HIDALGO RESTURANT

8/8/2019 HIDALGO RESTURANT

1/7

HIDALGO RESTURANT, INC: SUCCEEDING AS AN

ENTREPRENEUR

I. VISION

A. Vision Statement

For everyone who works with us to discover in themselves their talent and their

potential and to build relationship with each other

B. Comments

Vision statements should answer the question What do we want to become. But

Hidalgos vision statement does not answer that question. It doesnt even mention

what kind of business they are into.

C. Proposed Vision Statement

To be the preferred restaurant of Filipinos and expatriates, providing total customer

satisfaction through quality, service, cleanliness, and value.

II. MISSION

A. Mission Statement

Hidalgo Restaurant, Inc. doesnt have specific mission statement

B. Comments

A Mission Statement reflects the companys core purpose, identity, values and

principle business aims. A Mission is defined as 'Purpose, reason for being'. Defined

simply "Who we are and what we do."

Mission statements should possess nine (9) components which are (1) customers,(2) products or services (3) markets, (4) technology, (5) Concern for survival,

growth, and profitability, (6) philosophy, (7) self - concept, (8) concern for publicimage, and (9) concern for employees.

C. Proposed Mission Statement

We are committed to provide total customer satisfaction and exceed customers

expectations through setting the trend in raising the bar, to be the change agents


2/7

contributing directly to the countrys development, creating standards of excellence

which every Filipino may aspire, to be in the business of building relationships and

partnerships, among which one partner is the customer, in order to maximize

earnings that will benefit our supplier, employees, and investors.

III.EXTERNAL ENVIRONMENT ANALYSIS

The restaurant sub-sector includes places that serve food and drinks, be it self-service or full-service. This covers a range of services including fine dining specialtyrestaurants, fast food outlets, canteens, and food courts. In terms of its contributionto the national economy, the hotel and restaurant industry accounted for 1.35% ofPhilippines 1998 gross domestic product (PHP12 billion in GVA compared to thePhilippines PHP889 billion GDP during the period) and 1.28% of its national product(PHP12 billion in GVA compared to the PHP931 billion GNP). Moreover, the hotel andrestaurant industry employed about 1% (282,142) of the countrys 31,278,000 laborforce during the same period. Meanwhile, the National Statistics Office (NSO) in1994, classified 46,930 firms as belonging to the hotel and restaurant industry,employing a total of 221,954 people. At the time, each peso investment in laborcontributed PHP4.40 to the industrys total output while each peso investmentyielded a PHP1.27 contribution to the same.

A. Economic Forces

Restaurant patrons cross all economic groups. Fast foods and food courts cater toall income classes. Specialty fine dining restaurants, generally target the A, B, and Ccrowd. The proliferation of one-stop shopping malls that offer various recreationalfacilities and amenities is also an important growth factor. The heavy pedestrian

traffic that the malls attract means big business for the restaurant industry,particularly the fast food sub-sector. Moreover, these malls spare the restaurantindustry from spending extensive business development studies for their outlets;mall magnates Henry Sy and John Gokongwei Jr. have established formidable trackrecords in building malls. Finally, Filipino communities abroad are strong basis forthe export of local restaurants and fast food technology. The presence of Goldilocks,

Jollibee, Max, Red Ribbon, and Barrio Fiesta, among others, in the US, for example,is a result of demand from Filipino migrants longing for a taste for home.

B. Social, Cultural, and Demographic Forces

The urban population to which restaurants cater is largely made up of young people

who have higher disposable incomes and who are more likely to experiment withdifferent cuisine. Brand loyalty is particularly strong in the fast food sub-sector ofthe restaurant industry. Jollibee patrons, for example, generally stay loyal to thefranchise regardless of price increases. Demand for dining out is associated withboth the ever-expanding options available, and also with the number one reasonmost consumers use restaurants: they provide a convenient, reasonably pricedexperience that offers better flavors and taste sensations than consumers can getat home. This has become particularly critical at a time when more and morewomen are entering the workforce and consequently have less time to prepare


3/7

meals at home. Moreover, the Philippine population is youth-oriented. Almost half ofthe estimated 75 million Filipinos are below 18. And since a large proportion of fastfood consumers is between the ages of 16-24, the annual 2.3% population growthrate guarantees market growth for the sub-sector.

C. Political, Legal, and Governmental Forces

Strong support of industry associations and trade unions (i.e., Hotel and RestaurantAssociation of the Philippines and the NWHUAI) enable the hotel industry, amongother things, to undertake programs and projects that upgrade and professionalizethe sector and to influence government regulatory policies/laws/rules affecting theindustry.

D. Technological Forces

International food chains and franchises facilitate transfer of technology in the localrestaurant sub-sector. They provide training of potential employees and employstrict quality control systems.

In terms of availability of technology, the Philippine market is highly competitivewith numerous products and brands offered at reasonable prices, and, therefore,allowing restaurant owners the luxury of choosing the type of technology that bestsuit their operations. Equipment purchasing decisions depend on the type of end-user. For instance, local single-unit restaurants need inexpensive equipment, soprice is the main guiding factor. On the other hand, fine dining restaurants arewilling to pay a premium for high quality, durability, after-sales service, costeffectiveness, reputable supplier and fast delivery. Restaurant owners regularlyparticipate in local and international equipment trade fairs, allowing them access tothe latest hotel equipment technology.

E. Competitive Forces

There are about 45,220 restaurant establishments in the domestic economy andabout 80% of them belong to the fast food sub-sector. Food franchising is extremelypopular. There are 1,057 franchised quick serve restaurants, 14 casual dining andtheme restaurants, and 507 coffee shops, bakeries, and confectioneries.

The industry in which the restaurant and fast food firms operate has increasingconsumer demand for every improving product. The growth is proven by the rapidexpansion of food outlets in key areas in Metro Manila and the provinces. Thepopularity of fast food establishments came in the 1980s, and over the last years,the industry has consistently posted double-digit growth rates.Competition is fierce in the restaurant industry, particularly the fast food sub-sector.

The market is large but consumers are price conscious and exhibit brand loyalty.With a wide range of restaurants and fast food establishments to choose from,pricing schemes and marketing strategies determine market shares. Marketstrategies of industry players, therefore, aim to achieve two primary objectives: 1)hammer in value-for-money concepts; and 2) create brand consciousness andloyalty.


4/7

Market shares in the restaurants are won or lost in pricing. Industry playersregularly offer price cuts and discounts to lure in new customers. Moreover, majorplayers invest heavily in advertising to create brand consciousness and loyalty.Marketing strategies include raffle draws, free gift items and specially prized mealcombinations, discounted toys and school items for every certain minimum foodpurchase. Celebrity endorsements are used in the hopes that the market will

identify with the endorser. Likewise, intense competition urges players to come upwith new products to capture bigger market shares. Restauranteurs have to be keenat finding the latest food and wine concoctions here and abroad and adapting themto local taste. Targeting the Filipinos tastebuds, several fastfood chains that usuallyserve only western food have introduced items that appeal to the local marketspalate.

Raising quality standards and improving service have also been focal points ofcompetition, particularly in the fast food sub-sector. Players give incentives andcompensations to motivate employees to be efficient on their jobs and thus helpmaintain the fast food outlets high standards of quality service and cleanliness.Also, a major importance in a fast food and restaurant is courteous and friendly

personnel. Not surprisingly, speedy service is among the more salient attributespeople would highly expect from a fast food restaurant.

F. Companys Opportunities and Threats

1. Opportunities

Innovating the best Filipino and European Cuisine

Increasing demand of dining or eating out

Department of Tourisms projects and programs to attract touristswill expand the hotel and restaurant industry

Restaurant patrons cross all economic groups

Strong support of industry associations and trade unions (i.e., Hoteland Restaurant Association of the Philippines and the NWHUAI)

2. Threats

Restaurant patronage/sales are dependent on the levels of economicactivity and real income of local residents and tourists

Increased competition in restaurant sectors and consumers exhibitbrand loyalty

Competition with fast-food chains

Restaurant business involves perishable goods which have to bedisposed of at the earliest possible time

Political instability, resulting in economic slowdown, reduces real

income as well as the demand for restaurant services.

G. External Factor Evaluation Matrix

Key External Factors Weight RatingWeighted

Score

Opportunities


5/7

1. Innovating the best Filipino and EuropeanCuisine 0.10 4 0.40

2. Increasing demand of dining or eating out 0.08 4 0.32

3. Department of Tourisms projects andprograms to attract tourists will expand the

hotel and restaurant industry 0.12 4 0.484. Restaurant patrons cross all economicgroups 0.08 3 0.24

5. Strong support of industry associations andtrade unions (i.e., Hotel and RestaurantAssociation of the Philippines and the NWHUAI) 0.12 4 0.48

Threats

6. Restaurant patronage/sales are dependenton the levels of economic activity and realincome of local residents and tourists 0.12 4 0.48

7. Increased competition in restaurant sectorsand consumers exhibit brand loyalty 0.10 4 0.40

8. Competition with fast-food chains 0.10 4 0.409. Restaurant business involves perishablegoods which have to be disposed of at theearliest possible time 0.08 3 0.24

10. Political instability, resulting in economicslowdown, reduces real income as well as thedemand for restaurant services. 0.10 3 0.30

1.00 3.74

IV.INTERNAL ENVIRONMENT ANALYSIS

A. Company Strengths and Weaknesses

1. Strengths

Founders management skills, capabilities, and interest

High quality of products in affordable price

Restaurants ambiance, portion size, and consistency

Establishment of Hidalgo was preceded by intensified study of the target market


6/7

2. Weaknesses

Constant turnover of kitchen personnel

Filipino market doesnt understand well the French cuisine

B. Internal Factor Evaluation Matrix

Key External FactorsWeig

htRatin

g

Weighted

Score

Strengths

1. Founders management skills, capabilities, andinterest 0.20 4 0.80

2. High quality of products in affordable price 0.20 4 0.803. Restaurants ambiance, portion size, andconsistency 0.20 4 0.80

4. Establishment of Hidalgo was preceded byintensified study of the target market 0.10 3 0.30

Weaknesses

5. Constant turnover of kitchen personnel 0.20 4 0.80

6. Filipino market doesnt understand well the Frenchcuisine 0.10 4 0.40

1.00 3.90

V. OBJECTIVES, STRATEGIES AND ACTION PLAN

A. Objectives

To bring foreign visitors to dine on Filipino cuisine

To reduce employee turnover rate

To compete well in Makati to prove the ability to compete in other

locations

B. Strategies


7/7

Support sustainable tourism programs in the Philippines

Develop new recipe and food variants that could suit the taste of foreign

visitors (e.g., mixing and matching Filipino and European cuisine)

Create company policy on hiring, provide training and development,

career advancement

Create intensive marketing strategy

C. Action Plan

Activity Responsibility Time Element

Coordination with the Department of

Tourism in the involvement andsupport on tourism programs

CorporatePlanning &

MarketingDepartment regular/continuous

Research and market study on foodpreference of foreign visitors

R & D andMarketingDepartment 3 months

Creation, preparation of policymanual

Top Managementand HRM 3 months

HIDALGO RESTURANT

Documents

Transcript of HIDALGO RESTURANT