Strategic management process paper on Relish Restaurant

• Main Author: Warren, Jojanna E.
• Format: text
• Language: English
• Published: Animo Repository 2004
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4553
• Institution: De La Salle University

The Census of the Philippine Business and Industry (CPBI) 2000 preliminary results (date released April 17, 2004) show that there are 68,433 restaurants, cafes and fast-food centers as of 1999. Most of these restaurants are concentrated in the National Capital Region. The Philippine restaurant industry is very large to use for study for a small start-up restaurant. This paper will zero in on the Wilson area and Greenhills Shopping Center. These are urbanized areas where there are residential villages and numerous business establishments. The area caters to mostly A, B and some upper C classes. It also targets residents and office people within the vicinity. Critical success factors for the industry are advertising and promotion, pricing, quality of food, service and facilities, product lines, branch network, and availability of raw materials. Food spending of Filipino families continues to increase. Food still remains to be the biggest cut in the family's income budget. Percentage of food consumed outside the home was 12.6% of total food spending in 2000th is shows an increasing trend from only 9.5% in 1991. Competition is high as capacity increases while the market shows very little growth. The high number of new entrants adds to increased competition and goal of many players is for survival. The industry appears to be unattractive both to old and new players. The greatest deterring force in the industry is the rivalry among competitors. Despite ease in entering the market in terms of capital requirement and level of experience, it would be difficult to survive because of over capacity in the industry. Overall analyses show that market conditions are not favorable. Relish is a specialty restaurant with a theme of a homey and relaxed atmosphere and offers a personal touch type of service whose primary businesses are walk-ins, take-outs and reservations. It is situated at Wilson Street in San Juan, an urban area where there are both residential villages as well as offices, banks, and a number of restaurants. The area is also adjacent to the Greenhills Shopping Center, home of the well-known Greenhills Tiange and numerous business establishments.