Section II

INDUSTRY
Overview of the Industry

The Philippines has a vibrant and diverse food service sector, which plays an important role in
shaping the country’s economy and culture. From local street stalls to fine dining restaurants, the sector
is characterized by a rich variety. While the industry has faced challenges, it has shown resilience and
potential for growth. The pandemic has prompted a shift in customer eating habits, with a trend toward
food delivery apps and an increase in online orders. On top of that, new trends in technology and dining
experiences are bringing fresh and exciting developments to the sector.
Limited-service restaurants like fast food chains are the biggest contributors to the food service
sector’s growth in the Philippines. They account for nearly half of the total market revenue, with local
players dominating the market. Aside from fast food chains, small stalls and kiosks have also been
serving Filipino customers for years, offering a variety of home-cooked Filipino food at an affordable
price. The Philippine food service industry remains a significant contributor to the country’s economic
growth, despite the impact of the Covid-19 pandemic. Statista(2023)
According to Statista Research Department (2023), sales in the sector rose dramatically in recent
years, with a 20% increase expected by 2023. This growth was propelled by shifting customer
preferences, with a shift towards delivering food orders and a decrease in in-person dining. The sector
has shown resilience despite the impact of the pandemic, with many customers embracing delivery
apps. The future potential of this dynamic and versatile industry continues to inspire hope and
excitement.

Major Participants in the Industry

This section showcases some of the major players in the restaurant industry in the city of
Koronadal, South Cotabato. The following restaurants are those currently in operation:

DIRECT COMPETITORS
Direct competitor are any restaurant that offers the same services or products that the Green Flag
Restaurant offers. The direct competitor may have similar location, a similar target market, and a similar
customer base.

Gab’s Yard Steak House and Grill

Gab’s Yard Steak House and Grill is a direct competitor of Green Flag Restaurant in the city of
Korondad, South Cotabato. The restaurant also offers a diverse range of steak dishes as well as other
mouth-watering meals. It draws its customers through its quality and fresh ingredients, its ambiance and
atmosphere, its effective marketing and branding, and its well-trained and knowledgeable staff.
However, the restaurant has limited menu diversity and price sensitivity, as it often attracts
customers with promotional prices to undercut the competition.
TJ’s Seafood and Grill
TJ’s Seafood and Grill is another direct competitor of Green Flag Restaurant in the city of
Korondad, South Cotabato. The restaurant offers a variety of seafood dishes as well as other grilled
meals. It appeals to its customers through its high-quality and freshly-prepared ingredients, a wide range
of dishes on the menu, an outdoor seating and grilling area, and the ambiance and atmosphere of the
restaurant. However, the restaurant is also sensitive to price changes, catering to customers with dietary
and health issues, and changes in seasonal trends.
Juego Gastropub
Juego Gastropub offers innovative cuisine that appeals to customers with its live performances
and adjustable menus. It uses social media to participate in the food influencer sphere and attract new
customers. However, the restaurant also has a limited number of seats available for its guests, as it caters
to specialized groups of customers rather than a large audience.

INDIRECT COMPETITORS
Indirect competitors refer to other businesses within the same industry that do not directly compete
with the target company.
Café Nesa
Café Nessa is an indirect competitor of Green Flag Restaurant, as it specializes more in specialty
drinks and coffee rather than in food items. Café Nessa appeals to customers with its Wi-Fi connectivity
and work areas, its convenient location, and its selection of specialty drinks and coffees. It also offers a
cozy atmosphere and ambiance that makes it a popular space for customers to hangout and work.
Infinitea
Infinitea is an indirect competitor of Green Flag Restaurant as they both serve refreshment
beverages in the same local market and target a similar audience. Also, both businesses also target the
same audience of young and enthusiastic people looking for a fun and relaxing option.
Important Factors to succeed in the Industry
Factors refer to the various elements that contribute to the success of a particular entity. These
elements may range from external factors such as the market, the economy, and the competition, to
internal factors like the management of a business and its capabilities. The factors most important for
success in the restaurant industry are as follows:
 Quality and freshness of ingredients: Customers expect the food they eat to be delicious and
fresh, so restaurants have to ensure that their ingredients meet the standards of freshness and
have good quality.
 Appeal of atmosphere and ambience: Restaurants should have a welcoming and inviting
atmosphere and attract people not just through their food but through their interiors as well.
 Effective marketing and branding: Restaurants need to be present on social media and other
online platforms to reach wider audiences and compete with their competitors.
 Expertise and competence from staff: Restaurants should ensure their staff are well-trained and
competent to provide good customer service and satisfaction.
Fashion trends that affect the Industry
 The rise of vegan, gluten-free, and organic food trend: In recent decades, the vegan, gluten-
free, and organic food options have become increasingly popular in the food industry, which has
had a significant impact on the restaurant business also. Restaurants are now offering more
vegan and gluten-free menu items and implementing changes in their operations to keep up
with the demand.
 The growing popularity of outdoor and street food dining: Street and outdoor food eating have
gained popularity in recent years, with pop-up markets and food trucks becoming increasingly
common. This has also had an affect on the restaurant business, particularly in cities
Legislation that affects the Industry
 Presidential Decree No. 856 Promulgating the Code on Sanitation of the Philippines: Based on
the Presidential Decree No. 856 Promulgating the Code on Sanitation of the Philippines, food
and water hygiene standards are highly regulated in the Philippines. The government sets
requirements for food establishment structure and protection, as well as the quality and
protection of food items, which must be obtained from approved sources. It also regulates the
supply and treatment of water, including standards for drinking water and their bacteriological
examinations. The government makes provisions for health certificates, inspection and
evaluation of food establishment, as well as other measures such as quality control, disinfection,
and water distribution.
 Act No. 3428 SEC. 2. Grounds for compensation: The Act No. 3428, Sec. 2 outlines the grounds
for compensation in the case of personal injury or illness suffered by any employee due to and in
the pursuit of their employment. The compensation that the employer shall pay is defined as the
sums and to the persons indicated in the Act. The main purpose of the provision is to provide
financial protection and compensation for injured or injured employees, so they can recover
from their injuries or illnesses and continue to support themselves and their families. It also
holds the employer accountable for the safety and wellbeing of their employees.
Environmental trends that affect the Industry
 Climate change and global warming: Climate change and global warming have become major
environmental trends with significant impacts on the restaurant industry. Rising temperatures
and extreme weather events can affect agriculture, supply chains, and energy sourcing.
Restaurants are feeling the effects in the form of unpredictable food pricing and availability,
increased costs for operating expenses and other services, and labor shortages.
 Sustainable food sourcing: Due to concerns about environmental sustainability, many
restaurants are adopting more environmentally friendly practices in their sourcing and supply
chains. They are switching to more local and organic ingredients, reducing food waste, and using
more eco-friendly materials in their restaurant design.
 Section III
PRODUCT
The Green Flag Restaurant fulfills the need for a delicious and nutritious dining experience in a
friendly and comforting environment. Green Flag offers a Hydroponic farm that supplies fresh
ingredients for its restaurant. This farm grows vegetables in a closed environment where the
temperature, humidity, lighting, and other environmental factors are carefully controlled to be optimal
for plant growth. The farm produces ingredients such as lettuce, tomatoes, herbs, and more. Green Flag
uses these ingredients to create delicious and nutritious dishes that preserve traditional Filipino cuisine.
The farm also allows Green Flag to reduce its environmental impact by avoiding the use of pesticides.
The key innovations of Green Flag’s product include its commitment to sustainability and healthy eating,
utilizing fresh ingredients from the hydroponic garden, and preserving traditional Filipino cuisine. Green
Flag has established a reputation for being the gold standard of Filipino cuisine. Customers’ expectations
are very high, and the restaurant meets and exceeds them consistently. Its dishes are mouth-watering,
and its ingredients are top-notch.

Product Development
Product development is the complete process of launching a new product to market or
improving an existing product to better meet user needs. This process consists of every step required to
grow a product from an idea to its most viable product, with products often evolving over time to
provide additional value to a company’s customers. Corbo (2021)
The Green Flag Restaurant’s hydroponic farm fulfills the need for a sustainable, health-focused,
and nutritious dining experience with fresh ingredients that also supports Filipino flavors and traditional
cuisine. The hydroponic farm provides the restaurant with environmentally friendly ingredients without
the use of pesticides, which reduces its impact on the environment and ensures the meal remains
natural and nutritious. The farm also allows the restaurant to provide dish-specific ingredients and
ensure consistency in the taste and quality of its dishes. The restaurant’s use of hydroponic crops also
reduces the time and distance required to deliver the freshest ingredients to its guests.
Hydroponic farming can be more expensive than traditional farming methods, as it requires a
more sophisticated setup and infrastructure. However, it offers potential savings in terms of improved
yield and quality, and flexibility to grow a wider range of crops. It can adapt to cater to a wide range of
different crops and herbs, allowing it to be flexible in its application. The farm is committed to
sustainability and is designed to reduce its environmental impact by avoiding the use of pesticides.
The Green Flag hydroponic farm is perceived as an innovative and sustainable approach to
farming, which leads to high-quality crops and products. The farm is considered technologically
advanced and sophisticated, and its commitment to sustainability is viewed as a positive step in reducing
the restaurant’s environmental impact. Green Flag’s cuisine is also seen as authentic Filipino cuisine that
preserves tradition while adapting to modern diets. The restaurant is seen as a leader in the industry,
offering delicious and nutritious dishes that consistently exceed customer expectations.
Service Development
The product is fully developed, with a working model consisting of advanced technology and
sophisticated systems. It has the infrastructure and capabilities to grow vegetables in a closed setting
with optimized conditions. The farming setup is a fully integrated system, with a water pump that cycles
water throughout the farm. The system is optimized for the individual species of plants being grown in
each container, and the process can be scaled up or down depending on specific needs. The hydroponic
is currently in production, producing high-quality vegetables that are used in the restaurant’s dishes.
The Hydroponic farm currently grows a limited number of vegetables, but it can easily be
expanded to include other crops and herbs. Also, the process can be scaled up or down depending on
the needs of the restaurant. It can also be adapted to accommodate additional species of vegetables and
herbs.

Competitive products/services/attractions on the market

One way to identify your competitors is to research your industry and market. Look for
companies with similar products or services and a similar target audience. You can also ask your
customers who they consider as alternatives to your brand or product. “Know thy self, know thy enemy.
A thousand battles, a thousand victories.” While the quote from this ancient Chinese military strategist is
about tactical warfare, it also highlights the importance of understanding your place in the market and
the competition you face. Shaw, J. (n.d

Establishment Strength Weaknesses

Gab's Yard Steak House and
Grill
TJ's Seafood and Grill
Juego Gastropub
 Quality of Ingredients  Price Sensitivity
 Atmosphere and  Limited Menu Diversity
Ambiance
 Effective Marketing and
Branding
 Well-trained and
knowledgeable staff
 High-quality, fresh  Sensitivity to Price
ingredients  Dietary and Health
 Variety of Menu Issues
 Experience Outdoor  Seasonal Differences
Seating and Grilling
 Chef Proficiency
 Atmosphere and
Ambiance
 Innovative Cuisine  Restricted Number of
 Live Performances Chairs
 Adjustable Menus  Alcohol License
 Social Media Guidelines
Participation

Research and Development

Research and development (R&D) is used to describe a series of activities that companies
undertake to innovate and introduce new products and services. R&D is often the first stage in the
development process. Companies require knowledge, talent, and investment in order to further their
R&D needs and goals. The purpose of research and development is generally to take new products and
services to market and add to the company’s bottom line. Kenton, W. (2024)
Green Flag seeks to advance technology within the food industry to enhance sustainability,
efficiency, and flavor through the use of advanced technologies, such as robotics and artificial
intelligence (AI). Financial and human resources are needed to facilitate R&D and implementation of
such technologies. Also, there are some technical risk that arise during this implementation such as cost-
effectiveness, and scalability of the technologies. With some rival restaurants that have been actively
investing in similar technologies, with some having a head start. This may make it difficult to keep up.

Financial Considerations
Financial Consideration means value that is given or received directly or indirectly through sales,
fees, charges, dues, contributions or donations. Law Insider (n. d)

Dynamic Pricing Strategy

Dynamic pricing is a strategy used to establish flexible market prices for products and services
offered by companies, taking into account some variables such as balance between supply and demand,
seasonality and competitive strategy. Zago, C. (2021)
Green Flag Restaurant uses dynamic pricing strategy to adjust prices according to demand,
competition, and other factors. Dynamic pricing helps the restaurant effectively manage demand
variations and ensure that it is always operating at full capacity. The restaurant can offer discounts in
slow moments to attract diners and raise prices during busy times to maximize revenue. This can help
balance out variation and ensure that the restaurant always operates under maximum utilization.
Additionally, the restaurant can use dynamic pricing to address competition by adjusting prices
instantaneously and remaining competitive, ensuring it remains a desirable dining destination.

Cash Flow Requirements

Our company requires the amount of money to achieve its goals and pay its expenses. From
daily operating costs to more significant long-term investments, this covers a wide range of costs.
Starting with the operational costs, which include things like salaries, rent, utilities, and supplies. They
are an essential component of cash flow planning because they are frequently regular and predictable
expenses.
The revenue projections, which are an estimate of the expected income for our business.
Considerations including market size, competition, pricing, and growth potential should all be included in
this conservative analysis.Our projection of the inflow and outflow of cash from our company is referred
to as a cash flow analysis. For our business to guarantee that it has enough cash on hand to run, it should
provide projections of when expenses and income are expected to be paid. Return on Investment The
time and profit our company will make are estimated here. It must consider the initial expense as well as
the continuous running costs.
Given that our restaurant is a hydroponic farm, we also provide Hydroponic System Setup. The
price of building or buying the hydroponic system will depend on its size and kind. Purchase prices for
seeds, nutrition, and other essential supplies might also be included in this. Furthermore, the cost of
establishing the restaurant itself must be taken into account in addition to the hydroponic system. Land
purchase, restaurant construction, furniture and equipment purchases, and other essentials are all
included in this.

Stock Supply
An innovative business concept is a hydroponic farm restaurant, which uses hydroponic farming
techniques to raise its own produce. In order of order of stock, we have hydroponic systems, grow lights,
pumps, air stones, timers, and other related equipment.
Also, we require Seeds or Seedlings for the crops we intend to cultivate, which we must
purchase. Many leafy greens, herbs, and even some fruits and vegetables may fall under this
classification. Hydroponic agriculture requires the use of nutrient solutions, which are constantly stocked
to give plants the nutrients necessary for growth. In addition to the goods needed for farming, we also
require all the standard supplies needed to operate a restaurant. This includes tableware, cleaning
supplies, appliances, and ingredients that aren’t developed nearby. At last, safety equipment, which
could include masks for handling cleaning supplies and nutritional solutions, gloves, and safety glasses.

Section IV
Market

Market Description
A Hydroponics Farm Restaurant is a unique dining establishment that combines the principles of
hydroponic farming with the food service industry. Plants grown hydroponically without the use of soil
grow in a regulated environment due to the use of mineral fertilizer solutions in a water solution. The
food served at a Hydroponics Farm Restaurant is produced in-house on a hydroponic farm, frequently in
a prominent area like an indoor garden. This gives customers a rich eating experience and guarantees
the highest level of freshness in the dishes.
The main goals of a hydroponics farm restaurant are to provide the freshest vegetables available
while also minimizing food miles. The restaurant can serve fresh, locally grown food all year round since
the hydroponic system makes it possible for a variety of plants to thrive year-round, regardless of the
weather.
When patrons dine at these establishments, they frequently get to witness the growing and
harvesting of their food, making for an unforgettable eating experience. Transparency fosters trust and
strengthens the bond between the customer and their food. An increasing segment of environmentally
concerned consumers who value fresh, high-quality food produced locally and sustainable farming
methods are served by hydroponics farm restaurants. Their innovative sourcing strategies, dedication to
sustainability, and use of locally grown food make them stand out in the restaurant business.
Key Market Trends
 Overall Growth in Tourist Spending
Globally, the hydroponics market is expanding because to rising acceptance in nations in South
America, Europe, Asia Pacific, and other regions. The installation of hydroponic farms by well-known
regional players, government assistance for the construction of vertical farms, a growing interest in
efficient farming methods, and increased funding for cutting-edge setups and sustainable farming
practices are some of the causes contributing to this expansion.
Given that these businesses frequently provide distinctive eating experiences and freshly picked,
locally grown fruit, the rise of the hydroponics market may result in more tourists spending money at
hydroponic farm restaurants. To validate this association, more investigation would be required.

Target Market
Our target customers for Farm Table are those who value eating locally and sustainably produced
food and are prepared to spend more for superior ingredients. Those who love food who value unusual
and delectable eating experiences are included in this group, as are health-conscious people looking for
organic, gluten-free, and vegetarian/vegan options. Our retail division will serve a larger group of
neighborhood customers looking for unique goods and fresh, in-season vegetables.
Target customers for Farm Table are those who value eating locally and sustainably produced
food and are prepared to spend more for superior ingredients. Foodies who value unusual and
delectable eating experiences are included in this group, as are health-conscious people looking for
organic, gluten-free, and vegetarian/vegan options. Our retail division will serve a larger group of
neighborhood customers looking for unique goods and fresh, in-season vegetables. Based on the idea of
farm-to-table, farm-to-table offers a distinctive dining experience. With an emphasis on sustainability,
health, and delectable taste, our cuisine will highlight fresh, locally produced ingredients. We will have
vegetarian, vegan, gluten-free, and organic options to accommodate a variety of dietary needs.

Demographic
All age groups are targeted by the items and services offered by the Hydroponic Farm
Restaurant. The main demographics that are targeted are singles, people, couples, families, and groups
of business travelers, locals, and professionals who make an effort to savor nutritious and fresh meals.

Psychographic
The company aims to provide pleasure and fulfillment with the goods and services it offers to
individuals who appreciate their free time, nutrition, and ease of thought.

Geographic
 The business also provides to locals in the nearby areas, including the barangays and
municipalities of South Cotabato, as well as visitors from other locations who are interested in our
products and services. Our main goal is to reach residents of Koronadal so they may experience the first
hydroponic farm restaurant in the area.

Competitor Analysis
Our business objectives are to be accomplished through the efficient allocation and coordination
of marketing resources and operations through the use of a marketing strategy. A marketing strategy is a
detailed plan created specifically to help a firm achieve its marketing goals. It offers a road map for
achieving these marketing goals. One of the primary goals of a marketing strategy is to identify and
research the market our business will be operating in. This process is known as target market
identification. It supports market segmentation, targeted client acquisition, and positioning the good or
service in a way that appeals to our intended market. Competitive advantage is a strong marketing plan
facilitates improved client relations for our business.
One of Green Flag Restaurant’s competitors in Korondal, South Cotabato, is Gab’s Yard Steak
House & Grill. Given that the restaurant serves a variety of delectable meals in addition to steak dishes.
Its fresh and high-quality ingredients, its ambience and mood, its successful branding and marketing, and
its experienced and well-trained staff are what attract clients. Due to its practice of drawing clients with
discounts in order to undercut rival restaurants, the restaurant does not have a very diverse menu or
sensitive pricing policy.
Another restaurant that competes with Green Flag Restaurant is TJ’s Seafood and Grill since it
offers a variety of grilled meals in addition to seafood dishes. Customers are attracted to the restaurant
by its wide menu, excellent and freshly cooked ingredients, outside dining area with grilling, and overall
environment and vibe.
Juego Gastropub is a competitor of our restaurant as well because they provide creative cuisine
and draw in guests with their interactive menus and live shows. It engages in the food influencer market
on social media to draw in new clients.

Marketing strategies of competitors

Most of our competition bring in business from their established reputation in the community.
One of their tactics is word-of-mouth marketing, which works well to get customers to use a
product or service. Moreover, word-of-mouth marketing involves building a brand that is
interesting to talk about and then motivating others to do the same. It's an effective tool that
can promote gaining customers as well as retention when applied properly.
In order to share more information about their business, they used as well social media
marketing. This is because, in the current generation, the majority of people use social media
platforms to keep up with trends, and by using this technique, many people will be aware of
their services. Social media also gives businesses the opportunity to interact directly with their
customers, which can strengthen customer loyalty and create an impression of community
around the business.
Marketing and Promotional Strategies of "The Green Flag"
We utilize social media marketing as one of our very first marketing techniques for our
restaurant. We post images and videos of our indoor hydroponic farm, the atmosphere of our
dinning area, and the food we make on sites like Facebook, Instagram, TikTok, and others. By
doing this, we can better emphasize the attention that goes into creating each dish and the
freshness of our ingredients. Our restaurant's dedication to sustainability and locally sourced
food might also be promoted. Environmentally minded customers may find this appealing.
Even with the popularity of digital marketing, we still employ traditional methods like print
media, which entails running advertisements in printed products like brochures, newspapers,
and magazines. These are very useful for focusing on local consumers because they can reach a
large audience. Radio and television advertisements are also considered broadcast media since
they have the potential to reach large audiences.
Since most people are more willing to believe personal recommendations from friends or family
than any other type of promotion, word-of-mouth marketing is very important for promoting
our restaurant. Positive word-of-mouth can give our restaurant an advantage over its
competitors in the highly competitive restaurant industry. If someone they trust had a positive
experience at our restaurant, they are likely to visit it too. Word-of-mouth advertising is
essentially free; satisfied consumers sharing their positive experiences can be more effective
and less expensive than other advertising methods.
In order to promote customer loyalty and encourage regular customers, loyalty programs are
another one of our marketing techniques for our businesses. Personalize offers and prizes by
utilizing consumer data and preferences. To make consumers feel valued and appreciated, this
can involve sending personalized promos based on past orders or providing birthday prizes.
Offering awards that can be achieved reasonably fast to keep customers interested in the loyalty
program. This can include earning points or receiving deals with each visit or transaction.
In order to raise awareness, attract customers, establish a strong brand, and eventually increase
sales and revenue, these marketing techniques are crucial for our hydroponic farm restaurants.
It might be difficult to compete in a crowded market and maintain long-term success without
this kind of effective marketing strategies.

Marketing Budget
The monthly expenses for all marketing and promotional strategies that "The Green Flag" will
implement are shown in the table below:
Marketing Strategies Technical Requirements Monthly Cost
 Utilizing Social Media Platforms Social Media employees for all Php. 15,000
of the social media platforms

Traditional Marketing strategies Tarpaulins Php, 8,000

Brochures

Print Media

Employees

Discount-related strategies for Loyalty Cards Php, 5,000

marketing
Coupon

TOTAL::28, 000

Section V
Operations

OPERATIONS
Operations refers to the general management and regular activities of a restaurant. A range of
jobs and duties within operations come together to offer consumers with delicious meals and
memorable experiences. Common examples of operations such as, Food preparation involves preparing
ingredients, preparing dishes according to recipes, and ensuring that food safety regulations are
followed. Customer services that includes greeting guests, taking orders, serving food and beverages,
and reacting to customer issues or requests.
The business plan needs to ensure that the restaurant's sustainability depends on effective
operations. Helping in increasing profitability and reducing risks while providing a great experience for
employees and consumers.
LOGO

The Green Flag Restaurant logo is a unique and eco-friendly concept restaurant that brings the
best of Filipino cuisine to your doorstep Our commitment to sustainability and healthy eating is reflected
in the utilization of fresh ingredients from our Hydroponic garden, which we use to create delicious and
nutritious dishes inspired by traditional Filipino flavour. We take pride in sourcing the freshest
ingredients and preparing them using traditional techniques, resulting in dishes that encapsulate the
true essence of Filipino cuisine. We are also committed to creating a comfortable and welcoming
environment, with interior design that showcases the beauty and diversity of Filipino culture. The Green
Flag Is not just a restaurant, but a lifestyle. The Green Flag Restaurant is Defined as the finest, most
trusted, and dependable place for everybody's once in a lifetime experience.

Mission
To revolutionize Filipino cuisine with the use of sustainable and innovative farming methods that
produce fresh, nutritious, and delicious dishes, while providing an eco-friendly and sustainable dining
experience.
Vision
To be the foremost restaurant in the industry, renowned for our commitment to sustainable practices,
responsible sourcing, and innovation. We aim to serve as a model for the future of the food industry,
setting an example of how restaurants can be sustainable, delicious, and eco-friendly.
Goals
The Green Flag Restaurant is dedicated to nurturing sustainability, promoting eco-friendly farming, and
creating nutrient-rich, delicious Filipino cuisine in an eco-friendly and community-conscious setting,
offering outstanding customer care and establishing trust and reliability as the finest restaurant in the
area.

SERVICE OPERATION PROCESS

The service operation refers to the procedures and activities involved in offering food and
beverage and other services to customers at the Green flag Restaurant. Understanding all aspects of
service operations can help the business ensure its profitability by meeting the needs of its customers
while making a profit.