strategic business techniques used by food stalls during
the pandemic and recovery period, which indicate null hypotheses were rejected in both cases. The
mean rank of male respondents was 61.88 during the pandemic, significantly higher than female
respondents with a mean rank of 41.61 and a p-value of 0.001. However, during the recovery period,
the mean rank of female respondents was 65.70, significantly higher than male respondents with a
mean rank of 33.31 and a p-value of 0.000.
During COVID, those aged 26-35 had the highest mean rank of 61.35, while 56 and above had the
lowest mean rank of 34.33. However, during the recovery period, those aged 25 and under had the
highest mean rank of 72.10, while 56 and above had the lowest mean rank of 41.70. The null
hypothesis was rejected for the recovery period (p- value 0.017) but maintained for COVID since the
p-value 0.267 was above the significance level of 0.05.
During COVID, the mean rank of respondents' agreement in District 1 was 52.35, and in District 2 it
was 57.33, with a p-value of 0.408 above the significance level of 0.05, indicating that the location
did not significantly influence the level of agreement. However, during recovery, the mean rank of
respondents' agreement in Districts 1 and 2 was not significantly different, with District 2 having a
mean rank of 55.50 and District 1 having a mean rank of 54.43, and the null hypothesis was
maintained since the resulting p-value of 0.858 was above the significance level of 0.05.
4. SIGNIFICANT DIFFERENCE BETWEEN STRATEGIC
BUSINESS TECHNIQUES USED BY FOOD STALLS DURING
AND RECOVERING FROM THE PANDEMIC COVID-19
GROUPED ACCORDING TO PROFILE REVEALED THAT:
As to their years of business, during COVID, there was no significant difference in the level of
agreement on changes in strategic business techniques among food stalls with different years of
operation, as shown by a mean rank of 56.49 for 3-5 years, 46.26 for 6-9 years, and 51.61 for 9+
years with a p-value of 0.711. Similarly, during recovery, there was no significant difference in the
mean rank of respondents' level of agreement among food stalls with different years of operation,
with a mean rank of 56.49 for 3-5 years, 46.26 for 6-9 years, and 51.61 for 9+ years, and a p-value
of 0.433.
During the COVID-19 pandemic, found that Eatery had the highest mean rank of 54.34, followed by
Tapsilugan/Paresan/Lugawan at 50.89, Pizza and Pasta Stall at 67.38, Burger and Fries Stall at
48.83, and Café Stall at 65.53 with a p-value of 0.184, indicating that the type of business did not
significantly influence the level of agreement (p value 0.184) And during the recovery period, there
was still no significant difference (p value .184) among the types of businesses in terms of strategic
business techniques, with Tapsilugan/Paresan/Lugawan having the highest mean rank at 67.3,
followed by Café Stall and Eatery at 65.53 and 54.34, respectively. The mean rankings for the pizza
and pasta stall and the burger and fries stall were 48.83 and 50.88, respectively.
CONCLUSIONS
CONCLUSION
PR OFI LE
T he ma j or i t y o f t he r e sp on de n ts i n M a n da luyo n g Ci t y w e r e lo c a t e d i n D i st r i c t
2 a nd mos t of t he m a r e f e ma le a ge s b e twe e n 2 6 to 35 y e a r s o ld . Fu r t h e r mo r e ,
t he ma j or i t y o f t he r e sp o n de n ts o wn s a n e a te ry a n d a c t i v e l y i n o p e r a t i o n f r o m
3 - 5 y ea r s .
Vendors can focus their marketing efforts on the age group that is most
b.
represented in the sample, while also creating targeted marketing
strategies for businesses at different stages of development.
RECOMMENDATION
3. To Food Business Owners:
a. It is advised that owners of food stalls think about making contingency
plans for the future. Given the unpredictability of crises, like pandemics, and
their propensity to interrupt business operations, this is especially crucial.
Vendors can focus their marketing efforts on the age group that is most
b.
represented in the sample, while also creating targeted marketing
strategies for businesses at different stages of development.
Participating in food events like fairs, festivals, and pop-up markets can be
c. a terrific way for small food stalls to reach a wider audience and draw in
new customers. Additionally, networking with potential business partners
and collaborating with other food-related businesses may be possible at
these events.
RECOMMENDATION
3. To Food Business Owners:
a. It is advised that owners of food stalls think about making contingency
plans for the future. Given the unpredictability of crises, like pandemics, and
their propensity to interrupt business operations, this is especially crucial.
Vendors can focus their marketing efforts on the age group that is most
b.
represented in the sample, while also creating targeted marketing
strategies for businesses at different stages of development.
Participating in food events like fairs, festivals, and pop-up markets can be
c. a terrific way for small food stalls to reach a wider audience and draw in
new customers. Additionally, networking with potential business partners
and collaborating with other food-related businesses may be possible at
these events.