Section 2

INDUSTRY

This section includes the description of our business and explains how Drink N’ Grill relates to other
competitors in the industry, the direct and indirect competitors, market leaders, suppliers and what
trends may affect our establishment.

Current Size of the Industry

The Food Business Industry

According to Philippine Statistics Authority by their latest survey in 2016 of Annual Survey of Philippine
Business and Industry (ASPBI) - Accommodation and Food Service Activities Sector for all establishments
whereas Restaurants Industry accounts for majority of establishment. The result showed that a total of
30,889 establishments in the formal sector of the economy were engaged in Accommodation and Food
Service Activities. Restaurants led the sector with 7,218 establishments, accounting for 23.4 percent of
the total number of establishments. This was followed by cafeterias with 4,725 establishments (15.3%)
and fast-food chains with 4,411 establishments (14.3%). Other industries with more than a thousand in
number of establishments were the following:

 Refreshments stands, kiosk and counters - 4,209 establishments

 Hotels and motels - 2,767 establishments
 Other restaurants and mobile food service activities, N.E.C. - 1,679 establishments
 Bars and cocktail lounges - 1,548 establishments
 Resort hotels - 1,112 establishment

Table 1. shows the percentage distribution of Accommodation and Food service activities
establishment by industry in 2016
These figures reflect the increasing numbers of Food Business Industry. A Trend that shows that Filipino
wants to experience different products and services in every food business in the industry. More and
more people wanting to patronize food business. Filipinos are a nation of a food lovers. Most of us
regularly consume food and drinks to relieve stress or serve as energy booster that helps improve our
physical performance which we absolutely need from our day-to-day routine. And because people want
to discover different food establishments, there is also an increasing demand for a food business
establishment. Across many different cities and municipalities of the Philippines food business
establishments has seen an explosion of growth over the last 7 years.

Position of Drink N’ Grill to the Industry

Drink N’ Grill is located at Sumulong Antipolo, Rizal. It has a lot of facilities such as residential area and
campuses like "Our Lady of Fatima University" However, there are still some problems faced by the
students there were food were too expensive and some of the students are stress in their academic, so
we decide to build Resto-bar to serve them a quality services, food, and beverages in budget price that
student can afford and to experience them a relaxation and happiness. Drink N’ Grill primarily targets
people who are looking for a place to eat with a relaxing ambiance while enjoying a nice view. The
business targets people aged 18 years old and above. Young professionals, businessmen, elderly and
even families are one of the target markets of the business.

Major participants in the industry

The Philippine food service industry is a highly competitive market. The key brands are embarking on
mergers and acquisitions and new types of customer-friendly services infused with the latest technology
as some of their key strategies to achieve consolidation.

Market Leaders

The majority of the share is held by some of the market leaders such as Jollibee Food Corporations,
Domino's Pizza, Inc., McDonald's Corporation, Starbucks Coffee Company, and Yum! Brands RSC

Suppliers

Table 2. shows the profile of the Drink N’ Grill Suppliers

FOOD BEVERAGES
San Miguel Purefoods The Coca Cola company
Ani Agriculture Inc Nestle
4J Rice and Corn Supplier, Inc Del Monte Company
JM Poultry and Livestock Supply, Inc The Booze Shop
RFM Corporation Beam Global Philippines Inc.
Binondo street
Direct and Indirect Competitors

Table 3. shows the information of direct competitors.

Direct Competitors Form of Company No. of Years of No. of Employees

Organization Operations
Padi’s Point Franchising 11 years of Operation 25 employees
Living Stone Bar & Grill Sole Proprietorship 11 years of Operation -
Mt. Makatubong Bar Sole Proprietorship 12 years of Operation -
and Grill

Table 4 shows the information of Drink N’ Grill Indirect Competitors

Indirect Competitors Form of Company No. of Years of No. of Employees

Organization Operations
Kaulayaw Coffee Franchising 3 years of Operation 2-7 employees
Ahon Cafe Franchising 2 years of Operation 1-4 employees

Factors would help Drink N’ Grill succeed in the industry

Economic Factors and Location

As a starting place for our business which is Drink N’ Grill, we will be renting a space and build a business
along Sumulong Rd. Antipolo City near Cloud 9 this will be great opportunity to us to sell because this
place wherein a lot of people pass by, and there are many workers and students surrounded in our
chosen place. The Drink N’ Grill has a parking space that can accommodate cars, bicycle and motorbike
with our customers. For commuters that need to access our location, take the jeep with an Antipolo
signboard from Cubao or Shaw Blvd stations. Get off at Antipolo Cathedral. From there, you can ride a
tricycle going to Drink N’ Grill.

Antipolo dubbed as `City in the Sky`; is a sanctuary for nature lovers who want to escape from the hustle
and bustle of city life. It is a safe haven for those people who permanently reside in the buzzing city of
Metro Manila

Political Factors
Political factors can greatly influence the restaurant business anywhere in the world. There are a few
examples of political factors like tax reforms or Health and safety guidelines. The proponents have
determined that the factors that severely affect Drink N’ Grill or any restaurant around the world is the
Global pandemic COVID-19. Health regulations are changing from time to time in every city and
municipality within Antipolo which can really affect the transportation of the raw materials that will be
used in our food and beverage.

Economic Factors

An economic factor that can create a big impact of The Drink N’ Grill is the inflation rate in which it can
affect the prices of the ingredients. As a result, menu prices may go up and most of the time people
avoid to order food from a restaurant or go outside for shopping. Consumer disposable income is
another economic factor that can affect the food industry. If people have more disposable income, they
will hang out with family and friends and typically will order food in Bite Bistro.

Technological Factors

Rapid technology advancement and change can impact Drink N’ Grill. One example would be installing
WI-FI as well as CCTV cameras that can be a big help in supervising and for the safety of the employees,
customers and the business itself. Another is the accounting machine or POS that would be very helpful
and accurate.

Environmental Factors

Both the internal and external environment of Drink N’ Grill is very important to consider. Drink N’ Grill
boasts of the best breathtaking sweeping view of the Manila skyline and has this spacious and amazing
interior design that can definitely relieve stress of the customer, it is also a great place to forget all the
negative vibe of city life. It is also in line with the trends which are Instagram worthy. The proponents
decided to have an aesthetic ambiance so that customers will love to visit and post it in different social
media platform, which would also serve as an advertisement for the restaurant.

Forecasted growth and profile of the industry

The Philippines Food Service Market is Segmented by type (Full-service Restaurants, Self-service
Restaurants, Quick-service Restaurants, Street Stalls and Kiosks, Cafes and Bars, and 100% Home Delivery
Restaurants) and Structure (Chained Restaurants and Independent Restaurants). The report offers
market sizes and forecasts for the Philippines food service for the above segments. The food service
market in the Philippines is highly driven by the rise in value-conscious consumers willing to try new
restaurants with a wide range of menu options, including interesting international and local cuisines,
which also cater to increasingly busy lifestyles.

The market overview shows that the country’s foodservice market is expected to witness a CAGR of
4.67% during the forecast period, 2021-2026. After the occurrence of COVID-19, the foodservice sector
was hit by the strict lockdown measure to limit the spread of the virus. But in June 2020, there are
outlets in Manila that could operate as they meet the government safety protocols, giving them the limit
of only 30% seating capacity to be occupied, strict hygiene and social distancing measure being a must.

Based on the competitive landscape, the key foodservice brands in the Philippines are embarking on
market expansion and innovations in terms of online delivery of food service as some of their key
strategies to optimize their offerings. They infused customer-friendly services with the latest technology
as their key strategy to achieve consolidation.

Several global restaurant chains, such as McDonald’s, Starbucks Corporation and Yum! Ltd, continue to
rise though franchises or joint ventures with the local foodservice companies, which prefer to hold the
franchise of a foreign brand rather than creating their own local restaurant.

Fashions, legislations, or environmental trends that affect the industry

Fashion creates big impact in food business industry such as changes in lifestyle in which body is one of
the important aspects of fashion. So, with this it can really affects in the way full services restaurants
offer. Legislations can create a big impact in food business industry in a way like the inflation rate in
which it can affect the prices of the ingredients. As a result, menu prices will go up and most of the time
people avoid to order food from a restaurant or go outside for shopping. Consumer disposable income is
another economic factor that can affect the food industry. If people have more disposable income, they
will hang out with family and friends and typically will order food in Drink N’ Grill. Environmental Trends
like climate change like typhoon in which can affect production of raw materials.

REFERENCE

Philippines Foodservice Market Size & Share Analysis - Industry Research Report - Growth Trends. (n.d.).
https://www.mordorintelligence.com/industry-reports/philippines-foodservice-market

2016 Annual Survey of Philippine Business and Industry (ASPBI) - Accommodation and Food Service
Activities Sector for All Establishments: Final Results | Philippine Statistics Authority. (n.d.).
https://psa.gov.ph/content/2016-annual-survey-philippine-business-and-industry-aspbi-
accommodation-and-food-service-0