CHAPTER 1
THE PROBLEM
Introduction
Problems are inevitable part of life. Each individual is facing many challenges or problems at different points of his/her life. These problems may help a person in different ways based on the perception of an individual or otherwise, may have negative impact on the person’s totality. According to Wikipedia, a problem is an obstacle, impediment, difficulty or challenge, or any situation that invites resolution; the resolution of which is recognized as a solution or contribution toward a known purpose or goal. In business and engineering, a problem is a difference between actual conditions and those that are required or desired. Often, the causes of a problem are not known, in which case root cause analysis is employed to find the causes and identify corrective actions. At present, there are many problems encountered in the field of business which involves money and improvement of the quality of life that have a great impact on economy and each individual. A business is also known as an enterprise or firm. Business is any activity involved in the production and distribution of goods and services, aimed to meet the economic needs of consumers with an objective of eventually earning profit (Iñigo, 2012).
This term is usually related to demand and supply.
There are three basic forms of business ownership namely, sole proprietorship, partnership, and corporation. Business is also classified as agriculture and mining, financial business, manufacturers, information business, real estate, retailers and distributors, service business, transportation business and utilities (Wikipedia).
The Term Paper on Solve Business Problems 2
1.1 Describe ways of recognising when a business problem exists In most organizations recognition of a business problem typically relies on measures and management reporting of measures against expectations. Usually each performance area measures quality, cost, and speed of service – plus possibly customer satisfaction. If one of these measures starts to vary from expectations then ...
Restaurants and fast food chains are included in service businesses. A restaurant is an establishment which prepares and serves food and drinks or the so-called meals, which are generally eaten on premises, to customers in return for money. It originated from Ancient Rome where thermopolia, small-restaurant-bars, offered food and drinks to the costumer. A typical thermopolium had L-shaped counters into which large storage vessels were sunk, which contain either hot or cold foods. On the other hand, a fast food restaurant, also known as Quick Service Restaurants, is a specific type of restaurant characterized by both fast food cuisine and minimal table service. Food served is typically based on a ‘Western pattern diet’, commonly known as ‘meat-sweet diet’, and limited menu. Fast food restaurant are usually part of restaurant chain or franchise operation (Wikipedia).
At present, Philippines just like other countries have numerous fast food chains and restaurants running inside and outside the country. Some of these fast food chains are McDonald’s, Jollibee, Kentucky Fried Chicken, Chowking, Greenwich and many others. The food industry is truly developed in the country. The fact that Filipinos love to eat was the reason why there are many restaurants and fast food chains especially in the cities. The Jollibee Food Corporation is the largest fast food industry in the Philippines. Fast food restaurants in the Philippines specialize fried chicken, French fries, hamburgers, spaghetti and a beverage. But having a great number of customers requires not just attractive and delicious food because this is only a part of the total dining experience for customers.
As a consequence, the factors affecting the business operation particularly the problems encountered by fast food chains and restaurants must be known and taken into consideration. The main point is: what are problems encountered by fast food chains and restaurants? Statement of the Problem
This Essay Will Discuss The Proposal Of Opening A Fast food Restaurant Nearby The University Campus
This essay will discuss the proposal of opening a fast-food restaurant nearby the university campus. Background: the absence of fast-food restaurant nearby the university, which is aimed at students as the main customer target, can be viewed as a possibility of opening one. The prospects of future development and generating a decent amount of revenue for further expansion of services are quite ...
This study aims to find out the factors affecting the business operation of fast food chains and restaurants in Batangas City. Specifically, the study seeks to answer the following questions: 1. What is the profile of the respondents in the terms of the following: 1.1 gender,
1.2 age,
1.3 civil status,
1.4 educational attainment, and
1.5 years of service to the business?
2. What are the fast food chains and restaurants in Batangas City? 3. What is the profile of the selected fast food chains and restaurants in terms of: 3.1 type of business organization, and
3.2 number of years operating in the industry?
4. What leadership styles do the managers of fast food chains and restaurants employ? 5. What are the problems encountered by selected fast food chains
and restaurants in Batangas City in relation to: 5.1 financial aspect,
5.2 management aspect,
5.3 employees, and
5.4 customers?
Significance of the Study
The researchers believe that this study is important because fast food chains and restaurants play an important part in everyone’s life at present. First of all, this kind of business provides convenience and satisfaction in life. Think for example a person who is really hungry and needs to eat some food in the least possible time. Instead of using his time and remaining energy in cooking, he would rather prefer going to a fast food chain or restaurant to buy a delicious food that will give him additional satisfaction at an affordable cost. Second, fast food chains and restaurants aid in the improvement of the quality of life through the different jobs it provides. Nowadays, most of the employees working on fast food chains are students or the so-called ‘working students’. This study will be of great help to those persons interested to work on fast food chains or restaurants for it is important for them to know the problems presently encountered by these businesses so that they could properly carry out their responsibilities and take part in the success of the business.
The Research paper on Nestle Supply Chain Case Study
Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ – Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer- ...
Third, one of the most popular during these days is the franchising of businesses like fast food chains and restaurants. Many individuals are interested in this kind of activity thus one needs to have an adequate knowledge and information about this business. This study will be of benefit to those willing to franchise a fast food chain or restaurant because this research gives information about the common problems of this business. Through this, additional skills and knowledge will be acquired in becoming an effective manager of the business. Lastly, this type of business has a vital role in increasing and improving the economy of a country. Quality products and taxes are only some of the numerous contributions of business in general. This research will serve as a guide towards the development of possible solutions to problems for the continuous stable operation of the business.
To sum up, through this study, the students and especially those interested in fast food chains and restaurants will be prepared in facing the problems, will have sufficient knowledge, and become an effective, competent and knowledgeable business manager in the future. Also for the succeeding researchers, this study will serve as a reference to their respective research related to this topic. Scope, Delimitation, and Limitation of the Study
This research focuses on determining the problems encountered by selected fast food chains and restaurants in Batangas City. This study was restricted to the problems because for the purpose of effective management of the business, adequate and necessary information and knowledge about the factors affecting not only the business itself but also the employees and consumer or customer are needed to be known. Having a successful business is a step-by-step process. Just like the scientific method which requires one to know the problem first before constructing a model or making a decision, solving business problems follows the same procedure. The leadership styles employed by the manager of the business and the profile of the selected fast food chains and restaurants are included within the scope of this study in order to have a deep understanding of the respective topic of research. This study also involves the managers of the selected fast food chains and restaurants as respondents because they are reliable sources of information for having the necessary knowledge and information about that type of business. These managers know each particular aspect of the business and they are the ones who are finding best solutions to the problems encountered.
The Business plan on Restaurant Chain
EXECUTIVE SUMMARY The business is basically establishing a highway restaurant chain that will be located into or next to highway gas stations. These restaurants will have quality and affordable food, coffee stand, salad bar, take away meal boxes, travel kits and clean toilets. There will be also available places for ATM machines as other revenue stream. I will centralize my production and ...
This study does not include other fast food chains on other locations and other problems encountered by fast food chains and restaurants pertaining to the other aspects of the business like the technical, marketing, and socio-economic aspect. The limitation of this study includes the unwillingness of the respondents to answer the given questionnaire and limited time span needed to complete this undertaking for the part of the researchers. Definition of Terms
Business. This refers to the sum total of all the enterprises that play a vital part in the production and marketing of goods and services to ultimate consumers (Iñigo, 2012).
Cafeteria. This pertains to a restaurant in which the customers serve themselves or are served at a counter and take the food to tables to eat (Merriam-Webster, 2012).
Corporation. This refers to an artificial being created by the operation of Law, having the rights of succession and the powers, attributes and properties expressly authorized by law or incident to its existence (Iñigo, 2012).
Consumers. This pertains to the one who buys goods or services for personal needs only rather than to produce other goods (Webster’s, 2000).
Cuisine. This refers to the manner of preparing food; style of cooking (Merriam – Webster, 2012).
Demand. The term is defined as the quantity of goods and services that an individual is willing and able to buy at an alternative price (Imperial, et al., 2011).
Fast Food.
The term refers to the food that can be prepared and served quickly (Merriam – Webster’s, 2012).
Fast Food Chain. This pertains to a specific type of restaurant characterized by both fast food cuisine and minimal table service (Wikipedia).
Franchising. This is the right to use the franchiser’s name and sell its product (Imperial, et al., 2011).
Management. This refers to the force that runs an enterprise and is responsible for its success and failure ( Iñigo, 2012).
Manager. This refers to the one who manages the business.
Money. This pertains to the medium of exchange for goods and services Partnership. This refers to a type of business organization owned by two or more persons. Problems. This term means an obstacle, impediment, difficulty or challenge, or any situation that invites a resolution (Wikipedia).
The Term Paper on Buying A Business restaurant part 1
Buying a Business (Restaurant) PROJECT Submitted to the College .. By Name, surname Town, state 2005 Buying a Business (Restaurant) Name, surname Table of Contents: I. Abstract II. The Introduction III. The Main Body: 1) Pro and contra of buying a business; 2) Ten Commandments of running a good business; 3) Investigating the business; 4) Determining the price or value of a restaurant; 5) The ...
Restaurant. This pertains to a business establishment where meals or refreshments may be purchased (Merriam – Webster, 2012).
Satisfaction. This refers to the fulfillment of a need or want. Sole Proprietorship. This refers to a type of business organization owned by one person only. Service Business. This pertains to a kind of business primary concerned with the satisfaction of the needs and wants of consumers (Iñigo, 2012).
Take-out. This concept is related to selling and the food that is not to be consumed on the premises (Merriam – Webster, 2012).
Thermopolia. This pertains to the small-restaurants-bars (Wikipedia).
Western pattern diet. This term is also called meat-sweet-diet, a dietary habit characterized by high intakes of red meat, sugary deserts, high-fat foods and refined grains (Wikipedia).
CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES
To have a better understanding about the problems encountered by fast food chains and restaurants, the researchers managed to gather related literature and studies which are of significance to achieve the purpose of this study. The researchers made use of different books, magazines, journals and unpublished theses that will contribute to the in-depth study of the given topic of research. Related Literature
Fast food. Hearing this term will surely give us the concept of the dine-in or take-out or foods like fried chicken, hamburger, French fries, pizza, ice cream and a beverage. Advanced technology and new inventions have really brought a world where anything that a person needs can be satisfied in the least possible time. Living in this world at present truly reflects the contributions of different inventions and sophisticated technology. The term ‘instant’ is really inseparable to life at present. The term ‘fast food’ is very popular and often heard nowadays. But the question is: Where did it come from? The term ‘fast food’ gained more prominence when it was recognized by the popular Merriam-Webster Dictionary in 1951(http://www.buzzle.com/articles/fast-food-history.html).
The Business plan on Research Paper On Restaurant Management
... job. If the manager is a good leader with excellent leadership skills and has great followers the restaurant will be rewarded. ... to guest. The restaurant business today is one of the fastest growing industries. In an article named The Restaurant Business Plan, at least ... to provide a friendly, safe environment along with awesome food and service. The employee handbook includes information that each ...
The concept of fast food is generally associated with urban development. But research reveals its roots in the bread-and-wine stands in Ancient Rome and popular ready-to-eat noodle shops in East Asian cities
(http://www.buzzle.com/articles/history-of-the-fast-food-industry.html).
The terms ‘instant’ and ‘fast food’ relates to a kind of service businesses particularly fast food chains and restaurants. Fast food chains are also known as Quick Service Restaurants or QSR. These businesses are very popular nowadays. Their products are accepted by most people and received a high demand from consumers. Admit it or not, our days are full of fast food snacks or meals. History of Fast Food Chains. To have a better understanding about the concept of fast food chains and restaurants, the history of these businesses should be clear. The famous restaurants of the 20th century and its founders are enumerated and described in the succeeding paragraphs. The modern history of fast food began in America on July 7, 1912 with the opening of Automat in New York. Automat is a cafeteria opened by Joseph Horn and Frank Hardart which created a sensation causing numerous Automat restaurants to be built around the city to deal with the demand. Automats remained extremely popular throughout the 1920s and 1930s. The company popularized the notion of ‘take-out’ food with their slogan “Less work for Mother” (http://en.wikipedia.org/wiki/Fast_food_restaurant).
The credit of being the first restaurant that offered pre-prepared food goes to Horn and Hardart (Kamran, 2012).
However, some historians and secondary school textbooks say that A&W, which opened in 1919 and began franchising in 1921, was the first fast food restaurant (E. Tavares).
Roy Allen and Frank Wright (A&W) were the pioneers of this drive-in food outlet, a root beer stand (Kamran, 2012).
White Castle in 1921 is the first hamburger chain. 7-Eleven, formerly known as Southland Ice Company, is a fast food store established in 1927. Presently, 7-Eleven has now over 31,000 branches all around the world. KFC, popular with its special fried chicken, became immensely popular during the 1930s. Harland Sanders, its founder, introduced pressure cooker to make finger-linkin’ chicken skillets. Today, it has over 15,000 branches in 105 countries. McDonalds was established on 1940s by Dick and Mac McDonald. This is the first fast food business which introduced plastic utensils, multimixer milkshake machines, and a quick efficient and new style of production. Serving nearly 68 million people in more than 119 countries every day, McDonalds has more than 33,000 restaurants. Dunkin Donuts was opened by William Rosenberg in 1950 and has more than 8,000 shops around the world while Burger King was established by David Edgerton and James Mclamore in 1954. Burger King is the second largest fast food hamburger chain. Pizza Hut in 1958 was established by Frank and Dan Carney in Kansas. Pizza Hut franchise is the pioneer of fast food pizza. Subway was established by partners Dr. Peter Buck and Fred Deluca in Bridgeport in 1965. Lastly, Wendy’s was opened by Dave Thomas, a former KFC employee, in 1969 (Kamran, 2012).
Having a prosperous business history, it is undeniable that fast food chains and restaurants are one of the most successful undertakings in the business world.
These businesses are continually developing and growing in number. “There’s just no stopping! Fast-food chains are seeping into places – and times of the day – that until recently were mostly fast-food-free zones,” said Brad Tuttle. Fast food chains are continually growing in number and providing more and more services to accommodate the growing demand from consumers and to attract more customers that will patronize their products. An article in Time Magazine entitled, “Fast food: Spreading like the Blob”, presents the means taken by these businesses to counter the stiff competition in their environment. As new fast food locations keep opening, existing restaurants are trying to drum up the most business possible out of every minute of every 24-hour period. To do so, chains are staying open longer and giving customers excuses to come in for a bite no matter what time of the day. As a consequence, employees work overtime even on holidays but the push was part of a larger one to give hungry customers access to fast food whenever and wherever they want. Not only restaurants open longer hours, menus are also packed with items that may not necessarily fit into a particular time slot for consumption. The word snack itself has spread like wildfire on menus, as has snack culture in general. Beyond rolling out the snacks, fast food restaurants are attracting new customers by offering new and unusual menu items.
Then there’s the innovation that looks to make it unnecessary to leave one’s house at all in order to get a fix of fast food. Fast food restaurants made home delivery possible (Tuttle, 2013).
Fast food franchises focus on high volume, low cost and high speed product. Frequently food is preheated or precooked and served to-go, though many locations also offer seating for on-site consumption. For stands, kiosks or sit-down locations, food is standardized and shipped from central locations. Consumers enjoy being able to get a familiar meal in each location, and menus and marketing are the same in every location (http://www.franchisehelp.com/industry-reports/fast-food-industry-report).
For fast food franchises, it’s easier and cheaper to set up and run an operation within another store –and take advantage of the steady stream of customers – rather than build from the ground up (Tuttle, 2013).
Franchising continues to permeate an increasing number of countries and business sectors. In fact, the fast food industry is probably responsible for today’s proliferation of franchising. The fast food sector is a dynamic industry featuring a high density of franchising. It is also one of the most challenging sectors to operate in, due to an ever-increasing number of operations competing for the same dollar. Intense rivalry exists between concepts. Indeed, such is the challenge within the sector that Ray Kroc, the man who franchised McDonald’s, once stated, “If you see a competitor drowning, you stick a hose down their throat. “Competing and defending market share within the fast food market has always been a challenging task.
Operating within the current environment is even more demanding.
The sector has been rocked by a number of trends requiring rapid and fundamental action. Clearly, franchisors need to work very closely with franchisees on new initiatives. As noted in Jeffrey Bradach’s book, Franchise Organizations, which explores restaurant chain management, affecting system wide adaptation is a complex and challenging task. Successful adaptation requires not only an understanding of organizational change, but also an understanding of franchisor-franchisee relationship dynamics (Floyd, 2004).
The success of a business depends on several factors. According to http://www.harris-management-solutions.com, there are six business fundamentals that define the basic organizational skills and behaviors that a business must possess to succeed. These are strategy, organization, people, customer, process and performance. As businesses grow and develop, they move through business development stages and improve their business competence. Organizations need to have a business structure and capability that will enable the business to develop and grow to reach its full potential. In addition to having a sound structure, the business needs to be well governed by its directors, understand the needs of its stakeholders, be effectively managed, and have clear lines of accountability. Management and Leadership Styles. Management is the force that runs an enterprise and is responsible for its success and failure. It is a distinct process of planning, organizing, staffing, directing, and controlling, performed to determine and accomplish stated objectives by the use of human being and other business resources (Iñigo, 2012).
Leadership is an important function for effective management.
Leadership is defined in a number of ways. One common meaning is that it is a process of influencing the actions of an organizational group in goal setting and accomplishment. Another view of leadership is that of influence. Leadership is invariably viewed as a management concept. According to McGregor, “leadership is a relationship”. The very essence of the leadership role in business is found in the extent to which an executive can influence the behavior of his fellow executives along the lines he himself desires. To be effective, the leader must retain and develop the continued acceptance of and the confidence of the group members. Successful managers know for a fact that power is an important facet of organizational life (Miranda, 2002).
Kurt Lewin, a popular management scientist, was the first to introduce the following leadership styles (Iqbal, 2011).
Autocratic or authoritarian leadership style is a type wherein all decisions are completely taken by the leader himself. No input is taken by the team or group. The leader can be called as dictator leader.
The leader actually tells employees what to do and very closely supervises them. Participative or democratic, on the other hand, involves the team in decision making process. The leader consults the team and gives instructions. He works with the employees, tells what to do, and does not closely supervises them (Lussier and Achua, 2009).
Laissez-faire or free rein is a kind of leadership wherein the leader does not lead but, leaves the group entirely to itself. The leader gives the maximum independence to his subordinates, and actually, they are free to make their own policies and method. The leader plays a passive role in group affairs and usually takes part in decision making when things are initiated by the team (Sadler, 2003).
The kind of leadership style that the manager of a business employs can be seen on the operation of the business enterprise. Good leadership results to a stable business while ineffective leadership causes problems to arise that can cause the business to fail. Effective administrative leadership is a professional responsibility. Successful- and thus, professionally responsible- leaders have sense of responsibility, technical and professional competence, enthusiasm, communication skills, high ethical standards, flexibility, and a vision.
To sum up, leadership is widely touted as a cure-all for organizational problems. Managers face decisions about how to organize foodservice departments for the efficient procurement, production, distribution, and service of their food and meals. Many options are available based on the type of food purchased, where the food is prepared in relation to where it is served, the time span between preparation and service, and the amount and kind of personnel and equipment required (Palacio and Theis 10: 2005).
Robert L. Katz proposed a three-skill approach as a method of classifying managerial skills. The following skills are: technical, human and conceptual skills. Technical skills are involved in performing specialized activities, human skills in understanding and motivating individuals and groups, and conceptual skills in understanding and integrating all the activities and interests of the organization toward a common objective. According to Henry Mintzberg, as leaders, managers establish the work atmosphere within the organization and activate subordinates to achieve organizational goals (Palacio and Theis 10: 2005).
The managers should have the necessary skills and must employ an appropriate leadership style for the business to be successful.
The managers should perform their duties and responsibilities. According to Rick Suttle, the general manager is usually the manager in charge of a fast food restaurant. General Managers may have one or more assistant managers to help run various shifts, depending on the restaurant’s hours of operation. The roles and responsibilities of a fast food manager can include a number of functions. The roles and responsibilities of a fast food manager are the following: Meeting Financial Goals, Managing Daily Operations, Hiring and Firing, Training, Resolving Customer Complaints, Bank Duties, and Community Events (http://www.ehow.com/list_6428133_roles-responsibilities-fast-food-manager.html).
A fast food manager must meet the sales and profit goals of the restaurant. Increasing sales can often be accomplished by simply improving the speed of customer service at the drive-thru or in the dining area or ensuring that customers are served only hot food with the proper portions. Keeping labor costs down and minimizing food waste can help drive higher profits.
He is also in charge of managing operations on a daily basis. Operations management can entail making sure the restaurant is fully staffed, preventing out-of-stock situations, having equipment serviced when needed, ensuring that all walk-in freezers, refrigerators and steamers are set at the right temperature and properly handling all opening or closing procedures, depending on the manager’s hours. Fast food managers are responsible for interviewing and hiring intelligent teenagers or adults with a good work ethic. The roles and responsibilities of a fast food manager may, at times, require that he fire employees for a variety of reasons (Suttle).
A fast food manager trains employees. Many fast food restaurants have formal training guides that show the proper food portions for various meals, how to cook meat or fries and how to work the various stations.
The fast food manager often delegates individual training to his assistant or shift manager. However, the fast food manager must oversee all training and ensure that all hourly employees complete their training in a timely manner. At times, a fast food manager handles and resolves customer complaints. Whatever the case, the fast food manager needs to oblige the customer and make sure they leave the restaurant fully satisfied with their food and service. Fast food managers need to make sure that the cash registers have an adequate supply of change, singles and bills in the morning. They might need to run to the bank to get proper change. Furthermore, a fast food manager must make sure that money is counted on each shift and that deposits are made on a daily basis. Sometimes, a fast food manager may participate in community events like fairs or city food gatherings. To attend the event, it is the responsibility of the fast food manager to obtain the proper carts or trailers, as well as workers (Suttle).
According to http://smallbusiness.chron.com, success in the fast food industry requires mastery of different parameters than fine dining.
Customers who go to a fast food business are looking for speed, convenience and predictability rather than a memorable dining experience. Fast food entrepreneurs who understand this can master these elements of the business and perhaps make a profit. One parameter is branding. Fast food chains and restaurants should provide consistent, easily recognizable, simple branding and simple slogans. Second is Location. Fast food is about convenience, so to be successful a fast food outlet should be located in a high-traffic area, according to the website Bplans. Third is Speed. Fast food that lives up to its name gains more business than fast food that is actually slow. Many people grab fast food on the way to work or to another destination. The reason that drive-through windows are popular is that people don’t even want to take the time to get out of the car. The faster a restaurant can deliver the ordered food, the happier the customer is. Setting up efficient and standardized kitchens and focusing on foods that can be cooked quickly are two of the ways that McDonald’s became so successful in this competitive industry, according to Business Week. Last is Efficiency.
Fast food restaurants run on thin profit margins and make their money by selling lots of product, according to the website Street Directory. In this commercial environment, functioning efficiently is critical. This means minimizing food waste, hiring help at minimum wage and benefiting from economies of scale when purchasing supplies. Every dollar that is unnecessarily spent on operations is a dollar subtracted from profits. Because of high employee turnover in the industry, training regimens for new employees need to be standardized, rapid and effective. An article entitled “Fast Food Industry Analysis 2013 – Cost & Trends” from www.franchisehelp.com presents the main problems experienced in the fast food industry. The fast food industry is not without its challenges, especially in the United States. From rising food costs, economic recession and changing perceptions about health, many fast food franchises have been feeling some heat. But rather than flee from this challenge, the fast food industry has been adopting new practices and offering new products. Modern society is on the go, and there is plenty of demand for a quick bite at all times of the day.
There have been challenges for the fast food industry in recent years that have been pressuring profit margins. Over the last decade there has been increased focus on the quality of food served in fast food restaurants. Typically highly processed and industrial in preparation, much of the food is high in fat and has been shown to increase body mass index (BMI) and cause weight gain. Popular books such as Fast Food Nation and documentaries like Super-Size Me have increased public awareness of the negative health consequences of fast food. Fast food companies have responded by adopting healthier choices and have had some measure of success, but the shadow of bad press still hangs over the industry.Rising commodity prices have also significantly crunched many fast food franchises. In such a fiercely competitive space it is impossible to force a price increase on customers, so profit margins are often south of 10%.
The recent economic recession did lower commodity prices, but the recession brought on its own complications, and now prices for commodity inputs are on the rise again.The fast food industry is still a large and diverse industry with plenty of opportunity. As one would hope, challenge is being answered with innovation, and fast food franchises are responding with new offerings, pricing and strategies to lure consumers back in. Non-traditional fast food franchises are springing up and gaining traction, and more creativity will always be welcome! Consumers are now on the look-out for new ways to eat fast and healthy. And as the industry continues to evolve and the economy strengthens, fast food franchise profitability will continue to grow.
Related Studies
The researchers gathered some unpublished theses related to the study in order to aid in understanding the topic better and to present and establish the significance of the present study. The following related studies is similar to this study for it also used descriptive method of research and gathered the necessary data and information using surveys while others used a combination of survey and interview. Based on the previous discussion, the leadership style of manager affects and determines the success of the business. In a study conducted by Mercader, et al. (2004) entitled “Leadership Styles of Managers of Selected Business Firms in Batangas: Instrument in Achieving the Corporate Goals of the Company”, majority of the respondents uses the democratic style of leadership. The study concluded that the basis in selecting the leadership style of the respondents is the nature of the business. All of the respondents believe that their leadership style contribute to the success of their business.
The study found out that majority of the respondents believe that to be a good leader, a manager should possess the qualities of being a good planner and decision-maker as his best quality, followed by being a positive thinker than a good problem solver, being a democratic individual, being an opportunity maker and lastly, being a risk taker. The particular study recommended that managers must be given training and seminar to upgrade their knowledge and abilities in managing the business. The manager must also motivate and encourage his subordinates to perform their jobs more efficiently and effectively through good human relations. Democratic style of leadership should also be considered as an approach in managing the company. Another study related to leadership styles and fast food chains is the study conducted by Bagui, et al. (2009), “Effects of Civil Status to the Leadership Style Exhibited by the Managers of Fast Food Chains in Batangas City”, which concluded that civil status does not affect the leadership style that was exhibited by the managers of the fast food chains in Batangas City. The study recommended that the managers must exhibit the highest degree of professionalism in the performance of their duties and they should not let domestic and personal issues to negatively affect their leadership styles. Every business experiences different problems that affects the business operation and hinders it from achieving the goals of the company.
In a study conducted by Arenas, et al. (2003), “Problems Encountered by Pawnshops in Batangas City”, overstating hours work and high rate of taxes are the worst problem regarding the management and financial aspect respectively. Overstating hours work by employees is very common in offices wherein employees declare more hours of work than the actual time they really work so the company pays these employees with salaries which is more than what they deserve. Possible solutions to these problems are given. Proper management and supervision is the possible solution for the problems on management aspect. On the other hand, good handling and investment of capital may solve the financial problems of the business. The study recommends that individuals who are planning to establish a pawnshop business must first be aware of the problems that they may encounter in order to plan and make right decisions on proper management of such kind of business and must have full understanding of the nature of pawnshop business.
Owners must also know their duties and responsibilities on management to avoid further problems. According to http://www.ehow.com, financial aspect is essential to making good decisions going forward. Potential investors may also care about a company’s financial aspects as a means of gaining knowledge to help predict future performance (Hartman).
The study, “The Role of Financial Planning and Budgeting in the Entrepreneurial Success of fast food chains and restaurants in Batangas City”, conducted by Padrilan, et al. (2010) found out that establishing goals used in controlling is the most important function of financial planning in order to achieve the entrepreneurial success of the business and majority of the participants agreed that improving the resource allocation is the common function of budgeting. Giving control in business is the most common effect of financial planning while being aware of the business cost is the most common in budgeting. As a conclusion to these findings, financial planning affects success by controlling business, having systematic decision making, reducing risk and having motivation and good communication tool.
Financial planning gives direction for business, reducing uncertainty, minimizing waste and redundancy, and establishing goals. Budgeting improves resource allocation, coordinates the work of the entire organization, provides positive impact on motivation and morale, helps people learn from experience, have warning devices for corrective action, and improves communication. Another study related to financial aspect entitled, “Cash Budgeting Problems Encountered by Some Restaurants in Batangas City: An Analysis”, discovered that capitalizations of the restaurants are mostly between P100, 000 and P599, 999. Majority of the restaurants make daily and weekly budget and the owners are the ones who prepare the budget. Based on the findings and conclusions, the researchers of the study recommended that daily or weekly basis for budgeting must be done for easy and rapid decision making. Managers and owners must have proper knowledge on how to make cash budget to avoid encountering problems, and they should be aware of the cash inflows and outflows to know how much is to be budgeted and avoid stolen cash. Restaurants must also have budget committee to avoid mistakes in the preparation of budget (Cruzat, et al., 2006).
The succeeding related studies are related to the employees, customers and establishment of fast food chains and restaurants. In a study conducted by Panganiban, et. al (2005), “Hiring Practices Employed in Selected Fast Food Chains in Lipa City”, fast food chains seek assistance through “employee referrals” wherefrom if one or more candidates could be found within the units, then they are notified and asked to file an application. Fast food chains prefer 18 to 25 years old, single and at least a high school graduate because they are easier to train and can work faster. Also, all contemporary managers strive to promote highest ideals based on their ages. As a recommendation, the managers must provide adequate training to old and new employees to maximize their job performance. Schools should have a placement agency posting vacancies available to students so that they can be prioritized and fast food chains should continue to give jobs to barangay youths usually in times of economic conditions where many are unemployed. A study pertaining to employees, “The Effect of Job Rotation on the Job Performance of Fast Food Chain Employees in Batangas City: An Analysis”, discovered that physically getting from one job to another job is often the problem of employees while education and training for new jobs is the problem of fast food chains with regards to job rotation. Job rotation can be utilized as a technique to improve the productivity of employees, and aid training and education can utilize job rotation to maximum.
The study suggests managers to design a more detailed plan of job rotation to make sure that adjustments are made with respect to physical demands of the jobs. Also, job rotation should be done with utmost care among employees and only those who have sufficient training for the job must be assigned to them (Corales, et al., 2004).
In relation to customer satisfaction, the study conducted by Cruzem, et al. (2008) entitled “Effects of Cleanliness and Orderliness of Fast Food Chain in the Cities of Lipa and Batangas to their Customer” found out that the fast food chains operating in Batangas City are performing well in maintaining the satisfaction level of their customers. The managers highly agree that cleanliness and orderliness affects customer satisfaction. The study suggests that the management of the fast food chains should continuously strive to satisfy the customers by providing them with clean and sanitary environment aside from quality foods and services.
Also, the management should continuously maintain the implementation of cleanliness and orderliness to attract more customers and give them satisfaction. This should also be integrated in their company policy so that it could be ensured that the employees would see it as a part of their job to make the business premises clean and tidy. Government and other concerned agencies should also see to it that proper regulations are implemented and monitored in order to ensure that these businesses are complying with the regulations on cleanliness and sanitation for the protection of the consumers.
CHAPTER 3
RESEARCH METHODOLOGY
This chapter presents the research design, subjects of the study, instruments used in data-gathering, data-gathering procedure which the researchers followed in order to accomplish the study and the statistical tools used in data analysis. Research Design
The study was conducted to analyze and know the problems encountered by fast food chains and restaurants in Batangas City. The researchers focused mainly on the fast food restaurants located in Batangas City to clearly show the objectivity of the research. The researchers made use of the descriptive method of research to tackle the study completely and arrive at a precise conclusion. Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. However, it does not answer questions about how, when, or why the characteristics occurred, which is done under research. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation.
Thus, Descriptive research cannot be used to create a causal relationship, where one variable affects another. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative research often has the aim of description and researchers may follow-up with examinations of why the observations exist and what the implications of the findings are. Descriptive research generally precedes explanatory research (Wikipedia, 2013).
Subjects of the Study
To be able to come up with an accurate information and result, the researchers used a systematic survey covering 20 fast food chains and restaurants in Batangas City. The respondents of this study are the managers, having one in each fast food restaurant, for they are sources of proper information needed by the study. The managers of this type of businesses are experienced and familiar with the problems encountered that affects the business operation. List of Selected Fast Food Chains and Restaurants in Batangas City Name of Fast Food Chain / Restaurant
Address
Chic-Boy
2/F Nuciti Central, P. Burgos St., Batangas City
Chowking
Bay Citi Mall, D. Silang St., Batangas City
Dunkin Donuts
P. Burgos St., Batangas City
Gerry’s Grill
2/F SM City Batangas
Giok’sFastFood/Restaurant
P. Canlapan St., Batangas City
Goldilocks Bakeshop Inc.
D.Silang St., Batangas City
Goto King
Rizal Avenue cor P. Burgos St., Batangas City
Greenwich
Citimart Shop, Rizal Avenue, BatangasCity
Hap Chan
2/F Nuciti Central, P. Burgos St., Batangas City
Ineng’s
G/F Nuciti Central, P. Burgos St., Batangas City
Jollibee
Rizal Avenue, Batangas City
Jollibee
D. Silang St. cor P. Burgos St., Batangas City
Kenny Rogers Roasters
G/F SM City Batangas
KFC
P. Burgos St., Batangas City
MangInasal
Rizal Avenue, Batangas City
McDonalds
Pallocan West, Batangas City
Mister Donut
Rizal Avenue, Batangas City
Red Ribbon
P. Burgos St., Batangas City
Starbucks Coffee
G/F SM City Batangas
Yellow Cab Pizza Co.
G/F SM City Batangas
Research Instrument
The study was conducted by means of a survey. What is a survey? A survey is a data collection tool used to gather information about individuals. Surveys are commonly used in psychology research to collect self-report data from study participants. A survey may focus on factual information about individuals, or it might aim to collect the opinions of the survey takers. A survey can be administered in a couple of different ways. In one method known as a structured interview, the researcher asks each participant the questions. In the other method known as a questionnaire, the participant fills out the survey on his or her own.
Surveys are generally standardized to ensure that they have reliability and validity. Standardization is also important so that the results can be generalized to the larger population (Cherry, 2013).
In preparation for the survey, the researchers got a list of fast food chains and restaurants in Batangas City beforehand. The researchers also gathered information about problems in fast food chains and restaurants from different sources like books, undergraduate theses and the internet in order to familiarize themselves with the main focus of the paper and to come up with a list of possible choices for each question. A letter of request was also made to inform the respondents of their motive and ask their cooperation and honesty. Data-Gathering Procedures
The researchers used questionnaires as the basic tool in social research in collecting the necessary data and information. The survey-questionnaire aids in the easy and efficient gathering of the important data and information that aims to clarify the problems encountered by fast food chains and restaurants. The questionnaire is divided into two parts. Part I includes the profile of the managers as respondents and more importantly, the name of the fast food chain or restaurant and their respective locations. On the other hand, Part II includes the profile of the business establishment and is composed of questions pertaining to the leadership styles employed by a manager and questions about the main focus of research, the problems encountered in relation to the business’ financial and management aspect, employees and customers.
Each question has a list of possible choices where the respondent will select his/her best answer but the respondent can freely write his/ her answer if it isn’t included in the list. Data-gathering lasted for almost two-weeks. The respondents were approached personally and were oriented on the purpose of the survey. Likewise, the respondents were informed that the data would be treated with utmost confidentiality. Statistical Treatment of Data
Since the study does not need to have the same degree as a thesis, the researchers did not use complex statistical method of clarifying the data gathered. The responses of respondents were processed and subjected to statistical treatment. The results were properly tallied and put in table form. The findings will be extracted and analyzed based on the processed data and eventually, particular conclusions and recommendations will be made. In order to describe the data, the following statistical procedure was utilized. To get the percentage of the responses, the researchers used the formula: P = (x/n) x 100
In which:
P = Percentage
x = number of respondents choosing the particular item
n = total number of respondents
100 = constant multiplier
CHAPTER 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents, analyses, and interprets the data gathered by the researchers from the participants or respondents of the study. It discusses in detail the data in this study regards the profile of the respondents and the business enterprise, leadership styles and specifically, the problems encountered by selected fast food chains and restaurants in Batangas City. The data gathered and the computed statistical measures are presented in tabular form. 1. Profile of the Respondents
The profile of the participants are included in this study, such as their gender, age, civil status, educational background and their years of service to the company, to determine their individual differences. 1.1 Gender
Table 1.1presents the profile of the respondents in terms of their gender. Table 1.1
Distribution of the Respondents Based on their Gender
Gender
Frequency
Percentage
Male
12
60%
Female
8
40%
Total
20
100%
The table above shows that most of the managers who participated as respondents in the data-gathering of the study are male with a percentage of 60% over a total of 20 respondents. The female participants are with a frequency of eight (8) resulting to 40% of the total respondents. There are more female mangers than male probably because of the fact that women are more inclined in managing businesses and women have already gained confidence and status in the present society. 1.2 Age
Table1.2 shows the profile of the respondents based on their age. Table 1.2
Distribution of Respondents Based on their Age
Age
Frequency
Percentage
17-22
2
10%
23-28
12
60%
29-34
5
25%
34-40
0
0%
41 above
1
5%
Total
20
100%
The table above shows the profile of the respondents regarding age. Two of the 20 participants are 17-22 years old. Twelve participants equivalent to sixty percent (60%) are 23-28 years old while twenty-five percent (25%) are 29-34 years old. Only one of the participants belong to age 41 above while none of the participants belong to ages 34-40.Data show that majority of the respondents are of ages 23 to 28.
This proves that most of the respondents in the age bracket of 23-28 have the right skills and great ability to manage a business. This indicates that these managers have been undergoing several trainings and seminars which will surely result to their professionalism while there is only one respondent at the age bracket of 41 above because young and fresh graduates are mostly preferred nowadays. 1.3 Civil Status
The table below shows the profile of the respondents regarding their civil status. Table 1.3
Distribution of Respondents Regarding Civil Status
Civil Status
Frequency
Percentage
Single
14
70%
Married
6
30%
Widow
0
0%
Separated
0
0%
Total
20
100%
The table above presents distribution of the participants with regards to their civil status. It shows that fourteen (14) of the participants, equivalent to seventy percent (70%), are single. On the other hand, six (6) participants equivalent to thirty percent (30%)are married. Data shows that majority of the participants are single. This indicates those who are single have much time to spend for work unlike those married ones whose time is almost dedicated to their family. 1.4 Educational Attainment
The next table presents the profile of the respondents in terms of educational attainment. Table 1.4
Distribution of Respondents Concerning their Educational Attainment Educational Attainment
Frequency
Percentage
Secondary
0
0%
Tertiary
16
80%
Master’s Degree
1
5%
Vocational
3
15%
Total
20
100%
It can be noted in the graph above that sixteen(16) respondents or eighty percent (80%) are college graduates, fifteen percent (15%) or three (3) of the respondents have taken master’s degree and one participant is a graduate of a vocational course. Data shows that majority at the respondents were college graduates because to be a manager requires sufficient knowledge and skills about business to ensure its profitability. None of the respondents is a high school graduate because definitely, they don’t have the skills, the ability and the idea on how to manage a business.
1.5 Years of Service to the Company
Table 1.5 shows the profile of the respondents in terms of years of service to the company. Table 1.5
Distribution of Respondents Concerning their Years of Service to the Company
Years of Service to the Company
Frequency
Percentage
less than 1 year
7
35%
1-5
8
40%
6-10
3
15%
11-15
1
5%
16-20
0
0%
21-25
1
5%
26 above
0
0%
Total
20
100%
The table above presents the profile of the respondents regarding their years of service. Forty percent (40%) of 20 participants have been serving for 1 to 5 years, thirty-five percent (35%) have been serving for less than 1 year, three (3) participants equivalent to fifteen percent (15%) have been serving for 6 to 10 years, five percent (5%) or one participant has been serving for 11 to 15 years and another 5% for 21 to 25 years. None of the participants has served for 16-20 or greater than 26 years. From these findings, most of the managers of fast food chains and restaurants have 1-5 years of service to the company. Probably, the reason for this is that they are so used with this type of work and because they found this type of job a great one as they were entitled to serve others and have a good relationship with their employees and customers. 2. Profile of Selected Fast Food Chains and Restaurants
The profile of the selected fast food chains and restaurants is also included in this study, such as its type of business organization and the number of years it has been operating. 2.1 Types of Business Organization
The table below illustrates the profile of selected fast food chains and restaurants regarding the type of its business organization.
Table 2.1 Profile of Selected Fast Food Chains and Restaurants Regarding the Types of Business Organization Types of Business Organization
Frequency
Percentage
Sole Proprietorship
2
10%
Partnership
0
0%
Corporation
18
90%
Cooperative
0
0%
Total
20
100%
The table above presents the profile of selected fast food chains and restaurants with regard to the type of its business organization. Based on the data gathered, there are two fast food chains or restaurants, equivalent to ten percent (10%), which are of sole proprietorship type of ownership. Ninety percent (90%) or the remaining eighteen (18) fast food chains and restaurants are mainly corporations. The researchers found out that most of the fast food chains and restaurants prefer corporation as to form of business organization because they notice that managing business with this type of organization is much easier for they can consult some uncontrolled and hard decisions to those having higher position in the organization. 2.2 Years of Operation
The table shows the profile of the selected fast food chains and restaurants based on the number of years it has been operating. Table 2.2
Profile of Selected Fast Food Chains and Restaurants Regarding Years of Operation Years of Operation
Frequency
Percentage
1 – 5
6
30%
6 – 10
6
30%
11 – 15
3
15%
16 – 20
2
10%
21 – 25
2
10%
26 and above
1
5%
Total
20
100%
The table above presents the profile of the selected fast food chains and restaurants with regard to the years it has been operating. Six (6) fast food chains or restaurants, equivalent to thirty percent (30%), are operating for 1-5 years. Another thirty percent (30%) are 6 to 10 years in operation, three (3) fast food chains and restaurants which is equivalent to fifteen percent (15%) have been operating for 11 to 15 years, two (2) fast food chains or restaurants have been operating for 16 to 20 years, and another ten percent (10%) for 21 to 25 years. One fast food chain has been operating for greater than 26 years in the fast food business industry.
From the findings above, most of the fast food chains and restaurants are newly established because most of the fast food restaurant managers, before entering this kind of business, study the situation of a successful operation first in order to easily apply their observations and knowledge on the business they are going to pursue. 3. Leadership Styles
The following table shows the leadership styles employed by the managers of selected fast food chains and restaurants.
Table 3.1 Leadership Styles Employed by the Managers of Fast Food Chains and
Restaurants Leadership Styles
Frequency
Percentage
Democratic
17
85%
Autocratic
1
5%
Free Rein
0
0%
Others
2
10%
Total
20
100%
The table above presents the leadership styles employed by the managers of fast food chains and restaurants. It shows that seventeen (17) managers which is equivalent to eighty-five percent (85%) of the total number of participants employs democratic style, and only one (1) manager which is equivalent to 5% uses autocratic style of leadership. On the other hand, two (2) managers which is equivalent to ten percent (10%) employ other kinds of leadership styles. Based on the data gathered, most managers employ democratic style of leadership because they are willing to hear and accept suggestions from the employees and customers for the improvement of the business. 4. Problems Encountered by Fast Food Chains and Restaurants
As the main focus of the study, data was gathered based on the problems encountered by fast food chains and restaurants particularly on the financial and management aspects, employees and customers. 4.1 Financial Aspect
Among the problems encountered by fast food chains and restaurants with regards to the financial aspect are cash budgeting, decreased income, cash flow and lack of capital. Table 4.1
Problems Encountered by Fast Food Chains and Restaurants Regarding Financial Aspect
Problems
Frequency
Percentage
Cash Budgeting
6
30%
Decreased Income
6
30%
Cash Flow
5
25%
Lack of Capital
0
0%
Other
3
15%
Total
20
100%
Based on the data gathered, the problems that most fast food chains and restaurants experience regarding financial aspect are cash budgeting and decreased income. Six (6) fast food chains and restaurants, equivalent to 30%, say that these are their major problems. On the other hand, twenty-five percent (25%) of the total respondents equal to five (5) fast food chains and restaurants have problems with supervising the cash flow and fifteen percent (15%), equivalent to three (3) of the selected fast food chains and restaurants, have other problems regarding the financial aspect of the business. None of these businesses experience lack of capital. Cash budgeting and decreased income are the main problems encountered by the managers of fast food chains and restaurants with regard to financial aspect. It is because there are such situation that is unpredictable resulting into this kind of problem like the inexistence of costumers and the drop of sales. 4.2 Management Aspect
Among the problems encountered by fast food chains and restaurants based on the management aspect are supervising, staffing, communication problems and problems with motivating employees to improve their job performances. Table 4.2
Problems Encountered by Fast Food Chains and Restaurants on the Management Aspect Problems
Frequency
Percentage
Supervising
2
10%
Staffing
7
35%
Communication Problems
4
20%
Motivating Employees
5
25%
Other
2
10%
Total
20
100%
The table above shows that staffing of employees got the highest frequency garnering thirty-five percent (35%).
Five (5) fast food chains and restaurants answered that motivating their employees is their main problem nowadays. On the other hand, four (4) fast food chains and restaurants or twenty percent (20%) of the respondents have been experiencing communication problems and the remaining four (4) fast food chains and restaurants, with 10% each, are encountering problems with supervising and other related problems in managing. Staffing is the main problem encountered by the managers of fast food chains and restaurants with regards to management aspect. This is probably because it is hard to choose from the highly skilled one from the applicants because of unfamiliarity to the person. 4.3 Employees
Among the problems encountered by fast food chains and restaurants with regards to employees are employee tardiness, poor customer services, job rotation of the employees and employee turnover. Table 4.3
Problems Encountered by Fast Food Chains and Restaurants Regarding Employees
Problems on Employees
Frequency
Percentage
Employee Tardiness
7
40%
Poor Customer Service
1
5%
Job Rotation of Employees
3
15%
Employee Turnover
8
35%
Other
1
5%
Total
20
100%
On table above, eight (8) of the 20 fast food chains and restaurants, which is equivalent to forty percent (40%), say that employee tardiness is their main problem regarding employees. Thirty-five percent (35%), equal to seven (7) respondents, say that employee turnover is their problem, fifteen percent (15%) for job rotation of employees, five percent (5%) for poor customer service and another five percent (5%) for other problems on employees of these fast food chains and restaurants. Based on the findings, tardiness is the main problem of fast food chains and restaurants with regard to their employees. There are times that some employees arrive late and there are also some situations where some employees make absences, a habit. 4.4 Customers
Among the problems encountered by fast food chains and restaurants regarding customers are finding new customers, keeping existing customers, selling more to existing customers and customers complaints.
Table 4.4
Problems Encountered by Fast Food Chains and Restaurants on Customers Problems
Frequency
Percentage
Finding New Customers
2
10%
Keeping Existing Customers
3
15%
Selling More to Existing Customer
4
20%
Customer Complaints
11
55%
Total
20
100%
Based on the table above, customer complaints is the worst problem encountered by fifty-five percent (55%) of the 20 fast food chains and restaurants. This is followed by the problem of selling more products to existing customers with twenty percent (20%), keeping existing customers also with twenty percent (20%), and finding new customers with ten percent (10%).
As seen in the table above, customer complaints is the main problem of fast food chains and restaurants with regard to their customers maybe because of some cases that the employees were not focused on their jobs or employees were not patient enough to hear the requests of the costumers while finding new customers ranks last maybe because of the good quality of their food and its competitive price.
CHAPTER 5
SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
This chapter presents the summary of the study, the salient findings based on the data gathered which were analyzed and interpreted using statistical tools, the conclusions formulated from the findings of the study and the recommendations offered by the researchers. Summary
This study aims to find out the factors affecting the business operation of fast food chains and restaurants in Batangas City. Specifically, the study seeks to answer the following questions: 6. What is the profile of the respondents in the terms of the following: 1.1 gender,
1.2 age,
1.3 civil status,
1.4 educational attainment, and
1.5 years of service to the company?
7. What are the fast food chains and restaurants in Batangas City? 8. What is
the profile of the selected fast food chains and restaurants in terms of: 8.1 type of business organization, and
8.2 number of years operating in the business industry?
9. What leadership styles do the managers of fast food chains and restaurants employ? 10. What are the problems encountered by selected fast food chains and restaurants in Batangas City in relation to: 10.1 financial aspect,
10.2 management aspect,
10.3 employee, and
10.4 customers?
This study focuses on determining the problems encountered by selected fast food chains and restaurants in Batangas City. This study’s scope includes only the problems encountered in relation to the financial and management aspect, employees and customers. The leadership styles employed by the manager of the business and the profile of the selected fast food chains and restaurants are also included within the scope of this study in order to have a deeper understanding of the respective topic of research. The researchers made use of the descriptive method of research to tackle the study completely and arrive at a precise conclusion.
To be able to come up with an accurate information and result, the researchers used a systematic survey covering 20 fast food chains and restaurants in Batangas City. The respondents of this study are the managers of the said businesses. The study was conducted by means of a survey in which the researchers used questionnaires as the basic tool in collecting the necessary data and information. Percentage was used for the statistical treatment of data gathered. Findings
The data gathered revealed the following findings:
1. Profile of the Respondents
1.1 Gender
Twelve of the 20 respondents are female while eight are male. 1.2 Age
The age bracket of 23 to 28 years old represent the most of the participants with a percentage of sixty percent followed by 29-34 years old and the least of which is the age bracket of 34-40 and 41 above. 1.3 Civil Status
Fourteen respondents are single and the remaining six are already married. None of the respondents are widowed and separated. 1.4 Educational Attainment
Majority of the respondents are college graduates and none of them is a high school graduate. 1.5 Years of Service to the Company Based on the years of service, eight respondents have been serving for 1 to 5 years followed by seven respondents serving for less than 1 year. There is no participant who has been serving for 26 years above.
2. Profile of the Business
2.1 Fast Food Chains and Restaurants Regarding the Types of Business Organization Eighteen of the selected fast food chains and restaurants in Batangas are corporations while two are of sole proprietorship type of organization. 2.2 Fast Food Chains and Restaurants Regarding Years of Operation Most fast food chains and restaurants have been operating for 1-5 years and 6-10 years and only one fast food restaurant has the longest years of operation – 26 years above. 3. Leadership Style Employed by the Manager
Eighty-five percent of the managers are employing democratic style of leadership and none of the fast food managers used laissez-faire o free rein leadership style. 4. Problems Encountered by Fast Food Chains and Restaurants
4.1 Problems on Financial Aspect
Cash budgeting and decreased income, with thirty percent each, ranked number one among the problems experienced in the financial aspect followed by the problem with cash flow and other problems. Lack of capital has not been experienced by fast food chains in Batangas City.
4.2 Problems on Management Aspect
Among the problems encountered in the management aspect of the business, supervising and other problems ranked fourth, communication problems in the third place, motivating employees as the second and staffing ranks first. 4.3 Problems on Employees
Forty percent of the fast food chains and restaurants encounters employee turnover as the most common problem, followed by employee tardiness and job rotation, and the last is poor customer service and other problems. 4.4 Problems on Customers
Majority of the fast food chains experience problems regarding customer complaints while selling more to existing customers ranks second, keeping existing customers ranks third, and finding new customers ranks fourth among the problems encountered on customers.
Conclusions
Based on the findings, the following conclusions were drawn: 1. Findings show that majority of the twenty (20) fast food managers of selected fast food chains and restaurants in Batangas City are female rather than male. 2. Most of the respondents are 23 to 28 years old and single.
3. Most of the managers are college graduates while few are graduates of master’s degree.
4. Majority of the fast food managers have been serving the company for just about one to five years.
5. Majority of the fast food chains are corporation and have been operating in the fast food industry for about one to five years.
6. Majority of the fast food managers are employing democratic style of leadership than autocratic, laissez-faire, etc.
7. Cash budgeting and decreased income are the most common problems encountered by fast food chains and restaurants in Batangas City with regard to the financial aspect of the business.
8. Regarding the problems in the management aspect of fast food chains and restaurants, the worst problem experienced is staffing and followed by motivating the employees to achieve the organization’s goals.
9. Employee turnover and tardiness are the major problems regarding employees garnering forty percent (40%) and thirty-five percent (35%) respectively. 10. Customer complaints is the most commonly encountered problem in the operation of selected fast food chains and restaurants in Batangas City. Recommendations
Based on the findings and conclusions, the following recommendations are offered:
1. Future managers of fast food chains and restaurants must be at least a college graduate of a business related course, with experience, and acquire the necessary knowledge and skills required to be a manager.
2. To be successful, the problems encountered by fast food chains and restaurants must be clearly known and carefully analyzed before entering into this kind of business.
3. Future businessmen must be financially and emotionally prepared on the problems they may encounter to ensure that they are taking the right path towards success.
4. Democratic style of leadership should be given much consideration due to
5. Managers should acquire the good decision-making skills to avoid further complications in the operation of the business.
6. The management should have harmonious relationship with the employees and customers in order to have a smooth management flow, to avoid further conflicts, and to achieve the organizational goals.
7. Fast food chain management must strictly implement their company policies to motivate their employees effectively. This would ensure that employees are complying with the important requirements of their work.
8. Fast food chain management should also formulate strategies to improve the management aspect. Proper modification and improvement of facilities to minimize frequent property damage by customers should also be done.
9. Employees should be properly trained in food preparation, and in service, sanitation, and safety procedures and properly oriented on the nature of their work.
10. Fast food managers should solve customers’ problems in a way convenient, cost effective and timely, learn to acknowledge customer complaints, and open to customers’ suggestion as far as business improvement is concerned.
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http://en.wikipedia.org/wiki/Fast_food_restaurant Xaxx, Jagg. Key Elements of Success in the Fast Food Industry. http://smallbusiness.chron.com/key-elements-success-fast-food-industry-24913.html D. Unpublished Thesis
Bagui, Manilyn J., Carmela H. Dimaculangan, Marie Bianca N. Orlina (2009).
“Effects of Civil Status to The Leadership Style Exhibited by The Managers of Fast Food Chains in Batangas City.” Unpublished Undergraduate Thesis. University of Batangas. Corales, Maria D., Ma. Asuncion M. De Rojo, Rea L. Cabuhal (2004).
“The Effects of Job Rotation on the Job Performance of Fast Food Chain in Batangas City : An Analysis.” Unpublished Undergraduate Thesis. University of Batangas. Cruzat, Bia B., Laarnie M. Dimayuga, Rea M. Sarmiento (2006).
“Cash Budgeting Problems Encountered by Some Restaurants in Batangas City: An Analysis.” Unpublished Undergraduate Thesis. University of Batangas. Cruzem, Karen B., Jayson V. An, Geraldine D. Noriega (2008).
“Effects of Cleanliness and Oderliness of Fast Food Chain in the Cities of Lipa ang Batangas City to their Customer Satisfaction.” Unpublished Undergraduate Thesis. University of Batangas. Mercader, Benjielly D., Ivy G. Magboo, Ferdinand M. Serrano, Julyeta C. Villanueva (2004).
“Leadership Styles of Managers of Selected Business Firms in Batangas: Instrument in Achieving The Corporate Goals of The Company.” Unpublished Undergraduate
Thesis. University of Batangas. Panganiban, Maria Arrianne M., Vera Marie Luz M. Manguerra, Roy Dexter M. Abutar, Ronnie F. Digol (2005).
“Hiring Practices employed in Selected Fast Food Chain in Lipa City.” Unpublished Undergraduate Thesis. University of Batangas. Perez, Celizalyn M., Jearlyn M. Aco, Renan M. Marasigan (2004).
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APPENDIX A
Letter of Request
UNIVERSITY OF BATANGAS
Hilltop, Batangas City
COLLEGE OF BUSINESS AND ACCOUNTANCY
February 2013
Dear Respondents
We are the first year Accountancy students from University of Batangas. Presently, we are conducting a study, “Problems Encountered by Fast Food Chains and Restaurants in Batangas City”, in partial fulfillment of the requirements in English Communication 2. With this, we are requesting you to answer our questionnaire honestly and completely. Please rest assured that your responses will be treated with utmost confidentiality.
Thank you very much.
Yours truly
KHRISTINE MAE D. HERNANDEZ
MARY GRACE E. BELBES
JESSALENE A. CORPUS
CHRISTELLE MAE M. DIMALALUAN
MA. ELAINE A. MALAPITAN
MYDELINE M. MARCHAN
MA. KRYSTEL JOY L. PUNZALAN
MARJORIE B. UMALI
APPENDIX B
QUESTIONNAIRE
Name of the fast food chain / restaurant: _______________________________ Address: ____________________________________________
INSTRUCTIONS: Read the question carefully. Please check ( ) or supply the most appropriate information for the following question.
PART I: PROFILE OF THE RESPONDENTS
1. Gender
( ) Female
( ) Male
2. Age
( ) 17-22 years old
( ) 23-28 years old
( ) 29-34 years old
( ) 34-40 years old
( ) 41 years old and above
3. Civil status
( ) Single
( ) Married
( ) Widowed/Widower
( ) Seperated
4. Educational Attainment
( ) Secondary
( ) Tertiary
( ) Vocational
( ) Master’s Degree
