BIBLIOGRAPHY SAWADAN, EDMER JR. G. APRIL 2009....
BIBLIOGRAPHY
SAWADAN, EDMER JR. G. APRIL 2009. Demand Prospects for Fast Food
Chains in Tabuk City, Kalinga. Benguet State University, La Trinidad, Benguet.
Adviser: Darlyn D. Tagarino, PhD.
ABSTRACT
The research was conducted to find answers to the following questions: 1) Is there
a demand for fast food chains in Tabuk city, Kalinga?; 2) Is there a demand as to
characterize by type of fast food chain?; 3) What are their reasons to patronize the fast
food chain?; and 4) What are the appropriate indicators to be used for the development
of the fast food industry in Tabuk city? The study was conducted in Bulanao and
Dagupan, Tabuk City, Kalinga. A total of 120 students (50 from the high school level and
70 from the college level) and 90 employees were interviewed. Sampling was done
purposively.
There is a general willingness to have a fast food chain in Tabuk City. The
primary reasons offered are to increase the income of the city and it is a source of
employment. From the result of the study, Jollibee is the most preferred fast food chain to
be established in Tabuk City. The second in rank is McDonalds followed by Greenwich,
then KFC and lastly, Chowking.. The indicators or factors that will influence demand for
fast foods are nutritional requirements, convenience, food values, social inter actions,
market place, and available resources.
Based on the foregoing findings and conclusions of the study, the following
recommendations were made: The city government of Tabuk should consider in their
planning the entry and establishments of fast food chains; Jollibee Corporation should
consider establishing a branch in Tabuk City, Kalinga; government officials and
authorities should control peace and order of the City for a fast food chain to penetrate
the City; the local government of Tabuk City should identify appropriate ordinances to
provide an attractive environment for the fast food chains; and Entrepreneurs and other
fast food chains should take this study as a basis for them to make ways how to cater to
the demand of the residents.
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TABLE OF CONTENTS
Page
Bibliography……………………….………………………………………...
i
Abstract …………………………………………………………………….
i
Table of Contents ………………..…………………………………………
iii
INTRODUCTION ……………………………….………………………...
1
Background of the Study …………….……………………………. 1
Statement of the Problem ……………………….………………….
5
Objectives of the Study …………….…………………………….... 6
Significant of the Study …………….……………………………...
6
REVIEW OF LITERATURE ………………….………………………......
8
Eating Habits ………….……………………………………………
8
Importance of Foods ………..……………………………………..
9
Influence of Mass Media on Food Habits ………….…..………….
9
Factors Affecting Food Selection …………………………………
10
Conceptual Framework …………………………………...……….
13
METHODOLOGY ..……………………………………..………………...
15
Locale and Time of the Study ……………………………...……...
15
Respondents of the Study …………………….……………………
15
Data Collection …………………………………………………….
15
Data Analysis ……………………………………………………....
16
RESULTS AND DISCUSSION …………………………………………….
17
Respondents Profile ……………….....……..………...……………. 17
Willingness to Have a Fast Food Chain
in Tabuk City ……………………………………………………..…
18
Reasons For Willingness to Have
iii
a Fast Food Chain in Tabuk City ……………………………………..
18
Reasons for Willingness to Have a Fast
Food Chain in Tabuk City ……………………………………………
19
School Food Allowance Per Month …………….…….…………….
20
Employee Monthly Income ……………………..……..…………....
20
School Food Allowance Willing to be
Spent on Fast Food Chains ……………………………………………
22
Monthly Employee Income Willing to be
spent on Fast Food Chains ………………………………………….
23
Frequency of Expected Patronage of Fast Food ...............................
23
Preferred Fast Food Chain ................................................................
24
Factors Influencing the Choice of Fast
Food to Eat by Students ……………………………….……………
25
Factors
Influencing
the Choice of Fast
Food to Eat by Employees ……………………………………..…...
25
Factors Influencing the Choice of Fast
Food to Eat by Students and Employees……………………..……..
28
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS …….……
34
Summary …………………………………..……………….…….…
34
Conclusions ……...………………………….……………………...
34
Recommendations …………...………………………. ...…….……
34
LITERATURE CITED …………………………………………………….
36
APPENDIX…. ...…………………………………………………………...
38
A. Letter to Respondents ………………………....………………..
38
B. Survey Questionnaire for Students ……………………..………
39
C. Survey Questionnaire for Employees ……………………..……
43
iv
1
INTRODUCTION
Background of the Study
The food industry is the world’s oldest, widespread and more familiar industry.
At the end of the 20th century, eating habits and food production were increasingly
taking place outside the home. Many people relied on restaurants and on new types of
fully prepared meals to help busy families in which both adults worked full-time.
(Microsoft Encarta, 2008). Eating out is an important part of daily life in the United
States and the trend continues to grow unabated. Eating also provides gratification for life
stresses- the difficult examination in school; the homely adolescent who has no date to
take her to the movies; the quarrel with a friend; the frustration and loneliness of having
no friends; and others (Kesara, 2004). In the Philippines, eating out has become popular
in urban centers like Metro-Manila and the capital cities where fast foods are found.
Eating out has become popular with the growth of fast food. Fast food restaurants,
also known as a quick service restaurant or QSR, are a specific type of restaurant
characterized both by its fast food cuisine and by minimal table service. Food served in
fast food restaurants is cook in bulk in advance and kept hot to order; food is usually
available ready to take away, though seating is provided. Fast food restaurants are usually
part of a restaurant chain or franchise operation, which ships standardized foodstuffs to
each restaurant from central locations (Farlex, 2009).
The first fast food restaurant was originated in the United States of America
during the 1950s. Today, American-founded fast food chains such as McDonald's and
KFC are multinational corporations with outlets across the globe. Variations on the fast
food restaurant concept include fast casual restaurants and catering trucks. Fast casual
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
2
restaurants have higher sit-in ratios, and customers can sit and have their orders brought
to them. Catering trucks often park just outside worksites and are popular with factory
workers (Farlex, 2009).
Fast-food outlets are take-away or take-out providers, often with a "drive-thru"
service which allows customers to order and pick up food from their cars; but most also
have a seating area in which customers can eat the food on the premises. Nearly from its
inception, fast food has been designed to be eaten "on the go" and often does not require
traditional cutlery and is eaten as a finger food. Common menu items at fast food outlets
include fish and chips, sandwiches, pitas, hamburgers, fried chicken, French fries,
chicken nuggets, tacos, pizza, and ice cream, although many fast-food restaurants offer
"slower" foods like chili, mashed potatoes, and salads (Fast Food, 2005).
In the United States alone, consumers spent about US$110 billion on fast food in
2000 (which increased from US$6 billion in 1970). The National Restaurant Association
forecasts that fast-food restaurants in the U.S. will reach US$142 billion in sales in 2006,
a 5% increase over 2005. In comparison, the full-service restaurant segment of the food
industry is expected to generate $173 billion in sales. Fast food has been losing market
share to so-called fast casual restaurants, which offer more robust and expensive cuisines
(Farlex, 2009).
Furthermore, most of the food acquired in the United States for household
consumption (71.9%) was bought rather than home produced except in households in the
North-east where purchased food constituted about half (51.1%). Actual food expenditure
was higher, and the proportion of food expenditure to total expenditure was lower in the
better-off professional classes. However, the food expenditure trend has indicated that
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
3
during the decade the country’s total food expenditure has increased in real terms. Since
the rate of change of food, expenditure has been greater than the population growth rate,
individual food expenditure should have increased in real terms also (Top Fast Food
Chain, 2009).
Franchising has become a common business in the Philippines, most especially in
the consumer foodservice market. This has been practiced continuously in all the sectors,
especially in fast food. Conservative companies such as Max’s Inc and The Cravings
Group, both of which are 100% Filipino- and family-owned, have also taken the radical
decision to open their businesses up to franchisees. Different franchisers led consumer
foodservice in 2007, and continued to grow over the previous year as chained cafés/bars
recorded double-digit growth. Provided with free training, free marketing support and
practically everything needed to start a business, the franchising concept has been very
appealing to both new and long-standing business people (Global Informtion Inc.,2008).
The latest trend in consumer foodservice menus is the enhancement of traditional
Filipino foods. This has proved to be profitable for Max’s with its Bangus Sisig, a finely
chopped milkfish fried in oil and spices, for KFC, Jollibee and McDonald’s with their
spicy chicken, and for Greenwich with its longanisa-flavoured pizza. Local companies
performed with a lot more dynamism in the review period than their foreign counterparts.
For example, Figaro Coffee increased its value share in 2007, while Starbucks, an
international brand, suffered a decline. Jollibee maintained its strong position in fast food,
retaining its leadership in spite of the presence of formidable foes in the guise of
international brands like McDonald’s and KFC. Other Jollibee Foods Corp brands,
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
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Chowking and Greenwich, also protected their shares well. Fast food has the greatest
number of chained outlets (Global Informtion Inc.,2008).
Jollibee Corporation, with its Jollibee, Chowking, Greenwich, Délifrance and Red
Ribbon brands, held the biggest share in consumer foodservice in the Philippines. It
continued to lead sales in consumer foodservice by widening the gap with the big
multinational franchise brands, such as McDonald' s, KFC and Pizza Hut, in the
consumer foodservice market in the Philippines. The Chowking and Jollibee brands were
the major contributors to Jollibee growth in 2006. Chowking was Jollibee’s best-
performing brand in terms of outlet expansion during this period (Global Informtion Inc.,
2008).
The Philippine franchising sector continues to be an important driver of economic
growth and productivity, according to a study undertaken by the Philippine Franchise
Association in collaboration with the University of Asia and the Pacific. The study,
taking into account the nominal GDP growth rate of country, showed that the franchising
sector had accounted for 5 percent of the country's total Gross Domestic Product (GDP)
for 2005 to 2007, contributing about P106.75 billion to the economy. It also showed that
the sector had created an estimated 200,000 franchise outlets, generating four to five jobs
per outlet or almost a million jobs nationwide. The sector has effectively promoted
economic dispersal based on the franchise outlets' locations (Inquirer. 2001-2009).
Moreover, the fast food industry is a sub-sector of the larger restaurant industry.
There are 15,000 fast food restaurants operating in Metro Manila. The most common
tools adopted by the fast food companies in the Philippines are window displays, free
delivery, radio and TV advertising, and billboard advertising. The success of the fast food
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
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industry in the Philippines can be attributed to the factors of standardized procedures,
limited menus, placing emphasis on value, speed and efficient service and franchising.
The fast food industry has changed the urban lifestyle because it developed well in cities
but fast food companies are reluctant to develop a market in the suburbs. That is, the fast
food market in the Philippines still has room for expansion to those who want to invest
(International Food and Agribusiness Marketing, 2006).
In this regard, cities like Tabuk in Kalinga are faced with options about investing
in fast food chain business. Tabuk City is a component city and capital of the province of
Kalinga. It is founded on June 16, 1950 and it became a city on June 23, 2007. According
to the 2000 census, it has a population of 78,633 people in 13,985 households. The town
has a total land area of 77,447.25 hectares (774 sq. kms.) and is politically subdivided
into 42 barangays. The Major sources of Livelihood in the town are farming/agriculture,
trade and Industry (Manufacturing and Commercial) Employment (Tabuk City, 2008).
The population of Tabuk is a combination of different cultures. The town engages in
commerce and trade. The town is a center of economic activity for the far-flung areas of
Kalinga. Merchants from Pangasinan and other nearby provinces come to the town center
to trade mostly for rice which is the major product of Kalinga. Tabuk is now a fifth class
city with an income of P110, 414,133.00 in 2007. It is prominently considered as the rice
granary of the Cordillera. Tabuk supplies rice even to other places (Tabuk City, Kalinga,
2008).
Statement of the Problem
It is therefore the interest of this research is to find the answer to the following
questions:
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
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1. Is there a demand for fast food chains in Tabuk city, Kalinga?
2. Is there a demand as to characterize by type of fast food chain?
3. What are their reasons to patronize the fast food chain?
4. What are the appropriate indicators to be used for the development of the fast
food industry in Tabuk city?
Objectives of the Study
The general objective of the research is to identify the demand prospects for fast
food chains in Tabuk City, Kalinga. Specifically it aims to:
1. Identify if there is a demand for fast food chains in Tabuk City, Kalinga,
2. Characterize the demand by type of fast food chain,
3. Identify the reasons for willingness/ unwillingness to patronize the fast food
chains and
4. Recommend appropriate indicators that can be used for the development of the
fast food industry in Tabuk City.
Significance of the Study
The study concentrated in the demand prospects of fast food chains in Tabuk City.
The study will be helpful in the future to the residents of Tabuk City, to the local
government of the area, and to the Tabuk economy as a whole. Knowing that demand
exist for fast food chains will be the magnet to draw enterprising individuals and groups
to set up fast foods. This will be a source of employment for the unemployed residents,
and the taxes that will be collected will be utilized for the different activities of the city.
The result of the study will also provide information to the managers of existing food
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
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stores to have an understanding of what customers want and how best these wants can be
catered to.
The findings of this study would also contribute to the knowledge about demand
studies that will be useful to current researchers and future researchers in this
undertaking.
Moreover, the local government of Tabuk city from findings of the research will
be able to identify appropriate ordinances to provide an attractive environment for the
fast food chains.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
8
REVIEW OF LITERATURE
Eating Habits
It has been noted that American eating habits and food production were
increasingly taking place outside the home. Many people relied on restaurants and on
new types of fully prepared meals to help busy families in which both adults worked full-
time. Another sign of the public’s changing food habits was the microwave oven,
probably the most widely used new kitchen appliance, since it can quickly cook foods
and reheat prepared foods and leftovers. Since Americans are generally cooking less of
their own food, they are more aware than at any time since the early 20th century of the
quality and health standards applied to food. Recent attention to cases in which children
have died from contaminated and poorly prepared food has once again directed the
public’s attention to the government's role in monitoring food safety ( Encarta; 2008).
We have to eat; we like to eat; eating make us feel good; it is more important than
sex. To ensure genetic survival the sex urge need only be satisfied a few times in a
lifetime; the hunger urge must be satisfied every day. It is also a profoundly social urge.
Food is almost always shared; people eat together; mealtimes are events when the whole
family or settlement or village comes together. Food is also an occasion for sharing, for
distributing and giving, for the expression of altruism, whether from parents to children,
children to in-laws, or anyone to visitors and strangers. Thus food becomes not just a
symbol of, but the reality of, love and security (Fox, 2008).
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
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Importance of Foods
Food is used by the body for the repair of tissues, as an energy source for
maintaining life, and for regulation of body processes. No single type of food is capable
of providing all the nutritional needs of a person. It is therefore important that the daily
diet contains the correct type and amount of foods (Rueda et al., 2003)
According to Burnett and Stutchbury (2000), Food is something that we often
take for granted. If it is in our refrigerator we eat it, or we go out and buy it. The supply
of food has not always been that simple and for many people in the world it is still not
that simple. The amount and variety of food available to people is largely determined by
where they live. People eat different foods depending on:
1. What can be produced in the local area.
2. The level of technology available for use in food production and processing.
3. Available income.
4. The political and economic conditions of the country in which people live.
Influence of Mass Media on Food Habits
The influence of mass media on food habits is a significant. Through mass media,
the poor are exposed to the extent of food production. The affluent and the poor alike
know that the distribution of food is decidedly uneven, and that the capability exists to
feed all people better. Mass media also pictures food in forms highly appealing to the eye
and group acceptance. These influences foods to be purchased to fulfill emotional needs
rather than for nutritional content (Kesara, 2004).
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
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Factors Affecting Food Selection
According to Burnett and Stutchbury (2000) the following are the factors affecting
the food selection:
1. Physiological factors. Affects the body’s need and desire for food. If the body
is to remain healthy and function correctly it must have adequate amounts of food
containing the essential nutrients.
Nutritional requirements. Use the nutrition information available and select
foods specifically for the nutritive value.
Reactions to food. Individuals select or reject food based on their reaction to
the food’s physical appearance, its presentation, smell and texture.
2. Psychological factor. Relate to the mind and the emotions.
Values. A value is a deep personal feeling about what is important. In terms of
food selection, the values most likely to influence choices are related to food
origins and the maintenance of health.
Beliefs. Beliefs about what is acceptable to eat vary throughout the world and
are often related to religion and cultural heritage.
Attitude. An attitude is the way in which a person views something and
behaves towards it, usually after evaluating its merit. Our attitudes towards
food are often based on our perceptions of food and their origins, our culture,
and the life experiences we have encountered.
Habits. Something that we do regularly without thinking. Habits are difficult
to break.
Emotions. Many people use food as a relieving emotional stress. For some
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
11
people this means they reject food until the time of stress is over. People who
consume foods for emotional release tend to select foods with a high- energy
value.
Self-concept. Because much of our day revolves around food, the way we feel
about food bears a strong relationship to how we feel about ourselves.
Experiences from the past. Anyone who has ever had a bad experience with
foods knows that the effects can be long lasting. Being made to eat a food you
hated as a child can lead you to reject that food later in life.
Convenience. Living near one’s work.
3. Social factors. Social factors relate to the cultural and inter-personal aspects
influencing the selection of food.
Culture and traditions. Many traditions relating to special occasion involve
food. Festive and social occasions always involve food to some degree, and
the meal is often the focus of the event. Family traditions often revolve around
food, as do major social cultural customs in most societies.
Employment. The main aspects of employment influence food selection are as
follows: Type of job; number of people in the family who are employed
outside the home and the social status of the job.
Household structures and roles. The make-up of the family unit determines
the variety, quality and quantity of food consumed in a meal.
Social inter-actions. Foods has long been a symbol of friendship and
hospitality. When friends enter your home one of the first things you do is
offer them something to eat and drink.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
12
Media. The media play a major role in the selection of food. Food products
are takes place in all forms of media. Glossy presentations attract our gaze as
we leaf through magazines; billboards; grab our interest when we are in our
way to school; the radio plays advertising jingles and the television demands
that we consider the lifestyle we could have if we used this product or that.
Peer group. An individual’s peers are people in roughly the same age group
with the same social status. By interacting with the peer group and the family,
a person develops their own food-related beliefs, attitudes and habits.
4. Economic factor.
Cost of food. Cost of the most important factors when we select food. It is
partially important for low-income families. Students and the elderly, it is
uncommon for these groups to spend 33 percent of their total income on food.
Market place. The market place refers to the place where consumers purchase
food.
Available resources. Something that we have to achieve our goals. Money is an
obvious example; once you spend it, it is gone. Cars, books and equipments are
useful for a period of time but they do not last forever.
Occupation and finance. The type of job a person does influences their selection
of food. The physical demands of the job and its social expectations are reflected
in food choices. The income received from employment also determines the
quality and quantity of foods chosen.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
13
Conceptual Framework
The demand prospects of fast food chains in Tabuk city is determined by the
volume of people willing to have a fast food chain in the area and how many times
they are willing to go and order food. The demand is determined by factors that affect
the choices of foods which include physiological, psychological, social and economic
factors. These factors are useful to determine the willingness and unwillingness of the
people to have a fast food chain. It will also determine the modes by which certain
fast food chains can enter in Tabuk city based on the factors identified.
The demand typologized according to the students and employees will be
influenced as well by personal factors such as age, gender, income, year level and
type of work.
The conceptual framework is diagrammatically shown in Figure 1.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
14
Independent Variable
>Frequency
Demand
>Volume
Customers characteristics
- Students
-Age
-Gender
DEPENDENT VARIABLE
-allowance
bracket
Dependent Variable
-Year
level
Employee
-Age
-Gender
-Income
bracket
-Type of work
Factors affecting the choice of foods.
Establishments of
1. Physiological
Fast food chains
‐ Reactions to food
‐ Nutritional requirements
‐ Convenience
2. Psychological factors
‐ Values
‐ Beliefs
‐ Attitude
‐ Habits
‐ Emotions
‐ Self-concept
‐ Experiences from the past
3. Social
‐ Cultures and traditions
‐ Employment
‐ Household structures and roles
‐ Social inter-actions
‐ Media
‐ Peer groups
4. Economic
‐ Cost of food
‐
Market place
Figure 1.Conceptual framework
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
15
METHODOLOGY
Locale and Time of the Study
This study was conducted in December 2008 at Bulanao and Dagupan, Tabuk
City. The researcher selected these two among other barangays in Tabuk City because it
is the center of business transactions in the city and of Kalinga as a whole. Bulanao
houses, half of the 87 elementary schools in Tabuk, 11 of the 18 high schools, and all the
8 colleges offering tertiary education. (DECS, Kalinga). There are about 58 offices and
agencies in Tabuk City and almost all of these are in the locale of the study. (Office of
the Mayor and DOLE, Kalinga).
Respondents Of the Study
This study used survey questionnaire that was distributed to the different schools
in Bulanao and Dagupan. The students that were surveyed are High school and College
students. Employees of the different offices were also given a questionnaire. There was a
separate questionnaire for students and employees.
To check the demand prospects of fast food chains, the researcher used cross
tabulation of data in which the questionnaires answered were tabulated in order to detect
the demand prospects of fast food chain in Tabuk city.
Data Collection
The respondents were obtained by way of having a request letter addressed to the
school principal or Deans of the different colleges or institute of the different colleges
about the purpose. For the employees, the researcher went to their respective offices and
asked to answer the questionnaires. The number of questionnaires that was distributed
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
16
was as follows: 50 questionnaires were given to the high school students, 70 were given
to college students and 90 were given to the employees. The total of students and
employees that were interviewed is summarized in the table below.
The distribution of respondents interviewed
TYPE
NUMBER
Students
High School
50
College
70
Employees
90
TOTAL
210
The sampling was done purposively.
Data Analysis
The following was used to make interpretation on the perceived factors affecting
choice of fast foods:
Mean Values
Description
4.21- 5.00
Strongly Agree
3.41- 4.20
Agree
2.61- 3.40
Neutral
1.81- 2.60
Disagree
1.00- 1.80
Strongly Disagree
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
17
RESULTS AND DISCUSSION
Respondents Profile
As shown in Table 1, majority (66%) of the high school students are in the age
bracket of 16-17 with. On the other hand, majority (54.29%) of the college students are
from age bracket of 18-20. Females dominated the respondents from the student group.
Just like the student respondents, the females dominated the employees group.
Majority are also married. In the case of the employee respondents majority (70%)
belong to the age brackets of 31-50. This result is a typical picture of the labor force
where most are in their middle years.
Table 1. Distribution of respondents according to age and civil status
NUMBER
PERCENT
PROFILE
(N)
(%)
a. High School Students
Sex:
Male
23
46
Female
27
54
TOTAL 50
100
Age:
12-13
3
6
14-15
13
26
16-17
33
66
18 and bove
1
2
TOTAL 50
100
b. College
Sex:
Male
27
38.57
Female
43
61.43
TOTAL 70
100
Age:
18-19
38
54.29
20-21
28
40
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
18
Table 1. Continued ...
NUMBER
PERCENT
PROFILE
(N)
(%)
22 and above
4
5.71
TOTAL 70
100
c. Employees
Sex:
Male
39
43.33
Female
51
56.67
TOTAL 90
100
Age:
20-30
11
12.22
31-40
32
35.56
41-50
31
34.44
51-60
14
15.56
61-70
2
2.22
TOTAL 90
100
Civil Status
Single
20
22.22
Married
67
74.44
Widowed
3
3.3
TOTAL 90
100
Willingness to Have a Fast Food Chain
Table 2 shows that there is a demand for fast food chains in Tabuk City. This is shown by
95.71% of the total respondents who indicated willingness to have fast food chain.
Reasons for Willingness to have Fast Food Chains in Tabuk City
Table 3 shows the reasons for willingness to have fast food chains in Tabuk City. Note
that not all the respondents gave a response to this query. The few that did showed the
primary reasons were to increase the income of the city (45.45%), and it is a source of
employment (27.27%).
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
19
Table 2. Distribution of respondents according to willingness to have fast food chains in
Tabuk City
YES NO
STUDENT
NUMBER % NUMBER %
High School
48
96
2
4
College 69
98.57
1
1.43
Employees 84
93.33
6
6.67
TOTAL 201
95.71
9
4.29
Table 3. Distribution of respondents according to reasons for willingness to have fast
. food chains in Tabuk City by students and employees
REASONS NUMBER
%
They love fast foods
2
18.18
It is a source of employment
3
27.27
So that there is no need to go to other
places just to taste fast foods
1
9.09
To increase the income of the City
5
45.45
Reasons for Unwillingness to Have Fast Food Chains in Tabuk City
Table 4 shows the reasons for unwillingness to have fast food chain in Tabuk
City. There were also few of the respondents who gave a response to this query. The
major reasons cited for unwillingness are that there is a great problem on peace and order
in Kalinga and that fast foods are too expensive.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
20
Table 4. Distribution of respondents according to reasons for unwillingness to have fast
food chains in Tabuk City by students and employees
REASONS NUMBER
%
There is a great problem on peace and order in the
place 3
33.33
They want indigenous foods
1
11.11
It is a temptation to be extravagant
1
11.11
Fast foods are too expensive
2
22.22
They want to patronize their own products
1
11.11
They are contented of what is present in their place
1
11.11
Students School Food Allowance
Table 5 presents the school food allowance of high school and college students
per month. Majority of the students have a school food allowance of 301-500 (36.75%)
followed by 501- 700. This could indicate a capability of the students to patronize a fast
food chain.
Employee Monthly Income
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
21
Majority of the employees (34.52%) received a monthly income in the bracket of
5001-10000 followed by the income bracket of 10001-15000 with (28.57%). The average
income per month is 12000. Findings show that the lowest income was 4000 and the
highest was 30000.
Table 5. Distribution of respondents according to school food allowance per month
ALLOWANCE HIGH
SCHOOL COLLEGE TOTAL
(In Pesos)
NUMBER
%
NUMBER
%
NUMBER
%
Below 100
5
10.42
9
13.04
14
11.97
100-300 7
14.58
6
8.7
13
11.11
301-500
21 43.75 22 31.88 43 36.75
501-700
13 27.08 12 17.39 25 21.37
701-900
0 0 7 10.14 7 5.98
901-1000
1 2.08 5 7.25 6 5.13
Above
1000 1 2.08 8 11.59 9 7.69
TOTAL 48
100
69
100
117
100
Table 6. Distribution of respondents according to income usually received by employees
INCOME
(In pesos)
NUMBER
%
5000 and below
14
16.67
5001-10000 29
34.52
10001-15000 24
28.57
15001-20000 9
10.71
20001-25000 5
5.95
above 25000
3
3.57
TOTAL 84
100
Range
4,000-30000
Average Income
12,086.31
Standard Deviation
6,002.82
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
22
School Food Allowance Willing to be Spent on Fast Food Chains
Student interest to patronize fast foods in Tabuk City is further shows in Table 7.
Fifty- seven percent of the students from high school and college indicated that they are
willing to spend ½ of their allowance on fast foods per month. It is notable that all the
students are willing to spend a certain percentage of their allowance to fast foods. In fact,
(3.42%) showed willingness to spend all of their allowance on fast foods.
Table 7. Distribution of students according to percent of monthly school food allowance
willing to be spent on fast food chains by level
HIGH SCHOOL
COLLEGE
TOTAL
Number (%) Number (%) Number (%)
¼ of their
allowance
16 33.33 25 36.2 41 35.04
½ of
their
allowance
27 56.25
40 58 67 57.26
¾ of
their
allowance
2 4.17 3 4.35 5 4.27
Table 8. Distribution of employees according to percent of monthly income willing to be
spent on a fast food chain
EMPLOYEES NUMBER
%
Below 10%
52
61.91
10-20%
20
23.81
21-30%
5
5.95
41-50%
2
2.38
It depends
5
5.95
TOTAL
84
100
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
23
Monthly Employee Income Willing to be Spent on Fast Food Chains
As shown in Table 8, employees are willing to spend below 10% of their monthly
salary for fast food. About twenty-three percent are willing to spend 10 – 20% of their
salary. Although, some also says that the amount they are willing to spend will depend on
the occasions. If employee average income is Php12000, then majority (61.91%) are
willing to spend at most Php 1200 on fast foods per month.
Frequency of Expected Patronage of Fast Food
Table 9 shows that for all the respondent groups, (33.83%) expect to patronize the
fast foods once a week. About 21.89% expect to patronize twice a week. A notable
17.41% expect to patronize even daily and these are largely the students. 4.48% says that
frequency of expected patronage of fast foods depends on the situations.
Table 9. Distribution of respondents according to frequency of expected patronage of fast
foods
HIGH
SCHOOL
COLLEGE
EMPLOYEES
TOTAL
N
%
N
%
N
%
N
%
Once a
day
12
15
21.74
8
9.52
35
17.41
Once a
week
16
33.33
25
36.23
27
32.14 68
33.83
Twice a
week 13 27.08
18 26.09
13 15.48
44
21.89
Once a
month 3 6.25
8
11.59
17 20.24
28
13.93
Twice a
month 4 8.33
3
4.35
10 11.9
17
8.46
It depends
9
10.71 9
4.48
TOTAL 48 100 69
100 84 100
201 100
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
24
Preferred Fast Food Chain
From the result of the study, Jollibee is the most preferred fast food chain to be
established in Tabuk City. This is because 73.13% of all the respondents ranked Jollibee
as number 1 preferred fast food. The other fast foods do not compare with Jollibee in
terms of ranking preference as shown by the results. Both the majority of the students and
the employees ranked Jollibee as number 1. The second in rank is McDonalds followed
by Greenwich, then KFC and lastly, Chowking.
Table 10. Distribution of respondents by group according to preferred fast food chain
RESPON-
RANK 1
RANK 2
RANK 3
RANK 4
RANK 5
DENTS
N
N % N %
N %
N %
%
Student
Jollibee
83
70.9
11
9.4
5
4.27
1
0.86 4
3.4
McDonald 3
2.56
52
44
19
16.2
12
10.3 9
7.7
Greenwich 3
2.56
12
10
32
27.4
32
27.4 19
16
KFC
10
8.55
14
12
23
19.7
38
32.5 29
25
Chowking 8
6.84
13
11
22
18.8
17
14.5 38
33
TOTAL 107
91.5
102
87
101
86.3
100
85.5
99
85
Employees
Jollibee
64
76.2 4
4.8
4
4.76 2
2.38
2
2.4
McDonald 6
7.14 33
39
6
7.14 8
9.52
4
4.8
Greenwich 4
4.76 6
7.1
25
29.8 13
15.5
10
12
KFC
2
2.38 4
4.8
16
19.1 17
20.2
27
32
Chowking 5
5.95 17
20
13
16.5 24
28.6
21
25
TOTAL
81 96.4 64 76 64 77.2 64 76.2 64 76
Student and Employees
Jollibee
147
73.1 15
7.5
9
4.48 3
1.49
6
3
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
25
Table 10. Continued ...
RESPON-
RANK 1
RANK 2
RANK 3
RANK 4
RANK 5
DENTS
N % N %
N %
N %
N %
McDonald 9
4.48
85
42
25
12.4 20
9.95
13
6.5
Greenwich 7
3.48
18
9
57
28.4 45
22.4
29
14
KFC
12
5.97
18
9
39
19.4 55
27.4
56
28
Chowking 13
6.47
30
15
35
17.4 41
20.4
59
29
TOTAL 201
93.5
166
83
165
82.1
164
81.6
163
81
Factors Influencing the Choice of Fast Food to Eat by Students
The results from Table 11 indicate that students were largely to the identified
factors influencing patronage of fast food chain. A clear disagreement was family size
deters patronage of a fast food. Other agreed factors include the perception that fast food
provide for nutritional requirements, that fast foods are convenient, that food values
affect fast food patronage, that social inter actions and media influence demand for fast
foods. Moreover, fast food presence, disposable income, and the amount of school food
allowance also influence students in eating in fast food chains.
Factors Influencing the Choice of Fast Food to Eat by Employees
From Table 12, employees show marked disagreements with some factors
influencing patronage of fast foods. Specifically, they disagreed that the following factors
affect demand for fast food foods: Beliefs, habits, emotions, self-concept, culture,
household structure, peer group, and prices. On the other hand, factors that were agreed
upon to have an influence on patronage were the following: Nutritional requirements,
convenience, and food values. .
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
26
Table 11. Factors influencing the choice of fast food to eat by students
LEVEL OF AGREEMENT AND DISAGREEMENT
____5____
____4____
_____3____
___2___
___1___
INTERPRE-
FACTORS
MEAN
TATION
N
%
N
%
N
%
N % N
%
1.
Nutritional
33 28.21 46 39.3 30 25.6 7
5.98
0.85 3.88
Agree
requirements
2.
Reactions
6 5.13 54 46.1 35 29.9 10 8.55 12 10.26
3.27
Neutral
to food
3.Convenience 26 22.22 35 29.9 29 24.7 16 13.68 11 9.4
3.42
Agree
4.
Values
36 30.77 44 37.6 23 19.6 10 8.55 4 3.42 3.84
Agree
5.
Beliefs
11 9.41 18 15.3 35 29.9 38 32.48 15 12.8 2.76
Neutral
6.
Attitude
9 7.69 35 29.9 26 22.2 29 24.79 18 15.3
2.9
Neutral
7.
Habits
6 5.13 20 17.1 35 29.9 37 31.62 19 16.2 2.63
Neutral
8.
Emotions
9 7.69 38 32.4 29 24.7 31 26.5 10 8.55 3.04
Neutral
9.
Self-concept 7 5.98 19 16.2 34 29.0 35 29.91 22 18.8 2.61
Neutral
10.
Experiences 9 7.69 39 33.3 24 20.5 30 25.64 15 12.8 2.97
Neutral
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
27
Table 11. Continued ...
LEVEL OF AGREEMENT AND DISAGREEMENT
___5___ ___4___ ___3___ ___2___ ___1___
INTERPRE-
FACTORS N % N % N % N % N
MEAN
%
TATION
11. Culture and
traditions
9 7.69
21 17.95 27 23.08 39 33.33
21 17.95 2.64
Neutral
12.Employment
13
11.11
37 31.62 31 26.5
23 19.68
13 11.11 3.12
Neutral
13.
Household 6 5.13 5
4.27 33 28.21 50 42.74 23 19.66 2.32
Disagree
structures
14. Social inter
19
16.24 54
46.15 27
23.08 13
11.11 4
3.42
3.61
Agree
actions
15.
Media
25
21.37
40 34.19 31 26.5
13 11.11
8 6.84
3.52
Agree
16. Peer group
3
2.56
48
41.03 33
28.21 25
21.37 8
6.84
3.11
Neutral
17. Cost of food 17
14.53 36
30.77 29
24.79 28
23.93 7
5.98
3.24
Neutral
18.Market
place
40
34.19
31 26.5
26 22.22 13 11.11
7 5.98
3.72
Agree
19.
Available 31
26.5
41 35.04 29 24.79 12 10.26
4 3.42
3.71
Agree
resources
20.
Occupation
25
21.37
36 30.77 30 25.64 21 17.95
5 4.27
3.47
Agree
and finance
Legends: 1-Strongly Disagree, 2-Disagree, 3- Neutral, 4. Agree, 5. Strongly disagree .
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
28
Factors Influencing the Choice of Fast Food to Eat by Students and Employees
Table 13 shows the combined responses of the student and employee respondents.
From this table, it can be inferred that the indicators or factors that will influence demand
for fast foods are nutritional requirements, convenience, food values, social inter actions,
market place, and available resources. It is interesting that the student and employee
respondents find the food sold at fast food chains nutritious and hence they are willing to
eat there. The expected responses of convenience and social interactions came about. Fast
foods are famous for convenience and as a place where people can meet to talk and
socialize. Market place, which refers to availability of a fast food chain in the locality,
determines positively the demand for it. Food values refer to the patronage of fast foods
in keeping with personal regard on the origin of the food and health maintenance.
Available resources as indicated by the ready funds that can be used, is agreed upon by
the respondents as also affecting positively their demand for fast food.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
29
Table 12. Factors influencing the choice of fast food to eat by employees
LEVEL OF AGREEMENT AND DISAGREEMENT
___5___ ___4___ ___3___ ___2___ ___1___
FACTORS N % N % N % N % N % MEAN
INTERPRETATION
1. Nutritional
16
190.5
32
38.1
21
25
12
14.29
3
3.57
3.55
Agree
requirements
2. Reactions to 13
15.48
27
32.14
21
25
13
15.48 10
11.9
3.24
Neutral
f ood
3. Convenience
20
23.81
31
47.62
21
35.71
8
17.86
4
13.1
3.65
Agree
4. Values
20
23.81
31
36.9
21
25
8
9.52
4
4.76
3.65
Agree
5.
Beliefs
4 4.76 13 15.48
23 27.38
26 30.95 18 21.43 2.51
Disagree
6.
Attitude
5 5.95 28 33.33
23 27.38
16 19.05 12 14.29 2.98
Neutral
7.
Habits
1 1.19 10 11.9 20 23.87
34 40.48 19 22.62 2.29
Disagree
8.
Emotions
3 3.57 12 14.29
23 27.38
34 40.48 12 14.29 2.52
Disagree
9.
Self-concept
3 3.57 7 8.33 23 27.38
29 34.52 22 26.19 2.29
Disagree
10.
Experiences 10 11.9 26 30.95
18 21.43
20 23.81 10 11.9 3.07
Neutral
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
30
Table 12. Continued...
LEVEL OF AGREEMENT AND DISAGREEMENT
___5___ ___4___ ___3___ ___2___ ___1___
FACTORS N % N % N % N % N % MEAN
INTERPRETATION
11. Culture and
3
3.57
15
17.86
15
17.86
27
32.14 24
28.57
2.36
Disagree
Traditions
12.
Employment
6 7.14 33 39.29
12 14.29
15 17.86 18 21.43 2.93
Neutral
13.
Household
2 2.38 11 13.1 20 23.81
38 45.24 13 15.48 2.42
Disagree
structures
14. Social inter
5
5.95
35 41.67
24
28.57
13
15.48
7
8.33
3.21
Neutral
actions
15.
Media
9 10.71
32 38.1 16 19.05
17 20.24 10 11.9 3.15
Neutral
16. Peer group
5
5.95
14 16.17
19
22.62
28
33.33
18
21.43
2.52
Disagree
17. Cost of food
2
2.38
12 14.29
18
21.43
34
40.48
18
21.43
2.36
Disagree
18. Market place
11
13.1
29 34.52
21
25
16
19.05
7
8.33
3.25
Neutral
19. Available
11
13.01
27 32.14
11
13.1
23
27.38
12
14.29
3.02
Neutral
resources
20.
Occupation
10 11.9 29 34.52
15 17.86
17 20.24 13 15.48 3.07
Neutral
and finance
Legends: 1-Strongly Disagree, 2-Disagree, 3- Neutral ,4. Agree, 5.Strongly disagree
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
31
Table 13. Distribution of respondents according to overall picture of factors that influence the choice of fast foods
by students and employees
LEVEL OF AGREEMENT AND DISAGREEMENT
5
4
3
2
1
INTERPRE-
FACTORS
N %
N %
N %
N %
N %
MEAN
TATION
Physiological factor
1. Nutritional
requirements
49 24.4 78 38.8 51 25.4 19 9.45 4 2
3.74
Agree
2.Reactions to food 19
81 40.3 56 27.9 23 11.4 22 11
3.26
Neutral
3. Convenience
46
22.9 66
32.8 50
24.9 24
11.9
15
7.5
3.52
Agree
4. Values
56
27.9 75
37.3 44
21.9 18
8.96
8
4
3.76
Agree
5. Beliefs
15
7.46 31
15.4 58
28.9 64
31.8
33
16
2.66
Neutral
6. Attitude
14
6.97 63
31.3 49
24.4 45
22.4
30
15
2.93
Neutral
7. Habits
7
3.48 30
14.9 55
27.4 71
35.3
38
19
2.49
Disagree
8. Emotions
12
5.97 50
24.9 52
25.9 65
32.3
22
11
2.83
Neutral
9. Self-concept
10
4.98 26
12.9 57
28.4 64
31.8
44
22
2.47
Disagree
10. Experiences
19
9.45 65
32.3 42
20.9 50
24.9
25
12
3.01
Neutral
Social Factor
11. Culture and
traditions
12 5.97 36 17.9
42 20.9 66 32.8 45 22
3.01
Neutral
12. Employment
19
9.45
70
34.8
43
21.4
38
18.9
31
15
3.03
Neutral
13. Household
structures
Disagree
8 3.98 16 7.96
53 26.4 88 43.8 36 18
2.36
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
32
Table 13. Continued ...
LEVEL OF AGREEMENT AND DISAGREEMENT
4 3 2 1
MEAN
INTERPRE-
FACTORS
N % N % N % N %
TATION
14. Social inter
actions
24 11.9 89 44.3
51 25.4 26 12.9 11 5.5
3.44
Agree
15. Media
34
16.9
72
35.8
47
23.4
30
14.9
18
9
3.37
Neutral
16. Peer group
8
3.98
62
30.9
52
25.9
53
26.4
26
13
2.86
Neutral
Economic Factor
17. Cost of food
19
9.45
48
23.9
47
23.4
62
30.9
25
12
2.87
Neutral
18. Market place
51
25.4
60
29.9
47
23.4
29
14.4
14
7
3.52
Agree
19. Available
resources
42 20.9 68 33.8
40 19.9 35 17.4 16 8
3.42
Agree
20. Occupation
and finance
35 17.4 65 32.3
45 22.4 38 18.9 18 9
3.3
Neutral
Legends: 1- Strongly Disagree, 2- Disagree, 3- Neutral ,4- Agree, 5- Strongly disagree
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
33
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The research was conducted to find answers to the following questions: 1) Is there
a demand for fast food chains in Tabuk city, Kalinga?; 2) Is there a demand as to
characterize by type of fast food chain?; 3) What are their reasons to patronize the fast
food chain?; and 4) What are the appropriate indicators to be used for the development
of the fast food industry in Tabuk city? The study was conducted in Bulanao and
Dagupan, Tabuk City, Kalinga. A total of 120 students (50 from the high school level and
70 from the college level) and 90 employees were interviewed. Sampling was done
purposively.
The following results were obtained: Majority of the high school student
respondents are in the age bracket of 16-17 years and of the college students, in the age
bracket 18-20. In the case of the employees, majority belonged to the age bracket 31-50.
For all the respondents, the females dominated.
There is a general willingness to have a fast food chain in Tabuk City. The
primary reasons offered are to increase the income of the city and it is a source of
employment.
Majority of the students have a school food allowance of Php 301- 500. On the
other hand, average income of the employees is Php1286. There is an overwhelming
preference for Jollibee as the fast chain to be established in Tabuk City. Factors that were
found to influence patronage of fast foods as agreed upon by the respondents include:
nutritional requirements, convenience, food values, social inter actions, market place, and
available resources.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
34
Conclusions
From the result of the study, the following conclusions were made:
1. There is a demand for fast food chains in Tabuk City, Kalinga
2. Jollibee is the most preferred fast food chain of Tabuk City, Kalinga
3. Students and employees have the financial capacity to patronize fast food at
least once a week.
4. The main reasons for willingness to have a fast food chain were to increase the
income of the city and fast food chain is a source of employment.
5. There are physiological, psychological, social, economic factors that influence
patronage of fast foods. The physiological factors are the nutritional requirements
and convenience. The psychological factor is the values, the social factor is the
social interaction, and the economic factors are the market place and available
resources.
Recommendations
Based on the foregoing findings and conclusions of the study, the following
recommendations were made:
1. City government of Tabuk should consider in their planning the entry and
establishments of fast food chains.
2. Jollibee Corporation should consider establishing a branch in Tabuk City,
Kalinga.
3. Government officials and authorities should control peace and order of the City
for a fast food chain to penetrate the City.
4. The local government of Tabuk City should identify appropriate ordinances to
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
35
provide an attractive environment for the fast food chains.
5. Entrepreneurs and other fast food chains should take this study as a basis for
them to make ways how to cater to the demand of the residents.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
36
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.inquirer .net/money/ topstories /vie w/ 20080707-146843/Franchising-industry-
accounts-for-5-of-GDP.
KESARA D.P. 2004. Factors affecting food practices and preferences of mothers at
Shilan, La Trinidad, Benguet. BS Thesis. Benguet State University, La Trinidad,
Benguet .P. 12-14.
Microsoft ® Encarta ® 2008. Fast Food Chains.
POPULATION CENSUS. 2008. Number of Present Residents. Office of the Mayor.
Bulanao, Tabuk City, Kalinga.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
37
RUEDA,M.B.,E.G.TOLENTINO, J.A. PATRICIO et al.2003.Euthenics and social graces
for today’s teen-agers. Published by Grandwater Publications 3rd Fl. Hadelina
Building 705 J.P. Rizal St., Makati City, Philippines.P.20 and 52.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
38
APPENDIX A
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
December 2008
Sir/ Madam:
I am a graduating student of Benguet State University taking up Bachelor of Science in
Agribusiness, major in Enterprise Management. As part of the course requirement, I
am presently conducting a research study titled, “DEMAND PROSPECTS FOR FAST
FOOD CHAINS IN TABUK CITY, KALINGA”.
May I then request a portion of your precious time to answer the attached questionnaire.
Please give your honest answers for the success of this research. Rest assured that all
information you provide will be treated with utmost confidentially.
Thank you very much for your support. God bless!
Very respectfully yours,
EDMER G. SAWADAN JR.
Student Researcher
Noted:
DARLYN D. TAGARINO
Adviser
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
39
APPENDIX B
SURVEY QUESTIONNAIRE
(For Student)
Name (optional):_____________________________
School:
______________________________________________________________________
Gender:
___ male
___female
Age: ________
Instruction: Kindly check on the space provided your response.
Do you want to have a fast food chain here in Tabuk City? (Ex. Jollibee)
___1. Yes
___2. No
If no, Why?
________________________________________________________________________
___________________________________________________________.
If yes, please proceed.
Please rank the following fast food chains according to your preference of being
established at Tabuk City.
(RANK 1-HIGHEST; 5-LOWEST)
___1. Jollibee
___2. McDonald
___3. Greenwich
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
40
___4. KFC
___5. Chowking
___6. Others, (please specify and rank it)
PLEASE EXPLAIN WHY YOU RANK_______________________AS # 1.
________________________________________________________________________
________________________________________________________________________
______________________________________________________________________.
How much is your school food allowance per month (Php)?
___1. Below 100
___2. 100-300
___3. 301-500
___4. 501-700
___5. 701-900
___6. 901-1000
___7. 1000 and above
How much from your school food allowance per month are you willing to spend on a
fast food chain?
___1. ¼ of my allowance
___2. ½ of my allowance
___3. ¾ of my allowance
___4. Whole of my allowance
___5. Others. (Please specify) ___________________________________________.
How many times are you willing to go and order in a fast food chain?
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
41
___1. Once a day
___2. Once a week
___3. Twice a week
___4. Once a month
___5. Twice a month
___6. Others. (Please specify)_________________________________________.
Please answer this portion by using the following:
5-strongly agree
4- agree
3- neutral
2- not agree
1- strongly disagree
1. I will eat fast food because of the nutrition available in the food.
5 4 3 2 1
2. I will eat in a fast food chain because of its presentation, color, smell
etc.
3. I will eat in a fast food chain when I am near to it.
4. My choice of fast food chain is influence by how I value foods.
5. I will eat fast food because it is eaten
throughout
the
world.
6. I will eat fast foods because my attitude
influences
it.
7. I will eat fast food because it is my habit.
8. I will eat in a fast food chain to relieve my sadness or emotions.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
42
9. I will eat from fast food chain because much of my day activities
revolve around foods.
10. I like to eat from a fast food chain because of the experiences I
have experienced from the past.
11. My choice of fast food is influenced by my culture and traditions.
12. I will eat in a fast food chain because I am employed or I have
something to spend.
13. I am not going to eat in a fast food chain because we are too many
in the family.
14. I will eat in a fast food chain for
social
inter
actions.
15. Media (TV, Radio etc.) influenced me with my choice of fast food
to eat.
16. I will eat fast foods because of the influences of my peer group or
friends.
17. I want to eat fast foods because of the price of the foods offered.
18. I want to eat in a fast food chain when it is in our place.
19. I will eat fast foods because I have money to buy for it.
20. My choice of fast food to eat is influenced by the type of job or
allowance I received.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
43
APPENDIX C
SURVEY QUESTIONNAIRE
(For Employees)
Name (optional):______________________________
Civil Status: ___1.sinlge
___2.
Married
___3.
Widowed
___4.
Separated
Type of work/ Office:
________________________________________________________________________
_______________________________________
Gender:
___ male
___female
Age: ________
Instruction: Kindly check on the space provided your response.
Do you want to have a fast food chain here in Tabuk City? (Ex. Jollibee)
___1. Yes
___2. No
If no, Why?
________________________________________________________________________
___________________________________________________________.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
44
If yes, please proceed.
What do you want to be established at Tabuk city? Please do it by ranking.
___1. McDonald
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___2. Jollibee
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___3. KFC
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___4. Greenwich
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___5. Chowking
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___6. Others, (please specify and rank it)
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
45
How much income/ wage do you usually received per month (Php)? (Please answer it
honestly)
________________________________________________
How much of the wage you received are you willing to spend for dining out?
___1. Below 10% of my received wage
___2. 10-20% of my received wage
___3. 21-30% of my received wage
___4. 31-40% of my received wage
___5. 41-50% of my received wage
___6. Others. (please specify) ___________________________________________.
How many times are you willing to go and order in a fast food chain?
___1. Once a day
___2. Once a week
___3. Twice a week
___4. Once a month
___5. Twice a month
___6. Others. (please specify)_________________________________________
Please answer this portion by using the following:
5-strongly agree
4- agree
3- neutral
2- not agree
1- strongly disagree
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
46
5 4 3 2 1
1. I will eat fast food because of the nutrition available
in
the
food.
2. I will eat in a fast food chain because of its presentation, color, smell
etc.
3. I will eat in a fast food chain when I am near to it.
4. My choice of fast food chain is influenced
by
how
I
value
foods.
5.I will eat fast food because it is eaten
throughout
the
world.
6.I will eat fast foods because my attitude influences it.
7.I will eat fast food because it is my habit.
8.I will eat in a fast food chain to relieve my sadness or emotions.
9.I will eat from fast food chain because much of my day activities
revolves around foods.
10.I like to eat from a fast food chain because of the experiences I
have experienced in the past.
11.My choice of fast food is influenced by my culture and traditions.
12.I will eat in a fast food chain because I am employed or I have
something to spend.
13. I am not going to eat in a fast food chain because we are too many
in the family.
14. I will eat in a fast food chain for
social
inter-actions.
15. Media (TV, Radio etc.) influenced me with my choice of fast food
to eat.
16. I will eat fast foods because of the influences of my peer group or
friends.
17. I want to eat fast foods because of the price of the foods offered.
18. I want to eat in a fast food chain when it is in our place.
19. I will eat foods because I have money to buy for it.
20. My choice of fast food to eat is influenced by the type of job and
income I received.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
SAWADAN, EDMER JR. G. APRIL 2009. Demand Prospects for Fast Food
Chains in Tabuk City, Kalinga. Benguet State University, La Trinidad, Benguet.
Adviser: Darlyn D. Tagarino, PhD.
ABSTRACT
The research was conducted to find answers to the following questions: 1) Is there
a demand for fast food chains in Tabuk city, Kalinga?; 2) Is there a demand as to
characterize by type of fast food chain?; 3) What are their reasons to patronize the fast
food chain?; and 4) What are the appropriate indicators to be used for the development
of the fast food industry in Tabuk city? The study was conducted in Bulanao and
Dagupan, Tabuk City, Kalinga. A total of 120 students (50 from the high school level and
70 from the college level) and 90 employees were interviewed. Sampling was done
purposively.
There is a general willingness to have a fast food chain in Tabuk City. The
primary reasons offered are to increase the income of the city and it is a source of
employment. From the result of the study, Jollibee is the most preferred fast food chain to
be established in Tabuk City. The second in rank is McDonalds followed by Greenwich,
then KFC and lastly, Chowking.. The indicators or factors that will influence demand for
fast foods are nutritional requirements, convenience, food values, social inter actions,
market place, and available resources.
Based on the foregoing findings and conclusions of the study, the following
recommendations were made: The city government of Tabuk should consider in their
planning the entry and establishments of fast food chains; Jollibee Corporation should
consider establishing a branch in Tabuk City, Kalinga; government officials and
authorities should control peace and order of the City for a fast food chain to penetrate
the City; the local government of Tabuk City should identify appropriate ordinances to
provide an attractive environment for the fast food chains; and Entrepreneurs and other
fast food chains should take this study as a basis for them to make ways how to cater to
the demand of the residents.
ii
TABLE OF CONTENTS
Page
Bibliography……………………….………………………………………...
i
Abstract …………………………………………………………………….
i
Table of Contents ………………..…………………………………………
iii
INTRODUCTION ……………………………….………………………...
1
Background of the Study …………….……………………………. 1
Statement of the Problem ……………………….………………….
5
Objectives of the Study …………….…………………………….... 6
Significant of the Study …………….……………………………...
6
REVIEW OF LITERATURE ………………….………………………......
8
Eating Habits ………….……………………………………………
8
Importance of Foods ………..……………………………………..
9
Influence of Mass Media on Food Habits ………….…..………….
9
Factors Affecting Food Selection …………………………………
10
Conceptual Framework …………………………………...……….
13
METHODOLOGY ..……………………………………..………………...
15
Locale and Time of the Study ……………………………...……...
15
Respondents of the Study …………………….……………………
15
Data Collection …………………………………………………….
15
Data Analysis ……………………………………………………....
16
RESULTS AND DISCUSSION …………………………………………….
17
Respondents Profile ……………….....……..………...……………. 17
Willingness to Have a Fast Food Chain
in Tabuk City ……………………………………………………..…
18
Reasons For Willingness to Have
iii
a Fast Food Chain in Tabuk City ……………………………………..
18
Reasons for Willingness to Have a Fast
Food Chain in Tabuk City ……………………………………………
19
School Food Allowance Per Month …………….…….…………….
20
Employee Monthly Income ……………………..……..…………....
20
School Food Allowance Willing to be
Spent on Fast Food Chains ……………………………………………
22
Monthly Employee Income Willing to be
spent on Fast Food Chains ………………………………………….
23
Frequency of Expected Patronage of Fast Food ...............................
23
Preferred Fast Food Chain ................................................................
24
Factors Influencing the Choice of Fast
Food to Eat by Students ……………………………….……………
25
Factors
Influencing
the Choice of Fast
Food to Eat by Employees ……………………………………..…...
25
Factors Influencing the Choice of Fast
Food to Eat by Students and Employees……………………..……..
28
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS …….……
34
Summary …………………………………..……………….…….…
34
Conclusions ……...………………………….……………………...
34
Recommendations …………...………………………. ...…….……
34
LITERATURE CITED …………………………………………………….
36
APPENDIX…. ...…………………………………………………………...
38
A. Letter to Respondents ………………………....………………..
38
B. Survey Questionnaire for Students ……………………..………
39
C. Survey Questionnaire for Employees ……………………..……
43
iv
1
INTRODUCTION
Background of the Study
The food industry is the world’s oldest, widespread and more familiar industry.
At the end of the 20th century, eating habits and food production were increasingly
taking place outside the home. Many people relied on restaurants and on new types of
fully prepared meals to help busy families in which both adults worked full-time.
(Microsoft Encarta, 2008). Eating out is an important part of daily life in the United
States and the trend continues to grow unabated. Eating also provides gratification for life
stresses- the difficult examination in school; the homely adolescent who has no date to
take her to the movies; the quarrel with a friend; the frustration and loneliness of having
no friends; and others (Kesara, 2004). In the Philippines, eating out has become popular
in urban centers like Metro-Manila and the capital cities where fast foods are found.
Eating out has become popular with the growth of fast food. Fast food restaurants,
also known as a quick service restaurant or QSR, are a specific type of restaurant
characterized both by its fast food cuisine and by minimal table service. Food served in
fast food restaurants is cook in bulk in advance and kept hot to order; food is usually
available ready to take away, though seating is provided. Fast food restaurants are usually
part of a restaurant chain or franchise operation, which ships standardized foodstuffs to
each restaurant from central locations (Farlex, 2009).
The first fast food restaurant was originated in the United States of America
during the 1950s. Today, American-founded fast food chains such as McDonald's and
KFC are multinational corporations with outlets across the globe. Variations on the fast
food restaurant concept include fast casual restaurants and catering trucks. Fast casual
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
2
restaurants have higher sit-in ratios, and customers can sit and have their orders brought
to them. Catering trucks often park just outside worksites and are popular with factory
workers (Farlex, 2009).
Fast-food outlets are take-away or take-out providers, often with a "drive-thru"
service which allows customers to order and pick up food from their cars; but most also
have a seating area in which customers can eat the food on the premises. Nearly from its
inception, fast food has been designed to be eaten "on the go" and often does not require
traditional cutlery and is eaten as a finger food. Common menu items at fast food outlets
include fish and chips, sandwiches, pitas, hamburgers, fried chicken, French fries,
chicken nuggets, tacos, pizza, and ice cream, although many fast-food restaurants offer
"slower" foods like chili, mashed potatoes, and salads (Fast Food, 2005).
In the United States alone, consumers spent about US$110 billion on fast food in
2000 (which increased from US$6 billion in 1970). The National Restaurant Association
forecasts that fast-food restaurants in the U.S. will reach US$142 billion in sales in 2006,
a 5% increase over 2005. In comparison, the full-service restaurant segment of the food
industry is expected to generate $173 billion in sales. Fast food has been losing market
share to so-called fast casual restaurants, which offer more robust and expensive cuisines
(Farlex, 2009).
Furthermore, most of the food acquired in the United States for household
consumption (71.9%) was bought rather than home produced except in households in the
North-east where purchased food constituted about half (51.1%). Actual food expenditure
was higher, and the proportion of food expenditure to total expenditure was lower in the
better-off professional classes. However, the food expenditure trend has indicated that
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
3
during the decade the country’s total food expenditure has increased in real terms. Since
the rate of change of food, expenditure has been greater than the population growth rate,
individual food expenditure should have increased in real terms also (Top Fast Food
Chain, 2009).
Franchising has become a common business in the Philippines, most especially in
the consumer foodservice market. This has been practiced continuously in all the sectors,
especially in fast food. Conservative companies such as Max’s Inc and The Cravings
Group, both of which are 100% Filipino- and family-owned, have also taken the radical
decision to open their businesses up to franchisees. Different franchisers led consumer
foodservice in 2007, and continued to grow over the previous year as chained cafés/bars
recorded double-digit growth. Provided with free training, free marketing support and
practically everything needed to start a business, the franchising concept has been very
appealing to both new and long-standing business people (Global Informtion Inc.,2008).
The latest trend in consumer foodservice menus is the enhancement of traditional
Filipino foods. This has proved to be profitable for Max’s with its Bangus Sisig, a finely
chopped milkfish fried in oil and spices, for KFC, Jollibee and McDonald’s with their
spicy chicken, and for Greenwich with its longanisa-flavoured pizza. Local companies
performed with a lot more dynamism in the review period than their foreign counterparts.
For example, Figaro Coffee increased its value share in 2007, while Starbucks, an
international brand, suffered a decline. Jollibee maintained its strong position in fast food,
retaining its leadership in spite of the presence of formidable foes in the guise of
international brands like McDonald’s and KFC. Other Jollibee Foods Corp brands,
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
4
Chowking and Greenwich, also protected their shares well. Fast food has the greatest
number of chained outlets (Global Informtion Inc.,2008).
Jollibee Corporation, with its Jollibee, Chowking, Greenwich, Délifrance and Red
Ribbon brands, held the biggest share in consumer foodservice in the Philippines. It
continued to lead sales in consumer foodservice by widening the gap with the big
multinational franchise brands, such as McDonald' s, KFC and Pizza Hut, in the
consumer foodservice market in the Philippines. The Chowking and Jollibee brands were
the major contributors to Jollibee growth in 2006. Chowking was Jollibee’s best-
performing brand in terms of outlet expansion during this period (Global Informtion Inc.,
2008).
The Philippine franchising sector continues to be an important driver of economic
growth and productivity, according to a study undertaken by the Philippine Franchise
Association in collaboration with the University of Asia and the Pacific. The study,
taking into account the nominal GDP growth rate of country, showed that the franchising
sector had accounted for 5 percent of the country's total Gross Domestic Product (GDP)
for 2005 to 2007, contributing about P106.75 billion to the economy. It also showed that
the sector had created an estimated 200,000 franchise outlets, generating four to five jobs
per outlet or almost a million jobs nationwide. The sector has effectively promoted
economic dispersal based on the franchise outlets' locations (Inquirer. 2001-2009).
Moreover, the fast food industry is a sub-sector of the larger restaurant industry.
There are 15,000 fast food restaurants operating in Metro Manila. The most common
tools adopted by the fast food companies in the Philippines are window displays, free
delivery, radio and TV advertising, and billboard advertising. The success of the fast food
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
5
industry in the Philippines can be attributed to the factors of standardized procedures,
limited menus, placing emphasis on value, speed and efficient service and franchising.
The fast food industry has changed the urban lifestyle because it developed well in cities
but fast food companies are reluctant to develop a market in the suburbs. That is, the fast
food market in the Philippines still has room for expansion to those who want to invest
(International Food and Agribusiness Marketing, 2006).
In this regard, cities like Tabuk in Kalinga are faced with options about investing
in fast food chain business. Tabuk City is a component city and capital of the province of
Kalinga. It is founded on June 16, 1950 and it became a city on June 23, 2007. According
to the 2000 census, it has a population of 78,633 people in 13,985 households. The town
has a total land area of 77,447.25 hectares (774 sq. kms.) and is politically subdivided
into 42 barangays. The Major sources of Livelihood in the town are farming/agriculture,
trade and Industry (Manufacturing and Commercial) Employment (Tabuk City, 2008).
The population of Tabuk is a combination of different cultures. The town engages in
commerce and trade. The town is a center of economic activity for the far-flung areas of
Kalinga. Merchants from Pangasinan and other nearby provinces come to the town center
to trade mostly for rice which is the major product of Kalinga. Tabuk is now a fifth class
city with an income of P110, 414,133.00 in 2007. It is prominently considered as the rice
granary of the Cordillera. Tabuk supplies rice even to other places (Tabuk City, Kalinga,
2008).
Statement of the Problem
It is therefore the interest of this research is to find the answer to the following
questions:
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
6
1. Is there a demand for fast food chains in Tabuk city, Kalinga?
2. Is there a demand as to characterize by type of fast food chain?
3. What are their reasons to patronize the fast food chain?
4. What are the appropriate indicators to be used for the development of the fast
food industry in Tabuk city?
Objectives of the Study
The general objective of the research is to identify the demand prospects for fast
food chains in Tabuk City, Kalinga. Specifically it aims to:
1. Identify if there is a demand for fast food chains in Tabuk City, Kalinga,
2. Characterize the demand by type of fast food chain,
3. Identify the reasons for willingness/ unwillingness to patronize the fast food
chains and
4. Recommend appropriate indicators that can be used for the development of the
fast food industry in Tabuk City.
Significance of the Study
The study concentrated in the demand prospects of fast food chains in Tabuk City.
The study will be helpful in the future to the residents of Tabuk City, to the local
government of the area, and to the Tabuk economy as a whole. Knowing that demand
exist for fast food chains will be the magnet to draw enterprising individuals and groups
to set up fast foods. This will be a source of employment for the unemployed residents,
and the taxes that will be collected will be utilized for the different activities of the city.
The result of the study will also provide information to the managers of existing food
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
7
stores to have an understanding of what customers want and how best these wants can be
catered to.
The findings of this study would also contribute to the knowledge about demand
studies that will be useful to current researchers and future researchers in this
undertaking.
Moreover, the local government of Tabuk city from findings of the research will
be able to identify appropriate ordinances to provide an attractive environment for the
fast food chains.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
8
REVIEW OF LITERATURE
Eating Habits
It has been noted that American eating habits and food production were
increasingly taking place outside the home. Many people relied on restaurants and on
new types of fully prepared meals to help busy families in which both adults worked full-
time. Another sign of the public’s changing food habits was the microwave oven,
probably the most widely used new kitchen appliance, since it can quickly cook foods
and reheat prepared foods and leftovers. Since Americans are generally cooking less of
their own food, they are more aware than at any time since the early 20th century of the
quality and health standards applied to food. Recent attention to cases in which children
have died from contaminated and poorly prepared food has once again directed the
public’s attention to the government's role in monitoring food safety ( Encarta; 2008).
We have to eat; we like to eat; eating make us feel good; it is more important than
sex. To ensure genetic survival the sex urge need only be satisfied a few times in a
lifetime; the hunger urge must be satisfied every day. It is also a profoundly social urge.
Food is almost always shared; people eat together; mealtimes are events when the whole
family or settlement or village comes together. Food is also an occasion for sharing, for
distributing and giving, for the expression of altruism, whether from parents to children,
children to in-laws, or anyone to visitors and strangers. Thus food becomes not just a
symbol of, but the reality of, love and security (Fox, 2008).
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
9
Importance of Foods
Food is used by the body for the repair of tissues, as an energy source for
maintaining life, and for regulation of body processes. No single type of food is capable
of providing all the nutritional needs of a person. It is therefore important that the daily
diet contains the correct type and amount of foods (Rueda et al., 2003)
According to Burnett and Stutchbury (2000), Food is something that we often
take for granted. If it is in our refrigerator we eat it, or we go out and buy it. The supply
of food has not always been that simple and for many people in the world it is still not
that simple. The amount and variety of food available to people is largely determined by
where they live. People eat different foods depending on:
1. What can be produced in the local area.
2. The level of technology available for use in food production and processing.
3. Available income.
4. The political and economic conditions of the country in which people live.
Influence of Mass Media on Food Habits
The influence of mass media on food habits is a significant. Through mass media,
the poor are exposed to the extent of food production. The affluent and the poor alike
know that the distribution of food is decidedly uneven, and that the capability exists to
feed all people better. Mass media also pictures food in forms highly appealing to the eye
and group acceptance. These influences foods to be purchased to fulfill emotional needs
rather than for nutritional content (Kesara, 2004).
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
10
Factors Affecting Food Selection
According to Burnett and Stutchbury (2000) the following are the factors affecting
the food selection:
1. Physiological factors. Affects the body’s need and desire for food. If the body
is to remain healthy and function correctly it must have adequate amounts of food
containing the essential nutrients.
Nutritional requirements. Use the nutrition information available and select
foods specifically for the nutritive value.
Reactions to food. Individuals select or reject food based on their reaction to
the food’s physical appearance, its presentation, smell and texture.
2. Psychological factor. Relate to the mind and the emotions.
Values. A value is a deep personal feeling about what is important. In terms of
food selection, the values most likely to influence choices are related to food
origins and the maintenance of health.
Beliefs. Beliefs about what is acceptable to eat vary throughout the world and
are often related to religion and cultural heritage.
Attitude. An attitude is the way in which a person views something and
behaves towards it, usually after evaluating its merit. Our attitudes towards
food are often based on our perceptions of food and their origins, our culture,
and the life experiences we have encountered.
Habits. Something that we do regularly without thinking. Habits are difficult
to break.
Emotions. Many people use food as a relieving emotional stress. For some
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
11
people this means they reject food until the time of stress is over. People who
consume foods for emotional release tend to select foods with a high- energy
value.
Self-concept. Because much of our day revolves around food, the way we feel
about food bears a strong relationship to how we feel about ourselves.
Experiences from the past. Anyone who has ever had a bad experience with
foods knows that the effects can be long lasting. Being made to eat a food you
hated as a child can lead you to reject that food later in life.
Convenience. Living near one’s work.
3. Social factors. Social factors relate to the cultural and inter-personal aspects
influencing the selection of food.
Culture and traditions. Many traditions relating to special occasion involve
food. Festive and social occasions always involve food to some degree, and
the meal is often the focus of the event. Family traditions often revolve around
food, as do major social cultural customs in most societies.
Employment. The main aspects of employment influence food selection are as
follows: Type of job; number of people in the family who are employed
outside the home and the social status of the job.
Household structures and roles. The make-up of the family unit determines
the variety, quality and quantity of food consumed in a meal.
Social inter-actions. Foods has long been a symbol of friendship and
hospitality. When friends enter your home one of the first things you do is
offer them something to eat and drink.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
12
Media. The media play a major role in the selection of food. Food products
are takes place in all forms of media. Glossy presentations attract our gaze as
we leaf through magazines; billboards; grab our interest when we are in our
way to school; the radio plays advertising jingles and the television demands
that we consider the lifestyle we could have if we used this product or that.
Peer group. An individual’s peers are people in roughly the same age group
with the same social status. By interacting with the peer group and the family,
a person develops their own food-related beliefs, attitudes and habits.
4. Economic factor.
Cost of food. Cost of the most important factors when we select food. It is
partially important for low-income families. Students and the elderly, it is
uncommon for these groups to spend 33 percent of their total income on food.
Market place. The market place refers to the place where consumers purchase
food.
Available resources. Something that we have to achieve our goals. Money is an
obvious example; once you spend it, it is gone. Cars, books and equipments are
useful for a period of time but they do not last forever.
Occupation and finance. The type of job a person does influences their selection
of food. The physical demands of the job and its social expectations are reflected
in food choices. The income received from employment also determines the
quality and quantity of foods chosen.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
13
Conceptual Framework
The demand prospects of fast food chains in Tabuk city is determined by the
volume of people willing to have a fast food chain in the area and how many times
they are willing to go and order food. The demand is determined by factors that affect
the choices of foods which include physiological, psychological, social and economic
factors. These factors are useful to determine the willingness and unwillingness of the
people to have a fast food chain. It will also determine the modes by which certain
fast food chains can enter in Tabuk city based on the factors identified.
The demand typologized according to the students and employees will be
influenced as well by personal factors such as age, gender, income, year level and
type of work.
The conceptual framework is diagrammatically shown in Figure 1.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
14
Independent Variable
>Frequency
Demand
>Volume
Customers characteristics
- Students
-Age
-Gender
DEPENDENT VARIABLE
-allowance
bracket
Dependent Variable
-Year
level
Employee
-Age
-Gender
-Income
bracket
-Type of work
Factors affecting the choice of foods.
Establishments of
1. Physiological
Fast food chains
‐ Reactions to food
‐ Nutritional requirements
‐ Convenience
2. Psychological factors
‐ Values
‐ Beliefs
‐ Attitude
‐ Habits
‐ Emotions
‐ Self-concept
‐ Experiences from the past
3. Social
‐ Cultures and traditions
‐ Employment
‐ Household structures and roles
‐ Social inter-actions
‐ Media
‐ Peer groups
4. Economic
‐ Cost of food
‐
Market place
Figure 1.Conceptual framework
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
15
METHODOLOGY
Locale and Time of the Study
This study was conducted in December 2008 at Bulanao and Dagupan, Tabuk
City. The researcher selected these two among other barangays in Tabuk City because it
is the center of business transactions in the city and of Kalinga as a whole. Bulanao
houses, half of the 87 elementary schools in Tabuk, 11 of the 18 high schools, and all the
8 colleges offering tertiary education. (DECS, Kalinga). There are about 58 offices and
agencies in Tabuk City and almost all of these are in the locale of the study. (Office of
the Mayor and DOLE, Kalinga).
Respondents Of the Study
This study used survey questionnaire that was distributed to the different schools
in Bulanao and Dagupan. The students that were surveyed are High school and College
students. Employees of the different offices were also given a questionnaire. There was a
separate questionnaire for students and employees.
To check the demand prospects of fast food chains, the researcher used cross
tabulation of data in which the questionnaires answered were tabulated in order to detect
the demand prospects of fast food chain in Tabuk city.
Data Collection
The respondents were obtained by way of having a request letter addressed to the
school principal or Deans of the different colleges or institute of the different colleges
about the purpose. For the employees, the researcher went to their respective offices and
asked to answer the questionnaires. The number of questionnaires that was distributed
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
16
was as follows: 50 questionnaires were given to the high school students, 70 were given
to college students and 90 were given to the employees. The total of students and
employees that were interviewed is summarized in the table below.
The distribution of respondents interviewed
TYPE
NUMBER
Students
High School
50
College
70
Employees
90
TOTAL
210
The sampling was done purposively.
Data Analysis
The following was used to make interpretation on the perceived factors affecting
choice of fast foods:
Mean Values
Description
4.21- 5.00
Strongly Agree
3.41- 4.20
Agree
2.61- 3.40
Neutral
1.81- 2.60
Disagree
1.00- 1.80
Strongly Disagree
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
17
RESULTS AND DISCUSSION
Respondents Profile
As shown in Table 1, majority (66%) of the high school students are in the age
bracket of 16-17 with. On the other hand, majority (54.29%) of the college students are
from age bracket of 18-20. Females dominated the respondents from the student group.
Just like the student respondents, the females dominated the employees group.
Majority are also married. In the case of the employee respondents majority (70%)
belong to the age brackets of 31-50. This result is a typical picture of the labor force
where most are in their middle years.
Table 1. Distribution of respondents according to age and civil status
NUMBER
PERCENT
PROFILE
(N)
(%)
a. High School Students
Sex:
Male
23
46
Female
27
54
TOTAL 50
100
Age:
12-13
3
6
14-15
13
26
16-17
33
66
18 and bove
1
2
TOTAL 50
100
b. College
Sex:
Male
27
38.57
Female
43
61.43
TOTAL 70
100
Age:
18-19
38
54.29
20-21
28
40
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
18
Table 1. Continued ...
NUMBER
PERCENT
PROFILE
(N)
(%)
22 and above
4
5.71
TOTAL 70
100
c. Employees
Sex:
Male
39
43.33
Female
51
56.67
TOTAL 90
100
Age:
20-30
11
12.22
31-40
32
35.56
41-50
31
34.44
51-60
14
15.56
61-70
2
2.22
TOTAL 90
100
Civil Status
Single
20
22.22
Married
67
74.44
Widowed
3
3.3
TOTAL 90
100
Willingness to Have a Fast Food Chain
Table 2 shows that there is a demand for fast food chains in Tabuk City. This is shown by
95.71% of the total respondents who indicated willingness to have fast food chain.
Reasons for Willingness to have Fast Food Chains in Tabuk City
Table 3 shows the reasons for willingness to have fast food chains in Tabuk City. Note
that not all the respondents gave a response to this query. The few that did showed the
primary reasons were to increase the income of the city (45.45%), and it is a source of
employment (27.27%).
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
19
Table 2. Distribution of respondents according to willingness to have fast food chains in
Tabuk City
YES NO
STUDENT
NUMBER % NUMBER %
High School
48
96
2
4
College 69
98.57
1
1.43
Employees 84
93.33
6
6.67
TOTAL 201
95.71
9
4.29
Table 3. Distribution of respondents according to reasons for willingness to have fast
. food chains in Tabuk City by students and employees
REASONS NUMBER
%
They love fast foods
2
18.18
It is a source of employment
3
27.27
So that there is no need to go to other
places just to taste fast foods
1
9.09
To increase the income of the City
5
45.45
Reasons for Unwillingness to Have Fast Food Chains in Tabuk City
Table 4 shows the reasons for unwillingness to have fast food chain in Tabuk
City. There were also few of the respondents who gave a response to this query. The
major reasons cited for unwillingness are that there is a great problem on peace and order
in Kalinga and that fast foods are too expensive.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
20
Table 4. Distribution of respondents according to reasons for unwillingness to have fast
food chains in Tabuk City by students and employees
REASONS NUMBER
%
There is a great problem on peace and order in the
place 3
33.33
They want indigenous foods
1
11.11
It is a temptation to be extravagant
1
11.11
Fast foods are too expensive
2
22.22
They want to patronize their own products
1
11.11
They are contented of what is present in their place
1
11.11
Students School Food Allowance
Table 5 presents the school food allowance of high school and college students
per month. Majority of the students have a school food allowance of 301-500 (36.75%)
followed by 501- 700. This could indicate a capability of the students to patronize a fast
food chain.
Employee Monthly Income
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
21
Majority of the employees (34.52%) received a monthly income in the bracket of
5001-10000 followed by the income bracket of 10001-15000 with (28.57%). The average
income per month is 12000. Findings show that the lowest income was 4000 and the
highest was 30000.
Table 5. Distribution of respondents according to school food allowance per month
ALLOWANCE HIGH
SCHOOL COLLEGE TOTAL
(In Pesos)
NUMBER
%
NUMBER
%
NUMBER
%
Below 100
5
10.42
9
13.04
14
11.97
100-300 7
14.58
6
8.7
13
11.11
301-500
21 43.75 22 31.88 43 36.75
501-700
13 27.08 12 17.39 25 21.37
701-900
0 0 7 10.14 7 5.98
901-1000
1 2.08 5 7.25 6 5.13
Above
1000 1 2.08 8 11.59 9 7.69
TOTAL 48
100
69
100
117
100
Table 6. Distribution of respondents according to income usually received by employees
INCOME
(In pesos)
NUMBER
%
5000 and below
14
16.67
5001-10000 29
34.52
10001-15000 24
28.57
15001-20000 9
10.71
20001-25000 5
5.95
above 25000
3
3.57
TOTAL 84
100
Range
4,000-30000
Average Income
12,086.31
Standard Deviation
6,002.82
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
22
School Food Allowance Willing to be Spent on Fast Food Chains
Student interest to patronize fast foods in Tabuk City is further shows in Table 7.
Fifty- seven percent of the students from high school and college indicated that they are
willing to spend ½ of their allowance on fast foods per month. It is notable that all the
students are willing to spend a certain percentage of their allowance to fast foods. In fact,
(3.42%) showed willingness to spend all of their allowance on fast foods.
Table 7. Distribution of students according to percent of monthly school food allowance
willing to be spent on fast food chains by level
HIGH SCHOOL
COLLEGE
TOTAL
Number (%) Number (%) Number (%)
¼ of their
allowance
16 33.33 25 36.2 41 35.04
½ of
their
allowance
27 56.25
40 58 67 57.26
¾ of
their
allowance
2 4.17 3 4.35 5 4.27
Table 8. Distribution of employees according to percent of monthly income willing to be
spent on a fast food chain
EMPLOYEES NUMBER
%
Below 10%
52
61.91
10-20%
20
23.81
21-30%
5
5.95
41-50%
2
2.38
It depends
5
5.95
TOTAL
84
100
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
23
Monthly Employee Income Willing to be Spent on Fast Food Chains
As shown in Table 8, employees are willing to spend below 10% of their monthly
salary for fast food. About twenty-three percent are willing to spend 10 – 20% of their
salary. Although, some also says that the amount they are willing to spend will depend on
the occasions. If employee average income is Php12000, then majority (61.91%) are
willing to spend at most Php 1200 on fast foods per month.
Frequency of Expected Patronage of Fast Food
Table 9 shows that for all the respondent groups, (33.83%) expect to patronize the
fast foods once a week. About 21.89% expect to patronize twice a week. A notable
17.41% expect to patronize even daily and these are largely the students. 4.48% says that
frequency of expected patronage of fast foods depends on the situations.
Table 9. Distribution of respondents according to frequency of expected patronage of fast
foods
HIGH
SCHOOL
COLLEGE
EMPLOYEES
TOTAL
N
%
N
%
N
%
N
%
Once a
day
12
15
21.74
8
9.52
35
17.41
Once a
week
16
33.33
25
36.23
27
32.14 68
33.83
Twice a
week 13 27.08
18 26.09
13 15.48
44
21.89
Once a
month 3 6.25
8
11.59
17 20.24
28
13.93
Twice a
month 4 8.33
3
4.35
10 11.9
17
8.46
It depends
9
10.71 9
4.48
TOTAL 48 100 69
100 84 100
201 100
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
24
Preferred Fast Food Chain
From the result of the study, Jollibee is the most preferred fast food chain to be
established in Tabuk City. This is because 73.13% of all the respondents ranked Jollibee
as number 1 preferred fast food. The other fast foods do not compare with Jollibee in
terms of ranking preference as shown by the results. Both the majority of the students and
the employees ranked Jollibee as number 1. The second in rank is McDonalds followed
by Greenwich, then KFC and lastly, Chowking.
Table 10. Distribution of respondents by group according to preferred fast food chain
RESPON-
RANK 1
RANK 2
RANK 3
RANK 4
RANK 5
DENTS
N
N % N %
N %
N %
%
Student
Jollibee
83
70.9
11
9.4
5
4.27
1
0.86 4
3.4
McDonald 3
2.56
52
44
19
16.2
12
10.3 9
7.7
Greenwich 3
2.56
12
10
32
27.4
32
27.4 19
16
KFC
10
8.55
14
12
23
19.7
38
32.5 29
25
Chowking 8
6.84
13
11
22
18.8
17
14.5 38
33
TOTAL 107
91.5
102
87
101
86.3
100
85.5
99
85
Employees
Jollibee
64
76.2 4
4.8
4
4.76 2
2.38
2
2.4
McDonald 6
7.14 33
39
6
7.14 8
9.52
4
4.8
Greenwich 4
4.76 6
7.1
25
29.8 13
15.5
10
12
KFC
2
2.38 4
4.8
16
19.1 17
20.2
27
32
Chowking 5
5.95 17
20
13
16.5 24
28.6
21
25
TOTAL
81 96.4 64 76 64 77.2 64 76.2 64 76
Student and Employees
Jollibee
147
73.1 15
7.5
9
4.48 3
1.49
6
3
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
25
Table 10. Continued ...
RESPON-
RANK 1
RANK 2
RANK 3
RANK 4
RANK 5
DENTS
N % N %
N %
N %
N %
McDonald 9
4.48
85
42
25
12.4 20
9.95
13
6.5
Greenwich 7
3.48
18
9
57
28.4 45
22.4
29
14
KFC
12
5.97
18
9
39
19.4 55
27.4
56
28
Chowking 13
6.47
30
15
35
17.4 41
20.4
59
29
TOTAL 201
93.5
166
83
165
82.1
164
81.6
163
81
Factors Influencing the Choice of Fast Food to Eat by Students
The results from Table 11 indicate that students were largely to the identified
factors influencing patronage of fast food chain. A clear disagreement was family size
deters patronage of a fast food. Other agreed factors include the perception that fast food
provide for nutritional requirements, that fast foods are convenient, that food values
affect fast food patronage, that social inter actions and media influence demand for fast
foods. Moreover, fast food presence, disposable income, and the amount of school food
allowance also influence students in eating in fast food chains.
Factors Influencing the Choice of Fast Food to Eat by Employees
From Table 12, employees show marked disagreements with some factors
influencing patronage of fast foods. Specifically, they disagreed that the following factors
affect demand for fast food foods: Beliefs, habits, emotions, self-concept, culture,
household structure, peer group, and prices. On the other hand, factors that were agreed
upon to have an influence on patronage were the following: Nutritional requirements,
convenience, and food values. .
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
26
Table 11. Factors influencing the choice of fast food to eat by students
LEVEL OF AGREEMENT AND DISAGREEMENT
____5____
____4____
_____3____
___2___
___1___
INTERPRE-
FACTORS
MEAN
TATION
N
%
N
%
N
%
N % N
%
1.
Nutritional
33 28.21 46 39.3 30 25.6 7
5.98
0.85 3.88
Agree
requirements
2.
Reactions
6 5.13 54 46.1 35 29.9 10 8.55 12 10.26
3.27
Neutral
to food
3.Convenience 26 22.22 35 29.9 29 24.7 16 13.68 11 9.4
3.42
Agree
4.
Values
36 30.77 44 37.6 23 19.6 10 8.55 4 3.42 3.84
Agree
5.
Beliefs
11 9.41 18 15.3 35 29.9 38 32.48 15 12.8 2.76
Neutral
6.
Attitude
9 7.69 35 29.9 26 22.2 29 24.79 18 15.3
2.9
Neutral
7.
Habits
6 5.13 20 17.1 35 29.9 37 31.62 19 16.2 2.63
Neutral
8.
Emotions
9 7.69 38 32.4 29 24.7 31 26.5 10 8.55 3.04
Neutral
9.
Self-concept 7 5.98 19 16.2 34 29.0 35 29.91 22 18.8 2.61
Neutral
10.
Experiences 9 7.69 39 33.3 24 20.5 30 25.64 15 12.8 2.97
Neutral
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
27
Table 11. Continued ...
LEVEL OF AGREEMENT AND DISAGREEMENT
___5___ ___4___ ___3___ ___2___ ___1___
INTERPRE-
FACTORS N % N % N % N % N
MEAN
%
TATION
11. Culture and
traditions
9 7.69
21 17.95 27 23.08 39 33.33
21 17.95 2.64
Neutral
12.Employment
13
11.11
37 31.62 31 26.5
23 19.68
13 11.11 3.12
Neutral
13.
Household 6 5.13 5
4.27 33 28.21 50 42.74 23 19.66 2.32
Disagree
structures
14. Social inter
19
16.24 54
46.15 27
23.08 13
11.11 4
3.42
3.61
Agree
actions
15.
Media
25
21.37
40 34.19 31 26.5
13 11.11
8 6.84
3.52
Agree
16. Peer group
3
2.56
48
41.03 33
28.21 25
21.37 8
6.84
3.11
Neutral
17. Cost of food 17
14.53 36
30.77 29
24.79 28
23.93 7
5.98
3.24
Neutral
18.Market
place
40
34.19
31 26.5
26 22.22 13 11.11
7 5.98
3.72
Agree
19.
Available 31
26.5
41 35.04 29 24.79 12 10.26
4 3.42
3.71
Agree
resources
20.
Occupation
25
21.37
36 30.77 30 25.64 21 17.95
5 4.27
3.47
Agree
and finance
Legends: 1-Strongly Disagree, 2-Disagree, 3- Neutral, 4. Agree, 5. Strongly disagree .
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
28
Factors Influencing the Choice of Fast Food to Eat by Students and Employees
Table 13 shows the combined responses of the student and employee respondents.
From this table, it can be inferred that the indicators or factors that will influence demand
for fast foods are nutritional requirements, convenience, food values, social inter actions,
market place, and available resources. It is interesting that the student and employee
respondents find the food sold at fast food chains nutritious and hence they are willing to
eat there. The expected responses of convenience and social interactions came about. Fast
foods are famous for convenience and as a place where people can meet to talk and
socialize. Market place, which refers to availability of a fast food chain in the locality,
determines positively the demand for it. Food values refer to the patronage of fast foods
in keeping with personal regard on the origin of the food and health maintenance.
Available resources as indicated by the ready funds that can be used, is agreed upon by
the respondents as also affecting positively their demand for fast food.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
29
Table 12. Factors influencing the choice of fast food to eat by employees
LEVEL OF AGREEMENT AND DISAGREEMENT
___5___ ___4___ ___3___ ___2___ ___1___
FACTORS N % N % N % N % N % MEAN
INTERPRETATION
1. Nutritional
16
190.5
32
38.1
21
25
12
14.29
3
3.57
3.55
Agree
requirements
2. Reactions to 13
15.48
27
32.14
21
25
13
15.48 10
11.9
3.24
Neutral
f ood
3. Convenience
20
23.81
31
47.62
21
35.71
8
17.86
4
13.1
3.65
Agree
4. Values
20
23.81
31
36.9
21
25
8
9.52
4
4.76
3.65
Agree
5.
Beliefs
4 4.76 13 15.48
23 27.38
26 30.95 18 21.43 2.51
Disagree
6.
Attitude
5 5.95 28 33.33
23 27.38
16 19.05 12 14.29 2.98
Neutral
7.
Habits
1 1.19 10 11.9 20 23.87
34 40.48 19 22.62 2.29
Disagree
8.
Emotions
3 3.57 12 14.29
23 27.38
34 40.48 12 14.29 2.52
Disagree
9.
Self-concept
3 3.57 7 8.33 23 27.38
29 34.52 22 26.19 2.29
Disagree
10.
Experiences 10 11.9 26 30.95
18 21.43
20 23.81 10 11.9 3.07
Neutral
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
30
Table 12. Continued...
LEVEL OF AGREEMENT AND DISAGREEMENT
___5___ ___4___ ___3___ ___2___ ___1___
FACTORS N % N % N % N % N % MEAN
INTERPRETATION
11. Culture and
3
3.57
15
17.86
15
17.86
27
32.14 24
28.57
2.36
Disagree
Traditions
12.
Employment
6 7.14 33 39.29
12 14.29
15 17.86 18 21.43 2.93
Neutral
13.
Household
2 2.38 11 13.1 20 23.81
38 45.24 13 15.48 2.42
Disagree
structures
14. Social inter
5
5.95
35 41.67
24
28.57
13
15.48
7
8.33
3.21
Neutral
actions
15.
Media
9 10.71
32 38.1 16 19.05
17 20.24 10 11.9 3.15
Neutral
16. Peer group
5
5.95
14 16.17
19
22.62
28
33.33
18
21.43
2.52
Disagree
17. Cost of food
2
2.38
12 14.29
18
21.43
34
40.48
18
21.43
2.36
Disagree
18. Market place
11
13.1
29 34.52
21
25
16
19.05
7
8.33
3.25
Neutral
19. Available
11
13.01
27 32.14
11
13.1
23
27.38
12
14.29
3.02
Neutral
resources
20.
Occupation
10 11.9 29 34.52
15 17.86
17 20.24 13 15.48 3.07
Neutral
and finance
Legends: 1-Strongly Disagree, 2-Disagree, 3- Neutral ,4. Agree, 5.Strongly disagree
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
31
Table 13. Distribution of respondents according to overall picture of factors that influence the choice of fast foods
by students and employees
LEVEL OF AGREEMENT AND DISAGREEMENT
5
4
3
2
1
INTERPRE-
FACTORS
N %
N %
N %
N %
N %
MEAN
TATION
Physiological factor
1. Nutritional
requirements
49 24.4 78 38.8 51 25.4 19 9.45 4 2
3.74
Agree
2.Reactions to food 19
81 40.3 56 27.9 23 11.4 22 11
3.26
Neutral
3. Convenience
46
22.9 66
32.8 50
24.9 24
11.9
15
7.5
3.52
Agree
4. Values
56
27.9 75
37.3 44
21.9 18
8.96
8
4
3.76
Agree
5. Beliefs
15
7.46 31
15.4 58
28.9 64
31.8
33
16
2.66
Neutral
6. Attitude
14
6.97 63
31.3 49
24.4 45
22.4
30
15
2.93
Neutral
7. Habits
7
3.48 30
14.9 55
27.4 71
35.3
38
19
2.49
Disagree
8. Emotions
12
5.97 50
24.9 52
25.9 65
32.3
22
11
2.83
Neutral
9. Self-concept
10
4.98 26
12.9 57
28.4 64
31.8
44
22
2.47
Disagree
10. Experiences
19
9.45 65
32.3 42
20.9 50
24.9
25
12
3.01
Neutral
Social Factor
11. Culture and
traditions
12 5.97 36 17.9
42 20.9 66 32.8 45 22
3.01
Neutral
12. Employment
19
9.45
70
34.8
43
21.4
38
18.9
31
15
3.03
Neutral
13. Household
structures
Disagree
8 3.98 16 7.96
53 26.4 88 43.8 36 18
2.36
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
32
Table 13. Continued ...
LEVEL OF AGREEMENT AND DISAGREEMENT
4 3 2 1
MEAN
INTERPRE-
FACTORS
N % N % N % N %
TATION
14. Social inter
actions
24 11.9 89 44.3
51 25.4 26 12.9 11 5.5
3.44
Agree
15. Media
34
16.9
72
35.8
47
23.4
30
14.9
18
9
3.37
Neutral
16. Peer group
8
3.98
62
30.9
52
25.9
53
26.4
26
13
2.86
Neutral
Economic Factor
17. Cost of food
19
9.45
48
23.9
47
23.4
62
30.9
25
12
2.87
Neutral
18. Market place
51
25.4
60
29.9
47
23.4
29
14.4
14
7
3.52
Agree
19. Available
resources
42 20.9 68 33.8
40 19.9 35 17.4 16 8
3.42
Agree
20. Occupation
and finance
35 17.4 65 32.3
45 22.4 38 18.9 18 9
3.3
Neutral
Legends: 1- Strongly Disagree, 2- Disagree, 3- Neutral ,4- Agree, 5- Strongly disagree
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
33
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The research was conducted to find answers to the following questions: 1) Is there
a demand for fast food chains in Tabuk city, Kalinga?; 2) Is there a demand as to
characterize by type of fast food chain?; 3) What are their reasons to patronize the fast
food chain?; and 4) What are the appropriate indicators to be used for the development
of the fast food industry in Tabuk city? The study was conducted in Bulanao and
Dagupan, Tabuk City, Kalinga. A total of 120 students (50 from the high school level and
70 from the college level) and 90 employees were interviewed. Sampling was done
purposively.
The following results were obtained: Majority of the high school student
respondents are in the age bracket of 16-17 years and of the college students, in the age
bracket 18-20. In the case of the employees, majority belonged to the age bracket 31-50.
For all the respondents, the females dominated.
There is a general willingness to have a fast food chain in Tabuk City. The
primary reasons offered are to increase the income of the city and it is a source of
employment.
Majority of the students have a school food allowance of Php 301- 500. On the
other hand, average income of the employees is Php1286. There is an overwhelming
preference for Jollibee as the fast chain to be established in Tabuk City. Factors that were
found to influence patronage of fast foods as agreed upon by the respondents include:
nutritional requirements, convenience, food values, social inter actions, market place, and
available resources.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
34
Conclusions
From the result of the study, the following conclusions were made:
1. There is a demand for fast food chains in Tabuk City, Kalinga
2. Jollibee is the most preferred fast food chain of Tabuk City, Kalinga
3. Students and employees have the financial capacity to patronize fast food at
least once a week.
4. The main reasons for willingness to have a fast food chain were to increase the
income of the city and fast food chain is a source of employment.
5. There are physiological, psychological, social, economic factors that influence
patronage of fast foods. The physiological factors are the nutritional requirements
and convenience. The psychological factor is the values, the social factor is the
social interaction, and the economic factors are the market place and available
resources.
Recommendations
Based on the foregoing findings and conclusions of the study, the following
recommendations were made:
1. City government of Tabuk should consider in their planning the entry and
establishments of fast food chains.
2. Jollibee Corporation should consider establishing a branch in Tabuk City,
Kalinga.
3. Government officials and authorities should control peace and order of the City
for a fast food chain to penetrate the City.
4. The local government of Tabuk City should identify appropriate ordinances to
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
35
provide an attractive environment for the fast food chains.
5. Entrepreneurs and other fast food chains should take this study as a basis for
them to make ways how to cater to the demand of the residents.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
36
LITERATURE CITED
ANONYMOUS. 2005. Fast food. Retrieved November 13, 2008 from http :// www.Book
rags. Com/wiki/Fast_food.
ANONYMOUS. 2006. International Food and Agribusiness Marketing. Retrieved Nov-
ember 17, 2008 from http://www. haworthpress.com/sto re/Article Abstract.asp?
sid= 8XL 2N 9D 2 2H6J9NCMB2J2TS8 MQN67BW W7 & ID = 92550.
ANONYMOUS. 2008. Tabuk City, Kalinga. Retrieved October 2, 2008 from http://www
.tabuk.gov.ph/index.php/about-tabuk.
ANONYMOUS. 2009. Top fast food chains. Retrieved November 13, 2008 from http://
ny
jobsource.com/fastfood.html.
BURNETT,B.F. and K. STUTCHBURY. 2000. Food Technology in Action-2nd edition.
Printed in Singapore. Pp.3-47.
DECS. Number of Enrolled Students. Bulanao, Tabuk city Kalinga
DOLE. Number of employed and unemployed. Bulanao, Tabuk city, Kalinga).
FARLEX. 2009. Fast food restaurant. Retrieved November 13 2008 from http :// ency
clopedia.thefreedictionary.com/Fast+food+restaurant.
FOX, R. 2008. The Myth of Nutrition. Retrieved September 22,2008 from www .sirc . or
g/publik/food_and_eating_10.html - 19k.
GLOBAL INFORMATION INC. 2008. Food Service in the Philippines. Retrieved Nov
7, 2008 form http://www.the-infoshop.com/study/eo63579-consumer-food.html.
INQUIRER. 2001-2009. Franchising Industry. Retrieved July 7,2008 from http://business
.inquirer .net/money/ topstories /vie w/ 20080707-146843/Franchising-industry-
accounts-for-5-of-GDP.
KESARA D.P. 2004. Factors affecting food practices and preferences of mothers at
Shilan, La Trinidad, Benguet. BS Thesis. Benguet State University, La Trinidad,
Benguet .P. 12-14.
Microsoft ® Encarta ® 2008. Fast Food Chains.
POPULATION CENSUS. 2008. Number of Present Residents. Office of the Mayor.
Bulanao, Tabuk City, Kalinga.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
37
RUEDA,M.B.,E.G.TOLENTINO, J.A. PATRICIO et al.2003.Euthenics and social graces
for today’s teen-agers. Published by Grandwater Publications 3rd Fl. Hadelina
Building 705 J.P. Rizal St., Makati City, Philippines.P.20 and 52.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
38
APPENDIX A
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
December 2008
Sir/ Madam:
I am a graduating student of Benguet State University taking up Bachelor of Science in
Agribusiness, major in Enterprise Management. As part of the course requirement, I
am presently conducting a research study titled, “DEMAND PROSPECTS FOR FAST
FOOD CHAINS IN TABUK CITY, KALINGA”.
May I then request a portion of your precious time to answer the attached questionnaire.
Please give your honest answers for the success of this research. Rest assured that all
information you provide will be treated with utmost confidentially.
Thank you very much for your support. God bless!
Very respectfully yours,
EDMER G. SAWADAN JR.
Student Researcher
Noted:
DARLYN D. TAGARINO
Adviser
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
39
APPENDIX B
SURVEY QUESTIONNAIRE
(For Student)
Name (optional):_____________________________
School:
______________________________________________________________________
Gender:
___ male
___female
Age: ________
Instruction: Kindly check on the space provided your response.
Do you want to have a fast food chain here in Tabuk City? (Ex. Jollibee)
___1. Yes
___2. No
If no, Why?
________________________________________________________________________
___________________________________________________________.
If yes, please proceed.
Please rank the following fast food chains according to your preference of being
established at Tabuk City.
(RANK 1-HIGHEST; 5-LOWEST)
___1. Jollibee
___2. McDonald
___3. Greenwich
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
40
___4. KFC
___5. Chowking
___6. Others, (please specify and rank it)
PLEASE EXPLAIN WHY YOU RANK_______________________AS # 1.
________________________________________________________________________
________________________________________________________________________
______________________________________________________________________.
How much is your school food allowance per month (Php)?
___1. Below 100
___2. 100-300
___3. 301-500
___4. 501-700
___5. 701-900
___6. 901-1000
___7. 1000 and above
How much from your school food allowance per month are you willing to spend on a
fast food chain?
___1. ¼ of my allowance
___2. ½ of my allowance
___3. ¾ of my allowance
___4. Whole of my allowance
___5. Others. (Please specify) ___________________________________________.
How many times are you willing to go and order in a fast food chain?
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
41
___1. Once a day
___2. Once a week
___3. Twice a week
___4. Once a month
___5. Twice a month
___6. Others. (Please specify)_________________________________________.
Please answer this portion by using the following:
5-strongly agree
4- agree
3- neutral
2- not agree
1- strongly disagree
1. I will eat fast food because of the nutrition available in the food.
5 4 3 2 1
2. I will eat in a fast food chain because of its presentation, color, smell
etc.
3. I will eat in a fast food chain when I am near to it.
4. My choice of fast food chain is influence by how I value foods.
5. I will eat fast food because it is eaten
throughout
the
world.
6. I will eat fast foods because my attitude
influences
it.
7. I will eat fast food because it is my habit.
8. I will eat in a fast food chain to relieve my sadness or emotions.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
42
9. I will eat from fast food chain because much of my day activities
revolve around foods.
10. I like to eat from a fast food chain because of the experiences I
have experienced from the past.
11. My choice of fast food is influenced by my culture and traditions.
12. I will eat in a fast food chain because I am employed or I have
something to spend.
13. I am not going to eat in a fast food chain because we are too many
in the family.
14. I will eat in a fast food chain for
social
inter
actions.
15. Media (TV, Radio etc.) influenced me with my choice of fast food
to eat.
16. I will eat fast foods because of the influences of my peer group or
friends.
17. I want to eat fast foods because of the price of the foods offered.
18. I want to eat in a fast food chain when it is in our place.
19. I will eat fast foods because I have money to buy for it.
20. My choice of fast food to eat is influenced by the type of job or
allowance I received.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
43
APPENDIX C
SURVEY QUESTIONNAIRE
(For Employees)
Name (optional):______________________________
Civil Status: ___1.sinlge
___2.
Married
___3.
Widowed
___4.
Separated
Type of work/ Office:
________________________________________________________________________
_______________________________________
Gender:
___ male
___female
Age: ________
Instruction: Kindly check on the space provided your response.
Do you want to have a fast food chain here in Tabuk City? (Ex. Jollibee)
___1. Yes
___2. No
If no, Why?
________________________________________________________________________
___________________________________________________________.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
44
If yes, please proceed.
What do you want to be established at Tabuk city? Please do it by ranking.
___1. McDonald
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___2. Jollibee
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___3. KFC
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___4. Greenwich
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___5. Chowking
What are your reasons of choosing
this?____________________________________________________________________
___________________________________.
___6. Others, (please specify and rank it)
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
45
How much income/ wage do you usually received per month (Php)? (Please answer it
honestly)
________________________________________________
How much of the wage you received are you willing to spend for dining out?
___1. Below 10% of my received wage
___2. 10-20% of my received wage
___3. 21-30% of my received wage
___4. 31-40% of my received wage
___5. 41-50% of my received wage
___6. Others. (please specify) ___________________________________________.
How many times are you willing to go and order in a fast food chain?
___1. Once a day
___2. Once a week
___3. Twice a week
___4. Once a month
___5. Twice a month
___6. Others. (please specify)_________________________________________
Please answer this portion by using the following:
5-strongly agree
4- agree
3- neutral
2- not agree
1- strongly disagree
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
46
5 4 3 2 1
1. I will eat fast food because of the nutrition available
in
the
food.
2. I will eat in a fast food chain because of its presentation, color, smell
etc.
3. I will eat in a fast food chain when I am near to it.
4. My choice of fast food chain is influenced
by
how
I
value
foods.
5.I will eat fast food because it is eaten
throughout
the
world.
6.I will eat fast foods because my attitude influences it.
7.I will eat fast food because it is my habit.
8.I will eat in a fast food chain to relieve my sadness or emotions.
9.I will eat from fast food chain because much of my day activities
revolves around foods.
10.I like to eat from a fast food chain because of the experiences I
have experienced in the past.
11.My choice of fast food is influenced by my culture and traditions.
12.I will eat in a fast food chain because I am employed or I have
something to spend.
13. I am not going to eat in a fast food chain because we are too many
in the family.
14. I will eat in a fast food chain for
social
inter-actions.
15. Media (TV, Radio etc.) influenced me with my choice of fast food
to eat.
16. I will eat fast foods because of the influences of my peer group or
friends.
17. I want to eat fast foods because of the price of the foods offered.
18. I want to eat in a fast food chain when it is in our place.
19. I will eat foods because I have money to buy for it.
20. My choice of fast food to eat is influenced by the type of job and
income I received.
Demand Prospects for Fast Food Chains
in Tabuk City, Kalinga / Edmer G. Sawadan Jr. 2009
Document Outline
- Demand Prospects for Fast FoodChains in Tabuk City, Kalinga
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Background of the Study
- Statement of the Problem
- Objectives of the Study
- Significance of the Study
- REVIEW OF LITERATURE
- Eating Habits
- Importance of Foods
- Influence of Mass Media on Food Habits
- Factors Affecting Food Selection
- Conceptual Framework
- METHODOLOGY
- RESULTS AND DISCUSSION
- Respondents Profile
- Willingness to Have a Fast Food Chain
- Reasons for Willingness to have Fast Food Chains in Tabuk City
- Reasons for Unwillingness to Have Fast Food Chains in Tabuk City
- Students School Food Allowance
- Employee Monthly Income
- School Food Allowance Willing to be Spent on Fast Food Chains
- Monthly Employee Income Willing to be Spent on Fast Food Chains
- Frequency of Expected Patronage of Fast Food
- Preferred Fast Food Chain
- Factors Influencing the Choice of Fast Food to Eat by Students
- Factors Influencing the Choice of Fast Food to Eat by Employees
- Factors Influencing the Choice of Fast Food to Eat by Students and Employees
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED
- APPENDIX