INPUT

Chapter 1

Background of the Study

Coronavirus disease 2019 (COVID-19) is an infectious disease caused by the
newly discovered coronavirus known as Severe Acute Respiratory Syndrome
Coronavirus 2 (SARS-CoV-2), which was firstly discovered in Wuhan, China (Borges do
Nascimento et al., 2020; Olaimat et al., 2020). This pandemic has enormously changed
the social, economic, healthcare, education, and business aspects of life. Not only has it
caused huge disruptions in the supply chain, but it has also led to an unprecedented
PROCESS
disruption of commerce, forcing thousands of businesses to close down. Some industries,
such as tourism and hospitality, were hit hard, while others continued to operate, although
crucial areas such as cash flows, demand, supply chain, workforce, and sales were all
severely affected (Asfahani, 2021; Kawamorita et al., 2020).
Globally, the rapid spread of coronavirus (COVID-19) has had devastating
impacts on financial markets (Dias & Pereira, 2020; Farzad et al., 2020). The pandemic
has confronted the hospitality industry with an unprecedented challenge. Almost all
restaurants were asked to limit their operations to only take-outs. Restrictions placed on
travel and stay-at-home orders issued by the authorities led to a sharp decline in hotel
occupancies and revenues. However, the reopening process has slowly begun and
authorities have started to ease restrictions, for example, allowing dine-in restaurants to
reopen at a reduced capacity with strict social distancing guidelines, and gradually
reducing restrictions on domestic and international travel (Gursoy & Chi, 2020).
While the hospitality industry is slowly recovering, the pandemic crisis continues to exert
profound impacts on how hospitality businesses operate. Hospitality businesses are
expected to make substantial changes to their operations in the COVID-19 business
environment to ensure employees' and customers health and safety and enhance
customers' willingness to patronize their business (Gössling et al., 2020).
Also, the pandemic has been affecting the entire food system and has laid bare its
fragility. Border closures, trade restrictions, and confinement measures have been
preventing farmers from accessing markets, including for buying inputs and selling their
produce, and agricultural workers from harvesting crops, thus disrupting domestic and
international food supply chains and reducing access to healthy, safe, and diverse diets.
The pandemic has decimated jobs and placed millions of livelihoods at risk (Impact of
COVID-19 on people's livelihoods, their health, and our food systems: Joint statement by
ILO, FAO, IFAD, and WHO. (2021). COVID-19 fueled the most far-reaching and
devastating supply chain disruptions in history.
Despite past efforts to build supply chain resiliency, companies were ill-prepared
for the huge swings in supply and demand that spread across industries around the world
(Ketchen & Craighead, 2020). The recent health crisis caused by COVID-19 quickly
turned into a financial downturn due to the restrictions imposed by most countries to
control the expansion of this pandemic (World Economic Outlook, 2020). This
unexpected crisis has particularly affected the tourism industry, and as a result, the
restaurant business has been one of the most affected (Muller, 2020). Restaurants were
forced to either close or operate with many limitations (Madeira et al., 2021).
COVID-19 has not only been a devastating public-health crisis; it has also been
the restaurant industry’s greatest challenge to date. Never before have so many
restaurants been forced to cease operations; some will never reopen. Early indications—
from China and other countries where the pandemic seemed to be under control—suggest
that consumer demand won’t immediately rebound when restrictions are lifted. However,
restaurants that plan to adapt and refine their restaurant model for the “next to normal”
will be better positioned to bring sales back to pre-crisis levels ( Haas et al, 2020).
Under pandemic conditions, autonomy and innovativeness likely would be assets given
the need to creatively improvise to navigate adverse conditions (Craighead et al., 2020).
The Philippines had one of the longest lockdowns in the world in response to
COVID-19 having the second-highest total number of COVID-19 cases in Southeast
Asia. The first imported case of COVID-
19 was detected in the Philippines in late January 2020. Initially,
in early February, the administration relented to pressure from some legislators and
interest groups and imposed a travel ban on flights from Wuhan, Macau, and Hong
Kong. Thereafter a partial lockdown of Metro Manila from March 15 to April 14 was
announced, together with a suspension of travel to and from Manila. By March 16, the
entire Luzon group of islands was placed under Enhanced Community Quarantine
(ECQ), effectively a total lockdown and the strictest category of lockdown imposed in the
country (Atienza, 2021). The types of community quarantine and concepts include the
following: ECQ refers to the implementation of temporary measures imposing stringent
limitations on the movement and transportation of people, strict regulation of operating
industry, provision of food and essential services, and heightened presence of uniformed
personnel to enforce community quarantine protocols; Modieifed Enhanced Community
Quarantine (MCEQ) refers to the transition phase between ECQ and GCQ (General
Community Quarantine when the following measures are relaxed and become
unnecessary: stringent limits on the movement and transportation of people, strict
regulation of operating industry, provision of food and essential services, and heightened
presence of uniformed personnel to enforce community quarantine protocols; and
General Community Quarantine (GCQ) refers to the implementation of temporary
measures limiting movement and transportation, and the presence of uniformed personnel
to enforce community quarantine protocols (DOH-CCHD, nd.). Loss of income and job
opportunities were the overarching challenges in poor communities in the Philippines.
Disaster-prone communities experienced more difficulties in coping with
COVID-19 restrictions and their severe economic impact. The most pressing problems
before and during COVID-19 include lack of income opportunities and reduction of pay
were pre-existing challenges but had worsened significantly due to the pandemic and
during the pandemic, communities reported continued insufficient food supply and
health, sanitation, and nutrition issues (Fallesen, 2021).
Since the start of the lockdowns declared to contain the coronavirus disease 2019
(COVID-19), the restaurant industry has seen drastically lower demand due to limited
consumer mobility and ongoing restrictions on dine-in capacity. Scarcity of assistance in
the form of relief packages or overt eviction moratoriums for businesses affected by
lockdown restrictions. Tax breaks, tax holidays, and other remedial packages that local
and national government units can offer can go a long way in reinventing the industry.
With the number of the Philippine population at around 6.2 million or 63 % has been
fully vaccinated against COVID-19 in the last quarter of 2020, the restaurant industry is
expected to rebound as this would be enough to ease public health fears leading up to the
holidays. Thus, the restaurant industry is anticipating some recovery in 2022 modeled
after the resurgence seen in major global cities like New York and Hong Kong that
reopened their economies. Resto PH President Eric Teng echoed this optimism in an
article written by Ibañez and Jara (2021).
The local government unit headed by Mayor Benjamin Magalong told the
business sector that vigilance is necessary amid the threat of COVID-19 and asked it how
to deal with foreign customers manifesting symptoms like coughing or fever. While the
city government has not declared a ban on tourists, Magalong asked the public to take
precautionary measures as advised by health authorities, particularly avoiding crowded
places. Meantime, Engr. Aloysius Mapalo, City Supervising Tourism Operations Officer
bellied fears of the hospitality industry that business will be shut down in case a
coronavirus patient turned positive in their establishment. Mapalo said there will be no
automatic shutdown and any action by the city government will depend on the
assessment of the situation by the city health officials (Samidan, 2020).
Merely after one-week issuance of Executive Order (EO, March 16, 2020) No. 65
(declaring the city under citywide community quarantine), the local government unit
adopted the guidelines set in the Enhanced Community Quarantine (ECQ) status ordered
by President Duterte over Luzon. While all restaurants, cafes, coffee shops, and similar
establishments were allowed to operate on a limited scale or number of hours (5 am to 9
pm) to take out and deliver the orders only, total closure was implemented under EO 67
and placing the city under 24-hour curfew (Refuerzo, 2020). The COVID-19 pandemic
undoubtedly greatly contributed to the economic meltdown of many businesses across the
global arena, the country, and at the local level. Among the most affected sector in the
restaurant industry. To mitigate the negative impact of the health crises, the restaurant
businesses in Baguio City have endeavored in various activities to sustain and maintain
the positive economic condition of the firm.
This study will attempt to determine the strategic management operations of
casual restaurant establishments in Baguio City during a pandemic. Casual dining
restaurants have a very relaxed atmosphere but are a step up from fast-food and fast-
casual restaurants. A casual restaurant generally has table service, meaning a server takes
orders while the diner is seated at a table. A food runner or server brings the meal to the
table (Fine Dining Versus Casual Dining, 2019).
This study will be beneficial for academic purposes, especially during class
discussions. It can be also useful to establishments with related business types as a
springboard for restaurant operations as well for future researchers purposively as cross-
references for any related study. For ethical considerations, this study will be used for
academic endeavors only and therefore will be undertaken with utmost confidentially by
informing the target respondents that their profiles will never be mentioned in any part of
this paper.
The prevailing health crises due to COVID-19 have greatly shaped the economics
of doing business as well as customer behavior for product and service preferences.
Reviews of various literature show strong indication of the effects of the pandemic across
all businesses, particularly in the restaurant sector mainly due to limited community
mobilization caused by the government’s declaration of lockdowns. Therefore, it is
necessary to find out the practices being carried out and the challenges encountered by
the food sector during the pandemic. It is likewise essential to find out the opinions of the
participating establishment-respondents about recovery practices casual restaurants in
Baguio City will adopt under the post-pandemic. The output of this study is expected to
be beneficial to the following:

Theoretical/Conceptual Framework
The conceptual framework serves as the outline of the study. The following
theories, concepts, and ideas are valuable insights useful in the examination, analysis, and
interpretation of the results and findings of the study.
The three basic principles that restaurant owners must understand are the theories
to be used in this study (www.therestaurantcoach.com, 2017), namely: the Parkinson's
Law which refers to a management theory or concept of dimensional management in
business operations means people were all different and they need to be managed
differently; the Pareto Principle which is referred to an idea “the law of the vital few
and trivial many.” This principle in restaurant operations is applied to actual human
beings. The first is that roughly 80% of your business comes from 20% of customers;
thus, it is important to convert customers into raving fans of the business. The second is
that roughly 80% of your headaches will come from roughly 20% of your customers or
staff. The third is that roughly 20% of your time and effort are responsible for 80% of
your results, and finally the Tuckman's Team Development Model. This concept helps
in understanding the development of four-stage processes necessary for teamwork to
work on opening a new restaurant. This includes pulling lots of different people together
to launch a project (forming), keeping the team focused (storming) on the objectives of
the business, allowing the team to accept the position in the team dynamics (norming),
and getting optimum (performing) results. Robertson (n.d.) mentioned four basic
restaurant management theories influencing the overall restaurant culture such as the
Autocratic Theory, Democratic Theory, Consultative Theory, and the Laissez-Faire
Theory. He said that the Autocratic Theory is applicable when restaurant managers are
practicing leadership style and tend to make decisions without consulting any other
members of the team. An autocratic manager's quick decision-making skills may be
appreciated, but employees under autocratic leadership often end up feeling
unappreciated and undervalued when their opinions aren't taken into consideration. As a
result, restaurants with autocratic managers may experience higher turnover rates with
their staff. He further asserted that Democratic Theory in contrast to autocratic managers
who take all the decision-making responsibilities onto themselves, restaurant managers
practicing a democratic style of leadership delegate authority to their staff. For example, a
democratic restaurant manager may allow his waitstaff to make their own decisions on
how to handle disgruntled customers or may let them work out their system of orders and
delivery with the cook staff. When the waitstaff has the power to handle these situations
on their own, they end up feeling a greater sense of accomplishment with their work. One
potential downside is that some employees may take this sense of empowerment too far
and come across as being arrogant to the restaurant's patrons or the other staff members.
He mentioned that since both the autocratic and democratic management styles each
have their benefits and disadvantages, many restaurant managers opt to use a
combination of these two methods to get the best of both worlds. These restaurant
managers use what's referred to as a consultative style (Consultative Theory) of
management. As an example, consider a manager who's looking to change the decor of
the restaurant. As a consultative leader, the manager may first ask all the employees for
their opinions on what they believe the customers would like, but the manager will end
up making the final decisions. In this case, the restaurant employees still feel valued and
involved, but the manager maintains complete control. Finally, he stated that Laissez-
Faire Theory is a theory of management that is quite different from the other styles.
Laissez-faire restaurant managers tend to have little involvement in how the restaurant
staff completes their day-to-day tasks. In some high-end dining restaurants, where the
staff members are highly motivated and capable, this type of management style may work
well and even be appreciated. In fast-food restaurants, where the staff tends to require
more supervision and direction, this management style could prove disastrous. A good
laissez-faire restaurant manager will know when to let the staff do their thing, and when
to pull in the reins. A bad one will take this approach to avoid work and responsibility.

Paradigm of the Study

The concept of the study was strengthened by the input, process and output as reflected in
figure 1.

OUTPUT

Measures to improve
management operations
 of casual restaurants

√ Descriptive

√ Research Design

√ Questionnaire

Strategic Management
√ Statistical Treatment of
Operations of Selected
Data
Casual Restaurant
Establishments in Baguio
City During a Pandemic √ Interpretation of data
Figure 1 Paradigm of the study

Academe. The output of this study serves as benchmark data on how casual
restaurants in Baguio City can adapt to the effects of the pandemic in the determination of
strategic management operations that fit the market condition. Thus, this study can
facilitate a tool for learning discussion between and among faculty members and students
in understanding better the issues on the subject matter.
Business Establishments. This research paper plays an important role for
restaurant firms in developing interventions essential in mitigating and lessening the
impact of the pandemic crisis on business operations that greatly contributed to the
economic status of the business. In addition, this study can serve as a reference for
various challenges encountered by an establishment as well as coping mechanisms to
overcome such difficulties through identifying recovery practices in achieving positive
sales and income generation.
Future Researches. This paper can serve as a subject of interest to explore
studies on other types of restaurants in Baguio City about the practices implemented and
challenges encountered during the Covid-19 pandemic as well as recovery undertakings
for a similar condition in the future. Thus, can be used as a subject of reference for future
research along with the strategic management operations adopted by the food industry.

Statement of the Problem

The purpose of this research is to determine and document the strategic
management operations of the selected casual restaurant in Baguio City during the
COVID-19 pandemic. Specifically, this study seeks to answer the following:
1. What is the level implementation of practices that casual restaurants in Baguio
City did during the pandemic?
2. What is the degree of seriousness of the challenges met by restaurants owners?
3. What are the measures to be undertaken by casual restaurants to improve
management operation?

Assumptions:
1.The level implementation of the practices is moderately practiced.
2.The degree of seriousness of challenges met by restaurant owners is moderately serious.
 CHAPTER 2

RESEARCH DESIGN AND METHODOLOGY

This chapter presents the research design, population and locale of the study, data
gathering tools, data gathering procedures, treatment of the data, and ethical
considerations.

Research Design

This study will deploy a quantitative research method to measure and analyze data
using the questionnaire survey and to be supplemented with an informal interview for
purposes of generating clarificatory information and based on the responses of the target
participants in this study The study used a questionnaire survey and interview guide for
thematic responses constructed from various sources. Formulation of the questionnaire is
greatly attributed to the various scholarly works while the major parts are based on the
works of Abdou. & Ramadan (2021), Elshaer (2021), Carl (2020)., Faulkner (2020),
Remillard, (2021), Allen (2020), Allen (2020), Allen, (2020)., and Fallon (n.d.). with
minor modifications.

Population and Locale of the Study

This study will employ a purposive sampling method on account of the
respondents’ knowledge and understanding of the indicators in the questionnaire survey.
The researchers will consider respondents from casual restaurants located in major
business district areas in Baguio City specifically Abanao Street, Magsaysay Road, and
Session Road. The selection of the area coverage is based on the strategic locations.
Utilizing location-based data is a rising phenomenon in market research. One ofW the
most challenging parts of conducting a survey is finding the right participant who can be
visited a location with high accuracy. Conducting location-based market research is easily
finding the ideal respondent for the survey (Coville, 2019).

Data Gathering Instruments

The study will use a questionnaire survey as the main gathering tool. The first part
of the questionnaire consists of the respondents’ positions or organization level in the
firm such as those holding managerial, supervisory, and those in the lower level of the
organization or the rank-in-file position. The second part of the questionnaire will consist
of the variables along with the practices, level of agreement on the practices and
challenges implemented during the pandemic, and recovery practices casual restaurants
in Baguio City will adopt during the post-pandemic. We constructed the questionnaire out
of our ideas that the casual restaurants will be able to answer, so we came out with the
following questions.

Reliability and Validity of the Instrument

A survey questionnaire will be used to gather data and information relevant to this
study.
The questionnaire is consists of two parts. Part I includes the level of implementation of
the practices by restaurant owners during the pandemic. This part will be recorded on 3-
point Likert scale ( Much Practised, Moderately Practised, Slightly Practised. Part II
contains the degree of seriousness of the challenges met by restaurant owners during the
pandemic. Responses will be record as well on 3-point Likert Scale ( Very Serious,
Moderately serious, Slightly Serious ).
Data Gathering Procedure
Before the researcher will conduct the study, the following were undertaken:
First, approval of the research instrument we constructed.
Second, permission from the Dean of College of Hospitality Management to conduct
study in selected casual restaurants, and
Thirdly, the researcher asked the permission of the restaurant owner to conduct study to
casual restaurants.
During the data gathering procedure, the researcher will distribute the survey
questionnaire to each respondents , and to explain the purpose and other details of the
questionnaire for the respondents to understand and to know what to write on the
questionnaire.
After the respondents finished accomplishing the questionnaires, the researcher will
retrieve the survey forms and will be subjected for data tabulations, analysis and
interpretation.

Statistical Treatment of the Data

Frequency, percentage, weighted mean, and ranking will be utilized to measure
the quantitative aspects of the data while the ANOVA test will be used for the inferential
questions in this study. A numerical value will be assigned to each of the suggested
choices to help in the analysis and discussion of the results and findings of the study. The
Likert scale will be utilized for the analysis and interpretation of the quantitative data.
Level of implementation during pandemic:
RATING RANGE DESCRIPTION DESCRIPTIVE
INTERPRETATION
1 1.00 - 1.74 Lease practised LP Never performed, implement, or
observed
2 1.75 – 2.49 Moderately MP Sometimes performed, implemented, or
practised observed
3 2.50 – 3.24 Much practised MP Being performed, implemented, or
observed because it is the company
standard operating procedure

Degree of seriousness of the challenges during the pandemic:

RATING RANGE DESCRIPTION DESCRIPTIVE
INTERPRETATION
1 1.00 - 1.74 Slightly serious SS The idea or statement is different from
what I know.
2 1.75 – 2.49 Moderately MS The idea or statement is slightly
serious different from what I know.
3 2.50 – 3.24 Very serious VS The idea or the statement is true and I
understand the implication in the
business operations.

Ethical Considerations
Confidentiality is an essential approach to generate voluntary participation of the
casual restaurant respondents in the conduct of this study, thus, the focus of the
introduction letter to the management along with the objectives. This serves as an
assurance that their involvement will not be divulged for public consumption.
Furthermore, the letter will indicate that the establishment’s name will never be
mentioned in any part of the discussion on the finding and results of the study
emphasizing that this undertaking is for academic purposes only or educational reasons.
The letter will also indicate a statement of an option to withdraw should any of the
establishment’s representatives decide to do. Moreover, during the administration of the
questionnaire survey, the researcher will encourage management to enjoin their
employees to participate in this study. Following the main goal of this study, concerned
participating establishments will be provided with an electronic abstract as indicated in
the letter. Other than the manuscript, an article on the results and findings of the study,
and the outcome or product of this undertaking will be presented in a research
symposium for dissemination purposes.

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Questionnaire
Name of the Respodent (optional): _____________________________
Part I: Level of implementation of the practices by restaurant owners during pandemic
Direction: Please check the corresponding column below the level of the implementation
of the practices. Below are the scale points, descriptive equivalents and symbols to serve
as guide.
Scale Descriptive Equivalents Symbols
3 Much Practised MP
2 Moderately Practised MOP
1 Lease Practised LP
Practices MP MOP LP
3 2 1
Follow the 4 key steps to food safety:
Clean, Separate, Cook, and Chill
Wash, rinse, and sanitize food preparation
surfaces, and beverage equipment after
use.
Frequently disinfect surfaces repeatedly
touched by employees or customers such
as door knobs, equipment handles, check
out counters, etc
Frequently clean and disinfect floors,
counters and other facility are
Prepare and use sanitizers according to
label instructios

Part II. Degree of seriousness of the challenges met by restaurant owners during
pandemic
Directions: Please check the corresponding column below as to your observation as
restaurant owners on the challenges you met during pandemic. Below are the scale
points, descriptive equivalent and symbols to serve as guide.

Scale Descriptive equivalent Symbols

3 Very serious VS
2 Moderately serious MS
1 Slightly serious SS
Challenges VS MS SS
 3 2 1
Decreased of sales
Limited working
staff

Stock Wastages
Supply Shortage
Need to implement
cashless payments

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