Group 4 Pr1 Final
Group 4 Pr1 Final
In Partial Fulfillment
of the Requirements for the Course
PRACTICAL RESEARCH I
By:
May 2024
CHAPTER I
INTRODUCTION
Café shops are a growing business in Batangas City. Cafés are built on almost
every street, school, mall, and other business establishment buildings. The demand
growth for this industry will remain the same as many entrepreneurs succeed in the
various franchise opportunities it offers. As a growing industry, café owners can face
many difficulties because it has become a highly competitive market. Different factors
can influence the business to stay viable and profitable, and being aware of these
challenges can help overcome them and ensure that the company stands out from the
competition.
The craze over cafés started during the COVID-19 pandemic when cafés trended
all over the internet. Then, the popularity of cafés increased, especially nowadays; even
youngsters enjoy cafés, indicating a growing consumer base. According to Mintel (2021),
the pandemic has significantly influenced food and drink trends, with 5 viral trends
emerging during lockdown. As restrictions eased, many café shops started to open,
providing various customized options for customers. Many enjoy cafés for consuming
café and socializing, studying, working, or simply relaxing. With the evolving trends and
the increasing significance of café in people's lives, it is undoubtedly an excellent
business venture.
By examining difficulties experienced in future marketing strategies, employee
productivity, and customer satisfaction, this research about the problems among local
café businesses within Batangas City will seek to close a significant knowledge gap.
Previous researches generally offer broad perspectives while ignoring the characteristics
that will affect cafés in this area. The study’s goals, which will center on the future local
issues these businesses will face, align with the demand for contextual analysis. The
research will add to a more complex understanding of the coming local café scene in
Batangas City by recognizing and comprehending the unique obstacles. In conclusion,
the study will aim to propose forthcoming workable answers that are customized to this
situation, including future suggestions for boosting staff productivity, future boosting of
advertising strategies, and raising customer satisfaction in the local café industry.
Moreover, this study will explore the challenges local café businesses in
Batangas City face, specifically in marketing strategies, employee productivity, and
customer satisfaction. This will identify and analyze these anticipated difficulties and
propose practical improvement solutions. The scope encompasses a detailed
examination of projected market trends and the future effectiveness of marketing
propaganda, including the potential for future consumer opinions. Additionally, the study
will explore the role of innovation in overcoming future challenges and consider future
customer insights as crucial assets for business success. However, limitations will
include potential constraints on menu diversity based on anticipated future consumer
preferences and the possible influence of biases on opinions within the café industry,
impacting future customer experiences.
The significance will focus on uncovering strategies to enhance the viability of
café businesses in Batangas City. By exploring methods to support a future café
business, elevate future service standards, and garner future community support, this
study will provide essential insights for devising comprehensive plans and strategies
crucial for success in the competitive future business landscape. The primary objective
will be contributing to the future growth of the local economy by facilitating the
prosperous advancement of cafés. Acting as a bridge, this future research will connect
the entrepreneurial landscape to economic development, emphasizing the importance of
understanding both future opportunities and challenges local entrepreneurs face.
Additionally, it will serve as a preparatory tool, providing future entrepreneurs with
valuable knowledge about factors such as future competition, economic fluctuations, and
the evolving needs of the local community, fostering a more resilient and adaptive future
business environment.
The prevalent rise of local café shops has become a trend within Batangas City.
It is one of the most in-demand businesses one can start, considering numerous
Filipinos consume café daily. Nine (9) out of ten (10) Filipino households drink café
regularly because, in 2020, the total café consumption in the Philippines was about 3.3
million 60-kilogram bags. This opens numerous doors for entrepreneurs toward a
potential business (Tampon, 2020). With these points, understanding and addressing the
difficulties that local cafés face in three crucial areas—marketing strategies, employee
productivity, and customer satisfaction—is the driving force behind the research topic.
Studying the existing problems in this field will help deepen the understanding and the
means behind running a café shop within Batangas City.
The first goal is to list the challenges these cafés face, like difficulties keeping a
productive staff, successful company promotion, and high customer satisfaction. The
second goal is to shed light on the underlying problems that contribute to the challenges
local cafés in Batangas City confront and to investigate the sources and root of these
problems. The third objective looks to the future by offering workable solutions to
strengthen marketing plans, boost staff output, and raise customer satisfaction levels
within the local café businesses in Batangas City, ultimately assisting in their overall
expansion and prosperity.
2. Why do local cafés have these experiences in Batangas City in the aforementioned
areas?
3. How can local cafés in Batangas City improve their marketing strategies, enhance
employee productivity, and elevate customer satisfaction through practical solutions?
CHAPTER II
LITERATURE REVIEW
The café industry, encompassing a diverse array of café shops and different
types of cafés, represents a vibrant sector within the hospitality and food service
landscape. Local entrepreneurship and business opportunities drive innovation and
diversity within this industry, while market trends and analysis provide insights into
consumer preferences and competitive dynamics. Café services and customer
satisfaction are pivotal for establishing brand loyalty, while effective employee
management and productivity strategies ensure operational efficiency. Marketing
strategies are crucial in attracting customers and fostering brand growth within the
dynamic café market.
Local entrepreneurship and business opportunities help boost the local economy.
Fikri (2022) explained how the continuous increase of established non-franchise local
café shops creates a bridge for people to start businesses aligned with this market. It
highlights the rise in work opportunities that corresponds with the industry's demand for
this type of business. According to Aprilia et al. (2023), given that café shops are a
proliferating business, the company's long-term financial performance of the café shop’s
is greatly influenced by several elements, including ethical awareness, economic access,
organizational learning culture, and digital organizational culture. Local entrepreneurs
should consider how sustainable firm success contributes to the talent development of
each human resource to enhance overall business performance. Café shops are
excellent substitutes for home-based businesses, coworking spaces, and startups for
entrepreneurs.
This greatly benefits them, considering that many business owners operate
mainly in café shops because numerous factors influence the productivity of
entrepreneurs. One of them is to increase networking and drive their minds to think of
striking ideas (Ellis, 2019). In business opportunities, according to McKay (2024),
technological integration streamlines operations, enhances customer convenience, and
improves efficiency, positioning the business for scalability and competitive advantage.
Lutz (2019) identifies emerging trends and consumer demands, guiding strategic
decision-making and enhancing competitiveness through market research. Local
entrepreneurship and business opportunities strengthen ties within the community and
stimulate the economic growth of a regional economy. A connection in the community
may help boost the café shop and enhance the economy as they contribute significantly
by promoting and embracing sustainability and providing an outstanding customer
experience.
Adapting to emerging market trends is crucial for sustained growth and improved
performance in the café industry. According to Colm O'Regan (2023), although the
Philippines is not a significant café producer, it still has a thriving café industry. café
consumption in the country is expected to grow in the coming years due to the
increasing café culture. Many café shops emphasize innovation and differentiation to
distinguish themselves. Some shops introduce creative flavors or brewing techniques,
while others integrate technology to improve the customer experience. In addition,
Anderson (2024) also stated that with the rise of more environmentally conscious
consumers, more people are becoming aware of the dramatic changes to the climate,
how this affects café farms, and how café farming can become more sustainable and
fairer for the farmers. Transparency and sustainability are becoming a buzzword as
customers want to know more about the Journey of the café bean and café shops’
efforts to increase environmentally friendly practices.
Drawing from insights provided by Kuusoft Marketing (2024)., it sheds light on the
evolving café industry landscape, emphasizing the growing trend towards
premiumization and the rising consumer demand for superior-quality café experiences.
This trend is particularly evident among the 18-24 and 25-39 age demographics, who
exhibit a heightened appreciation for unique flavors and innovative brewing methods. As
café owners adapt to these shifting consumer preferences, integrating specialty café
options such as Cold Brew and Nitro Cold Brew becomes essential to cater to the
burgeoning demand for premium café experiences. However, while focusing on
premiumization, café owners must not overlook the importance of accessibility and
inclusivity within their establishments. Creating an environment that welcomes a diverse
range of customers, regardless of their budget or taste preferences, is essential for
long-term success and community engagement.
Similarly, O’Regan's (2023) report on the Philippines’ café consumption trends for
2024 underscores the trend toward premiumization, highlighting consumers' willingness
to pay more for quality café. The report emphasizes the importance of café proprietors
embracing emerging trends to remain competitive in the expanding café market.
However, it is also essential to critically evaluate the sustainability of this premiumization
trend and its potential impact on small-scale café producers, ensuring that ethical
sourcing practices and fair-trade principles are upheld within the industry. Beldad (2022)
highlights the significance of creating unique and inviting atmospheres within café shops
to meet evolving consumer preferences. While focusing on aesthetic appeal, it is
essential not to forget the importance of sustainability and community engagement within
café shop operations. Implementing eco-friendly practices, as mentioned earlier, and
fostering partnerships with local producers can enhance the overall value proposition of
café shops, aligning with consumers' increasing emphasis on ethical consumption and
environmental responsibility.
Management impacts the level of service its workers need to meet, which can be
observed through employee productivity. It is essential to discuss the connection
between these two factors for how a business manages its operations, which directly
affects the performance and motivation of a worker. Son et al. (2021) stated that
employee satisfaction fuels productivity, hence the importance of this concept in running
a café shop business. Worker’s productivity will enhance customer satisfaction since it
impacts the skills executed in their job. For example, if an employee is given the
business’ proper treatment, they will perform productively in the service and efforts they
put out for the company. Augustinus Halim (2021) believes that motivation drives an
employee’s productivity as it influences their performance and service at work. Café
shops require this for a successful operation since it is an in-demand business that
requires workers to execute a fitting and perform excellently.
Along with the growing demand in this business field, it is only fitting that workers
are also required to provide the necessary service needed. Salary, lifestyle, resources,
and motivation influence workers’ productivity as they challenge their capability to
maximize their potential in working for a business. Employees’ well-being as workers
should be considered to fuel their productivity. If their excellent execution of work is
rewarded justly, they will most likely reciprocate the same level of effort toward their
service to the business (Pradila & Fadli, 2023). The correlation between management
practices and employee productivity is evident in café shops. Employee satisfaction and
motivation are critical drivers of productivity, directly impacting customer service quality.
Fair compensation, recognition, and a supportive work environment are pivotal in
fostering employee well-being and enhancing their commitment to delivering excellent
service. Thus, prioritizing effective management practices that nurture employee
satisfaction and motivation is essential for café shop businesses to thrive in a
competitive market and ensure customer satisfaction.
Puspitaningtyas, E. et al. (2023) stated that employee performance would raise
customers’ satisfaction. They set the café shop apart from its rivals by enhancing the
quality of goods and services. The most crucial factors are the abilities that allow
managers to assist others in becoming more productive and at ease at work. The link
between skills and ability is highly complementary since an individual’s degree of
competency is mirrored in their skill set, and managers must take note of this to be able
to know what best fits the employee’s work field for them to execute their job confidently.
The connection between innovation and competence in employee performance in café
shops is an essential aspect in the competitive field of the business as it drives the
operation's success since employees are one of the unique factors of a business.
Furthermore, embracing delivery and pickup options enables café shops to cater
to the preferences of millennial and Gen Z consumers, thereby expanding their customer
base and revenue streams (Voicu, 2023). Gawkowski (2024) adds depth to these
discussions by highlighting the importance of creativity and strategic thinking in crafting
marketing strategies tailored to one's business model. Building a café shop website,
implementing online ordering systems, and hosting café education workshops are
essential components of a comprehensive marketing approach, contributing to increased
customer retention and brand visibility. By incorporating these diverse marketing
strategies into their business plans, café shop owners can elevate their establishments
and foster long-term success in an increasingly competitive market. In pursuing novelty,
a delicate balance exists between innovation and tradition, as customers often seek
comfort in familiarity amidst evolving trends. Therefore, while embracing new
technologies and trends is essential, grounding marketing strategies in timeless
customer satisfaction and community-building principles remains paramount for success
in the café industry's dynamic landscape.
Synthesis
However, success in the café industry is not solely contingent upon external
factors; it is deeply intertwined with internal dynamics such as employee satisfaction and
productivity. Son et al. (2021) and Puspitaningtyas et al. (2023) emphasize the symbiotic
relationship between employee morale, productivity, and customer service quality.
Effective management practices are crucial for nurturing a conducive work environment,
fostering employee satisfaction, and enhancing productivity and customer experiences,
as discussed by Augustinus D & Halim C. (2021) and Pradila A. & Fadli J. (2023).
The synthesis of the café industry landscape in Batangas City underscores the
multifaceted nature of success in this dynamic sector. By integrating entrepreneurial
innovation, market responsiveness, customer-centricity, employee engagement, and
strategic marketing, café owners can navigate challenges and capitalize on opportunities
to thrive in the competitive landscape of Batangas City's café industry.
CHAPTER III
METHODOLOGY
This chapter thoroughly studies the methodology utilized to look into the
experiences of local café businesses in Batangas City. It thoroughly explains the
research, data-gathering strategies, and analysis methodologies. It also addresses the
study's limitations and recommends future research directions to build on this analysis.
Research Design
The researchers will make use of the qualitative approach for this study. Aspers
and Corte (2019) defined qualitative research as a procedure that results in new and
relevant discoveries to analyze and understand a phenomenon that will be examined.
This approach focuses on comprehension as a tool to help enhance research ideas. Not
only that, but it can also assist in answering the many questions a situation offers. A
qualitative research approach utilizes surveys, intensive interviews, and an in-depth
analysis of relevant historical materials. It can be used to study various issues and
occurrences as it focuses more on meanings and explanations that emphasize cultural
symbols, personal experiences, and phenomena, along with a detailed understanding of
processes, experiences, and the meanings people assign to things. With this approach,
the researchers will better understand the local café business experiences within
Batangas City.
Data Analysis
The researchers will employ a triangulation approach in examining and modeling
the data. As Politz D. (2023) mentioned, the triangulation method is the strongest
geometric triangle essential for strengthening data reliability and integrity. To protect the
privacy of café shop owners, the researchers will ensure that all data collected is
anonymized and stored securely. Also, respondents will be told about the study's purpose
and their rights to withdraw at any time. The results from 15 interviews will be carefully
compiled. Responses were coded and designated with numbers like CS1, CS2, etc. This
coding approach helps with future analysis while also maintaining confidentiality.
Through the systematic process of coding, organizing, and classifying data, the
researcher effectively navigates the complex dataset, facilitating thorough findings and
perceptive presentations of the studied topic. By ensuring the anonymity of the
respondents, the researcher upholds ethical standards and builds trust with those
involved in the study. This meticulous approach to data collection enhances the
credibility of the research findings and allows for a deeper understanding of the
experiences and perspectives shared by café owners. By adhering to strict data
protection protocols, the researcher demonstrates a commitment to upholding the
principles of research integrity and ensuring the validity of the study's conclusions.
Ethical Consideration
Ethical considerations must prioritize the well-being and confidentiality of the
respondents involved. In designing the survey and interview questions, it is imperative to
ensure that the inquiries are transparent, respectful, and non-invasive, respecting the
time and input of the respondents. Consent forms should be provided outlining the
research's purpose, the potential risks and benefits, and the voluntary nature of
participation. Confidentiality must be maintained throughout the study, with data
anonymized to protect the respondents' identities. Moreover, any findings or insights
gained from the research should be used responsibly, with due credit given to the
respondents and a commitment to contribute positively to the local café industry in
Batangas City. This ethical research approach ensures that the respondents are treated
with dignity and that their rights are upheld. Researchers can build trust with the
community and gather valuable insights by maintaining transparency, obtaining consent,
and guaranteeing confidentiality. Ultimately, this commitment to ethical research practices
benefits the respondents and contributes to advancing and improving the local café
industry in Batangas City.
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APPENDICES
APPENDIX A: Letter for the Validators
APPENDIX B: Interview Guide Questions
Email: gatdulamonicafelize@[Link]
PERSONAL DATA
Age: 17
Nationality: Filipino
SKILLS HIGHLIGHTS
● Diligent and capable, consistently delivering results within deadlines, even under
pressure.
EDUCATION
Senior High School: St. Bridget College Batangas M.H Del Pilar, Poblacion, Batangas,
4200 Batangas Grade 11
2023-present
Junior High School: St Bridget College Batangas M.H Del Pilar, Poblacion, Batangas,
4200 Batangas Grade 7- Grade 10
2019-2023
Elementary School: Sunhill Montessori Casa [Link] Ave, Batangas, 4200 Batangas
Grade 1- Grade 6
2013 - 2019
AFFILIATION
Member
Student Researcher
Name: Mae Angel Batcharo
Email: maeangelbatcharo851@[Link]
PERSONAL DATA
Age: 19
Nationality: Filipino
Father: N/A
SKILLS HIGHLIGHTS
Senior High School: St. Bridget College Batangas M.H Del Pilar, Poblacion, Batangas,
4200 Batangas Grade 11
2023-present
2017-2021
2011-2017
None
AFFILIATION
Email: juliabondad2@[Link]
PERSONAL DATA
Age: 17
Nationality: Filipino
SKILLS HIGHLIGHTS
Senior High School: St. Bridget College Batangas M.H Del Pilar, Poblacion, Batangas,
4200 Batangas Grade 11
2023-present
Junior High School: St Bridget College Batangas M.H Del Pilar, Poblacion, Batangas,
4200 Batangas Grade 7-Grade 10
2019-2023
Primary School: St Bridget College Batangas M.H Del Pilar, Poblacion, Batangas, 4200
Batangas Grade 1-Grade 6
2013-2019
AFFILIATION
Member
Student Researcher
Name: Kevin Chris U. Debolgado
Email: Kevinurid168@[Link]
PERSONAL DATA
Age: 16
Nationality: Filipino
SKILLS HIGHLIGHTS
● Digital skills
● Technical skills
EDUCATION
Senior High School: St. Bridget College Batangas M.H Del Pilar, Poblacion, Batangas,
4200 Batangas Grade 11
2023-present
Junior High School: St Bridget College Batangas M.H Del Pilar, Poblacion, Batangas,
4200 Batangas Grade 7-Grade 10
2019-2023
Primary School: St Bridget College Batangas M.H Del Pilar, Poblacion, Batangas, 4200
Batangas Grade 1 -Grade 6
2013-2019
None
AFFILIATION
Email: guicoaya@[Link],
PERSONAL DATA
Age: 16
Nationality: Filipino
SKILLS HIGHLIGHTS
Senior High School: St. Bridget College Batangas M.H Del Pilar, Poblacion, Batangas,
4200 Batangas Grade 11
2023-present
Junior High School: St Bridget College Batangas M.H Del Pilar, Poblacion, Batangas,
4200 Batangas Grade 7-Grade 10
2019-2023
Elementary School: San Miguel Elementary School, San Miguel, Batangas City
Grade 1 - Grade 6
2013- 2023
AFFILIATION
Member