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Chapter I

THE PROBLEM AND ITS BACKGROUND

Introduction
First we eat, then we do everything else.
-

M.F.K. Fisher

Food is essential to man because it helps us gain nutrients that our body needs.
According to McWilliams, Ph.D., RD (2006), food can provide all the nutrients like
carbohydrates, lipids, vitamins and minerals needed for good health. Dining out is a part
of our lives. We eat out because its easy and quick. We also use this to socialize with
our peers, colleagues and family members. As claimed by Titan and de Guzman (2013),
with the changing lifestyle of people and the growing popularity of eating away from
home, the food and beverage industry is likewise evolving to meet these impending
challenges. It also connects us to our cultural heritage as it creates social bonds and it
simultaneously marks off and maintains cultural difference. Food is an exploration of
culture. What we consume, how we acquire it, who prepares it, whos at the table, and
who eats first, is a form of communication that is rich with meaning. As stated by
Hartog, Slaveen, and Brouwer (2006), food is not just something to eat, it is an integral
part of the culture of a community, region, or nation.
Since food is considered as basic need, it also beneficial to the

According to Frando and Mores (2014), Abraham Maslow stated that basic needs
refer to those fundamental requirements that serve as the foundation for survival. Every
human being has basic needs they need to have fulfilled, such as the need for food and
water. He believed humans are motivated to fulfill these basic needs, before they can
fulfill more complex educational needs such as the need to know and understand. He
stated that there are five motivational needs. The most basic need in the hierarchy is
the physiological needs that concern the following: Air, water, food, and temperature,
which occupies the first level. This should be fully met before moving to the next level.
Food and water are obvious fundamental needs to keep the body alive, because the
body needs nutrients and water to work properly. If the body gets enough nutrient and
enough fresh healthy food, you will keep it in good condition. As claimed by Scatter
(2007), individuals may be experiencing food insecurity function at this present moment.
They are driven by hunger and anxiety about getting enough to eat. The need to satisfy
hunger promotes selecting food items previously experienced as being filling and
sustaining food items that are relatively high in energy density. Food and beverage
business is very lucrative as it satisfies a basic physiological need of all human beings
to survive, as stated by Dr. Andrews (2007). No matter how basic or elaborate the
operation is, food and beverage is a safe business because people must eat and drink.
The food and beverage business is a growing industry because it is the primary
need of man. This is also a way for people to reconnect and socialize with others, and
a way to reconcile with our cultural heritage. This shows that the project proposal will
be feasible because of the growing need for this kind of establishment. People
nowadays want to visit more food and beverage establishment to sustain their growing

need of tasting different types and flavors of food and beverages, and to experience
new cuisines. Since Lucena City is the center of Quezon, a lot of businesses are and
can be established. This feasibility study will possibly be successful due to the growing
population of this city, especially since the Lucenahins are known to love food in
general, and they love to eat out to try more food from different establishment.

Statement of the Problem -*****


1. What is the profit of the target customers respondent in terms of:
1.1 Age;
1.2 Sex;
1.3 Status;
1.4 Monthly allowance;
1.5 Monthly income;
1.6 Preferences on type of food and beverage to dine in;
1.7 Food and beverage concept;
1.8 Food preferences;
1.9 Number of company when dining;
1.10 Amount spent for lunch/dinner;
1.11 Amount spent for snacks;
1.12 Amount spent for drinks;
1.13 Factors for availing food and beverage services;
1.14 Time spent in dining;
1.15 Drink preferences;
1.16 Particular day which usually visits a food and beverage sector, and
1.17 Frequency in visiting a food and beverage sector?

2. What are the features of the proposed establishment in terms of:


2.1 Mission;
2.2 Vision;
2.3 Objectives;
2.4 Services, and
2.5 Logo?

3. How visible is the proposed business in terms of:


3.1 Layout;
3.2 Design;
3.3 Equipment;
3.4 Theme/Concept, and
3.5 Green concept?

Significance of the Study


This study intends to examine the feasibility of putting up a restaurant in Lucena
City, Quezon Province that would be beneficial to the following:
For the students

This study serves as their reference in making another


feasibility study.

For entrepreneurs

This study will give them an in-depth understanding of the


business, market, financial needs, manpower, sustainability
and environmental responsibility.

For restaurateurs

The paper will allow them to consider putting up a


restaurant in the area due to the results of the feasibility
study conducted by the researchers.

For the investors

This study can magnetize potential business seekers to


invest and make this possible. This business could influence
potential investors.

For the community

This study would give job opportunities for the people of


Lucena City.

For the City of Lucena This study will help promote the popularity of the city as a
well-known tourist destination.

Definition of Terms
The following terms are defined operationally as used in this study:
Accessibility The road aptitude and sufficient access and way out of the future
restaurant site.
Advertise These are the recruits which we vacant foods and service in sort to have
wages or sales in a phase of instance.
Beverage Replace by any liquid for drinking, typically excluding water.

Casual Dining Restaurant Possibly catered the 18 years and above bazaar and
offered a quite extensive menu and an ingenious liquor list.
Chicken A variety of capon, the term integrated any of several varieties of frequent
domestic fowl used for food as healthy as egg production.
Cuisine A technique of cooking of the art of preparing superior meals.
Design A sketch or principle, perception and the theme for the edifice of
establishment or business.
Discount A diverse scheme to save money by plummeting costs.
Fast Food Restaurant It merely means food primed and dole out quickly.
FIFO (First In First Out) A routine of prearranged and manipulated stack, example,
and oldest ingress pile necessity be processed first.
Food These are the artifacts which are obtainable to customers and guests.
Kitchen The foundation and conveniences where food is arranged once-over to
guest.
Lay-out A steer on how you locate the facilities in advanced and precise spot.
Price The magnitude of recompense or reparation specified by merchandise and
service that to be obsessive.
Product Anything that is obtainable to promote which fulfilled a desire or
necessitate.

Promotion A technique of presenting in sequence and distinguish a manufactured


goods to the trade of market.
Quality Food A combination of intrinsic properties of a product which resolute its
comparative extent distinction.
Quality Standard A nearby list of granted upon considerable principles that
companies use to determine merchandise and service.
Raw Materials Several resources going into an affected or completed product.
Restaurant A dealing or maneuver that was constant to the auction, grounding and
services of food and beverages.
Service Perform or support to convene our customers needs and wants.
Service Provider These are the employees of an institution that provides service,
instance, attendant or waitress.
Stockroom or Storeroom The grounds where victuals and beverages substance
are stored.
Tax The cost charged by an administration that was supplementary to the product
and service.
Turnover rate The proportion or the quantity of human resources that had to be
replaced in a certain time period to the standard quantity of staff.

CHAPTER II
RELATED LITERATURES AND STUDIES

In the process of conducting a feasibility study on establishing a restaurant


business in Lucena City, the researchers understand the importance of gathering
information and related to the study from various resources. Located in this chapter is

the full discourse of the said information and data gathered by the researchers and their
relevance to the feasibility study.

Foreign Related Literature


According to National Restaurant Association (2013), restaurant feasibility study
is divided into five steps, which are 1) identifying market area and gathering
demographic data such as age, sex, income, dining-out habits and other characteristics
of potential customers; 2) concept development, which involves using the data about
population market area and forming and evaluating a restaurant concept that the areas
needs and preferences; 3) site analysis, a process to determine whether characteristic
of the site and the competitive environment around the restaurant supported such as
concept; 4) competitor analysis, which involved investigating competitors in market area
through a competitor analysis worksheet; and
specifying

5) financial analysis, a process of

revenue- generating criteria, computing estimated average-check and

revenue figures, estimating operating expenses, analyzing and interpreting the financial
statement, and finally, developing an implementation plan. This part was included in the
five stages as what NRA stated steps in making restaurant feasibility.
According to Walker (2011), concept comprise everything that affects how the
patron views the restaurant, public relations, advertising, promotion and the operation
itself. Concept is the frame of peoples perception of the total restaurant.

Mayer (2008) stated that people who knew the area and the interest of the
people in the area tended to have more success in operating a restaurant than people
that do not know the area.
According to Sharma (2013), a restaurant requires the right location. Decide on
how large you need the space to be. If youve never opened a restaurant, consider a
dining room that seats under 50 people. Opening up a smaller space can help you learn
effective management techniques before you tackle a larger space. The right restaurant
space should have lots of daily traffic to enable people to see your restaurant.
Haglund (2013) pointed that there are eight factors to consider in choosing a
location for an establishment: Cost, is it within your budget? Convenience, will your
business be easy to locate and is there nearby parking? Prestige, having a downtown
address would increase your credibility. Safety, this is extremely important for both
employees and customers. Will the location be well lit and have security on site? No
one wants to eat out on a place where crime is happening on broad daylight. Especially
when the day ends, you never know who snoops around. Traffic, restaurants and
retailers benefited from drive through traffic, but not particularly office workers. Building
requirements, do you need things such as specialized wiring, meeting space or other
special needs? Sharing space for meetings could be an option. Zoning, make sure your
business is allowed in your chosen city before lease signing. Visibility/Accessibility, will
your business be easy to see/access for car traffic and pedestrians alike? Being closed
to similar clientele is also a plus. Even something as simple as what side of the street
you are on can make a huge difference. You dont want customers having to make Uturns just to get to you; they may bypass you altogether.

According to Birchfield (2008), demographic data include information about the


population near the proposed location of the restaurant, including age, income, gender,
occupation and similar information. These data about individuals are relevant because
target market segments for restaurants are often described in terms of the same factors.
Demographic are thus known to predict restaurant behavior.

Synthesis
When thinking about putting up a restaurant, it is important to write a feasibility
study and analyze if the restaurant business youre going to put up will be successful
and profitable. Feasibility study is a useful tool to determine and evaluate a business if it
is feasible.
According to National Restaurant Association (2013), restaurant feasibility study
is divided into five steps, which are 1) identifying market area and gathering
demographic data such as age, sex, income, dining-out habits and other characteristics
of potential customers; 2) concept development, which involves using the data about
population market area and forming and evaluating a restaurant concept that the areas
needs and preferences; 3) site analysis, a process to determine whether characteristic
of the site and the competitive environment around the restaurant supported such as
concept; 4) competitor analysis, which involved investigating competitors in market area
through a competitor analysis worksheet; and
specifying

5) financial analysis, a process of

revenue- generating criteria, computing estimated average-check and

revenue figures, estimating operating expenses, analyzing and interpreting the financial

statement, and finally, developing an implementation plan. With this, the researchers
have an idea on how to make this feasibility study. The researchers know the
importance of identifying your potential market within your site. With the demographic
data the researchers can analyze and study their potential customers. Using the
demographic data that the researchers obtained they are now ready to conceptualize
the theme and concept of the restaurant that will attract future customers. Site and
competitor analysis is also important in making a feasibility study. The researchers will
look for their nearby competitors to study their business for them to know what they can
do to make their feasibility study different from other competitors. They then work on
and analyze the financial statement of the restaurants operating expenses and
projected income.
According to Sharma (2013), opening up a smaller restaurant with fewer than 50
seats will help in learning effective management techniques before tackling on much
larger space. The researchers found out that it is advisable to start out with a small
business, so that one can learn effective management techniques.
There are eight factors to consider when choosing a location, as stated by
Haglund (2013). These are cost, convenience, prestige, safety, traffic, building
requirements, zoning, and visibility/accessibility. Additionally, Mayer (2008) stated that
people who knew the area and interest of the people in the area tended to have more
success in operating a restaurant. The researchers have made this their guide in
choosing a location for their feasibility study. By knowing the interest of the people in the
area, the researchers must gather demographic data that includes information about the
people in the proposed location of the restaurant including age, income, gender,

occupation, and similar information. The team also understand the importance of
collecting such data. As said by Birchfield (2008), these demographic data are relevant
because target market segments for restaurants are often described in terms of the
same factors. Demographic are thus known to predict restaurant behavior.

Local Related Literature


According to Ditan (2007), food and beverage service is the climax of the
relationship between a customer and a caterer during a meal experience. The actual
contact with the customer is made at this stage of the food and beverage operation. In
the presentation of food and beverage to the customer, the food and beverage service
staff, in fact represent the whole organization. They deliver to the customer the product
which was: Planned by the management, cost by finance, assured by marking, and
produced by the kitchen.
According to Arboleda (2010), attracting a huge crowd to restaurants or fast
foods require more than just good food. Though important, good food is only a part of
the total dining experience. Equally important is believed to be the wary people feel
while in the restaurant. This physical and emotional response is a result of the
atmosphere, the total environment to which customers are exposed.
According to Roldan, Edica (2008), food and beverage service is one of the fast
expanding business not only in the Philippines but around the world. With more and
more food and bar outlets being set up in the Philippines and elsewhere, the
competition has become stiffer. To survive the competition, the food outlets need to be

competitive in the quality of their food, facilities, and also service. Many restaurants offer
good food yet lose their patrons because of service deficiencies.
Lapea (2013) stated that Filipinos are chicken dinner. Most Filipinos prefer to
eat chicken than other meat. Maybe its because chicken is a meat softer than other
meat and its much cheaper than others. The country does not lag behind the western
world when it comes to fondness for poultry recipes. In fact, food establishments
abound offering their own grilled chicken recipe packaged under many different names.
According to Li tan, de Guzman, food is essential to man. The very reason why
the foodservice industry, which deals with preparing food items/products, is and will
always remain in high demand, is because of its necessity. With the changing lifestyle
people and the growing popularity of eating away from home, the food industry is
likewise evolving to meet these impending challenges. This industry includes
restaurants, fast foods, school and hospital, catering operations food trucks, etc.

Synthesis
With what Lawrence Li tan and Florenitte de Guzman stated that food is essential
to man, the very reason why the foodservice industry, which deals with preparing food
items/products, is and will always remain in high demand, is because of its necessity.
With the changing lifestyle people and the growing popularity of eating away from home,
the food industry is likewise evolving to meet these impending challenges. The

researchers have come to a conclusion that a restaurant would be a feasible business


to put up. With the changing lifestyle of people and high demand of eating out this type
of business will surely gain profit. But with more and more food and bar outlets being set
up in the Philippines and around the world, the competition has become stiffer. To
survive the competition, the food outlets need to be competitive in the quality of their
food, facilities and service, this was stated by Amelia S. Roldan, Benito T. Edica (2008).
With this, the researchers know that to be successful in the food and beverage industry,
one must be competitive in terms of quality whether in their food, facilities and services.
In the first paragraph stated by Joseph Linford A. Ditan (2007), the researchers
learned that the food and beverage service is the climax of the relationship between a
customer and a caterer during a meal experience. Quality service is important because
it connects the customer to the establishment. The food and beverage service staff is
the one who delivers the product of the establishment to the customers. It is also stated
in the paragraph by Arboleda (2010), that attracting a customer requires more than just
good food but how they also feel when dining in the restaurant. The atmosphere of the
restaurant is also important.
Filipinos prefer to eat chicken other than any meat, as is stated by Lapea (2013). With
this, the researchers know what to offer to the customers. This gives them the idea to
put chicken dishes in their menu.

Local Related Studies

The number of restaurants (including fast-food chains, casual dining outlets,


cafes and bar) grew for 72,200 outlets in 2007 to 80,000 outlets in 2011, an increase of
11 percent. It was anticipated that the number of restaurants that continued to grow by
two to five percent annually as the Philippine economy continued to strengthen and
major shopping malls throughout the country continue to flourish. (2011 Annual Survey
of the Philippine Business and Industry on Hotel and Restaurants)
The aspects of the management play a vital role in the business industry. The
management will be composed of highly trained personnel to relay the responsibilities to
every employee and carry out the restaurants objective. The relation of the person
behind the restaurant greatly depends on the manner of the leadership rise by the
management. (Dimaculangan, 2012, Brook A Leg-o Fast Food Restaurant)
Restaurants set importance on the promotion of dining pleasure, a place to relax,
eco-tourism and keeping pace with changing demands of diners and travelers.
Restaurant is also used for catering services, meeting rooms and ballrooms for social
functions, conventions and recreation and business meetings. (Mendoza, Donald C.
Amorado, Pantua, Aiza B., Querjiero, Johneer E., March 2006)
Camacho (2013) noted that the Philippines have always been prone to slavishly
following food and restaurant trends. Filipinos tastes are notoriously unpredictable, and
we swiftly tire of restaurant gimmicks. The countrys restaurant scene is very
competitive. Restaurants are cropping up left and right, leaving us overwhelmed by too
many choices. While these trends and gimmicks can lure people in, keeping them
hooked is the real challenge.

Drafting plans were needed in a business in order to have a long term success.
Different surveys and analysis were needed to study the existing market in the area of
the business. With this, one can strategize of how people patronize the product. (Kanin
Get Eat, A project paper on marketing Management, March 2012)

Synthesis
According to 2011 Annual Survey of the Philippines Business and Industry on
Hotel and Restaurants, the number of restaurants continues to grow as Philippine
economy continue to strengthen. With this, the Researchers knew that restaurant is a
business worth putting up and will gain profit
Drafting plans is important in order to have a long term success as stated by the
students of Marketing Management in their project paper entitled Kanin Get Eat. With
this, the researchers knew that planning and conducting survey and analyzing the data
gathered is important so that one can plan according to the market area.
The management is also important as what Dimaculangan (2012) noted. The
management plays a vital role in business industry. That restaurant depends on the
leadership of the management. With this, the researcher knew that a restaurant also
needs to have a highly trained personnel and employee for the business to be
successful.
Camacho (2013) also noted that Filipinos tastes are unpredictable, and can
swiftly tire of restaurant gimmicks. The restaurant scene is very competitive.

Additionally, Mendoza, Amorado and Querjiero (2006) stated that restaurants set
importance on the promotion of dining pleasure, a place to relax and keeping pace with
changing demands of diners and travelers. Because of this, the team know that they
need to come up with different gimmicks that can attract customers to their restaurant.
They came up with ideas they can use, like offering shisha to customers and having a
place for the customers to play cards, dominoes, and chess. Where they can eat, chill
and have a good time at one place.

Foreign Related Studies


Dixon (2012) stated that the Philippines are teemed with restaurants and food
vendors, and its little wonder since most residents eat five meals each day. Generally,
these are small meals by Western standards, including breakfast, a morning snack,
lunch, afternoon snack and dinner. Filipinos preferred to eat communally, with many
meals served buffet-style. Regardless the socioeconomic status, Filipino families placed
high premium on meals, considering them an important time to socialize with friends
and family and as a gesture to welcome guests.
Hansen (2005) quoted that today, there is an increased focus on food and meals
in many countries, from both everyday people and professional meal producers. The
information and interest around meals, food, cooking, and related themes is abundant.
Therefore, almost every newspaper, magazine, TV channel, and other media channels
carry some sort of information about meals, food, original use of spices, etc. that is of

interest to the general public. The focus on food and meals creates awareness around
meal issues in everyday life.
Lui (2006) mentioned that for some families, eating out has become a way of life.
Everyone needs to eat and wants to enjoy good food in a pleasant environment. In
addition, this is where romance starts, business is conducted, and people socialize.
Carroll (2009) independent restaurants are important in communities. Not only
can restaurants provide the basic need of an enjoyable meal but restaurants also serve
as gathering places for social and recreational purposes. People can celebrate special
occasions, spend time with family or friends, and/or enjoy the atmosphere at
restaurants. A restaurateur must have a solid business plan and understanding of what
it means to run a restaurant business in both strong and weak economies. The
successful restaurateur must know the product, its packaging and the services cape
(which includes the atmosphere, layout and service features to all be harmonious to
foster a positive customer experience). An understanding of the city or community
demographic, the future anticipated growth of the city and business demand, and the
general feel or attitude of the city is important for a restaurateur looking to open an
establishment.
As opened by Jia, Guanglun (2012) entrepreneurship is a dynamic process of
vision, change, and creation. It requires an application of energy and passion towards
the creation and implementation of new ideas and creative solutions. Essential
ingredients include the willingness to take calculated risks, formulate an effective
venture team, marshal the needed resources, build a solid business plan, and, finally,

the vision to recognize opportunity where others see chaos, contradiction, and
confusion.

Synthesis
In the paragraph of Carroll (2009), the researchers knew that a restaurant plays
an important role in a community because it provides them with the basic need of an
enjoyable meal and serves as a gathering place. The team also knew that to become a
successful restaurateur they need to have a solid business plan and knows how to run a
restaurant business in both strong and weak economies. They must know the product
they are going to offer and they need to fully know the community in their proposed
location. Additionally, Liu (2006) stated that eating out has become a way of life.
Everyone needs to enjoy and wants to enjoy good food in a pleasant environment. That
is why the team chose a concept that one of their members knew and had a lot of
experience with. The team brainstorm ideas on how they can offer a pleasant
environment to enjoy good food.
In the first paragraph by Dixon (2012), Filipinos love to eat and eat five meals a
day. Filipinos also prefer to eat communally that they use this time to socialize with
friends and family. With this the researchers came to the idea to offer family size meal.
According to Jia Guanglun (2012), entrepreneurship is a dynamic process of
vision, change, and creation. It requires an application of energy and passion towards
the creation and implementation of new ideas and creative solutions. Essential
ingredients include the willingness to take calculated risks, formulate an effective

venture team, marshal the needed resources, build a solid business plan, and, finally,
the vision to recognize opportunity where others see chaos, contradiction, and
confusion. The researchers knew that they need to be open for change, and be creative
for new ideas that can improve their proposed establishment.

-Site Selection

Research
Paradigm
-Brainstorming
of
Ideas
-development of
possible concept
Input
-Researches

-Survey

Proposed
establishment

-Planning
-Conceptualizing
Process
-Layout
-Designing

Jadid
Output

Figure 1: Research Paradigm

There are 3 phases of the paradigm, the input, process and output. In the input
phase what the researchers did was the brainstorming of ideas, where the researchers
develop ideas for this proposed study. The development of possible concept was done
by laying out each researchers concept idea and choosing the best feasible concept.
The researchers also gathered information and data through the available resources in
the library and internet to be used as basis for the study.

In the process phase, the researchers selected a site for the proposed
establishment. The researchers selected a site that is accessible and very easy to
locate. The chosen site is behind the Sky Tower Hotel. After the selection of site for the
proposed establishment, the researchers conducted a survey using questionnaires
where they had surveyed 145 respondents. The researchers are now ready to
conceptualized and plan their proposed establishment. In this step the researchers
formulate the final detail, concept and theme of the proposed establishment. The
researchers thought of a concept and theme of the establishment where guest can be

attracted. The team then formed the layout and design of the proposed study; they
consulted a student architect to help them with the lay outing and designing of the
proposed study. After careful planning and making of this study, the output phase will be
the proposed establishment known as Jadid.

Chapter 3
RESEARCH METHODOLOGY

Introduction
To put up a restaurant, the researchers need to make a feasibility study to know if
the proposed restaurant business will be profitable. They conducted some research and
development in order to come up with a good restaurant that is fitted to the location that
they desire.

The researchers conducted a survey to know the demographic data of the


population within the area. With the demographic data that they have gathered, they
can analyze and study if the business will gain profit through its location.
The researchers also made use of references such as books, magazines and
different reading materials to establish the basis that will support this paper.

Research Design
The team conducted research with the use of different references like books,
magazine, thesis, dissertations and internet. The researchers did this to widen their
knowledge on how to put up a restaurant business. With the information they had
gathered, the team study and analyze it. The researchers did also a quantitative
research, where the questions are closed-ended and a large number of respondents are
involved. In quantitative study, researchers use questionnaires and survey forms to
gather information as guide for the process of planning the proposed study. The
researchers also used qualitative research, where the researchers conducted interview
with the target market.

Research Site Location


The researchers decided to put up this study in the land situated in Old Manila
South Rd cor. Enverga St., Lucena City, owned by Maria Azucena Medina, containing
an area of 218 sq. meters. The establishments near this site are Sky Tower Hotel,

7/Eleven, Queen Margarette Hotel, Bonappetea, Kimsuy restaurant, LC Bigmak, M2


restaurant, Chuables, Chowking, KFC and Mang Inasal. There are also schools and
colleges nearby this site, which are Maryhill College and Enverga College of Law.

Jadid

Research Instrument
Techniques used in the gathering of data include surveys, researches and
observation. While the research instrument used in this study is survey in a form of
questionnaires, containing closed-ended questions. This is answered by selected
individual respondents. The team also conducted researches with the use of different
books, magazine, news articles, feasibility studies from the library that are written by
students and from the internet. Observation is also done to gathered data for this study.
The team conducted traffic counting in the proposed area.

Data Gathering Procedure


The researchers conducted survey and used questionnaires. The researchers
got a total of 145 responses. The team collected data near their proposed location. In
the questionnaire, the respondents were asked about their age, gender, status, monthly
allowance or income, and about their food and beverage preferences.
With the data they have gathered the team analyzed and studied the outcome of
the survey and got a better understanding and idea of what food and beverage
establishment they need to put up and what will suit to the taste of the target market.

Respondents of the Study


The respondents of the study are the people living in Lucena City and outside of
the town. The researchers used questionnaires to survey within the location and to
identify the opinions of the consumers. The researchers surveyed different type of
people according to their age, gender and status.
The target market of this feasibility study is the resident of Lucena City and the
nearby towns around Lucena City. The students, employees and family near the area.
The target market is those who eat to satisfy hunger and those who dine in for meeting
and catching up with friends.

Statistical Analysis
Statistical analysis was used in the description of the demographic profile for
some of the qualitative data, quantifiers was used to generate the descriptive statistical
analysis. Quantifiers were identified such as frequency of the use of materials and
forms.
Percentage, frequency and percentage distribution of the profile of the
respondents in terms and the frequency of the usage of forms with the formula below:

% = f/N

100

Where

Percentage

frequency

number of cases

Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter is composed of the presentation, analysis and the interpretation of
the data that the researchers have gathered. It also includes the viability of the
proposed establishment which consists of the sire development plan, layout of the
establishment, space allocation and the design.
1.

Profile of the Respondents


Table 1: Age Profile of the Respondents
Age

Number of Respondents

Percentage

Below 20 years old

60

41%

21-30 years old

62

43%

31-40 years old

16

11%

41 years old and above

5%

145

100%

TOTAL

Table 1 illustrates the age profile of the respondents. The data obtained 60
respondents who are below 20 years old (41%), 62 respondents who are 21 to 30 years
old (42%), 16 respondents who are 31 to 40 years old (11%), and 7 respondents who
are 41 years old and above (5%). According to Brandon ODell one of the biggest
mistakes restaurants make is trying to appeal to everyone. If you think that your target
market includes everyone, you are setting yourself up to fail. If you want to be
successful in any business, especially the restaurant business, then you need to define
who it is that is most likely to buy your products, and focus your concept to appeal to
that defined market. http://www.restaurantreport.com/
With this, the researchers knew that a target market is the portion of the
population most likely to buy what is being offered. In this study, the target market is
people whose ages are from 21-30 years old.

Table 2: Gender Profile of the Respondents


Gender

Number of Respondents

Percentage

Male

64

43%

Female

81

57%

145

100%

TOTAL

Table 2 illustrates the gender of the respondents. The data obtained 62


respondents who are male (43%) and 83 respondents who are female (57%). This
reveals that our target market has a higher number of females. Underhill (2012) stated
that shopping environments are geared towards women, as women generally choose
most of the purchases, including mundane things like groceries. This proved that
women are likely to purchase than men. This shows that the proposed study has a
higher chance of market, considering there are 57% of female.

Table 3: Status Profile of the Respondents


Status

Number of Respondents

Percentage

Single

106

73%

Married

39

27%

145

100%

TOTAL

Table 3 illustrates the marital status of the respondents. The data obtained 106
respondents who are single (73%) and 39 respondents who are married (27%). Our
target market consist most of single person. Carl Hampton (2006) mentioned that a

married couple pays substantially less when dealing with the cost of living compared to
a single person. A single person pays 23% of their monthly income for rent, whereas a
couple will only have to outlay 9.3%. For food, the couple will pay 5.6% versus the 8.3%
expenditure of the single person. http://carlhampton.com/
This proved that singles spend more on food than married couple. This shows
that the proposed study has a higher chance of market considering the target market
composed most of single respondents

Table 4: Current Situation Profile of the Respondents


Number of Respondents

Percentage

Student

54

37%

Employed

84

58%

Unemployed

5%

145

100%

TOTAL

Table 4 illustrates the number of students, employed, and unemployed


respondents. The data obtained 54 students (37%), 84 who are employed (58%), and 7
who are unemployed (5%). According to the Labor Force Survey (2014) the
employment level in October 2014 grew by 2.8% year-on-year representing an increase
of more than a million employed persons. This marked the third straight survey round
this year that net employment breached one million. The expansion came on the back
of the robust growth in industry (5.1%) and the continued growth in services (3.3%) that
more compensated for the slowdown in agriculture (0.6%). www.dole.ph

Table 4 shows a high percentage of employed respondents. This has a huge


effect on the proposed study for the reason that this people have monthly income and
therefore have the capacity to purchase.

Table 5: Monthly Allowance Profile of the Student Respondents


Monthly Allowance
(Student)

Number of Respondents

Percentage

P1,000.00 P2,000.00

15

28%

P2,001.00 P3,000.00

17

31%

P3,001.00 P4,000.00

17%

P4,001.00 above

13

24%

145

100%

TOTAL

Table 5 illustrates the monthly allowance of students. The monthly allowance with
the highest percentage of respondents is ranging from P2,001.00 to P3,000.00 with a
percentage of 31%. Mark Canlas (2014) mentioned that students outside of Manila,
especially those living in municipalities usually get about P100 to P150 per day.
www.philstar.com
With this in mind, the proposed establishment will be offering student meal that
ranges within the students budget.

Table 6: Monthly Salary Profile of the Employed Respondents


Monthly Salary
(Employed)
P3,000.00 P9,000.00

Number of Respondents

Percentage

38

45%

P9,001.00 15,000.00

21

25%

P15,001.00 P25,000.00

15

18%

P25,001.00 above

10

12%

TOTAL

145

100%

Table 6 illustrates the monthly salary of employed respondents. The data


obtained 38 respondents who have the monthly salary of P3,000.00 to P9,000.00
(45%). According to John R. Walker (2012), consumers are carefully watching how they
spend their hard earned money, and restaurant is part of discretionary income, meaning
people will spend first on essentials and then niceties like dining out. This proves that
people are careful spending their money. With this in mind the researchers knew that to
profit from this kind of target market they need to offer reasonable priced food.

Table 7: Type of Food and Beverage Preferred to Dine In


Type of F&B Preferred to
Dine In

Number of Respondents

Percentage

Restaurant

45

31%

Bar

44

30%

Coffee Shop

10

7%

Cafeteria

18

12%

Themed Restaurant

12

9%

Themed Bar

16

11%

145

100%

TOTAL

Table 7 illustrates the type of food and beverage referred to dine in by the
respondents. The data obtained 45 respondents who prefer restaurant (31%). According
to John R. Walker (2012), restaurants play a significant role in our lifestyles, and dining
out is a favorite social activity. Everyone needs to eat. This proves that a restaurant will
be a profitable business to put up.

Table 8: Food and Beverage Concept Preferred by the Respondents


Food & Beverage Concept

Number of Respondents

Percentage

Traditional

71

49%

Unique

74

51%

145

100%

TOTAL

Table 8 illustrates the food and beverage concept preferred by the respondents.
The data obtained 71 respondents who prefer traditional (49%), and 74 respondents
who prefer unique (51%). Jim Holthouser (2011) stated that awareness of new and
emerging trends in the food and beverage arena is also key to planning. With this the
team planned on their concept by researching to know trends in the food industry.

Table 9: Food Preferences of the Respondents


Food Preferences

Number of
Respondents

Percentage

Rank

Chicken

93

17%

1st

Fish

68

12%

2nd

Pork

66

12%

3rd

Vegetables

63

11%

4th

Beef

59

11%

5th

Spicy

52

9%

6th

Healthy

48

9%

7th

Sweet

33

6%

8th

Street foods

28

5%

9th

Savory

20

4%

10th

Shellfish

11

1%

11th

Quail

1%

12th

Goat

1%

12th

Lamb

1%

13th

Table 9 illustrates the food preferences of the respondents. The data obtained 93
respondents who prefer chicken (17%) ranking it in first place. This shows that most of
the respondents likes to eat chicken. Lapea (2013) stated that Filipinos are chicken
dinner. Most Filipinos prefer to eat chicken than other meat. Maybe its because chicken
is a meat softer than other meat and its much cheaper than others. This proved that the
target market prefers chicken. Knowing this the researchers will put chicken dishes in
their menu.

Table 10: Drink Preferences of the Respondents


Drink Preferences

Number of
Respondents

Percentage

Rank

Coffee

71

19%

1st

Fresh juices

68

18%

2nd

Shakes

62

16%

3rd

Beer

51

14%

4th

Tea

31

8%

5th

Spirits

30

7%

6th

Carbonated drinks

23

7%

7th

Organic drinks

16

4%

8th

Energy drinks

14

4%

9th

Wine

12

3%

10th

Table 10 illustrates the drink preferences of the respondents. The data obtained
71 respondents who prefer coffee (19%) ranking it in first place. According to Juan and
Francisco (2007), the Philippines used to be the fourth largest producer of coffee in the
1800s. Today, we are a net importer of coffee. We consume over 60,000 metric tons of
a coffee but only produce 30,000 tons. Coffee is a product that has an increasing
demand year upon year. This proved that Filipinos are coffee drinkers. With this the
proposed establishment will also offer coffee.

Table 11: Particular Days the Respondents Visit an F&B Sector


Particular Days to
Visit an F&B Sector

Number of
Respondents

Percentage

Ranks

Monday

33

12%

4th

Tuesday

21

7%

6th

Wednesday

25

9%

5th

Thursday

20

7%

7th

Friday

61

21%

3rd

Saturday

62

21%

2nd

Sunday

65

23%

1st

Table 11 illustrates the particular days that the respondents visit a food & beverage
sector. The data obtained 61 respondents that prefer to visit on Fridays (21%) ranking in
third place, 62 respondents that prefer to visit on Saturdays (21%)and 65 respondents
that prefer to visit on Sundays (23%) ranking in second and first place respectively.
According to Cendric Bryant PhD (2011), individual eating habits tend to change
dramatically over the weekend. People tend to consume more alcoholic beverages, and
more caloric dense food. This proved that people eat more on weekends. This shows
that the proposed restaurant will profit more on weekends.

Table 12: Number of Company When They Dine In


Number of Company
when Dining

Number of Respondents

Percentage

1-3

30

25%

4-6

64

53%

7-9

20

16%

10 or more

6%

121

100%

TOTAL

Table 12 illustrates the number of company the respondents have when they dine
in. there are 64 respondents who prefer to dine with 4-6 persons (53%). According to
John R. Walker (2012), the restaurant is a social exchange, satisfying the needs of
people with a high need for socialization. This proves that the proposed establishment
can meet the need to socialize of people who likes to eat together with their friends.

TABLE 13: Amount Willing to Spend for Lunch/Dinner


Amount Spent for
Lunch/Dinner

Number of Respondents

Percentage

P35.00 P50.00

48

34%

P51.00 P80.00

40

28%

P81.00 P100.00

24

17%

P101.00 P150.00

17

12%

P151.00 above

13

9%

142

100%

TOTAL

Table 13 illustrates the amount of money the respondents spend for lunch/dinner.
The data obtained 48 respondents who spend P35.00 P50.00 (34%). According to
John R. Walker (2012), consumers are carefully watching how they spend their hard
earned money. This proves that the target market is careful in purchasing. With this the
proposed establishment will offer their food at a reasonable price.

Table 14: Amount Willing to Spend for Snacks


Amount Spent for Snacks

Number of Respondents

Percentage

P35.00 P50.00

90

62%

P51.00 P80.00

29

20%

P81.00 P100.00

17

12%

P101.00 P150.00

4%

P151.00 above

2%

145

100%

TOTAL

Table 14 illustrates the amount of money the respondents spend for snacks. The data
obtained 90 respondents who spend P35.00 P50.00 (62%). As mentioned by Donald
Wade (2010), properly pricing a menu will influence the way customers perceive a
restaurant and the value it offers. This proves that pricing a meal is important.

Table 15: Amount Willing to Spend for Drinks


Amount Spent for Drinks

Number of Respondents

Percentage

P35.00 P50.00

90

63%

P51.00 P80.00

31

22%

P81.00 P100.00

10

7%

P101.00 P150.00

5%

P151.00 above

3%

143

100%

TOTAL

Table 15 Illustrates the amount of money the respondents spend for drinks. The
data obtained 90 respondents who spend P35.00 P50.00 (63%). According to
Godsmark, Arduser and Brown (2004), pricing is an important aspect of your revenues
and customer counts. Prices that are too high will drive costumers away and prices that
are too low will kill your profits. This proves that right pricing is important and will
determine the establishments success.

Table 16: Factors Preferred by the Respondents


Factors for Availing F&B
Services
Food & drinks

Number of
Respondents

Percentage

Rank

108

39%

1st

Price

42

15%

2nd

Ambience

37

13%

3rd

Services

37

13%

3rd

Entertainment

35

12%

4th

Facilities

23

8%

5th

Table 16 illustrates the factors preferred by the respondents for availing food &
beverage services. The data obtained 108 respondents who prefer food and drinks
(39%) ranking it in first place. According to Joseph Linford A. Ditan (2007), food and
beverage service is the climax of the relationship between a costumer and a caterer
during a meal experience. This proves that food and drinks is an important factor.

Table 17: Length of Time the Respondents Finish Their Meal


Length of Time to Finish
the Meal

Number of Respondents

Percentage

15 minutes 30 minutes

78

54%

31 minutes 1 hour

40

28%

1 hour and above

27

18%

TOTAL

145

100%

Table 17 illustrates the length of time the respondents finish their meal. The data
obtained 78 respondents who finish eating in 15 to 30 minutes (54%). As quoted by
Sharon Cuneta (2008), Ive learned to be flexible with my own family meals because of
the work hours. This proves that people are busy with work to spend longer time dining.
With this there are high turnover rate because of the busy schedule of the target market.

Table 18: Times a Week the Respondents Visit an F&B Sector


Times a Week You Visit an
F&B Sector

Number of
Respondents

Percentage

3 times a week

49

35%

Once a week

39

28%

Every other week

11

8%

Twice a week

18

13%

Everyday

23

16%

140

100%

TOTAL

Table 18 illustrates the number of times the respondents visit a food & beverage
sector in a week. The data obtained 49 respondents who visit 3 times a week (35%).
According to De Vera (2009), the increasing number of working women joining the work
force has contributed to a dual source of income for many families but it has also
lessened the time available for the preparation of family meals. This increased the
purchasing capabilities of the family. More people now afford to dine out. This proved
that people have less time to prepare their meal and increased their need to dine out.
This shows that the proposed establishment has a higher chance of market.

Mission
Our mission is to provide a unique and relaxing dining experience.
Vision
Our restaurant is a place where people can come to relax, have a good time, and
enjoy a great meal.

Objectives
1.
2.
3.
4.
5.
6.
7.

To be the premier Arabic restaurant in Lucena city


To provide meals at reasonable price
To maximize utilization of facilities
To provide a safe, healthy and rewarding workplace for our employees.
To satisfy guest through good food and service.
To provide a good working environment for the employees.
To accomplish social responsibilities and environmental profit-having business

without making conflict to others.


8. To provide wide range of food at a reasonable price.
9. To continually enhance and improve the menu to satisfy the customers and give
customers more reason to visit
10. To create positive attitudes among all employees.

Description of the Firm


Jadid will be located in Old Manila south road corner Enverga St., Lucena City,
with an area of 218 square meters. Jadid is a modern Arabic restaurant which offers
authentic Arabic cuisine. The restaurant has a cozy ambience where customers can
relax while they eat. Jadid will be open from 10 in the morning until 10 in the evening
every Monday to Thursday. While it will be open from 10 in the morning until 12 midnight
every Friday to Sunday. Jadid will offer menu items like shawarma chicken, sharwarma
beef, vegetable salad, Mediterranean salad, Greek salad, chicken salad, coleslaw, and
mixed fruits. Jadid will also offer cold and hot beverages like shakes, coffee and tea.
Jadid will also have shishas and boards games like cards, chess and dominoes.
Customers can relax, socialize and enjoy their meal at the same time. The interior of the
proposed establishment is a mix of modern and Arabic design. There will be carpets,
red curtains with gold linings, couches and throw pillows, giving it a comfy and Arabic
feel to the restaurant.

Logo

Jadid is the Arabic word for New, as Jadid will offer new taste to the community

of Lucena City.
Torch represents the method of cooking and grilling.
The color red and yellow is known to increase customers appetite. It also

represent the warmth and cheerful services that the staff will give to the guests.
The black outline represents the char on grilled dishes. It also represents the
night as the establishment will also be open until midnight.