THE EFFECTS OF THE EMERGING PACKAGED MEAL BUSINESSES TO

THE PROFITABILITY AND VIABILITY OF FOOD CATERING SERVICES IN

SELECTED BARANGAYS OF CEBU CITY

An Undergraduate Thesis

Presented to the Faculty of the

College of Business and Accountancy

University of Cebu – Lapu-Lapu and Mandaue Campus

Mandaue City, Philippines

In Partial Fulfillment

of the Requirements for the

Degree of Bachelor of Science in Accountancy

By:

Branzuela, Julia Rae G.

Lamoste, Marissa S.

Negro, Brix

Rin, Ma. Juliana D.

Roble, Shaiah Kaye B.

JULY 2024
 ii

APPROVAL SHEET

IN PARTIAL FULFILLMENT of the requirements for the Degree of Bachelor of

Science in Accountancy, this research entitled “THE EFFECTS OF THE EMERGING
PACKAGED MEAL BUSINESSES TO THE PROFITABILITY AND VIABILITY
OF FOOD CATERING SERVICES IN SELECTED BARANGAYS OF CEBU
CITY”, prepared and submitted by Julia Rae G. Branzuela, Marissa S. Lamoste, Brix
Negro, Ma. Juliana D. Rin, and Shaiah Kaye B. Roble has been examined, accepted
and approved for PROPOSAL HEARING.
MR. REY CARLITO ARANZADO
Adviser

ACCEPTED AS partial fulfillment of the requirements for the Degree of

Bachelor of Science in Accountancy.
DR. LUCILITO A. ATILLO, CPA, JD
OIC Dean, College of Business and Accountancy

APPROVED by the tribunal at Oral Examination with the grade of ___________.

PANEL OF EXAMINERS

DR. LUCILITO A. ATILLO, CPA, JD

Chairman

DR. WINNIE MARIE T. POLIQUIT MS. MARY ANN AWYONG

Member 1 Member 2

DR. WINNIE MARIE T. POLIQUIT

Program Research Coordinator

DR. LUCILITO A. ATILLO DR. MAURO ALLAN P. AMPARADO

OIC Dean, College of Business and Accountancy OIC, University Research Director
 iii

ACKNOWLEDGEMENT
We, the researchers, would like to express our sincerest gratitude to numerous
individuals because this study would not have been possible without their support,
guidance, and contribution. The researchers appreciate their unwavering support, which
has been essential in shaping the quality and success of the study.
First and foremost, we would like to express our profound gratitude to The
Almighty Father, for the divine guidance, wisdom, and knowledge He graciously
bestowed upon us, leading to the successful completion of this study.
We owe a debt of gratitude to our research instructor, Miss Concepcion
Panimdim, for her unwavering support and patience. Her guidance has not only been
instrumental but also transformative, shaping the very direction and focus of this
research.
We want to express our heartfelt gratitude to our research advisor, Mr. Rey
Carlito Q. Aranzado, for his time, expertise, insightful feedback, and encouragement,
which significantly contributed to the completion of the study.
To our statistician, Engr. Roland Fernandez, for accepting us wholeheartedly and
sharing his expertise and professional assistance,
To the Dean of the College of Business and Accountancy, Dr. Lucilito A. Atillo,
for his constant support and approval to conduct the study,
We extend our heartfelt gratitude to our respondents, whose willingness to
contribute to the study has been invaluable. Their inputs have been a cornerstone of the
study's success, and we deeply appreciate their involvement.
We would like to express our deepest gratitude to our panel examiners for giving
us constructive criticisms and feedback to help improve the study.
Lastly, we would like to thank the families and friends of each member for their
emotional and financial support.
We extend our sincere thanks to everyone who contributed to the study's success.
Your unwavering support and assistance have played a crucial role in its completion, and
we are grateful to each of you.
 iv

DEDICATION
This research paper is sincerely dedicated to the researchers whose contributions
have enriched the findings and made this research meaningful. Throughout the challenges
we faced, we maintained an unwavering commitment to pursuing knowledge,
overcoming obstacles, and celebrating the milestones we achieved.
We also dedicate this research paper to the owners of packaged meal businesses
and food catering services in Cebu City, whose unwavering cooperation and support have
been crucial to our research. Their motivation and honest insight have guided us, and
without them, this study would not have been possible.
We dedicate this to all the people who have encouraged and believed in us along
the journey and to their unwavering support. Their willingness to share their experience
and perspectives has contributed significantly to this research. Their faith in our abilities
has been a never-ending source of encouragement, motivating us to keep going better and
never give up.
 v

TABLE OF CONTENTS

PAGE

Cover Page / Title Page i

Approval Sheet ii

Acknowledgement iii

Dedication iv

Table of Contents v

List of Tables and Figures viii

Abstract x

CHAPTER

1 THE PROBLEM AND ITS SCOPE

INTRODUCTION 1

Rationale of the Study 1

Theoretical Background 5

Review of Related Literature and Studies 9

THE PROBLEM 14

Statement of the Problem 14

Significance of the Study 16

RESEARCH METHODOLOGY 18

Research Design 18
 vi

Research Environment 19

Research Respondent 19

Research Instrument 20

Dry-Run Procedure 21

Research Procedures 22

Gathering of Data 22

Treatment of Data 23

Ethical Considerations 23

Trustworthiness of Research 23

DEFINITION OF TERMS 25

2 PRESENTATION, ANALYSIS, AND

INTERPRETATION OF DATA 27

Profile of the Respondents 27

Profitability of packaged meal businesses

and food catering services 30

Viability of packaged meal businesses

and food catering services 32

Effect of the emergence of packaged meal businesses

on the profitability and viability of food catering services 37

Relationship Between the Respondents Profile and

The Profitability of Food-Package Business and

Catering Services 40
 vii

Relationship Between the Respondents Profile and

the Viability of Food Packaged Businesses

and Catering Services 41

3 SUMMARY, FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS 44

Summary 44

Findings 45

Conclusions 49

Recommendations 50

REFERENCES 53

APPENDICES 58

A Transmittal Letters 58

B Informed Consent 64

C Survey Questionnaire 70

D Title Approval for Student Researchers 80

E Adviser’s Acceptance 81

F Statistician’s Acceptance 83

G Research Location Map 85

CURRICULUM VITAE 86
 viii

LIST OF TABLES AND FIGURES

Table Description Page No.

1 Demographic Profile of the Respondents 27

2 Profit Margin of Packaged Meal Business and Food Catering

Services. 30

3 Return on Investment of Packaged Meal Businesses

and Food Catering Services 31

4 Market Share of Food Packaged Businesses and Food

Catering Services 32

5 Customer Preference of Food Packaged Businesses

and Food Catering Services 34

6 Operational Efficiency of Food Packaged Businesses

and Food Catering Services 35

7 Marketing Strategy of Food Packaged Businesses

and Food Catering Services 36

8 Effects of the Emergence of Packaged Meal Businesses on

the Financial Performance of Food Catering Services 37

9 Effects of the Emergence of Packaged Meal Businesses

on the Market Influence of Food Catering Services 38

10 Relationship Between the Respondents Profile and The

 ix

Profitability of Food Packaged Businesses and

Catering Services 40

11 Relationship Between the Respondents Profile and

The Viability of Food-Package Business and Catering

Services 41

Figure Description Page No.

1 Research Flow Process 18

 x

ABSTRACT

“The Effects of Emerging Packaged Meal Businesses to the Profitability and

Viability of Food Catering Service in Selected Barangays of Cebu City”

The rapid rise of packaged meal businesses is reshaping the food service
landscape in Cebu City, challenging traditional catering services to re-evaluate their long-
term strategies for survival and growth. Faced with new competition that capitalizes on
convenience and affordability, catering services must navigate this shifting market to
secure their profitability and extend their lifecycle beyond typical peaks and declines.
This research focuses on strategies that mitigate potential decline for catering services,
emphasizing adaptability, coexistence, and long-term viability. As packaged meal
businesses gain traction by appealing to convenience-oriented consumers, catering
services face increasing pressure to maintain market share. The goal of this study is to
identify ways catering providers can enhance their longevity and thrive alongside
packaged meal competitors, securing a sustainable position that not only adapts but
coexists harmoniously within the food service landscape. In doing so, the research aims
to propose actionable recommendations that foster resilience, extend the profitability
stage, and support enduring market relevance for Cebu’s catering industry.

This study is quantitative research that investigates the effects of Packaged meal
businesses on the profitability and viability of Catering services in selected barangays of
Cebu City. The researchers will utilize the quantitative approach with researcher-
designed questionnaires to gather participant data. The respondents for this study will
include 15 packaged meal business owners and 15 catering service entrepreneurs based in
selected barangays of Cebu City. Respondents will be gathered using a convenient
sampling technique, which allows us to efficiently access available participants. This
approach is particularly beneficial given the limited and specific nature of the target
population, ensuring that we can obtain relevant results.
 xi

The growth of packaged meal businesses in Cebu City has intensified competition
for traditional catering services, particularly impacting their profit margins and market
influence. Many established catering owners are adjusting their pricing strategies and
implementing cost-saving measures to stay competitive. Profit margin and Return on
Investment indicate that catering businesses effectively manage expenses and prioritize
service improvement to boost customer satisfaction and revenue. However, packaged
meals' popularity for convenience drives a shift in consumer preferences, which is
pressing catering services to engage more actively on social media and refine customer
retention strategies mean score of for market share from customer retention efforts.
Experienced catering businesses benefit from stronger market resilience due to
established customer bases and higher working capital, which underscores the value of
operational longevity and strategic financial management in navigating this evolving
market landscape. To sustain viability, catering services may need to explore product
diversification and adaptable models that address shifting consumer demands while
maintaining their unique appeal for event-based services.
 CHAPTER 1
THE PROBLEM AND ITS SCOPE
INTRODUCTION
Rationale of the Study
Filipinos are a social people. Whether it is a birthday, wedding, fiesta, or a simple
family gathering, sharing meals and enjoying company are integral parts of Filipino
culture. This cultural inclination built on social gatherings has driven the growth of the
food industry in the Philippines, especially packaged meal businesses and catering
services. However, as this new growth instigated limitless potential for development and
innovation, it also brought about new challenges in the food industry. The increasing
popularity of these trends as a response to customer preference has caused a relative shift
in market dynamics. As consumer choices continue to expand and evolve, businesses of a
similar nature face the challenge of staying competitive and profitable amidst the
fluctuating trends and constant influx of new entrants.
Foskett and Paskins (2016) define food catering services as the organized
provision of food and beverages to clients, including planning, preparing, and delivering
meals for various occasions. Moreover, Brown (2014) defines Food Catering Services as
managing and supplying food and beverage services to clients, placing heavy emphasis
on cost control, efficiency, and quality. As such, Food Catering Services are
distinguished from other forms of food service as they focus mainly on quality
management, customer satisfaction, and operational efficiency.
Payne and Theis (2015) define Packaged Meal Businesses as single-serving meals
that are prepared, packaged, and distributed to meet the convenience needs of consumers.
Furthermore, Brown (2014) describes Packaged Meal businesses as a cost-effective meal
solution where each meal is individually prepared and packaged, allowing for portion
control and reduced waste. In these studies, packaged meal businesses have been
described as an innovation in the food service built in the prospect of modern cuisine
relying highly on convenience, waste control, and affordability. Shiring (2014) explored
the evolutions happening in the catering industry, highlighting how Packaged Meal
Businesses have emerged as a distinct business model. This emergence is primarily
 2

driven by consumer demand for convenience, portion control, and dietary customization,
making it a significant trend in the food industry.
In the early 19th century, food catering services began to take their place in the
food industry market. The earliest instance recorded of the first catering event was in
1778 at the ball in Philadelphia (Mattel, 2015). However, it was not until the 1820s that
the industry began to professionalize and bloom. On the other hand, packaged meal
businesses were first developed as an application in military rationing, with records going
back to 1975 (Salcedo, 2015). Although these services were introduced first in military
warfare, this concept later developed and influenced the food industry market's status of
individually packaged meals. Since this concept was much more recently developed than
the catering industry and brought about new ideas for innovation, it also brought about
direct competition as a new entrant to the food business and a substitute for the later
concept.
Belton (2017) defines Michaels Porter's theory on how new product entrants pose
significant threats to established businesses by introducing innovative ideas and products
that better meet the customers' needs in a much more affordable manner. Based on
Porter's study, the influx of new entrants can change the norms of the market as it
disrupts the established equilibrium. At some point, the birth of a new concept may cause
the end of the other. Furthermore, Aaker (2014) emphasizes how substitutes compromise
the market standing of established businesses by providing alternatives and solutions to
meet new demand. He also noted that these events intensify competition and, therefore,
may undermine the overall profitability of a business. Porter and Aaker raise essential
points and dilemmas regarding new entrants and substitutes. In the case of this research,
we will seek to identify how these new market variables correlate to each other and how
they seek to coexist, improve, and innovate to advance their services and flourish in the
industry.
Brigham and Ehrhardt (2019) define profitability as a business's ability to
generate profit from its operations. This paper delves deeper into the profitability of
packaged meal businesses and catering services, focusing on two primary financial
criteria –Profit Margin and Return on Capital. The research aims to investigate the effects
 3

of competition on profitability, particularly in terms of production efficiency, the

effectiveness of core operations, and the overall profits earned by the business.
Adams and Spinelli (2015) define business viability as the capacity of a new
venture to thrive and grow on the premise of a competitive environment and scarce
resources. Furthermore, David and David (2016) describe business viability as the ability
of an enterprise to continue its operations and meet long-term objectives. As such,
business viability emphasizes that a business must not only tend to its profitable factors
but also look forward in its plans for growth and sustainability. This study will mainly
address how the factors affecting the viability of packaged meal businesses and catering
services interact and collide. Specifically, the study will base its results on market share,
customer preference, operational efficiency, and marketing strategy.
Studies and research provided by learned authors and researchers relate
profitability and viability in determining the overall financial health of a business. The
studies highlight the scope covered under profitability and viability. By thoroughly
examining the fundamental concepts behind these factors, the study provides a reliable
understanding of how these variables impact each other in the food industry, covering
both short-term financial results and long-term sustainability and growth of the business.
As such, the researchers will explore the effects of these concepts on a competitive
landscape by measuring financial performance and market influence.
Kotler et al. (2017) investigated the importance of quality and customer
satisfaction in keeping up with a competitive market. Furthermore, they highlighted the
necessity of adapting to consumer preferences to meet constantly changing demands. In
addition, a study conducted by Dingil et al. (2023) on the operational problems and
strategies of restaurants in the Northern Philippines targets operational problems and
inefficiencies brought about by pricing, quality, and strategic location variations. In the
thriving economy of the Philippines, particularly Cebu City, the researchers seek to
conduct the study in a fast-paced urban environment where market dynamics are
stimulated by growth and diversification and paralleled by changing consumer demands
and rapid competition.
 4

The financial market is similar to a natural occurrence - unpredictable and

challenging to control. Demands can change rapidly, preferences may alter due to the
tiniest trends, and as opportunities arise, threats loom in the corner. As Bachelor of
Science in Accountancy (BSA) students, we venture toward navigating these economic
complexities. As aspiring accountants, the study will equip us with the knowledge to
provide informed professional advice on financial and economic prospects. Particularly
in the dynamic food service industry of Cebu City, by understanding the profitability and
viability of these business models, the study's proponents can better support local
enterprises in making strategic decisions that foster growth and sustainability.
The results of the study will provide significant insights into the profitability and
viability of food catering services, especially with the emergence of packaged meal
businesses in Cebu City as competitors. By emphasizing the strengths and challenges of
these businesses in a fast-paced and dynamic environment, the study hopes to be a
valuable resource for aspiring entrepreneurs, providing them with the knowledge to make
well-informed business decisions. The study's findings are particularly relevant to Cebu
City's food service industry, as they may assist local businesses in navigating shifting
market dynamics and making strategic decisions that promote growth and sustainability.
 5

Theoretical Background
This study is anchored on Porter's Five Forces, which is pivotal in determining the
factors influencing the industry's profitability and viability. It is accompanied by Market
Segmentation and Targeting Theory, the Theory of Constraints and Product
Differentiation Theory.
Driven by the desire for convenient and personalized meal options, particularly in
urban areas like Cebu City, food catering services have seen a significant rise in recent
years. Established in the central hub for trade and industries, these culinary services
reflect the characteristics of Porter's Five Forces in venturing into Cebu City's growing
economy, benefiting from the rising demand and rapid economic growth. The promising
dynamic market for food catering services has grown more competitive and diverse as
businesses adapt to the fast-paced lifestyles of consumers who seek convenience,
affordable pricing options, and tailored demands.
Michael E. Porter developed Porter's Five Forces in 1979 to assist organizations
in understanding competitive dynamics and making better informed strategic decisions
(Belton, 2017). According to Porter, to reveal the root cause of business profitability, one
must understand the forces in the industry and their underlying causes. These forces
consist of competitive rivalry, supplier power, buyer power, threats of new entrants, and
threats of new substitutes.
The central component of Porter's Five Forces is the competitive rivalry
landscape. This aspect focuses on the intensity of business competition in the market.
Grundy, T. (2014) highlighted that if businesses could intercept competitors' moves in a
rapidly changing environment, they could achieve a high level of performance.
Accordingly, in a highly active market setting like Cebu City, many entrepreneurs are not
just innovating, but they are proactively implementing strategic marketing tactics to
 6

constantly innovate, improve efficiency, and prioritize customer satisfaction in the ever-
changing and dynamic business setting.
Porter also emphasized in his theory the significance of a buyer's bargaining
power in relation to customer preference (Belton, 2017). Porter described this force as the
customers' capacity to exert pressure on the business and influence their vulnerability to
price changes. In the premise of Cebu City, the diverse options of food services have the
consumer's bargaining power impactful in assessing a business's profitability and
viability. Understanding these significant shifts in customer preferences and options is
crucial; it also helps businesses stay connected to their customers, adjust pricing
strategies and service quality to stay competitive and increase customer retention.
Porter describes the bargaining power of suppliers as the market of inputs (Belton,
2017). Suppliers of raw materials, labour, components, and services to the business can
raise the prices of the products they sell, reduce the quality of the product, and limit the
products they sell, thus significantly impacting the cost structures and profit margins of
packaged meal and food catering businesses. As such, both businesses may implement
drastic measures to maintain their financial status. More so, as the increased costs get
passed on to the end users – customers, the pressure of pricing considerations and market
influence must be considered essential variables in the decision-making process.
New entrants and product substitutes put pressure on existing businesses within
an industry. Porter defines these factors as a risk to the competitive position of an
established industry (Belton, 2017). Compared to catering services, which were
professionalized in the 1820s (Mattel et al., C. I. O. A. 2015), the idea of monetizing
Packaged meals came to fruition in 1975 (Salcedo, 2015). The idea of new emerging
businesses increases the competition and dilutes the overall market share and profits.
Subsequently, as market share remains divided, factors such as capital requirements,
customer loyalty, and marketing strategies must be evaluated as they become a vital
concern for a business's financial health and long-term sustainability.
Belton (2017) highlights how Porter defines competitive rivalry as the extent of
competition among existing firms. As more businesses venture into individual meal
packages and food catering services, the competitiveness in the industry rapidly
 7

increases, and alongside it, threats and challenges also arise. Specifically, when a wide
array of options influences customers, business industries tend to improve and develop
quality, product differentiation, and pricing awareness to meet the tailored demands of
customers. Understanding these factors will help shift the competition in the business's
favour, resulting in a high probability of customer acquisition and retention.
Complementing Porter's Five Forces Theory, Wendell Smith developed the
Market Segmentation and Targeting Theory (Winston et al., A. 2016). Smith provides
insight into how businesses can divide a market into distinct consumer segments with
unique needs and preferences and then target these segments with specific marketing
strategies. Market segmentation and targeting theory emphasizes the significance of
success in a business if it targets these segments to the tailored needs of buyers. In high-
traffic areas like Cebu City, specifying the target market is essential in strategizing
business locations, assessing operation costs such as rent and property costs, and
understanding local demand.
Goldratt and Cox's Theory of Constraints (TOC) also offers a framework for
recognizing and controlling the primary constraints limiting the industry's capacity for
businesses to grow and become profitable. According to the theory of constraints, every
system, including a business, has at least one restriction that lowers its performance, and
organizations can significantly increase their overall profitability and efficiency by
finding and fixing this limitation (Goldratt et al.; J., 2016). More so, Kanike (2023)
described that the performance of businesses is influenced by factors such as the
accessibility of skilled workers, the effectiveness of the supply chain, and the capacity to
control costs successfully. By identifying these bottlenecks, a business can significantly
improve its operational efficiency, crucial to long-term success in the food service
industry.
In the context of food catering services and its arising threats, the Product
Differentiation Theory developed by Chamberlin also plays a significant role in
profitability and viability by giving a competitive edge in products and services
Freyberger, J. (2015). The differences in product quality may differ in the prices, which
will reflect in the change in profitability and viability. In addition, as products become
 8

different in the market, competition reduces, thus having a higher chance to stand out.
According to Chamberlin, product differentiation is critical for achieving market strength.
It helps enterprises meet specialized consumer expectations, increasing profitability by
charging higher rates for tailored, unique requests.
Integrating the context of these theories in our research allows us to define our
variables from a much broader perspective. As the theories explain, the complex
influence of the economy, competition, internal control, and consumer influences, the
study seeks to compare their relationships with each other and find where these factors
intersect and diverge to find the optimal strategies for maintaining profitability and
viability of food catering services in Cebu City despite the emergence of new threats to
its existence, such as packaged meal businesses.
 9

Review of Related Literature and Studies

In today's constant change, economic forces like demand, supply, policies,
inflation rates and customer preferences are more difficult to access and predict. John
Stachurski (2022) stated in his book "Economic Dynamics: Theory and Computation"
that economic forces are unpredictable due to the complex and dynamic nature of the
market systems, where interactions among various agents and factors lead to outcomes
that are difficult to forecast. As such, various notable variables are constantly driving the
changes in the market. This research notably seeks to understand the relationship between
these variables in the food industry and identify the effects of these market shifts,
particularly the emergence of new competition that affects the profitability and viability
of food catering services in Cebu City.
Nancy Loman Scanlon (2020) defines catering as providing food and services for
events. Scanlon also stresses how catering services are an essential segment of the food
service industry, providing tailored food and beverage solutions for various events and
gatherings. This study by Davis et al. (2020) investigates the evolving consumer trends in
ready-to-eat meals, including individual meal packages. The study presents a
comprehensive analysis of the factors driving demand, the populations that will purchase
ready-to-eat meals, and the implications for food producers. A distinct range of cuisines
and flavours is a significant selling point. The changing demands and diversifying trends
have brought about a consistent shift in the food business industry, and as such,
understanding these trends can help identify components that determine the profitability
and viability of food catering services.
 10

Barringer and Ireland (2015) explained how the duration of a business can affect
its market positioning, customer loyalty, and operational efficiency. They emphasized in
their study the importance of a learning curve and experiences gained over time. More so,
Spinelli, S., & Adams, R. (2015) highlighted the relationship between the aging business
and its success rate. The studies highlight the impact of longevity on the overall
performance of a company. The arguments articulate that businesses that survive the
critical early years in the industry tend to have higher chances of achieving long-term
success due to established market presence and experience of unprecedented events. This
study will delve deeper into this aspect and identify the presets of operating years to the
profitability and viability of food catering services amidst the birth of a direct competitor
to its produce.
Brigham and Ehrhardt (2016) elaborated that effective working capital
management is essential for maintaining liquidity, operational efficiency, and
profitability. In Addition, Brooks (2018) elaborated on the crucial role of working capital
in the financial decision-making of a company. Maintaining adequate working capital is
critical to ensure that daily business operations run well and that more alternatives for
owners are pursued financially and strategically.
David and David (2016) highlight the importance of location in building
marketing strategies, expanding market reach, and increasing customer access. The
studies highlight the paramount decision of choosing the appropriate location for business
as it relates directly to their profits and prospects for future growth. They also explore the
significance of location decisions about project success, operational efficiency, and
profitability. Since we seek to determine the effects of the open competition in a
concentrated location, the study will be steered in fast-paced areas of Cebu City, mainly
in their five highly dense and populated barangays – Guadalupe, Lahug, Tisa, Basak San
Nicholas, and Labangon.
Wahlen, Baginski, and Bradshaw (2018) define net profit as the final measure of a
company's profitability. Brigham and Ehrhardt (2016) identify critical concepts on the
relativity of net profit margin as a summation of measures and criteria such as gross,
operating, and net profits. As such, net profit encompasses all aspects of the financial
 11

activities of a business. It reflects how a business manages all its costs and legal
responsibilities. For catering services, a positive net profit margin is pivotal to
establishing a business that can withstand economic fluctuations, invest in future growth,
and ensure the continuity of operations.
Brigham and Ehrhardt (2016) investigate the various financial variables, which
include return on investment and their impact on the profitability of a business. Their
book highlights how this financial metric indicates business performance in a competitive
industry. Moreover, Inc, M. C et al. (2015). explain how return on investment
management has been a vital factor in a business's success as it can provide prospects for
profitable strategies. Both books represent the binding link between return on investment
management, profitability, and viability directly and upfront. In this study, the
researchers will delve deeper into the direct and indirect effects of competition on the
Return on Investment of food catering services.
As defined by Philip Kotler and Kevin Lane Keller (2015), market share is the
percentage of a market accounted for by a particular entity. It is frequently used to show
market competitiveness and the strength of a firm's marketing strategies. Moreover,
Sabry, F. (2024) emphasizes how market share is tightly related to the profitability of a
business. The book's details also reveal that profitability and market share show a direct
relationship; thus, a subsequent shift or change in one of these variables will immediately
impact the other. By carefully deciding on market positioning and closely monitoring
customer demands, a business can continuously increase its market share, thus increasing
its profits and longevity.
Consumer preferences are influenced by numerous attributes, impacting their
choice and leading to the acceptance or rejection of a product or service. Hooley,
Nicolaus and Lee N. (2020) demonstrate that understanding consumer interests and
preferences is essential for an effective marketing strategy. Identifying factors
influencing customer reference, such as food quality, service quality, pricing, service
timeliness, and menu customization options, must be considered when creating a product.
Price is the amount of money spent on goods or services by the customer Kotler, P., &
Keller, K. L. (2015). Pricing is a significant factor affecting customer satisfaction, as it
 12

shapes how customers perceive the quality of products and their prices. According to
Kotler, customers feel satisfied when they receive the value they desire at a fair price.
Moreover, Abdullah et al. (2013) stated that managers must assess local customer
preferences to gain and sustain a strategic advantage in this highly competitive sector. To
attain high levels of satisfaction, catering services must identify and accommodate these
preferences accordingly and as precisely as they can so as not to be overturned or
surpassed by competitors such as packaged meal businesses.
An activity is considered efficient when it requires little input to obtain the
desired results (Werner et al., 2024). Operational efficiency through measures like
optimizing inventory management, streamlining processes, and enhancing customer
service could significantly boost profitability and customer satisfaction for catering
businesses. The study emphasized that catering businesses must carefully control
operating costs while delivering high-quality services to achieve a competitive advantage.
Furthermore, in their research on small and medium-sized enterprises, Ahmad and
Schroeder (2020) determined that operational efficiency is critical to business success.
Their research suggests that SMEs, including catering businesses, can benefit from
implementing lean management systems to reduce waste and enhance operational
procedures. This approach not only reduces costs but also improves delivery, which is a
crucial aspect of customer retention and business growth. In connection with this, Nigel
Slack (2017) highlights the vital link between operations and business strategies. It
emphasizes how operational decisions improve business viability by having strategic
objectives that support the organization's goals. In addition, Slack demonstrates how
significant improvements in productivity and profitability result from an effective
operations strategy. In service industries, Fitzsimmons and Fitzsimmons (2014) made
valuable efforts and contributions in articulating the importance of service quality and
efficiency in a business. Their research concluded that businesses must balance
operational efficiency and high service standards. In these industries, it suggests that
while streamlining processes is essential, it should not come at the cost of service quality.
The growing number of catering services in Cebu City has led to intense
competition to attract customers. To be unique, many catering services employ strategies
 13

for consumers, such as offering high quality and reasonable prices for the product, setting
discounted rates for a specific menu, and creating a membership system for loyal
customers. In the catering industry, Johnson (2021) states that social media is a
significant tool for acquiring and engaging new clients as it effectively promotes unique
products and high service quality. Taylor (2018) emphasized that by incorporating
customer feedback, one can pinpoint areas needing improvement and resolve arising
problems, therefore enhancing customer satisfaction. Andi (2022) stated that an effective
marketing strategy could boost profit and sales growth. This is particularly relevant to the
growing businesses in Cebu City looking for prospects to expand their market share. In
the study conducted by Kumar and Shah (2018), it was deduced that personalized
marketing and having strong customer relationship management are significant factors
that bring about customer satisfaction and loyalty.
Additionally, Kotler and Keller (2016) stress the importance of integrated
marketing communications (IMC) in creating a cohesive brand message across various
channels. This approach ensures that customers receive consistent information,
reinforcing brand recognition and loyalty. This would mean utilizing a mix of traditional
and digital marketing strategies for catering services to reach a broader consumer market.
Brigham and Ehrhardt (2016) highlight the ties of profitability, liquidity, and
sustainability to a company’s financial performance. Their study delves deeper into how
these metrics become essential for solid decision-making. More so, Jordan et al. (2019)
elaborate on financial performance as a relevant factor in evaluating a business’s success.
The study will reveal changes in revenue, costs, and profits due to competition by
analyzing the financial performance of food catering services and packaged meal
businesses. This analysis will help understand the direct financial effects and viability in
a competitive landscape.
Aaker (2017) ties market influence to analyses covering strategic markets, market
positioning, and strategic planning. More so, Kotler and Keller (2015) emphasize the
impact of market influence on business performance. These strategic marketing decisions
based on market influence can guide catering services in developing competitive
 14

strategies in the changing markets, which might involve differentiating their services or
innovating new offerings.
The literature studied emphasizes the scope and context of the variables
we want to research and understand. Overall, the findings from this literature are critical
in determining the profitability and viability of the food catering businesses we wish to
evaluate. By effectively understanding these studies and how they relate to each of our
variables, we hope to identify new strategies that can be established, approaches that can
be improved, and even new business models that can increase overall profitability and lay
the groundwork for continuous growth in the catering food industries.

THE PROBLEM
Statement of the Problem
This study aims to determine the effects of emerging packaged meal businesses
on the profitability and viability of food catering services in selected barangays in Cebu
City. The results will serve as a basis for recommendations.
Specifically, this study sought to answer the following questions:
1. What is the profile of the respondent in terms of:
1.1 business category
1.2 years of operation.
1.3 working capital; and
1.4 location?
2. What is the profitability of packaged meal businesses and food catering
services in the area of:
2.1 profit margin
2.2 return on investment?
3. What is the viability of packaged meal businesses and food catering services in
the area of:
3.1 market share;
3.2 customer preference;
 15

3.3 operational efficiency; and

3.4 marketing strategy?
4. What is the effect of the emergence of packaged meal businesses on the
profitability and viability of food catering services in the areas of:
4.1 financial performance
4.2 market influence?
5. Is there a significant relationship between the respondent’s profile and the
profitability of food-packaged businesses and catering services?
6. Is there a significant relationship between the respondent’s profile and the
viability of food-packaged businesses and catering services?
7. Based on the study’s findings, what recommendations may be proposed?
Statement of the Null Hypothesis
HO1: There is no significant relationship between the respondent’s profile and
the profitability of food-packaged businesses and catering services.
HO2: There is no significant relationship between the respondent’s profile and
the viability of food-packaged businesses and catering services.
 16

Significance of the Study

This study explored the profitability and viability of individually packaged meals
and food catering services in Cebu City and their potential to generate significant benefits
for the following:
Owners of Businesses. This study's findings benefits the owners by giving
valuable insights into the factors that contribute to the business's success in the
competitive market in Cebu. The essential information acquired will help them identify
problems, which may lead to better strategies to develop their business operations.
Aspiring Entrepreneurs. Aspiring entrepreneurs interested in entering the food
industry can use the study's findings to gain insight into the aspects to consider when
starting a catering service or individual meal package business. They can use the results
as the basis for a well-designed financial structure that is profitable and viable.
Investors. Investors are vital in supplying equity and capital for established and
recently established businesses. This research seeks to broaden investors' perspectives on
pouring their capital into the correct type of food business service. It also clarifies the
nature, risks, and potential gains earned from investing in this industry.
Customers. The insights gained from this research helps customers decide the
most suitable individual-packed meal and catering services, enabling them to choose the
options that satisfy their needs and preferences.
 17

Suppliers. Suppliers play a pivotal role in the daily operations of a food industry
business. This study helps the suppliers better understand the business structure and
nature of the food service industry. The findings seek to improve supplier-client
relationships by offering new insights into the trade, like the importance of implementing
volume discounts, strategic partnerships, promotional discounts, and diversification of
clientele.
Future Researchers. This study's findings will be a reference for future
researchers, providing valuable insights and inspiration to expand this work.

RESEARCH METHODOLOGY
Research Design
The study utilized a Descriptive-Correlational Research Design to investigate the
effects of Packaged meal businesses on the profitability and viability of Catering services
in selected barangays of Cebu City. The researchers utilized the quantitative approach
with researcher-designed questionnaires to gather participant data. The study's findings
will compare the investigated food industries and provide insights into areas they can
improve and develop.

INPUT
PROCESS OUTPUT
 Demographic
 Employing a
profile of the
Descriptive -
respondents
Correlational
 Profitability and
Design by
Viability of
making use of  Proposed
Packaged Meal
survey based - recommendations
Businesses and
research
Food Catering
questionnaire.
Services
 Data Gathering
 Effects of the
 Data Processing
emergence of
 Data analysis
packaged meal
and
 Interpretation

18

Figure 1
Research Flow Process

Research Environment
This study was performed in Cebu City, a well-known urban centre in the
Philippines. It is recognized for its rich culinary scene and renowned for its tradition of
celebrating special occasions such as weddings, birthdays, and Christmas parties. Cebu
City's gatherings are complemented with essential dishes like the famous Lechon. With
it, the celebration is complete, and catering services provide delectable desserts and a
variety of Filipino Cuisine. This cultural inclination toward celebration has fostered a
thriving market, opting to host gatherings at home or in a venue that offers catered meals.
Cebu City is an ideal location to study the factors affecting business profitability and
viability in these sectors since it has a wide range of food service businesses, from large-
scale catering services to small-scale packaged meal businesses. Specifically, the
researchers will gather data from 5 selected barangays of Cebu City, namely Basak San
Nicolas, Guadalupe, Labangon, Lahug, and Tisa. These locations are mainly chosen due
to their highly urbanized areas and highly concentrated population, as stated in the latest
data provided by PSA.

Research Respondent
The respondents for this study includes 15 packaged meal business owners and 15
catering service entrepreneurs based in selected barangays of Cebu City. Respondents
 19

were collected using a convenience sampling technique. Given the substantial quantity
and complexity of data needed for quantitative analysis, 30 respondents were sought. In
addition, on-site visits to operating sites were made to engage directly with the owner and
other staff members. These visits allows for in-depth interviews and observations of
operations, allowing us to understand the processes better and improve the study of the
profitability and viability of individually packaged meals and catering services in Cebu
City.

Research Instrument
The researchers created a survey questionnaire with four (4) sections aimed at
collecting thorough and relevant data on the effects of the packaged meals business on
the profitability and viability of catering services in Cebu City. The survey questionnaire
was applied for face-to-face interviews.
Part 1 of the questionnaire seeks information about the demographic profile of
businesses. Respondents provided information such as the years in operation, working
capital, and location in Cebu City. Respondents were given options and asked to select
the best and appropriate option for each question.
Part 2 focuses on determining business profitability. It includes questions about
crucial profitability measures relating to profit margin and return on investment.
Respondents will rate each profitability aspect with the following metrics.
Strongly Agree (SA) Indicates a high level of execution in business
operations.
Agree (A) Indicates effective execution in business operations.
Disagree (DA) Indicates occasional execution of business
operations.
Strongly Disagree (SDA) Indicates a complete lack of execution in business
operations.
 20

Part 3 investigates business viability, covering market share, customer

preferences, operational efficiency, and marketing strategy effectiveness. Respondents
are asked to rate the extent of the factors contributing to business viability with the
following metrics.
Strongly Agree (SA) Indicates that the respondent holds a high level of
agreement on the scenario provided
Agree (A) Indicates that the respondent agrees on the
scenario provided.
Disagree (DA) Indicates that the respondent disagrees on the
scenario provided
Strongly Disagree (SDA) Indicates that the respondent strongly disagrees on
the scenario provided.
Part 4 investigates the effects of packaged meal businesses on the profitability and
viability of food catering services. Respondents can rate the extent of the factors with the
following metrics.
Strongly Agree (SA) Indicates that the respondent holds a high level of
agreement on the scenario provided
Agree (A) Indicates that the respondent agrees on the
scenario provided.
Disagree (DA) Indicates that the respondent disagrees on the
scenario provided
Strongly Disagree (SDA) Indicates that the respondent strongly disagrees on
the scenario provided.

Dry-Run Procedure
The researchers initiated the dry-run procedures by writing a transmittal letter
addressed to the adviser and dean to seek approval to conduct the study formally. Upon
approval, the adviser and the statistician carefully examined the researcher’s survey
questionnaire to ascertain its reliability and effectiveness.
 21

During this phase, the researchers selected three owners of each business
category: three packaged meal businesses and three food catering services. Respective
owners were chosen to simulate the actual research procedure, which were not part of the
final research sample, to lessen the risk of potential biases.
Subsequently, the researchers conducted a dry-run procedure, guiding them
throughout the process. Additionally, any discrepancies or inconsistencies in the
questionnaire should be monitored during the dry run. In that case, the researchers
accommodated and rectified them accordingly to ensure the questionnaire’s reliability,
comprehensiveness, and relevance. Once the questionnaire has been amended, the final
data gathering was prepared.

Research Procedures
Gathering of Data
The researcher complied with all research protocols before starting the data
collection. First, they formally requested approval from the appropriate authorities, such
as the Review Committee and Research Office. Upon approval, the transmittal letter was
forwarded to the University of Cebu-Lapu-Lapu and Mandaue's Dean of the College of
Business and Accountancy, requesting permission to conduct the surveys with their
supervision.
Once authorization is acquired, the researcher sought permission from the
respective barangay captains of the barangays being surveyed. After this, the researchers
sought the approval of the respective Barangay Captains of the selected locations, who
utilized an approval letter to conduct the study. Researchers began the study once
approved by conducting face-to-face surveys with business owners or representatives to
ensure accurate data collection. Surveys were scheduled at their convenience.
Researchers provided a consent form, safeguarding the rights and privacy of the owner of
the individual packaged meal and catering services, and request their permission in the
study. With the participant's consent, a survey questionnaire covers their business
 22

demographic profile, profitability indicators, factors affecting viability, and the effects of
competitive emergence in alignment with the problem statement.
Throughout the data-gathering process, the researchers upheld strong ethical
standards and transparency to ensure the study's accuracy and reliability. The researchers
also maintained the confidentiality of the participants' information to protect their identity
and privacy.
After gathering the data, the researchers analyzed and interpret the findings.
Based on the results, they developed recommendations and conclusions regarding the
effects of the emerging packaged meal businesses to the profitability and viability of food
catering services. These insights guide business owners in making data-driven decisions
to enhance their operations and competitiveness guide in the food service industry.

Treatment of Data
This study used descriptive and correlational approaches to conduct an in-depth
examination. Initially, analysts used descriptive statistical methods such as frequencies,
percentages, and weighted average means to determine the variables affecting
profitability and viability to gather and make an idea of the data that has been gathered.
These analytical methods used for the initial portion of the survey, providing valuable
data about the distributions and central tendencies of the responses from the individual
packaged meal and catering service owners in Cebu City that were examined.
The research will use inferential statistics, specifically the Chi-Square Test of
Independence Analysis, to examine the correlations between each variable. Any potential
correlation between the variables will be evaluated, and the degree of relationships will
be determined.

Ethical Considerations
Ethical consideration is essential in conducting our research study to safeguard
the respondents' privacy and rights. These measures include obtaining informed consent,
ensuring voluntary participation, and maintaining the data's confidentiality. Before
 23

starting the study, researchers will secure informed consent. Additionally, the researcher
will treat the respondents with kindness and respect.
Furthermore, appropriate measures will be applied to guarantee data security
throughout the data gathering and analysis.
The study should not cause any harm and be transparent about its objective. After
receiving complete information about the survey, the respondents can withdraw without
reacting or remain engaged. Lastly, after the survey, the researcher will express gratitude
to the respondents and acknowledge their willingness to contribute to the study.

Trustworthiness of Research
Multiple methods and procedures have ensured the reliability of the research
findings. First, the data collection procedure was thorough and systematic to reduce
potential bias or errors. The research team used several data collection approaches,
including surveys, to triangulate its findings. This technique provided a complete and
detailed grasp of the research problem. Finally, the research team completes data
analysis, including coding, categorizing, and comparing findings from other data sources.
The researchers guarantees the study's validity by the respondents' total confidentiality
and credibility, as well as the reliability and consistency of the data. Sharing of
information that might violate the privacy of a respondent were strictly prohibited. No
data manipulation occurred, and all information were independently stated to be accurate.
Overall, these metrics contribute to the validity and trustworthiness of the research
findings.
 24

DEFINITION OF TERMS
The following terms are defined operationally to better understand the key
concepts presented in this Study.
Business Category. A specific segment of an industry that focuses on a particular
type of product or service.
Viability. A determinant of business potential and its capacity to maintain its
operations in a long-term prospect.
Customer Preference. What customers like or choose most often when they have
different options.
Financial Performance. The assessment of a company's financial health and
success using various financial metrics.
Food Catering Services. A food industry business that prepares meals while
organizing events for clients.
Packaged Meal Businesses. A food industry business of portioned meals and
single menu offerings prepared and packaged for convenience.
Location. An area used by a business to run its operations.
 25

Marketing Strategy. The plan a business uses to attract and keep customers by
promoting and selling its products or services.
Market Influence. The impact of market conditions and dynamics on a
company's performance and strategy.
Market Share. The portion of customers a business has compared to all the
customers in the market.
Operational Efficiency. How well a business uses resources to produce its
products or services with minimal waste.
Profitability. A determinant of a business's success and overall measure of the
financial health of a business.
Profit Margin. The percentage of revenue remains profit after all expenses are
deducted. It measures the overall financial health of a business.
Return on Investment. A financial indicator that compares net profit to capital
invested.
Working Capital. It refers to the outstanding capital after deducting an entity’s
current assets and its current liabilities.
Years of Operation. It refers to the time a company has operated over a given
period.
 26

CHAPTER 2
PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter presents, analyzes and interprets data gathered from the owners
and/or representatives of packaged meal businesses and catering owners in selected
barangays of Cebu City. The data are presented in a tabular form with corresponding
analysis and interpretation with their implications.

Presentation and Analysis of Data

This chapter contains 6 parts. The first part reveals the profile of the respondents
in terms of business category, years of operation, working capital, and location. The
second part delves deeper to the profitability factors of profit margin and return on
investment. The third section investigates the viability of the respondent’s business in the
aspect of market share, customer preference, operational efficiency, and marketing
strategy. The fourth section dissects the variables specifically tailored to catering business
owners namely financial performance and market influence. The fifth section entails the
 27

significant relationship, if any, between the respondent’s profile and their profitability.
Lastly, the sixth section will determine if there a significant relationship between the
respondent’s profile and the viability of each business category.

PART I. DEMOGRAPHIC PROFILE OF THE RESPONDENTS

This section presents the data of the demographic Profile of the Respondents.

Table 1
Demographic Profile of the Respondents
Variables f %
Business Category
Packaged meal business 15 50.0%
Catering Services 15 50.0%
Years of operation
Less than a year 1 3.3%
3 – 5 years 18 60.0%
5 years beyond 11 36.7%
Working Capital
<100,000 5 16.7%
100,001– 200,000 7 23.3%
200,001 – 300,000 3 10.0%
300,001 – 400,000 4 13.3%
400,000 above 11 36.7%
Location
Basak San Nicolas 6 20.0%
Guadalupe 6 20.0%
Labangon 6 20.0%
Lahug 6 20.0%
Tisa 6 20.0%
 28

This table shows an equal number of percentages in the business category and
location as it is part of the researchers’ strategic plan to ensure that the opinions of
respondents in the respective barangays in Cebu City are evenly collected and
considered. As for the years of operations, it shows that 1 respondent (3.3%) starts their
business operation in just less than a year. It also shows in the table that 18 respondents
(60.0%) start their business operation in a range of 3-5 years. In addition, it shows that 11
respondents (36.7%) operated their business more than 5 years ago. In another variable,
the table shows that only 5 respondents (16.7%) have less than 100,000. While the
majority shows 25 respondents (83.3%) possess working capital greater than 100,000.
As reflected in Table 1, there is an equal frequency and percentage for both the
business category and location. The researchers chose this number of respondents due to
limitations, particularly since the study is only being conducted in five selected barangays
in Cebu City. Additionally, because the researchers used a convenience sampling
technique, the respondents will be limited and selected based on their most convenient
times. According to Kotler Place (2009), everything that shows various activities
business to make products so that the business they run can compete well. Therefore, a
strategic and easily accessible business location will make it easier for consumers to
make transactions.
As for the years of operation, it shows the respondents’ operations among various
years. A large percentage of the sample, or 60%, stated that the respondents establish
their business in a range of 3 to 5 years now. This shows that. A lower percentage of
respondents, 36.7%, fall into operating its business for more than 5 years now. Merely
3.3% of respondents indicated that they started their business in just less than a year now.
This implies that there is a trend of newer businesses entering the market, which could be
indicative of a dynamic and evolving business environment. The results of research
conducted by Handrimurtjahyo, et al (2014) concluded that the business growth of the
business units that were sampled was influenced by the length of the business unit /
craftsman having run a business or influenced by the age of the firm (firm age).
 29

Lastly, as for the respondents’ working capital. A significant portion of

respondents (36.7%) have working capital above 400,000. This shows a substantial
number of businesses are in a strong financial position, allowing for greater operational
flexibility, investment opportunities, and potential for growth. The overall data suggests a
generally healthy financial landscape for most businesses surveyed, with a significant
number possessing higher levels of working capital. This could indicate confidence in
business performance and potential for expansion. In summary, the data reflects a
predominance of businesses with substantial working capital, which can enhance the
respondents’ operational capacity and strategic options while highlighting that a smaller
segment may face challenges due to lower capital availability. Herzfeld B (1990) studied
that “Cash is king” so say the money managers who share the responsibility of running
this country’s businesses. And with banks demanding more from their prospective
borrowers, greater emphasis has been placed on those accountable for so-called working
capital management. Working capital management refers to the management of current or
short-term assets and short-term liabilities. In essence, the purpose of that function is to
make certain that the company has enough assets to operate its business.

PART II. PROFITABILITY OF PACKAGED MEAL BUSINESS AND FOOD

CATERING SERVICES.

This section presents data on the profitability of packaged meal businesses and
food catering services, focusing specifically on profit margins and return on investment.

Table 2
Profit Margin of Packaged Meal Business and Food Catering Services.
Statements Mean Interpretation
2.1 Profit Margin
1. You manage your operating expenses by
implementing appropriate cost control procedures like 3.58 Strongly Agree
forecasting, employee and vendor management.
2. You consistently monitor your production costs 3.55 Strongly Agree
and seek alternative options if costs increase dramatically.
 30

3. Your revenues from the services you offer have 3.26 Strongly Agree
consistently improved throughout your operating periods.
4. You are satisfied with the profits earned from the 3.39 Strongly Agree
services you provide.
Aggregate Mean 3.44 Strongly Agree

The highest mean score in the Profit Margin category is 3.58, indicating that
business owners are effectively managing operating expenses through adequate cost-
control strategies. This finding aligns with studies that emphasize the importance of
expense management in enhancing profitability. In Management and Cost Accounting
(2013), C. Drury highlights that good expense management strategies include a holistic
approach to understanding and controlling operating expenses, rather than just lowering
costs. This perspective is consistent with the study's result that business owners
effectively manage operating expenses.
On the other hand, the lowest mean score of 3.26 suggests that respondents agree
that consistently improving service offerings contributes to greater profits. This is
supported by research indicating that businesses that continuously enhance their products
or services tend to experience higher customer satisfaction and repeat business, ultimately
boosting revenue. According to Chesbrough's (2003), Businesses that focus on enhancing
the service they offer experience higher customer loyalty and satisfaction, which leads to
increased profitability. This aligns with the need of the business to consistently improve
the service and food they offer.
In terms of profitability, the "Profit Margin" category has an aggregate mean
score of 3.44, which is interpreted as "Strongly Agree." This indicates that the majority of
respondents strongly agree with the strategies they employ to enhance and sustain their
profit margins.

Table 3
Return on Investment of Packaged Meal Businesses and Food Catering Services
Statements Mean Interpretation
2.2 Return on Investment
1. You consider the return on capital when deciding 3.74 Strongly Agree
on whether to upgrade equipment or facilities.
 31

2. You regularly assess the return on investments

made in equipment, technology, and other capital assets to 3.52 Strongly Agree
ensure they contribute positively to your profitability.
3. You allocate resources to projects based on their
expected return on capital, ensuring that each project 3.48 Strongly Agree
contributes to overall business growth.
4. You prefer raising capital through equity
investments to avoid the risks associated with debt 3.26 Strongly Agree
financing.
Aggregate Mean 3.50 Strongly Agree

It is shown in the Statistic that prioritizing ROI before upgrading equipment

garnered the highest aggregate mean of 3.74 in the Return on Investment. These signify
the significance of making informed investment decisions, as respondents believe that
these choices directly contribute to profitability. It emphasizes the importance of
evaluating potential returns before purchasing resources, thereby optimizing investments
for maximum impact on profitability. Holland, J., and Lightbody, M. (2018) in the
International Journal of Production Economics highlight how organizations who
strategically upgrade their equipment using ROI analysis see major improvements in
operational efficiency and profitability. The author emphasizes that a thorough review of
possible returns allows businesses to determine which changes will be most beneficial.
This study suggests that a careful assessment regarding potential returns might support
business growth.
Last in rank is that businesses prefer raising capital through equity investment
than debt financing. As equity financing does not require regular interest payments and
reduces the burden of debt. By opting for equity investment, businesses can access funds
without incurring liabilities, which can be particularly advantageous during periods of
economic uncertainty. According to Myers' (1984) "The Capital Structure Puzzle,"
corporations frequently prefer capital to minimize the risks associated with debt, such as
probable bankruptcy and cash flow pressures. Furthermore, in their research on capital
structure choices, Frank and Goyal (2003) found that enterprises may prefer equity
financing to improve their financial stability and invest in opportunities for growth
without the limits that debt obligations impose.
 32

The aggregate mean score for the "Return on Investment" (ROI) category is 3.50,
which is also interpreted as "Strongly Agree." This suggests that respondents prioritizing
ROI before upgrading equipment, evaluating ROI, allocating resources based on expected
returns, and achieving profit satisfaction all have a significant impact on the business's
ROI.

PART III. VIABILITY OF FOOD PACKAGED BUSINESSES AND FOOD

CATERING SERVICES

This section assesses the viability of packaged food businesses and food catering
services, organized into four subsections: market share, customer preference, operational
efficiency, and marketing strategy.

Table 4
Market Share of Food Packaged Businesses and Food Catering Services
Statements Mean Interpretation
3.1 Market Share
1. There is a consistent increase in your market
3.45 Strongly Agree
share.
2. Your business has a high customer retention rate. 3.52 Strongly Agree
3. You are successful at acquiring new customers. 3.48 Strongly Agree
4. You are confident that consumers will choose 3.23 Agree
your product over your competitors.
Aggregate Mean 3.42 Strongly Agree

In terms of market share, the highest mean at 3. reflects a strong agreement

among the respondents that their business has a high level of customer retention which
suggests that customer retention is seen as an essential driver for maintaining and
increasing market share in the long-term. This implies that businesses should prioritize
strategies that foster loyalty to enhance market share stability. On the other hand, the
lowest mean garnered is at 3.23, which suggests that there is a general agreement among
 33

respondents that they are confident that customers will choose their product over their
competitors. This indicates that while the respondents are generally optimistic about their
competitive positioning, this confidence is slightly lower than other factors being
assessed.
The aggregate mean of 3.42 in terms of Market Share reflects strong overall
agreement among respondents with the statement on market share. This suggests that
business owners have a strong positive view of their market positioning, and confidence
in the ability to expand their market share. This implies that respondents recognize the
value of market share in supporting business viability. Market share reflects the
percentage of sales or customer base that a business captures in relation to its
competitors, serving as a key indicator of a business’ competitive strength and position
within the market.
Edeling and Himme (2018) suggests that a company’s market share significantly
impacts its profitability and resilience, although its effect varies by industry and
economic conditions. Their meta-analysis across numerous studies reveals that higher
market share typically corresponds to improved financial outcomes, especially in
consumer-oriented markets and emerging economies, underscoring its importance as a
strategic metric for business viability.

Table 5
Customer Preference of Food Packaged Businesses and Food Catering Services
Statements Mean Interpretation
3.2 Customer Preference
1. You make sure your services comply with or
3.55 Strongly Agree
exceed customers’ expectations.
2. Your customers would rather have personalized
3.13 Agree
menu options.
3. Your customers would rather have standardized
3.06 Agree
menu options.
4. Your customers find your service at a reasonable 3.42 Strongly Agree
price.
Aggregate Mean 3.29 Strongly Agree
 34

For customer preference, the highest mean score of 3.55 indicates that there is a
high level of confidence among respondents that their services meet or surpass what
customers desire. This strong agreement points to a belief that they consistently deliver
value and quality, which aligns with customer needs and preferences. On the other hand,
the lowest mean score is garnered at 3.06 which indicates that there is a general
agreement among respondents that their customers would rather have standardized menu
options. This implies that while there may be some variability in customer preference, a
significant portion of respondents believe that standardized menus are the preferred
choice among customers.
The aggregate mean of 3.29 reflects a strong overall agreement among
respondents with the statement on customer preference. This implies that most
respondents observe a trend or preference but that there might be some variation among
individual customer needs or perspectives. Understanding and aligning with customer
preferences can directly impact a business’ ability to attract and retain customers, as
satisfied customers are more likely to return, recommend the service, and increase
revenue through repeat business. It is a foundational aspect of business viability, where
flexibility, choice, and responsiveness can make or break customer satisfaction.
Smith et al. (2021) examined the determinants of customer satisfaction and
retention within the food service industry. Their study underscored the positive impact of
consistent service quality and menu standardization on customer perceptions of reliability
and value. Furthermore, their results indicated that customers appreciate a dependable
and recognizable experience, fostering trust and sustained satisfaction. This verifies the
assertion that responsiveness and flexibility in meeting customer preferences are essential
for sustaining competitiveness and enhancing long-term customer relationships.

Table 6
Operational Efficiency of Food Packaged Businesses and Food Catering Services
Statements Mean Interpretation
3.3 Operational Efficiency
1. You make sure that we efficiently prepare and
3.57 Strongly Agree
make meals with minimal waste.
2. The delivery timeframe of your services 3.55 Strongly Agree
 35

consistently meets your customers' expectations.

3. You utilize resources effectively to satisfy the
3.65 Strongly Agree
demands of your customers.
4. You implement proper inventory management 3.74 Strongly Agree
practices when storing your ingredients to avoid spoilage.
Aggregate Mean 3.63 Strongly Agree

For operational efficiency, the highest mean at 3.74 reflects a strong agreement
among our respondents that the implementation of proper inventory management in
storing their ingredients is important to avoid spoilage. Effective resource utilization and
inventory management are seen as essential to avoid spoilage, highlighting the
importance of operational practices in maintaining service quality. Proper inventory
management is also crucial for minimizing waste and ensuring that ingredients are used
before they spoil, which ultimately contributes to operational efficiency and cost savings.
Moreover, the lowest mean garnered is at 3.55. This indicates that the consistency of their
delivery timeframe is effective in meeting the customers’ expectations.
The aggregate mean of 3.63 in Operational Efficiency indicates that respondents
generally agree with the statements on operational efficiency. This suggests that the
catering service and packed meal services are generally perceived as effective in meal
preparation, resource utilization, and inventory management. The mean scores
collectively highlight the importance of these practices in maintaining high service
quality and minimizing waste.
Article from Access Group outlines the significance of enhancing operational
efficiency through effective inventory management and streamlined processes. It
emphasizes that optimizing inventory practices can significantly reduce waste and costs,
thereby improving profitability and customer satisfaction. Alberca and Parte (2018) also
examines the operational efficiency of restaurant firms, revealing that factors such as
effective inventory management significantly influence operational performance. The
findings indicate that larger restaurants tend to perform better than smaller ones,
emphasizing the importance of efficient practices in enhancing profitability and customer
satisfaction. This aligns with the high mean scores observed in your data regarding
operational efficiency.
 36

Table 7
Marketing Strategy of Food Packaged Businesses and Food Catering Services
Statements Mean Interpretation
3.4 Marketing Strategy
1. You market your service using internet platforms
3.19 Agree
in the business you operate.
2. You efficiently advertise your business through
3.16 Agree
traditional promotion platforms.
3. You extend discounts and exclusive deals to
3.06 Agree
increase sales as part of your promotional strategy.
4. You engage with your clients to learn about their
opinions and improve your offerings using social media 3.52 Strongly Agree
channel.
Aggregate Mean 3.23 Agree

For Marketing strategy, the highest mean at 3.54 indicating that respondents
strongly agree in the effectiveness of engaging with clients through social media. It
suggests that businesses recognize the value of customer feedback in refining their
services and offerings. This engagement likely fosters stronger customer relationships
and enhances overall satisfaction.
The lowest mean on the other hand is at 3.06 indicating a moderate level of
agreement among respondents regarding the effectiveness of discounts and exclusive
deals in driving sales. While many acknowledge the importance of these strategies, the
relatively lower score suggests that there may be reservations about their effectiveness or
that they may not be perceived as the primary driver of sales compared to other
marketing strategies.
The aggregate mean of 3.23 in the Marketing Strategy reflects a strong overall
agreement with the marketing strategies employed by the respondents. This indicates that
respondents generally agreed on the effectiveness of using internet platforms, traditional
advertising, and customer engagement through social media to promote their services.
The positive perception of these strategies suggests they are integral to enhancing
visibility and customer interaction in the catering industry.
Kukanja and Planinc (2019) highlights that effective marketing strategies,
including customer engagement and feedback mechanisms, significantly enhance
operational efficiency without compromising service quality. The findings suggest that
 37

restaurants that actively engage with customers through social media and promotional
strategies tend to perform better in terms of both operational metrics and customer
satisfaction.

PART IV. EFFECTS OF THE EMERGENCE OF PACKAGED MEAL

BUSINESSES ON THE PROFITABILITY AND VIABILITY OF FOOD
CATERING SERVICES.
This data shows the impact of the emergence of packaged meal businesses on the
profitability and 3.52viability of food catering services, specifically in relation to
financial performance and market dynamics.

Table 8
Effects of the Emergence of Packaged Meal Businesses on the Financial
Performance of Food Catering Services
Statements Mean Interpretation
4.1 Financial Performance
1. The emergence of packaged meal businesses has
convinced you to adjust your pricing strategy to maintain 2.81 Agree
steady profit margins.
2. Your profit margins have decreased due to 2.75 Agree
increased competition from packaged meal businesses.
3. Investments in improving service quality have
yielded higher returns despite the competition from 2.94 Agree
packaged meal businesses.
4. You have implemented cost-saving measures to
counter the impact of packaged meal businesses on your 3.31 Strongly Agree
profit margins.
Aggregate Mean 2.95 Agree
 38

For financial performance, the highest mean at 3.31 reflects a strong agreement
among our respondents that the implementation of cost-saving measures is essential to
counter the impact of emerging packaged meal businesses towards their profit margin.
Moreover, the lowest mean garnered is at 2.75. This indicates packaged meal businesses
have impacted the profit margins of catering businesses. It implies a direct effect of
competition to their profit margin and as such probable measures to combat these effects
may be needed to be put in place
The aggregate mean of 2.95 in Financial Performance indicates that respondents
generally agree with the statements on financial performance. This suggests that the
emergence of packaged meal businesses has significant impacts and effects to the
catering owners and that relative actions are currently being in place to combat its
emergence such as adjusting pricing strategies and implementing cost saving measures.
Jordan et al. (2019) elaborates financial performance as a relevant factor to
evaluate a business’ success. As such, an in-depth analysis on the direct effects of
competition to these financial aspects are highly relevant to ensuring a business is
profitable and will continue to do as it remains in operation

Table 9
Effects of the Emergence of Packaged Meal Businesses on the Market Influence of
Food Catering Services
Statements Mean Interpretation
4.2 Market Influence
1. The popularity of packaged meal businesses has 2.56 Agree
caused a decline in your customer base.
2. The emergence of packaged meal businesses has
shifted customer preferences away from traditional catering 2.44 Disagree
services.
3. The competition from packaged meal businesses
has led you to offer special deals and discounts more 2.75 Agree
frequently.
4. You allocate more budget to marketing and 3.00 Agree
advertising to maintain or increase your market presence.
Aggregate Mean 2.69 Agree
 39

Subsequently, for Market Influence, the highest mean is at 3.00, which shows
agreement among respondents that allocating more of the budget to marketing and
advertising is necessary to maintain or increase market presence amidst competition from
packaged meal businesses. This finding suggests that catering businesses recognize the
need to enhance their visibility to compete effectively in a crowded market that is
increasingly influenced by packaged meal businesses.
In contrast, the lowest mean, at 2.44, indicates disagreement that customer
preferences have shifted away from traditional catering services due to packaged meal
businesses. This may imply that while packaged meals are gaining popularity and
industry strength, they have not yet fully replaced the demand for traditional catering
among certain customer segments.
With an aggregate mean of 2.69 for Market Influence, respondents generally
agree that packaged meal businesses leave an impact on their market standing. This
suggests that while the traditional customer base may not be entirely diminished and
shifted, the presence of packaged meal competitors’ prompts catering services to adopt
proactive strategies such as frequent promotions and increased marketing efforts to
sustain their customer reach.
Smith and Brown (2020) highlight that adapting to market influence is vital for
sustaining competitiveness in evolving industries. Their study supports the notion that
catering businesses can benefit from understanding these shifts, allowing them to refine
their strategies and maintain a strong market presence amid the rise of alternative food
service options.

PART V. RELATIONSHIP BETWEEN THE RESPONDENTS PROFILE AND

THE PROFITABILITY OF FOOD PACKAGED BUSINESSES AND CATERING
SERVICES.

This section presents data on the relationship between respondents’ profiles and
the profitability of food packaging businesses and catering services. It examines how
various aspects of the respondents’ backgrounds may influence the financial success of
these types of enterprises.
 40

Table 10
Relationship Between the Respondents Profile and The Profitability of Food
Packaged Businesses and Catering Services
Chi-
Critical
Variables Square p- Significance Result
Value
Value
Business Category
Not
Profit Margin 0.456 0.05 Ho Accepted
Significant
Not
Return on Investment 0.439 0.05 Ho Accepted
Significant
Years of operation
Not
Profit Margin 0.303 0.05 Ho Accepted
Significant
Not
Return on Investment 0.184 0.05 Ho Accepted
Significant
Working Capital
Not
Profit Margin 0.051 0.05 Ho Accepted
Significant
Return on Investment 0.489 0.05 Not Ho Accepted
 41

Significant
Location
Not
Profit Margin 0.172 0.05 Ho Accepted
Significant
Not
Return on Investment 0.112 0.05 Ho Accepted
Significant

The results indicate that there is no significant relationship between the

respondents' profile and the profitability of packaged meal businesses and catering
services. With a critical value set at 0.05, all variables related to demographic profile and
profitability show p-values greater than the threshold. However, it is crucial that while all
variables exceeded the critical value, the relationship between working capital and profit
margin yielded a p-value of 0.051—extremely close to being considered significant.
These results reflect the findings obtained by Gołaś (2020), who delved in food
and beverage industry profitability and stressed the importance of managing working
capital effectively to increase profit margins. Regarding the SMEs, prudent working
capital policies, particularly in the high turnover food service sector, are vital to the
financial soundness of the business (Pais & Gama, 2015). Furthermore, Shah (2016) also
stated that the use of working capital management during economic cycles can increase
the level of profitability in catering and meal services markets that are defined as volatile
markets. Taken together, these studies suggest that while demographic factors may be
irrelevant in explaining the level of profitability, working capital management is a
noteworthy variable that must be accounted for in creating competitive strategies to
maintain profit margins in the food supply industries.

PART VI. RELATIONSHIP BETWEEN THE RESPONDENTS PROFILE AND

THE VIABILITY OF FOOD-PACKAGE BUSINESS AND CATERING
SERVICES.

This section analyzes the relationship between respondents' profiles and the
viability of food-packaged businesses and catering services, highlighting significant and
non-significant relationships among various variables.
 42

Table 11

Relationship Between the Respondents Profile and The Viability of Food-Package

Business and Catering Services
Chi-
Critical
Variables Square p- Significance Result
Value
Value
Business Category
Not Ho
Market Share 0.464 0.05
Significant Accepted
Customer Preference 0.003 0.05 Significant Ho Rejected
Not Ho
Operational Efficiency 0.690 0.05
Significant Accepted
Not Ho
Marketing Strategy 0.751 0.05
Significant Accepted
Years of operation
Market Share 0.044 0.05 Significant Ho Rejected
Not Ho
Customer Preference 0.384 0.05
Significant Accepted
Operational Efficiency 0.206 0.05 Not Ho
 43

Significant Accepted
Marketing Strategy 0.003 0.05 Significant Ho Rejected
Working Capital
Not Ho
Market Share 0.668 0.05
Significant Accepted
Not Ho
Customer Preference 0.087 0.05
Significant Accepted
Not Ho
Operational Efficiency 0.781 0.05
Significant Accepted
Not Ho
Marketing Strategy 0.310 0.05
Significant Accepted
Location
Market Share 0.013 0.05 Significant Ho Rejected
Not Ho
Customer Preference 0.336 0.05
Significant Accepted
Not Ho
Operational Efficiency 0.249 0.05
Significant Accepted
Not Ho
Marketing Strategy 0.117 0.05
Significant Accepted

The analysis of the relationship between respondents' profiles and the viability of
food-packaged businesses and catering services reveals both significant and non-
significant associations. For customer preference, there is a significant relationship with
business category (p = 0.003), suggesting that the type of service—packaged meals or
traditional catering—affects customer choices. This aligns with findings from Gagliano
and Hathcote (2015), which emphasize that convenience-oriented models like packaged
meals can sway consumer preference. However, business category does not have a
significant relationship with variables such as market share (p = 0.464), operational
efficiency (p = 0.690), or marketing strategy (p = 0.751), indicating that these aspects are
less influenced by the type of business.
In terms of years of operation, there is a significant association with market share (p =
0.044), implying that more established businesses tend to secure a larger customer base
over time. This supports research by Lee and Hsieh (2018), which found that a longer
operational history aids in building customer loyalty in competitive sectors. Additionally,
years of operation significantly impact marketing strategy (p = 0.003), reflecting how
experienced businesses may have more refined approaches to targeting audiences,
 44

consistent with Roberts and Mao’s (2015) findings. However, years of operation does not
significantly relate to customer preference (p = 0.384) or operational efficiency (p =
0.206), suggesting that these aspects are not directly influenced by business longevity.
The relationship between working capital and all variables—market share (p = 0.668),
customer preference (p = 0.087), operational efficiency (p = 0.781), and marketing
strategy (p = 0.310)—is not significant. This suggests that working capital alone may not
dictate these viability factors in the food service sector. Conversely, location significantly
impacts market share (p = 0.013), highlighting the advantage of strategic proximity to
target customers or high-traffic areas in expanding a customer base. This is supported by
research from Hernández-Murillo and Knowles (2018), who noted that location plays a
key role in customer access and market positioning. However, location does not
significantly affect customer preference (p = 0.336), operational efficiency (p = 0.249), or
marketing strategy (p = 0.117), indicating that these factors are less dependent on
geographical positioning.
While factors like business category, years of operation, and location exhibit
significant relationships with certain aspects of business viability, other profile attributes,
such as working capital, do not show significant associations. This emphasizes the
nuanced role of these variables, where operational longevity and strategic location play
particularly important roles in establishing a stable market presence and fostering
customer loyalty amidst growing competition from packaged meal providers.
 45

CHAPTER 3
SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

SUMMARY

This chapter provides an overview of the study’s key findings, conclusions, and
recommendations as a result of the research conducted.
This study aims to determine the effects of emerging packaged meal businesses on the
profitability and viability of food catering services in selected barangays in Cebu City.
The results will serve as a basis for recommendations.
Specifically, this study seeks to answer the following questions:
1. What is the profile of the respondent in terms of:
1.1 business category
1.2 years of operation.
 46

1.3 working capital; and

1.4 location?
2. What is the profitability of packaged meal businesses and food catering services
in the area of:
2.1 profit margin
2.2 return on investment?
3. What is the viability of food packaged businesses and food catering services in
the area of:
3.1 market share;
3.2 customer preference;
3.3 operational efficiency; and
3.4 marketing strategy?
4. What is the effect of the emergence of packaged meal businesses on the profitability
and viability of food catering services in the areas of:
4.1 financial performance
4.2 market influence?
5. Is there a significant relationship between the respondent’s profile and the
profitability of food-packaged businesses and catering services?
6. Is there a significant relationship between the respondent’s profile and the
viability of food-packaged businesses and catering services?
7. Based on the study’s findings, what recommendations may be proposed?

Statement of the Null Hypothesis

HO1: There is no significant relationship between the respondent’s profile and
the profitability of food-packaged businesses and catering services.
HO2: There is no significant relationship between the respondent’s profile and
the viability of food-packaged businesses and catering services.

FINDINGS
 47

1. The findings from the data imply that the majority of respondents have been
operating their businesses for a significant period of time, with 60% having been
in business for 3-5 years, 36.7% for over 5 years, and only 3.3% for less than a
year. This indicates a trend of new businesses entering the market, suggesting a
dynamic business environment. The researchers selected five barangays with an
equal number of respondents due to limitations and the availability of
respondents. In terms of working capital, 16.6% of business owners started with
less than 100,000. In the range of 100,001–200,000, only 23.3% of business
owners began with that amount. Just 10% of business owners fall into the
200,001–300,000 range. In the 300,001–400,000 range, only 13.3% of business
owners started with that amount. A significant majority, 36.7%, started with more
than 400,000, indicating a generally strong financial position among the
businesses surveyed.
2. The responses indicate that businesses are effectively managing their profit
margins, with strong cost control procedures reflected in a mean score of 3.58,
and consistent monitoring of production costs at 3.55, both of which respondents
strongly agree with. Additionally, there is a positive trend in revenues from
services, scoring 3.26, and satisfaction with profits at 3.39, leading to an
aggregate mean of 3.44 for profit margin management.
3. The responses indicate that businesses are experiencing growth, with a consistent
increase in market share with a mean of 3.45 in which respondents strongly agree
to it, high customer retention with a mean of 3.52 in which respondents strongly
agree to it, and success in acquiring new customers with a mean of 3.48 in which
respondents strongly agree to it. However, they show moderate confidence in
consumers choosing their product over competitors with a mean of 3.23 which
respondents agree to it, having a total of 3.42 aggregate mean. Respondents also
strongly agree that their services meet customer expectations with a mean of 3.55
and are reasonably priced with a mean of 3.42, though opinions on personalize vs.
standardized menu options are in the mean of 3.13 and 3.06 which respondents
agree to it, having a total of 3.29 aggregate mean. In terms of operational
 48

efficiency, respondents strongly agree prioritize minimizing waste with a mean of

3.57, meeting delivery expectations with a mean of 3.55, and managing inventory
effectively with a mean of 3.74, with an aggregate mean of 3.63, reflecting strong
operational focus. For marketing, respondents agree in using internet with a mean
of 3.19 and traditional advertising with a mean of 3.16, and engage with
customers on social media which the respondents strongly agree to it whit a mean
of 3.52. While promotions with a mean of 3.06 which the respondents agree to it
are part of the strategy, they aren't the main focus. The overall mean score of 3.23
suggests that marketing efforts are in place but could be further optimized.
4. The findings imply that respondents agree that rising competition has led to
adjustments in pricing with a mean score of 2.81 and a decrease in profit margins
with a mean score of 2.75. However, many find and agree that investing in service
quality with a mean score of 2.94 has helped sustain profitability. To further
counteract the impact, respondents agree and implemented cost-saving measures
with a mean score of 3.31. Overall, with an aggregate mean of 2.95, businesses
acknowledge the competitive pressure but are actively taking steps to adapt and
maintain profitability. In terms of market impact, respondents agree that the rise
of packaged meal businesses has led to a slight decline in their customer base with
a mean score of 2.56, but they disagree that customer preferences have fully
shifted away from traditional catering services with a mean score of 2.44. In
response to the competition, respondents agree to more special deals and
discounts with a mean score of 2.75 and increasing their marketing and
advertising budgets with a mean score of 3.00 to maintain or grow their market
presence. The aggregate mean of 2.69 indicates that while businesses recognize
the impact of packaged meal services, they are actively adapting to the changing
market dynamics
5. The chi-square test results suggest that factors such as business category, years of
operation, working capital, and location do not significantly influence the
profitability of food-packaged businesses and catering services. For business
category, both profit margin with a p-value of 0.456 and return on investment
 49

(ROI) with a p-value of 0.439 showed no significant relationship, meaning the

type of business category does not impact profitability. Similarly, the number of
years a business has been operating does not significantly affect profit margin
with a p-value of 0.303 or ROI with p-value of 0.184, with the null hypothesis
being accepted in both cases. Regarding working capital, although the p-value for
profit margin results to 0.051 is close to the threshold, it still does not show a
significant effect, and the p-value for ROI which is 0.489 confirms that working
capital does not significantly influence profitability. Lastly, business location also
did not show a significant relationship with either profit margin with a p-value of
0.172 or ROI with a p-value of 0.112, meaning location does not play a
significant role in determining profitability. Overall, the results indicate that none
of these factors significantly affect the financial performance of the businesses in
terms of profit margin or return on investment.
6. The analysis of the relationship between respondents' profiles and the viability of
food-packaged businesses and catering services reveals both significant and non-
significant associations. A significant relationship was found between business
category and customer preference (p = 0.003), suggesting that the type of service
offered whether food-packaged meals or traditional catering can influence
consumer choices. However, the study found no significant impact of business
category on market share (p=0.464), operational efficiency (p=0.751), or
marketing strategy (p=0.751). These findings indicate that the business model
itself does not substantially affect these specific aspects of business performance.
A significant association was found between the number of years of operation and
both market share (p=0.044) and marketing strategy (p=0.003). These results
suggest that businesses with longer operational histories tend to attract a larger
customer base and refine their marketing strategies over time. However, no
significant relationship was observed between years of operation and customer
preference (p=0.384) or operational efficiency (p=0.206), indicating that business
longevity does not necessarily influence consumer choices or enhance operational
effectiveness. The analysis showed no significant correlation between working
 50

capital and viability factors such as market share (p = 0.668), customer preference
(p = 0.087), operational efficiency (p = 0.781), or marketing strategy (p = 0.310).
This indicates that merely having working capital does not notably affect the
success or operational performance of food-service businesses. The data shows
that location has a significant impact on market share (p = 0.013), emphasizing
the importance of geographic positioning in drawing customers and enhancing
market reach. However, location does not have a significant influence on
customer preference (p = 0.336), operational efficiency (p = 0.249), or marketing
strategy (p = 0.117), indicating that these aspects are less dependent on physical
location.
The study on packaged meal businesses and food catering services in Cebu City
reveals that a significant majority of respondents have been operating their businesses for
several years, with 60% in operation for 3-5 years and 36.7% for over 5 years. A strong
financial position is indicated by 83.3% possessing over 100,000 in working capital.
Respondents express strong agreement on profitability strategies, with aggregate mean
scores for profit margin and ROI at 3.44 and 3.50, respectively. Customer retention and
operational efficiency are highlighted as critical factors, with high mean scores reflecting
the importance of inventory management and effective marketing strategies, particularly
through social media.
However, the analysis shows no significant relationship between demographic
profiles and profitability, though working capital approaches a significant link with profit
margin. Location and years of operation play a crucial role in market share and marketing
strategy effectiveness. Overall, the findings underscore the necessity for catering
businesses to adapt to competition from packaged meal services by enhancing customer
relationships, refining operational practices, and strategically managing their financial
resources. This dynamic environment necessitates informed decision-making to sustain
profitability and market presence.

CONCLUSIONS
 51

The study titled "The Effects of Emerging Packaged Meal Businesses on the
Profitability and Viability of Food Catering Services in Selected Barangays of Cebu
City" finds that packaged meal businesses are impacting catering services by introducing
price-based competition, which has put downward pressure on profit margins. This has
prompted catering businesses to adopt cost-saving measures and reconsider their pricing
and operational strategies to maintain profitability. Additionally, while packaged meals
present a strong value proposition for convenience, catering businesses remain relevant
for their capacity to handle larger, event-based services that demand customized
arrangements.

Applying Porter’s Five Forces model, these findings highlight the competitive
intensity packaged meals bring as new entrants, which challenges catering services to
adapt strategically. For catering services, investing in operational efficiency and
emphasizing unique, customized experiences may prove essential to sustaining
profitability and market share. Ultimately, by navigating these competitive pressures and
leveraging their distinct market value, catering businesses can strengthen their resilience
and position themselves as indispensable service providers in an evolving food industry
landscape.

RECOMMENDATIONS

For Business Owners:

1. Optimize Pricing Strategies: Review and adjust pricing based on market trends,
competitor analysis, and customer willingness to pay. Catering businesses should
consider investing in data analytics to better understand customer behavior and
track event frequency to optimize accurate pricing strategies. Consider bundling
services or offering package deals to enhance perceived value.
2. Enhance Customer Loyalty Programs: Establishing loyalty programs or
community-based promotions can help catering businesses retain a dedicated
 52

customer base. Examples include offering discounts for local businesses, rewards
for repeat customers, or sponsorships of local events. Building a community-
centered brand identity can enhance customer loyalty and differentiate the
catering sector from the more transactional model of packaged meals.
3. Marketing and Promotional Strategy Improvements: As packaged meal
businesses gain popularity largely due to their convenience and online
accessibility; catering services should upgrade their means of advertising.
Experimenting with different types of promotions, such as limited time offers or
bundling services, could provide insights into what resonates best with customers.
Targeted promotional efforts will allow them to emphasize their unique value in
customer experiences, setting them apart from the convenience-based appeal of
packaged meals. Integrating options for customizable menus, transparent pricing,
and easy booking can bridge the gap between catering services and packaged
meal businesses in terms of customer convenience.
4. Collaborate for Hybrid Offerings: Rather than viewing packaged meal
businesses solely as competitors, catering services might explore partnerships to
create hybrid offerings. For instance, catering businesses could offer pre-event
packaged meals or collaborate with packaged meal providers to create "event kits"
for smaller gatherings. Such partnerships can expand the customer base and
provide additional revenue streams without direct competition.

For Aspiring Entrepreneurs:

1. Identify and Target Niche Market Segments: Entrepreneurs considering
packaged meals or catering services should evaluate niche segments within each
industry. For packaged meals, targeting busy professionals, health-focused
consumers, or specific dietary needs can be highly effective. In catering, consider
specializing in specific event types—such as corporate events, intimate
gatherings, or upscale occasions—where personalized and premium services are
valued.
 53

2. Innovate with Hybrid Models: New entrants could explore hybrid business
models that blend elements of packaged meals and traditional catering. This
approach might involve offering both pre-packaged meals for convenience and
customizable catering options, allowing flexibility to meet diverse consumer
demands.

For Investors:
1. Assess Market Adaptability: Before investing, evaluate catering businesses that
have shown adaptability to emerging packaged meal trends, as they are more
likely to sustain profitability. Look for signs of flexibility, such as diversified
services or innovative pricing strategies, which indicate the business can
withstand market shifts.
2. Encourage Strategic Partnerships: Consider supporting businesses open to
partnerships, such as collaborations with packaged meal providers, which can
create hybrid offerings and capture a wider market. These partnerships can
enhance revenue opportunities and reduce direct competition, creating a more
sustainable investment.

For Customers:
1. Evaluate Service Value Beyond Price: When choosing between packaged meals
and catering services, consider the overall experience each option offers, not just
the cost. Catering services often provide personalized touches, unique menu
options, and the opportunity for a more memorable dining experience, especially
for events.
2. Engage with Loyalty Programs or Promotions: Take advantage of loyalty
programs, promotions, or discounts that catering services may offer. This can
provide more affordable options while fostering a closer connection with local
businesses that prioritize community engagement and personalized services.

For Suppliers:
 54

1. Adapt Offerings to Meet Diverse Client Needs: Recognize the rise of packaged
meal businesses alongside traditional catering services by adjusting product lines
and delivery methods. Offering flexible, smaller bulk orders or specialized
products for convenience-focused businesses can strengthen supplier relationships
and expand customer reach.

For Future Researchers:

1. Explore Regional and Market-Specific Trends: To expand on this study, future
researchers could delve into specific factors affecting catering services and
packaged meal businesses in other regions or smaller localities, examining how
different consumer preferences, economic conditions, and demographics impact
these industries.
2. Analyze Customer Perceptions and Preferences: Future research might benefit
from examining the evolving consumer preferences for convenience and
customization in food services. Studying consumer attitudes toward sustainability,
pricing, and service customization can guide both catering services and packaged
meal businesses on adapting to emerging consumer expectations.

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 59

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APPENDICES
APPENDIX A - Transmittal Letters
60
61
62
63
64
 65

APPENDIX B – Consent Form

 66

RESEARCH INFORMED CONSENT FORM

Informed Consent Form for the study “The Effects of Emerging Packaged Meal
Businesses to the Profitability and Viability of Food Catering Service in Selected
Barangays of Cebu City.”

Name of Principal Investigator: Brix Negro

Name of Organization: University of Cebu-Lapu- Lapu and Mandaue

Name of Proposal: The Effects of Emerging Packaged Meal Businesses to the

Profitability and Viability of Food Catering Service in Selected Barangays of Cebu City.

This Informed Consent Form has two parts:

 Information Sheet (to share information about the research with you)
 Certificate of Consent (for signatures if you agree to take market part)

You will be given a copy of the complete Informed Consent Form.

PART I: Information Sheet

Introduction

With utmost respect, your participation is humbly appreciated in a research study

conducted by Julia Rae G. Branzuela, Marissa Lacoste, Brix Negro, Ma. Juliana Rin and
Shaiah Kaye Roble. This study focuses on determining the effects of the rising entrants,
such as packaged meal businesses, on the profitability and viability of catering services in
Cebu City. Our primary goals are to evaluate the significant changes in these specific
areas, identify areas for improvement, and create development strategies. By doing so, we
seek to formulate recommendations to optimize profitability and viability and address
associated challenges within the sector.
 67

Your opinions and personal insights are essential to accomplishing these goals, and we
gratefully acknowledge your contribution. Below is a thorough summary of the research
and its components, as well as information about your rights as a participant and how
your responses will be protected throughout the study.

Purpose of the Study

Our aim in this study is to comprehensively understand the effects on the
profitability and viability of catering services amidst the rise of packaged meal
businesses. We will evaluate various aspects such as profit margin, return on capital,
market share, customer preference, operational efficiency, marketing strategy, financial
performance, and market influence. By doing so, we seek to evaluate whether engaging
in catering services is financially feasible and sustainable in the current market conditions
to identify opportunities for improvement. As a result, we aim to develop
recommendations to improve profitability and viability while addressing the sector's
challenges.

Type of Research Intervention

This study is a survey questionnaire approach to gain insight into your business's
profitability and viability. The questions are proposed to assist us in understanding your
challenges and what has worked most effectively for you. Your responses will provide
vital information for analysis and conclusions.

Respondent Selection
You were selected to participate in this study based on your involvement as a small-
scale business operator in Cebu City. Your firsthand knowledge and perspective as
individuals directly involved in the day-to-day operations of small-scale food businesses
are invaluable and critical to our research objectives.
Involvement in the study is entirely voluntary and will not affect your relationship
with us or any other linked organizations. We appreciate your autonomy and guarantee
 68

that your decision to stay or withdraw will be respected completely, with no

consequences.
Procedures and Protocol
If you participate, you will be requested to complete a detailed questionnaire. This
questionnaire is expected to collect information regarding your profitability and viability.
We will provide clear instructions and support to make the procedure as smooth as
possible.

Duration
Participating in this study will entail completing a questionnaire, which will take 10
to 15 minutes. This brief yet important commitment of your time is invaluable to our
research since it allows us to collect necessary information on your company's
profitability and viability. We recognize that your time is valuable, so we created the
questionnaire to be focused and clear to accommodate your busy schedule.

Risks

There are no identified risks associated with taking part in this study. We have
taken several measures to protect your participation and information. Your survey
responses will be anonymised, so they will not be correlated with your identity. This
approach assures that your privacy is protected during the study.

Reimbursements
No monetary reimbursements are offered for your participation in this study. The
decision was not to provide reimbursements because participants do not incur any
expenses associated with their involvement. Unlike some studies involving expenses, our
research only requires your time and insights. Therefore, reimbursement is unnecessary
in this case.
 69

Confidentiality
Your participation in this study and all data gathered will be confidential. We
assure you that your identity will be anonymized, meaning all personal identifiers will be
removed from the data. Furthermore, all data collected will be securely stored and only
accessible to the research team. We are committed to protecting your privacy and keeping
your participation discreet during the study. Your trust is paramount to us, and we take
every measure to uphold the highest confidentiality and data protection standards.

Sharing the Results

The results obtained from the University Research Office (URO) will be published
and disseminated to facilitate knowledge sharing and deepen understanding within the
academic community of the University of Cebu - Lapu-Lapu and Mandaue (UCLM),
particularly within the College of Business and Accountancy (CBA). It is crucial to
emphasize that your identity is protected, and no specific comments will be identifiable in
any published materials. Your participation is precious in contributing to academic
discussions, and we are committed to protecting your privacy throughout the
dissemination process.

Right to Refuse or Withdraw

You have the right to refuse participation or withdraw from the study at any time,
and your decision will be honoured without any consequences. Whether you choose not
to participate initially or withdraw later, your autonomy will be honoured without
question. Your comfort and well-being are our top priorities, and we want to ensure that
you feel empowered to make decisions that align with your preferences and interests.

Who to Contact

If you have any questions or concerns or require further information about the
study, please contact any of the researchers listed below. We are here to address any
queries and ensure your comfort and understanding throughout the research process.
 Julia Rae Branzuela: 0922-978-8913
 Marissa Lamoste: 0947-833-3716
 70

 Brix Negro: 0956-147-3283

 Ma. Juliana Rin: 0927-526-0368
 Shaiah Kaye Roble: 0962-707-6006

PART II: Certificate of Consent

I have read the foregoing information or had it read to me. I have had the
opportunity to ask questions about it, and any questions that I have asked have been
answered to my satisfaction. I consent voluntarily to participate in this research

Printed Name of Respondent: ___________________________

Signature of Respondent : ___________________________
Date : ___________________________
(Day/Month/Year)

If Illiterate
A literate witness must sign (if possible, this person should be selected by the
respondent and should have no connection to the research team). Illiterate respondents
should include their thumbprints.
I have witnessed the accurate reading of the consent form to the potential
respondent, and the individual has had the opportunity to ask questions. I confirm that the
individual has given consent freely.
Printed Name of Witness: ___________________ AND Thumbprint of the Participant
Signature of Witness: _______________________
Date: ________________________
(Day/Month/Year)

Statement by the researcher/person taking consent

 71

I have accurately read out the information sheet to the potential participant and, to
the best of my ability, I have made sure that the participant understands that the following
will be done:
1. Hand out the survey questionnaires to the participants.
2. Clarify the study’s objectives and provide clear instructions regarding the survey
questionnaire’s purpose.
3. Attentively address any questions or concerns raised by the participants while they
complete the survey questionnaire.
4. Gather the completed survey questionnaires from participants once they have finished
answering them.
I confirm that the participant was allowed to ask questions about the study, and all
questions have been answered correctly and to the best of my ability. I confirm that the
individual has not been coerced into giving consent, and the permission has been given
freely and voluntarily.

A copy of this ICF has been provided to the participant.

Printed Name of Researcher/Person Taking the Consent _______________________
Signature of Researcher /Person Taking the Consent __________________________
Date __________________
(Day/Month/Year)
 72

APPENDIX C – Survey Questionnaire

Title of the Study: The Effects of the Emerging Packaged Meal Businesses to the
Profitability and Viability of Food Catering Services in Selected Barangays of Cebu City

Good Day Respondent!

We are third-year Bachelor of Science in Accountancy (BSA) students at University of

Cebu Lapu- Lapu and Mandaue. This questionnaire is a crucial part of our data-gathering
process. Your insights are invaluable, and we greatly appreciate your time and
willingness to take part. Thank you for your participation.

I. DEMOGRAPHIC PROFILE OF THE RESPONDENTS

(DEMOGRAPIKONG PROPAYL SA MGA TINUBDAN)

Instruction: Please put a check mark (✔) on the choices below to identify your profile.
(Instruksyon: Palihug butangi og tsek mark (✔) sa mga kapilian sa ubos aron mailhan
ang imong propayl.)

I.1 Business Category (Kategoriya sa Negosyo)

 Packaged meal business
 Catering Services

I.2 Years of Operation (Tuig nga Nag-opera)

 Less than a year (Ubos pa sa usa ka tuig)
 1 – 2 years (1 – 2 ka tuig)
 3 – 5 years (3 – 5 ka tuig)
 5 years beyond (5 ka tuig pataas)
 73

I.3 Working Capital (Puhonan sa Pag-opera)

 <100,000
 100,001– 200,000
 200,001 – 300,000
 300,001 – 400,000
 400,000 above

1.3 Location (Lokasyon)

 Basak San Nicolas

 Guadalupe
 Labangon
 Lahug
 Tisa

II. PROFITABILITY OF THE PACKAGED MEAL BUSINESSES AND

FOOD CATERING SERVICES (ANG KITA SA MGA PACKAGE MEAL
NGA NEGOSYO OG FOOD CATERING NGA SERBISYO)

Instruction: Please put a check mark (✔) in answering the following questions.
You may use the rating scale below accordingly. (Instruksiyon: Palihug ibutang
ang check mark (✔) sa pagtubag sa mosunod nga mga pangutana. Puwede nimo
gamiton ang rating scale sa ubos sumala niini.)

Rating Response
Interpretation
Scale Category

Indicates a high level of execution in business

SA Strongly Agree operations. (Nagpakita og hataas nga lebel sa
pagpadagan sa Negosyo.)

A Agree Indicates effective execution in business

 74

operations. (Uyon Angay nagpakita sa

epektibong pagpadagan sa negosyo.)

Indicates occasional execution of business

DA Disagree operations. (Nagpakita sa paminsan-minsang
pagpadagan sa negosyo.)

Indicates a complete lack of execution in

SDA Strongly Disagree business operations. (Nagpakita sa kompleto nga
kakulang sa pagpadagan sa negosyo.)

(SDA
(SA) (A) (DA)
2.1 Profit Margin (Kalidad sa Kita) )

1. You manage your operating expenses by

implementing appropriate cost control
procedures like forecasting, employee and
vendor management. (Sa pagdumala nimo sa
gasto sa operasyon, magpatuman ka ug mga
saktong pamaagi sa pagkontrol sa mga gasto,
naglakip sa pagtagna sa umaabot nga gasto,
pagdumala sa mga empleyado ug pagdumala
sa mga tigsuplay.)
2. You consistently monitor your production costs
and seek alternative options if costs increase
dramatically. (Kanunay nimong gi bantayan
ang gasto sa produksiyon ug mangita og lain
nga paagi kung dako kaayo ang pagsaka sa
gasto.)
3. Your revenues from the services you offer have
consistently improved throughout your
operating periods. (Ang imong kita gikan sa
mga serbisyo nga imong gitanyag padayon nga
nag-umento sa tibuok nga panahon sa
operasyon.)
 75

4. You are satisfied with the profits earned from

the services you provide. (Nakontento ka sa
ginansiya nga nakuha sa mga serbisyo nga
imong gitanyag.)

2.2 Return on Investment (Balik sa kwarta nga Gipuhunan)

1. You consider the return on capital when

deciding on whether to upgrade equipment or
facilities. (Sa pagdesisyon nimo kon mag-
upgrade ba sa mga gamit o pasilidad, usa sa
imong gikonsiderar ang balik sa kwarta nga
gipuhunan)
2. You regularly assess the return on investments
made in equipment, technology, and other
capital assets to ensure they contribute
positively to your profitability. (Kanunay nimo
nga ginasusi ang balik sa kwarta nga
gipuhunan" sa mga gamit, teknolohiya, ug uban
pang puhunan nga mga butang (capital assets)
aron asegurar nga nakahatag kini ug positibo
nga epekto sa imong ganansya.)
3. You allocate resources to projects based on
their expected return on capital, ensuring that
each project contributes to overall business
growth. (Ang pag-assign sa mga rekurso para
sa mga proyekto gibase sa gilauman nga "balik
sa kwarta nga gipuhunan. Gusto nimo nga ang
matag proyekto makahatag ug kontribusyon sa
pagtubo sa negosyo.)
4. You prefer raising capital through equity
investments to avoid the risks associated with
debt financing. (Mas gipili nimo nga mutipok
ug kapital pamagi sa pag-suplay sa imong
kaugalingon kwarta kaysa mangutang para
kapital.)
 76

III. VIABILITY OF PACKAGED MEAL BUSINESSES AND FOOD

CATERING SERVICES (KAPINUSLAN SA MGA PACKAGED MEAL NGA
NEGOSYO UG FOOD CATERING NGA SERBISYO)

Instruction: Please put a check mark (✔) in answering the following questions.
You may use the rating scale below accordingly. (Instruksiyon: Palihug ibutang
ang check mark (✔) sa pagtubag sa mosunod nga mga pangutana. Puwede nimo
gamiton ang rating scale sa ubos nga angay sa imong tubag.)

Rating Response
Interpretation
Scale Category

The respondent holds a high level of agreement

on the scenario provided. (Ang nagresponde
SA Strongly Agree
adunay taas nga lebel sa pag-uyon sa gihatag
nga scenario.)

The respondent is in agreement on the scenario

A Agree provided. (Ang nagresponde uyon sa gihatag
nga scenario.)

The respondent does not agree on the scenario

DA Disagree provided. (Ang nagresponde dili uyon sa
gihatag nga scenario.)

The respondent strongly disagrees to the

SDA Strongly Disagree scenario provided. (Ang nagresponde kusog nga
dili uyon sa gihatag nga scenario.)

3.1 Market Share (Bahin sa Kustomer) (SA) (A) (DA (SDA)

)

1. There is a consistent increase in your market

share. (Adunay tulon-an nga pagdugang sa
 77

imong mga kustomer.)

2. Your business has a high customer retention
rate. (Taas ang porsyento sa pagbalik-balik sa
mga kustomer sa imong negosyo.)
3. You are successful at acquiring new customers.
(Malampuson ka sa pagbaton og bag-ong mga
kustomer.)
4. You are confident that consumers will choose
your product over your competitors.
(Nakasiguro ka nga pilion sa mga konsumidor
ang imong produkto kumpara sa imong
kaatbang.)
3.2 Customer Preference (Pabor sa Kustomer)

1. You make sure your services comply with or

exceed customers’ expectations. (Imong
gesigurado nga ang imong serbisyo moubos o
labaw pa sagipanghingusgan sa mga kustomer.)
2. Your customers would rather have personalized
menu options. (Gusto sa imong mga suki ang
personalisadong mga opsiyon sa mga
nagkalainlain nimong mga pagkaon.)
3. Your customers would rather have standardized
menu options. (Gusto sa imong mga suki ang
standardisadong mga opsiyon sa mga
nagkalain-lain nimong mga pagkaon.)
4. Your customers find your service at a reasonable
price. (Makita sa imong mga kustomer ang
imong serbisyo sa usa ka makatarunganong
presyo.)
3.3 Operational Efficiency (Kahusayan sa Pag-opera sa Negosyo)

1. You make sure that we efficiently prepare and

make meals with minimal waste. (Imong
gisugarado nga maayo ang imong pagandam og
paghimo sa mga pagkaon nga walay mausik.)
2. The delivery timeframe of your services
consistently meets your customers' expectations.
(Ang oras sa paghatag sa imong mga serbisyo
pirme nagtugma sa hipanghingusgan sa imong
 78

mga kustomer.)

3. You utilize resources effectively to satisfy the

demands of your customers. (Epektibong gigamit
nimo ang mga kagamitan aron matuman ang
panginahanglan sa imong mga kustomer.)
4. You implement proper inventory management
practices when storing your ingredients to avoid
spoilage. (Gipatuman nimo ang husto nga mga
pamaagi sa pagdumala sa imbentaryo kung
gitipigan ang imong sangkap aron malikayan
ang pagkadaot.)
3.4 Marketing Strategy (Istratrhiya sa Pagpamaligya)

1. You market your service using internet platforms

in the business you operate. (Imong ge endorso
imong serbisyo gamit ang mga plataporma sa
internet sa negosyo nga imong gepadagan.)
2. You efficiently advertise your business through
traditional promotion platforms. (Epektibong
gipromosyonan nimo ang imong negosyo pinaagi
sa tradisyonal nga mga plataporma sa
promosyon.)
3. You extend discounts and exclusive deals to
increase sales as part of your promotional
strategy. (Gihatagan og diskwento ug ekslusibo
nga mga transkasyon nga nasabotan aron
madugangan ang mga baligya ingon bahin sa
imong diskarte sa promosyon.)
4. You engage with your clients to learn about their
opinions and improve your offerings using social
media channel. (Nakig-halubilo ka sa imong mga
kliyente aron masayud sa ilang mga opinyon ug
pagpauswag sa imong mga gipanghalad gamit
ang mga nagkalain-lain nga sosyal midya.)
 79

For Food Catering Service Owners/Representatives:

IV. THE EFFECTS OF PACKAGED MEAL BUSINESSES TO THE

PROFITABILITY AND VIABILITY OF FOOD CATERING SERVICES
(ANG MGA EPEKTO SA PACKAGED MEAL NGA NEGOSYO SA
KAPITALIDAD UG KASUPORTA SA MGA FOOD CATERING NGA
SERBISYO.)

Instruction: Please put a check mark (✔) in answering the following questions.
You may use the rating scale below accordingly. (Instruksiyon: Palihug ibutang
ang check mark (✔) sa pagtubag sa mosunod nga mga pangutana. Puwede nimo
gamiton ang rating scale sa ubos nga angay sa imong tubag.)

Rating Response
Interpretation
Scale Category

The respondent holds a high level of agreement

on the scenario provided. (Ang nagresponde
SA Strongly Agree
adunay taas nga lebel sa pag-uyon sa gihatag
nga scenario.)

The respondent is in agreement on the scenario

A Agree provided. (Ang nagresponde uyon sa gihatag
nga scenario.)

The respondent does not agree on the scenario

DA Disagree provided. (Ang nagresponde dili uyon sa
gihatag nga scenario.)

The respondent strongly disagrees to the

SDA Strongly Disagree scenario provided. (Ang nagresponde kusog nga
dili uyon sa gihatag nga scenario.)
 80

4.1 FINANCIAL PERFORMANCE (PINANSYAL (SA) (A) (DA (SDA)

NGA PERFORMANCE) )

1. The emergence of packaged meal businesses has

convinced you to adjust your pricing strategy to
maintain steady profit margins. (Ang pag-usbong
sa mga packaged meal businesses nag-awhag
kanimo sa pag-adjust sa imong pricing strategy
aron mapadayon ang hapsay nga profit
margins.)
2. Your profit margins have decreased due to
increased competition from packaged meal
businesses. (Naka-experyensya ka sa pagkunhod
sa imong profit margins tungod sa pagtaas sa
kompetisyon gikan sa mga packaged meal
businesses.)
3. Investments in improving service quality have
yielded higher returns despite the competition
from packaged meal businesses. (Ang mga
pagpamuhunan sa pagpaayo sa kalidad sa
serbisyo nakahatag ug mas taas nga kita bisan
pa sa kompetisyon gikan sa mga packaged meal
businesses.)
4. You have implemented cost-saving measures to
counter the impact of packaged meal businesses
on your profit margins. (Nagpatuman ka ug mga
cost-saving measures aron ma-counter ang
epekto sa mga packaged meal businesses sa
imong profit margins.)
4.2 MARKET INFLUENCE (IMPLUWENSYA SA KUSTOMER)

1. The popularity of packaged meal businesses has

caused a decline in your customer base. (Ang
popularidad sa mga packaged meal businesses
nakapahinay sa imong customer base.)
2. The emergence of packaged meal businesses has
shifted customer preferences away from
 81

traditional catering services. (Ang pag-usbong sa

mga packaged meal businesses nakapabalhin sa
preference sa mga customer palayo sa
tradisyonal nga catering services.)
3. The competition from packaged meal businesses
has led you to offer special deals and discounts
more frequently. (Ang kompetisyon gikan sa mga
packaged meal businesses nagdani kanimo sa
paghatag ug espesyal nga mga deal ug discounts
sa mas kanunay.)

4. You allocate more budget to marketing and

advertising to maintain or increase your market
presence. (Nag-allocate ka ug mas daghang
budget para sa marketing ug advertising aron
mapadayon o mapataas ang imong presensya sa
merkado.)
 82

APPENDIX D - Title Approval for Students Researchers

 83

APPENDIX E - Adviser’s Acceptance

 84

APPENDIX E - Adviser’s Acceptance

85
 86

APPENDIX F – Statistician’s Acceptance

 87

APPENDIX G - Research Location Map

CURRICULUM VITAE
JULIA RAE G. BRANZUELA

[Link] INFORMATION

Name: Julia Rae G. Branzuela

Address:Purok Camote, Cambaro, Mandaue City
Mobile Number: 09229789113
E-mail Address: branzuelajuliarae21@[Link]

B. EDUCATIONAL BACKGROUND
Tertiary:
S.Y 2021-Present University of Cebu-Lapu-Lapu and Mandaue
 88

A.C Cortes Avenue, Looc, Mandaue City, 6014, Cebu

Bachelor of Science in Accountancy
Secondary:
Senior High School:
S.Y 2018-2020 Mandaue City Comprehensive National High School
Plaridel St. Reclamation Area, Mandaue City
Accountancy, Business and Management Strand
Junior High School
S.Y 2014-2018 Mandaue City Comprehensive National High School
Plaridel St. Reclamation Area, Mandaue City

Primary:
S.Y 2009-2014 Mandaue City Central School
LL. Ouano St., Centro, Mandaue City
MARISSA S. LAMOSTE

[Link] INFORMATION

Name: Marissa S. Lamoste

Address: Sangi Interior, Pajo, Lapu-Lapu City
Mobile Number: 09478333716
E-mail Address: lmstmrss123@[Link]

B. EDUCATIONAL BACKGROUND
Tertiary:
S.Y 2021-Present University of Cebu-Lapu-Lapu and Mandaue
A.C Cortes Avenue, Looc, Mandaue City, 6014, Cebu
 89

Bachelor of Science in Accountancy

Secondary:
Senior High School:
S.Y 2019-2021 Asian Learning Center
Sangi Road, Pajo, Lapu-Lapu City
Accountancy, Business and Management Strand

Junior High School

S.Y 2015-2019 Pasay City North High School MAB-Annex
BGBNEAB, Lapu-Lapu City
Primary:
S.Y 2009-2015 Cang-asa Elementary School
Cang-asa, Siquijor, Siquijor

BRIX NEGRO

[Link] INFORMATION
Name: Brix Negro
Address: Villa Marina, Jugan, Consolacion, Cebu
Mobile Number: 09561473283
E-mail Address: acnologia276328@[Link]

B. EDUCATIONAL BACKGROUND
Tertiary:
S.Y 2021-Present University of Cebu-Lapu-Lapu and Mandaue
A.C Cortes Avenue, Looc, Mandaue City, 6014, Cebu
 90

Bachelor of Science in Accountancy

Secondary:
Senior High School:
S.Y 2019-2021 University of Cebu-Lapu-Lapu and Mandaue
A.C Cortes Avenue, Looc, Mandaue City, 6014, Cebu
Accountancy, Business and Management Strand

Junior High School

S.Y 2015-2019 Our Lady of Joy Learning Center
Jugan, Consolacion, 6001, Cebu

Primary:
S.Y 2009-2015 Our Lady of Joy Learning Center
Jugan, Consolacion, 6001, Cebu

MA. JULIANA D. RIN

[Link] INFORMATION
Name: Ma. Juliana D. Rin
Address: Ibabao, Tingo, Lapu-Lapu City
Mobile Number: 09275260368
E-mail Address: rinjulianadano@[Link]

B. EDUCATIONAL BACKGROUND
Tertiary:
S.Y 2021-Present University of Cebu-Lapu-Lapu and Mandaue
A.C Cortes Avenue, Looc, Mandaue City, 6014, Cebu
 91

Bachelor of Science in Accountancy

Secondary:
Senior High School:
S.Y 2019-2021 Nemesio-Epifania Taneo Memorial High School
Tingo, Lapu-Lapu City
Accountancy, Business and Management Strand

Junior High School

S.Y 2015-2019 Nemesio-Epifania Taneo Memorial High School
Tingo, Lapu-Lapu City

Primary:
S.Y 2009-2015 Tingo Elementary School
Tingo, Lapu-Lapu City

SHAIAH KAYE B. ROBLE

[Link] INFORMATION
Name Shaiah Kaye B. Roble
Address: Sabang, Danao City, Cebu
Mobile Number: 09627076006
E-mail Address: shaiahroble18@[Link]

B. EDUCATIONAL BACKGROUND
Tertiary:
S.Y 2021-Present University of Cebu-Lapu-Lapu and Mandaue
A.C Cortes Avenue, Looc, Mandaue City, 6014, Cebu
 92

Bachelor of Science in Accountancy

Secondary:
Senior High School
S.Y 2019-2021 Colegio de San Antonio de Padua
Guinsay, Danao City, Cebu
Accountancy, Business and Management Strand

Junior High School

S.Y 2015-2019 Sabang National High School
Sabang, Danao City, Cebu

Primary:
S.Y 2009-2015 Sabang Elementary School
Sabang, Danao City, Cebu