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Thesis - Chapter 1 - Introduction

Introduction

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42 views

Thesis - Chapter 1 - Introduction

Introduction

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jaantoniojr
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

PROMOTIONAL PRACTICES OF QUICK SERVICE


RESTAURANT IN MAKATI CITY

A Thesis Proposal

Presented for the Faculty of College of Business


Administration Graduate Studies

Polytechnic University of the Philippines


Sta. Mesa, Manila

In Partial Fulfillment of the Requirements for the Degree


Master in Business Administration

By

Manuel J. Logatoc

July 2020
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Chapter 1

THE PROBLEM AND ITS SETTING

Introduction

The actual industry term for a fast-food establishment is a “quick-service restaurant’,

or QSR. The growth of QSR in the Philippines can be ascribed to the increasing progress of

population in the country and the moving characteristics of Filipino consumers (Dunn and

Bradsheet Industry Profile, 2017).

Filipino food service industry has witnessed large scale development and the study of

trends in quick service restaurants in Philippines is very much essential as the growing QSR

market is a major contributor to Filipino economy. According to the Family Income and

Expenditure Survey (2003), there are about 20,000 quick service restaurants operating in

Metro Manila. The number seems to indicate a food market that is already saturated.

However, in the consumer pulse survey conducted by the Consumer Pulse Incorporated in

Metro Manila (2003), it was pointed out that most quick service restaurants have attained

gains in terms of patronage level. This increase can be attributed to the enlargement in

terms of branch network. Thus, this indicates that the market has still room for expansion.

Furthermore, thousands of stores and hundreds of Filipino and international brands

have captured the fancy of growing youth market. The number of multi-national brands of

quick service and casual dining restaurants is comparatively petite due to its marginal

chains account for the bulk of restaurant. Filipino food service companies are also

expanding through franchisee model, opening multiple restaurants, and establishing stores
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

at best of the public places. Food court layouts at malls, multiplexes and airports has given

much demanded space at very competitive costs, concessions, and better experience in

logistics of sourcing have benefited the QSR industry.

It is imperative therefore, for management to determine what effective practices can

be applied for the promotion program of the firms. Many in the business, however, are not

aware of the extent to which advertising or other promotional strategies can help to achieve

the decision on how to fit the product, price, place, and promotion strategies into a

marketing program.

The industry of quick service restaurant is a sub-sector of the larger restaurant

industry. Hence, the researcher will review the promotional practices of five (5) selected

quick service restaurants in the Philippines particularly their operations in Makati City. Data

from the Fast Food Restaurant Association of the Philippines show that most of the quick

service restaurants have customers ranging from A to D economic classes with a bulk of

customers below 50 years of age. This developed mostly in Manila with the change of urban

lifestyle which has a premium on convenience and speed. The industries rationale, in short,

is efficient high-quality products that have broad consumer acceptance supported by the

advertising and promotions.

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