Republic of the Philippines

Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

Applied economics

SWOT, PORTER’S FIVE

FORCES, & PESTLE
ANALYSIS;
Chowking edition

GROUP 1 I 11 – ABM 04

INTRODUCTION
Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga
Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

Chowking is a popular fast-food chain that originated in

the Philippines, known for its fusion of Chinese and
Filipino flavors. Various analyses can be conducted on
Chowking to gain insights into its business operations,
market positioning, and overall performance. In this
Analysis, we aim to determine the Microeconomics &
Macroeconomics of Chowking. Knowing the Inside and
Outside Factors of this plays a huge role for us better
understand the corporation. We can get enough
information in this that we can learn, understand, use,
and apply for our daily life or if we are planning to have
a business in this industry. By conducting these
analyses, stakeholders can gain a comprehensive
understanding of Chowking's performance, identify
areas for improvement, and make informed strategic
decisions.

HISTORY
Chowking, a prominent fast-food chain that blends Chinese and Filipino
culinary influences, has a rich history that spans several decades.
Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga
Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

Established in 1985 by Robert Kuan, a Filipino-Chinese entrepreneur,

Chowking has become a household name in the Philippines and other
parts of the world.
The inception of Chowking can be traced back to a humble ice cream
parlor in the city of Makati, Philippines, where Kuan recognized an
untapped market for Chinese-inspired fast food. Capitalizing on this
insight, he transformed the ice cream shop into the first Chowking
restaurant, introducing a menu that showcased a fusion of Chinese flavors
with the familiarity of Filipino taste buds.
Chowking's early years were marked by a commitment to providing
affordable and tasty meals, quickly gaining popularity among locals. The
restaurant's success can be attributed to its diverse menu, featuring iconic
dishes such as the savory Lauriat meals, dim sum selections, and the ever-
popular Chao Fan – a Filipino-style fried rice.
As Chowking expanded its presence across the Philippines, it encountered
various challenges and opportunities. The company demonstrated
resilience in adapting its menu to suit the evolving preferences of its
diverse customer base.

This adaptability, coupled with a focus on maintaining consistent quality

and embracing technological advancements in the food industry,
contributed to Chowking's sustained growth.
In the late 1990s and early 2000s, Chowking ventured beyond the
Philippines, taking its unique blend of Chinese and Filipino cuisines to
Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga
Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

international markets. This expansion not only introduced Chowking to a

global audience but also contributed to the promotion of Filipino culinary
influences on the world stage.
Over the years, Chowking has continued to innovate, introducing new
menu items, embracing digital technologies for online ordering and
delivery, and implementing customer loyalty programs. The brand's
commitment to maintaining a balance between affordability and quality
has solidified its position as a go-to fast-food destination for families,
students, and professionals alike.
In summary, Chowking's journey from a modest ice cream parlor in
Makati to a flourishing international fast-food chain reflects the resilience,
adaptability, and entrepreneurial spirit of its founder, Robert Kuan. With a
fusion of Chinese and Filipino culinary delights, Chowking has not only
become a staple in the Philippines but has also left an indelible mark on
the global fast-food landscape.

Milestones
1985 – Founded by Robert F. Kuan, the first Chowking store opened in Rotary
Arcade, Makati
1989 – Opened first franchise and provincial store in Meycauayan, Bulacan
1991 – Began delivery operations; annual sales hit P1M
1992 – Opened stores in Visayas and Mindanao

Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga

Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

1996 – Opened 100th store in San Joaquin, Pasig; annual sales hit P1B 1997 –
Opened first store in California, USA
1998 – Opened first store in Dubai
2000 – Became wholly-owned subsidiary of Jollibee Foods Corporation
2002 – Opened 200th store in Lingayen, Pangasinan
2004 – Opened 300th store in Taytay, Rizal
2005 – Opened first store in Indonesia; won Agora Marketing Awards, Araw
Awards, and Best Meat Processing Plant
2009 – Opened first store in Qatar; won Best Meat Processing Plant in AA
Category
2010 – Opened 400th store in Upper Session, Baguio
2012 – Opened our first innovative store in Marcos Highway
2013: Launched first Drive-Thru store in Urdaneta, McArthur Highway
2017 – Opened 500th store in Legarda, Baguio

Vision
To be the go-to Quick Service Restaurant for Chinese food that inspires success as
we deliver superior value through our great-tasting and affordable meals

Mission
To WOW everyone through crave-able Chinese food and delightful service
everyday y and everywhere.
Our Values
Customer Focus As a customer-centric company, we listen to our consumers’
desires and provide personalized services that address those needs.
Excellence Mediocrity is not an option. We seek to constantly surpass the highest
standards expected of us.

Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga

Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

Respect for the Individual We gladly welcome diversity, and celebrate the
uniqueness of every individual in our team.
Spirit of Family & Fun We foster relationships on trust and friendship that go
beyond the walls of our workplace.
Humility to Listen & Learn We seize opportunities to improve ourselves. We
always listen, respect, and value the opinions of others.
Honesty & Integrity We walk the talk. We’re committed to upholding the highest
ethical & moral standards of the countries we operate in, delivering whatever we
promise.

Swot analysis
Strenghts:

1. Established Brand: Chowking has a well-known and recognized brand in the fast-food
industry.

2. Diverse Menu: The restaurant offers a diverse menu with a mix of Chinese and Filipino
dishes, appealing to a broad customer base.

Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga

Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

3. Strategic Locations: Chowking strategically locates its outlets in areas with high foot traffic,
enhancing visibility and accessibility. Leading to a Widespread Presence

4. Efficient Service: Emphasis on quick service, providing a convenient dining experience.

5. Affordability: Competitive pricing, making it accessible to a broad customer base

Weaknesses:

1. Intense Competition: The fast-food industry is highly competitive, with numerous players,
which can pose challenges for Chowking.

2. Limited Global Presence: Chowking's international presence is relatively limited compared to

some global fast-food chains.

3. Dependence on Asian Cuisine: The focus on Asian cuisine may limit its appeal to customers
seeking more diverse food options.

4. Consumer Health Trends: Increasing awareness of health and wellness may impact customer
choices, potentially affecting traditional fast-food chains. Chowking may need to address this
by offering healthier menu alternatives.

5. Economic Sensitivity: Economic fluctuations can influence consumer spending on dining

out. Chowking's sales may be vulnerable during economic downturns when consumers cut back
on discretionary spending.

Opportunities:

1. Menu Innovation: Introducing new and innovative menu items can attract and retain
customers, keeping the offerings fresh and appealing.

2. Digital Integration: Embracing digital technologies for online ordering and delivery can
enhance customer convenience and expand the market reach.

3. Global Expansion: Exploring opportunities to expand internationally could open up new

markets for Chowking.

Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga

Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

4. Health-Conscious Offerings: Capitalizing on the growing trend towards healthier dining

options, Chowking can introduce healthier menu items to cater to health-conscious consumers,
expanding its appeal and addressing changing customer preferences.

5. Collaborations and Partnerships: Collaborating with other brands or forming partnerships

could create synergies, leading to joint promotions, shared customer bases, and increased
visibility for Chowking, both locally and internationally.

Threats:

1. Economic Fluctuations: Economic downturns can impact consumer spending on dining out,
affecting Chowking's sales.

2. Health Trends: Growing concerns about health and wellness may lead customers to opt for
healthier dining choices, impacting traditional fast-food offerings.

3. Regulatory Challenges: Changes in regulations related to food safety, labor, or other aspects
can pose challenges to Chowking's operations, requiring compliance adjustments that may
affect costs and processes.

4. Intense Competition: The fast-food industry is highly competitive, with numerous local and
global players. Chowking needs to continually innovate and differentiate itself to maintain its
market share and appeal to discerning consumers.

5. Rising Costs of Ingredients: Fluctuations in the prices of key ingredients, such as meats and
vegetables, can impact Chowking's operating costs. Managing and mitigating these cost
pressures is crucial to maintaining profitability.

S/O STRATEGIES
S1, 01 Chowking can leverage its well-known brand to create good and
excitement around new menu innovations, enhancing customer
engagement and loyalty.
S4, 02 It might be a smart strategic move for Chowking to introduce
healthier menu alternatives in response to consumer health trends.
Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga
Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

Adopting digital integration can also increase market reach and improve
customer convenience,strengthen caligning with both current strengths and
opportunities in the food industry

W/O STRATEGIES
W2, 03 Chowking's limited global presence presents both a weakness and
an opportunity. By strategically expanding internationally, Chowking
could tap into new markets, increasing its brand reach and potential
revenue streams
W4, 04 The rising consumer focus on health and wellness presents a
challenge for Chowking, necessitating the introduction of healthier menu
options to align with changing preferences. Simultaneously, in the face of
intense competition, the brand can seize the opportunity to innovate and
distinguish itself, addressing weaknesses and staying competitive in the
dynamic fast-food industry.

S/T STRATEGIES
S3, T1 Efficient service is a strength for Chowking,However, during
economic downturns, reduced consumer spending on dining out poses a
threat to Chowking's sales.
S2, T2 The diverse menu is a strength for Chowking, attracting a broad
customer base. However, growing health concerns might pose a threat to
Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga
Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

traditional fast-food offerings. Chowking has the opportunity to capitalize

on its current advantages by adding additional health-conscious menu
items, meeting the changing needs of health-conscious customers while
maintaining its diverse menu appeal.

W/T STRATEGIES
W3, T1 It could be a good idea for Chowking to expand the variety of
international cuisines offered on its menu. This would attract customers
looking for more varied meal options and lessen the chance that economic
downturns would have an adverse effect on consumer expenditure on
eating out. Additionally, implementing cost-effective marketing strategies
during economic downturns may help maintain and even boost sales.
W4, T2 Chowking can address these weaknesses and threats by
incorporating healthier menu options, emphasizing nutritional information,
and promoting transparency in ingredient sourcing. Additionally,
launching marketing campaigns highlighting the nutritional benefits of
their healthier choices can attract health-conscious customers and mitigate
the impact of evolving consumer health trends.

Porter’s five forces analysis

Competitive Rivalry with Chowking

Competition in the fast - food restaurant industry is very intense because the market is saturated.

1.High number of firms - Strong force (There are many fast-food restaurants competing in the
global and local market.)
Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga
Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

2.Highly aggressive/ competitive rivals - Strong force (Competing rival firms aggressively
promote and market their products.)

3.Low switching cost - Strong force (It is easy for consumers to transfer to others.)

Bargaining Power of Chowking's Buyers

Buyers or consumers have strong direct influence on the business undertakings.

1.Low switching costs - Strong force (Consumers can easily impose demands on Chowking's
due the ease of transferring to other restaurants.)

2.Large number of competitors - Strong force (Consumers can choose from many other fast-
food restaurants in the market.)

3.High availability of substitutes - Strong force (There are numerous food stalls, bakeries, as
well as instant food. The availability of many substitutes adds to the bargaining power of
buyers.)

Bargaining Power of Chowking’s Suppliers

The production capacity of Chowking is influenced by its suppliers based on the availability of
raw materials.

1.Large number of suppliers - Weak force (Chowking may transfer from one supplier to another
anytime.)

2.Low forward vertical integration of suppliers - Weak force (Suppliers lack alliance to control
the distribution network that transports their products to firms like Chowking)

3.High overall supply - Weak force (Relative abundance of raw materials of raw materials
reduces individual supplier's influence to Chowking)

Threat of Substitution / Substitutes

Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga

Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

Substitutes pose threat to a company for they serve as alternative in case buyers feel that they
do not get a good deal from Chowking.

1.High substitute availability - Strong force (There many other substitutes for Chowking.)

2.Low switching costs - Strong force (Shifting from Chowking to substitutes involves
insignificant or minimal disadvantages.)

3.High-performance-to-cost ratio of substitutes - Strong force (Substitutes are also desirable for
their ability to deliver quality for their competitive price.)

Threat of New Entrants

New entrants can impact the market share and financial performance of Chowking.

1.Low switching costs - Strong force (It gives consumers the opportunity to move from
Chowking toward new fast-food restaurants.)

2.High variable capital cost - Moderate force (There is only a moderate threat for Chowking in
terms of interested investors starting up a new fast-food restaurant.)

3.High cost of brand development - Weak force (Chowking has already built a very strong
brand in the fast-food industry.)

Summary of porter’s
Five forces analysis

Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga

Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

Pestle analysis
POLITICAL

1. Government Regulations: Compliance with food safety, labor, and other regulations can
impact operations.

2. Political Stability: Stability in the countries where Chowking operates is crucial for consistent
business operations.

3. Labor Laws and Regulations: Affects employment practices and operating costs.

4. Trade Policies: It may influence the import of specific ingredients used in Chowking's menu.

5. Changes in Taxation: Policies can influence pricing strategies for menu items.

ECONOMIC
Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga
Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

1. Economic Conditions: Fluctuations in the economy may affect consumer spending on dining
out.

2. Exchange Rates: If operating internationally, currency exchange rates can impact costs and
profits.

3. Inflation Rates: Can impact overall operating costs, including raw materials and labor.

4. Disposable Income Levels: The consumers play a role in their ability to afford dining at
Chowking.

5. Interest Rates: Can affect borrowing costs for potential expansion or renovation projects.

SOCIAL

1. Cultural Preferences: Adapting menus to local tastes and cultural preferences is vital for
customer acceptance.

2. Health Trends: Increasing health consciousness may influence demand for healthier menu
options.

3. Demographic Shifts: In population age or ethnicity can affect target customer preferences.

4. Social Media Trends: Even online reviews can impact brand perception and customer loyalty.

5. Attitudes Towards Sustainability: May influence decisions regarding packaging and sourcing
of ingredients.

TECHNOLOGICAL
Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga
Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

1. Digital Integration: Embracing technology for online orders, delivery, and payment methods
can enhance customer experience.

2. Automation: Implementation of technology in the kitchen and service areas can improve
efficiency.

3. Cybersecurity Measures: This is crucial to protect customer data in online transactions.

4. Social Media: Digital Marketing strategies influence brand visibility and customer
engagement.

5. Technology Advancements: In cooking equipment and processes may enhance operational

efficiency.

LEGAL

1. Compliance: Adherence to local and international laws and regulations, including

employment and health standards.

2. Intellectual Property: Protection of trademarks and recipes to prevent legal issues.

3. Employment Laws: Dictate practices related to hiring, working conditions, and

compensation.

4. Compliance with Advertising: Standards and regulations is crucial for marketing campaigns.

5. Legal Requirements: For licenses and permits are necessary for restaurant operations.

ENVIRONMENTAL
Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga
Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

1. Sustainability: Growing awareness of environmental issues may drive demand for sustainable
and eco-friendly practices.

2. Supply Chain Sustainability: Ensuring environmentally responsible sourcing of ingredients.

3. Energy - Efficient: The practices in restaurant operations contribute to environmental

responsibility.

4. Weather Conditions: Can impact supply chain logistics and ingredient availability.

5. Implementing Eco - Friendly: Like packaging options aligns with environmental awareness
and customer expectations.

Chowking must navigate these factors to adapt to changing conditions, capitalize on

opportunities, and mitigate potential risks in the dynamic restaurant industry.

CHOWKING
In conclusion, the analysis of Chowking reveals a fascinating narrative of a fast-
food chain that has successfully blended Chinese and Filipino culinary influences,
capturing the hearts and taste buds of a diverse consumer base. Through a strategic
combination of resilience, adaptability, and a commitment to quality, Chowking has
evolved from its modest beginnings in 1985 to become a major player in the global
fast-food industry.
Chowking's strengths lie not only in its diverse menu and iconic dishes but also in
its ability to navigate challenges, embrace technological advancements, and expand
internationally. The brand's dedication to providing affordable yet flavorful meals
has resonated with consumers, making it a beloved choice for individuals and
families across various demographics.
As Chowking continues to innovate and explore new markets, the company faces
ongoing opportunities and challenges. Whether through market expansion, menu

Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga

Telephone No: (045) 961-4261  (045) 961-2239
 Republic of the Philippines
Department of Education
REGION III – CENTRAL LUZON
SCHOOLS DIVISION OF CITY OF SAN FERNANDO
PAMPANGA HIGH SCHOOL
BRGY. LOURDES, CITY OF SAN FERNANDO, PAMPANGA

diversification, or continued investments in technology, Chowking's journey is a

dynamic one that reflects the ever-changing landscape of the food industry.
In essence, the story of Chowking is not just about a fast-food chain; it's a tale of
entrepreneurship, cultural fusion, and a commitment to satisfying the evolving
tastes of a global consumer base. As we look to the future, Chowking's ability to
stay attuned to consumer preferences, maintain its reputation for quality, and
navigate the complexities of the industry will undoubtedly shape its continued
success in the years to come.

GROUP 2
Flores, Ivy Joebell
Dimitui, Mary Lindsay
Dizon, Nicole
Dizon, Matilde
Emita, Allyson Lauren
Garcia, Jamilla Kate
Garcia, Janine
Gonzales, Samuel Lawrence
Gueco, Carl Justine
Guese, Nathaniel
Ganzon, Justine Kurl

Address: PHS Blvd., Brgy. Lourdes, City of San Fernando, Pampanga

Telephone No: (045) 961-4261  (045) 961-2239