PHILOSITOS EATERY

ABOUT US

Honest Cooking

OUR MISSION

To become the first choice for quality,authentic, and convenient dine-in and takeout food service for students and other consumers in Mandaue City.

OUR VISION

To establish and maintain a solid food business platform that will contribute to the improvement and comfort of our customers and the community.

OUR GOALS AND OBJECTIVES

1. Monetary Goal and Objectives

1. It will provide customers with fresh meals and fast service at a competitive price.

2. A monthly sales goal will be established in order to meet the high net margin required to break even in the first year. Within the first two years, aim to achieve a net margin of 60%.

3. At the end of the second year, aim for a profit increase of 10% to 15%.

1. Marketing Goal and Objectives

Market share and repeat purchases are two factors that influence marketing objectives.

1. Market Proportion

1. Given its location near to different schools in Mandaue City, it is reasonable to assume that Philositos Eatery can sell at least 100 meals per day. However, the daily sales amount would only account for about 2% of the total market share.

2. We expect to gain 5% of the total market share by the end of the second year.

1. Repeat Purchase

1. We intend to maintain a minimum repeat customer rate of 50% by the end of the first year and to reach a repeat rate of 70% by the end of the second year.

2. Loyalty cards will be used to track and calculate customer repeat purchases.

ENVIRONMENTAL ANALYSIS

PRODUCT AND MARKET BACKGROUND

Many studentsat the university and other residents of Mandaue City, Cebu enjoy street food; they find it more convenient. However, the closest place to eat outside the campus are restaurants, which are both expensive and time-consuming. Another group of students and citizens is time-pressed and prefers to order takeout rather than dine-out. When these two consumer segments and interests overlap, there is a gap, which is also Philositos Eatery's target market and primary motivation. As a result, Philositos Eatery will be able to provide a wide range of authentic street food and beverages at a low cost and in a convenient and timely manner. 

MARKETING ANALYSIS

    In this section, we summarize the long-term underlying driving factors that may have an impact on our business plan, such as political, economic, social, and technological trends, allowing us to identify potential opportunities and threats.

1. Political

Political issues in our country and other countries have an impact on our daily lives in both positive and negative ways. The ongoing conflict between Ukraine and Russia has had a significant impact on gasoline prices, resulting in an increase in supply delivery fees. On the other hand, our country's development in terms of security has been a huge help to the residents' convenience. Furthermore, the Food Standards Agency enforces food hygiene, food storage, waste management, recycling collection, and appropriate staff and equipment training, among other things. Local governments will conduct inspections on a regular basis or when a complaint is filed to ensure that everything is in compliance with the law. Philositos Eatery will strictly follow the rules and regulations because they may have both positive and negative consequences for the business. Infractions of the rules may result in a fine or the closure of the business.

1. Economic

According to the Doing Business Report, the Philippines ranked 95th out of 190 economies with a score of 62.8, a 29-notch improvement from No. 124 and a score of 57.68 in 2019. Even as the pandemic arrived and shut down the country, it was still recorded that the Philippines' overall state was still good from the previous administration's time. Furthermore, while minor deflation may make an increase in interest rates less likely, the value of the Philippines' street stall industry is rising, as is consumer spending on food.Strictly speaking, the Visayas islands, particularly Cebu, face lower economic efficiency due to longer quarantine and lockdown periods, as well as a scarcity of highly skilled individuals, resulting in a higher unemployment rate. This would have an impact on Philositos Eatery's pricing strategy. Overall, the city's economic outlook is favorable in the short term. Although total GDP growth is laggingbehindthe rest of the country’s other cities, the city's GDP is expected to rise as the pandemic subsides.

1. Social Trends

The Philippines' population is becoming more diverse and has grown significantly over the last decade, with people from provinces showing the greatest growth. Furthermore, people are becoming more adventurous in their food choices and are willing to try new cuisines. According to the Mintel report, nearly seven out of ten consumers (69%) try something they have never tried before; one-third of them believe they prefer spicy food now more than they did previously. Around 70% of Filipino teenagers and adults have consumed various street food cuisines that have become deeply ingrained in their lives. Authentic cooking sauces and ready meals have gained significant popularity (about 50%) among Filipino consumers, particularly Cebuanos with their pig brain gravy. Recently, there has been a significant increase in retail value sales of Philippine food, demonstrating consumers' confidence in eating out. Only a minority of ethnic meal customers would choose to dine in a restaurant, while many (most likely younger generations, under-25s rather than over-35s) would prefer ordering takeout. Due to the large population eating street food and consumers' eat-on-the-go lifestyles, Philositos Eatery has a relatively large potential market for success. Consumers' grocery shopping habits in the Philippines have changed since the pre-recession years. They have developed money-saving strategies such as purchasing fewer items. Consumers understand how their money can be stretched further; habits form around shopping around and purchasing in smaller quantities. People are not only eating out more frequently, but they are also spending less per meal. Philositos Eatery's marketing decisions will be influenced by its customers' eating habits. In Cebu, particularly in Mandaue City, the younger generation (14–29 years old) constitutes the vast majority of the total population. These young students will be our primary target customers, and they will serve as a potential market for us.

1. Technology

The technological revolution has altered the way businesses operate. Firms are releasing hardware and software to help them target different customers. Ad smart technology, for example, aids in the customization of advertisements. The advancement of technology reduces the time it takes to obtain goods and services; the Philippines' leading consumer culture is becoming more and more convenience driven. For faster delivery, a few food service brands are launching pre-ordering or notification apps. Customers can even pay with their mobile phones or use apps that include embedded loyalty cards. Because our company is tech-savvy, these technological factors will have an impact on Philositos Eatery. We had developed a website as well as other contact and information sites, such as Instagram and Facebook.

ANALYSIS OF COMPETITORS

Due to the scarcity of detailed information available online, it is critical that we conduct primary research to determine the footfalls of our competitors. As a result, we conducted a week-long on-site observation, tracking the traffic flow of our competitors within two hours per restaurant. Based on the records we have collected, we can estimate one-day footfall. This serves as a solid foundation for Philositos Eatery. Given the nature of Philositos Eatery, our competitors can be identified geographically. Four roads are used to create a closed area where all of the competitors are located, dubbed "the competition zone." There is no direct competitor because we are targeting a niche market. However, there are numerous indirect competitors, which can be broadly classified intofour categories: food on campus, fast food chains and self-brand takeaways,restaurants, and others.

• FOOD IN CAMPUS.It is a company that operates a number of coffee shops, cafes, and restaurants throughout the campus. It serves hot meals, refreshments, and quick snacks at a cost of about 120 PHP per meal (including a main course and a drink). There are five spots available within the competition zone, including those at the University of Cebu, Lapu-Lapu-Mandaue, Mandaue City Comprehensive National High School, Mandaue City Central School, St. Joseph Academy, and Don Gerardo OuanoLlamera Memorial National High School. The location of food on campus is the most significant advantage; all students on campus can easily find a place to grab a quick meal at a low cost. However, by focusing on "standard food" such as sandwiches, bread, coffee, and cakes, food on campus falls short of meeting the diverse needs of its customers.

• FAST FOOD CHAINS AND SELF-BRAND TAKEAWAYS.

These are franchised restaurants operated by international brands that serve fast food such as burgers, chips, and pizzas. The average cost of a regular meal is also around 200 PHP. Their main advantage is brand recognition, despite the fact that the food they sell is extremely common.

"Self-brand" takeaways, as opposed to fast food chains, are restaurants that operate under their own brands. These restaurants typically have indoor seating but are referred to as "takeaways" because they cater to people who are in a hurry and prefer to order food to go. Self-brand takeaways sell food similar to fast food chains, with only the flavors varying from one restaurant to the next. The average cost of a regular meal is comparatively low, at around 150 PHP. There are ten fast food chains and "self-brand" takeaways within the competition zone, such as Jollibee. The main advantage of this category is the low cost, but there are many disadvantages, such as hygiene issues and a relatively long distance to the campus area where the population is most densely populated.

• RESTAURANTS. Although some of them offer takeout or delivery, the majority of their customers prefer to eat in the restaurants. The average price of a regular meal is around 250 PHP, which is relatively high. There are many restaurants within the competition zone, but two of them stand out and are located a little further away from our planned location, namely, Joven's Grill and Seafood and DAE GA. As previously stated, trying exotic food has become a social trend. The main advantage ofrestaurants is their flavors. However, it is insufficient to compensate for their shortcomings, such as high costs and slow service speed.

• OTHERS. Other types of restaurants, such as self-branded cafes and bars, are included in this category. They serve a more diverse selection of food and charge an average of 200 PHP per meal. There are many within the competition zone, for example, "Pitlane Restobar and Billiard Center," and their main advantage is the variety of options and entertainment. Customers must, however, wait for a longer period of time in exchange.

Among all of these competitors, those within a 20-minute drive of Cortes Ave, Looc, and Mandaue City, where our eatery will be located, can be considered Philositos Eatery's primary indirect competitors.

MARKETING STRATEGY

This section will go into detail about how we will provide value to our customers. The marketing mix strategy will be used because it includes the majority of the elements that will influence our opportunities to maintain profitable market growth.

PRODUCT

We intend to introduce new products as additional options for Mandaue City students. Our offerings include a variety of street foods and beverages. More specifically, we will serve 12 dishes and 7 beverages. There will be three main courses available. The food will be prepared using traditional recipes to ensure the authenticity of the taste and quality of our products.

Because most students are time-conscious, convenience will be a critical concern for a takeaway business. To reduce the amount of time our customers have to wait, we will have our food prepared so that it is 80 percent ready to eat and 15 percent semi-cooked. In the meantime, all of our products will be sold in disposable meal boxes or cups.

PRICE

Although our products differ slightly from those of our competitors, the difference is insufficient to compete for the attention of price-conscious students. As a result, the overarching principle of our pricing is a pricing strategy based on competition. At the same time, the perceived value of customers should be considered. We will set a lower average meal price (for food and beverages). Our prices will be based on variable costs such as ingredients and packaging, with such an underlying premise. To ensure profitability, our pricing includes a minimum profit margin of 40%. As a result, when compared to other restaurants, we will have a price advantage. At the same time, when compared to our competitors, we have a lower price as well as a distinct product line.

PRODUCTION

• Our cooks will prepare food in the company's rented suite kitchen, as ready-to-eat or semi-cooked food can save consumers time queuing.

• Quality control: tailored quality testing processes to meet our material quality requirements. Employees will be trained on food quality issues on a regular basis by managers.

• Inventory control entails adhering to the first-in, first-out inventory control principle. Fresh fruits and vegetables should be kept on hand, and inventory should be adjusted on a daily basis based on the sales volume of each dish.

EQUIPMENT

Things we'll need to think about in the first two years of operation: First and foremost, we'll need to secure a spot for the first two years of operation. Second, according to the estimated sales volume in the first year, prepare all types of kitchen supplies, food packaged packaging paper or biodegradable packing boxes, consumables, food prep equipment, food raw material storage boxes, and office supplies.

PERSONNEL

We will have five workers (two cooks, two customer assistants, and one manager). Our cooks will receive level 2 food hygiene training in order to handle open foods for customers. They must have excellent cooking skills as well as prior experience preparing and cooking dishes.

PAYMENT

For our company, cash is the only accepted and dependable form of payment. We will operate as "cash only" merchants in order to avoid third-party intermediaries and fees associated with other payment methods (e.g., credit cards, debit cards).

CONTROL OF EMERGENCIES

• On rainy days, we will have a canopy in front of our eatery to keep customers dry, and we will also provide a limited number of umbrellas (which must be returned).

• To remind our customers, we will have a trash can next to our restaurant and will print the phrase "environmentally friendly" on the front of our packages.

• All employees will receive advanced fire safety training and will be covered by our public liability insurance.

• Additional ingredients and food materials will be prepared in our restaurant for extra food production.

• We will avoid business failures by soliciting feedback from regular customers, conducting additional market research, and planning food-related activities to attract consumer attention. Every semester, keep a copy of the university calendar for events. If there are activities in the schools, we will notify our customers a week in advance on the notice board in front of our eatery. As a result, our customers can enjoy quick-service meals inside buildings.