Perceptions and Strategies of Food Industry Owners in the Face of Inflation: A

Qualitative Study

A proposal research

Presented to

Norel Jan M. Pineda

General Santos City National Secondary

School of Arts and Trades

In Partial Fulfillment of the Requirement for Practical Research l

By:

Bongar, Brian Roy S.

Mina, Keinth Nicko G.

Cadeliña, Nicole S.

Carcillar, Princess Angela D.

Dagohoy, Kyla S.

Libatan, Lovely Joy B.

Madrangca, Ayessa Kaye B.

Sale, Michelle D.

Yuson, Ruyein R.
 Chapter 1

THE PROBLEM

Background of the Study

Inflation has an enormous impact on the food business industry, particularly on

the prices of goods. As time goes on, the price of goods and services increased, nevertheless

the value of the money decreased as well. As the cost increases it also influences the

business owners to change the type, quantity, and quality of what they serve. Changing

consumers' habits is also an issue, since the price increases people start to find alternatives.

They switch to other stores where they offer lower prices. Numerous food service businesses

close down due to this phenomenon.

The World Bank's Food Security Report (2023) stated that, around four-fifths of

low-income nations and more than 90% of lower-middle-income countries have had

annual food price rises in excess of 5% in 2023, with many experiencing substantially

higher inflation rates. Globally, year-over-year food price inflation in Zimbabwe, Venezuela,

and Lebanon. The largest double-digit food inflation was recorded by Argentina,

which came in at number four, at 95%, as opposed to Haiti, which came in at number

ten with annual price rises of 53%.

Similarly, to other countries, Philippines is facing a massive impact of inflation as a

result of supply issue and high fuel cost. The Philippines lacks in the resources such as good

preventive defense to face this crisis. Philippines Statistics Authority (2023) Food prices in the

Philippines increased by 10.8% year over year, in February 2023, slightly more than the

10.7% increase in January. It was the greatest food inflation since march 2009 because of

higher prices for fish and other seafood, milk, dairy products, eggs, fruits and nuts, ready-

made food, flour, bread and other bakery products, pasta, and cereals.

Inflation means the rise of prices of services or goods. Inflation affects the response

of the people in terms of their choice of purchasing a product. By the reason of the rise of

inflation the product that was bought month ago may be differ from its current price. As the

inflation increase, the more people would lose their purchasing power. In General Santos

City, Ramos explained that the primary causes of the City’s most recent inflation rate were
food and non-alcoholic drinks, they also claimed that the price of food “continued to

increased, rising from 9.6 percent in December 2022 to 9.7 percent in January 2023.

In line with occurring problems, the researchers conduct this study to add existing

knowledge which will benefit a greater population. It benefits us in a way that helps us know

what is really the impact of inflation on our local vendors. For the reason that inflation makes

food become unaffordable and inaccessible to these people who are already struggling,

leading more people into poverty. This research aims to assists future local vendors to

overcome the high inflation rate of our country.

Statement of the Problem

This study aims to determine the impact of Inflation to the food business owners of Barangay

Lagao General Santos City.

Scope and Delimitation

The study focuses on the Perception and Strategies of the Owners in food industry of

Barangay Lagao, GSC amidst of the Inflation that they encounter.

Significance of the Study

This research is mainly conducted to determine the impact of inflation to the food business

owners of Barangay Lagao General Santos City.

This study will benefit the following:

Students, teachers, and business owners. They will be aware what will be the effect of

inflation in the food industry. in that matter food business owners will learn how to cope up

with the inflation rate of General Santos City.