Hidalgo Resturant, Inc: Succeeding As An Entrepreneur Essay

I. VISION A. Vision Statement â€Å"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 â€Å"What do we want to become.† But Hidalgo’s vision statement does not answer that question. It doesn’t 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. doesn’t have specific mission statement B. Comments A Mission Statement reflects the company’s core purpose, identity, values and principle business aims. A Mission is defined as ‘Purpose, reason for being’. Defined simply â€Å"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 public image, and (9) concern for employees. C. Proposed Mission Statement We are committed to provide total customer satisfaction and exceed customer’s expectations through setting the trend in raising the bar, to be the change agents contributing directly to the country’s 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 specialty restaurants, fast food outlets, canteens, and food courts. In terms of its contribution to the national economy, the hotel and restaurant industry accounted for 1.35% of Philippines’ 1998 gross domestic product (PHP12 billion in GVA compared to the Philippine’s 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 and restaurant industry employed about 1% (282,142) of the country’s 31,278,000 labor force during the same period. Meanwhile, the National Statistics Office (NSO) in 1994, 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 labor contributed PHP4.40 to the industry’s total output while ea ch peso investment yielded a PHP1.27 contribution to the same. A. Economic Forces Restaurant patrons cross all economic groups. Fast foods and food courts cater to all income classes. Specialty fine dining restaurants, generally target the A, B, and C crowd. The proliferation of one-stop shopping malls that offer various recreational facilities 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 restaurant industry from spending extensive business development studies for their outlets; mall magnates Henry Sy and John Gokongwei Jr. have established formidable track records in building malls. Finally, Filipino communities abroad are strong basis for the 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 with different cuisine. Brand loyalty is particularly strong in the fast food sub-sector of the restaurant industry. Jollibee patrons, for example, generally stay loyal to the franchise regardless of price increases. Demand for dining out is associated with both the ever-expanding options available, and also with the number one reason most consumers use restaurants: they provide a convenient, reasonably priced experience that offers better flavors and taste sensations than consumers can get at home. This has become particularly critical at a time when more and more women are entering the workforce and consequently have less time to prepare meals at home. Moreover, the Philippine population is youth-oriented. Almost half of the estimated 75 million Filipinos are below 18. And since a large proportion of fast food consumers is betwe en the ages of 16-24, the annual 2.3% population growth rate 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 Restaurant Association of the Philippines and the NWHUAI) enable the hotel industry, among other things, to undertake programs and projects that upgrade and professionalize the sector and to influence government regulatory policies/laws/rules affecting the industry. D. Technological Forces International food chains and franchises facilitate transfer of technology in the local restaurant sub-sector. They provide training of potential employees and employ strict quality control systems. In terms of availability of technology, the Philippine market is highly competitive with numerous products and brands offered at reasonable prices, and, therefore, allowing restaurant owners the luxury of choosing the type of technology that best suit their operations. Equipment purchasing decisions depend on the type of end-user. For instance, local single-unit restaurants need inexpensive equipment, so price is the main guiding factor. On the other hand, fine dining restaurants are willing to pay a premium for high quality, durability, after-sales service, cost effectiveness, reputable supplier and fast delivery. Restaurant owners regularly participate in local and international equipment trade fairs, allowing them access to the latest hotel equipment technology. E. Competitive Forces There are about 45,220 restaurant establishments in the domestic economy and about 80% of them belong to the fast food sub-sector. Food franchising is extremely popular. There are 1,057 franchised quick serve restaurants, 14 casual dining and theme restaurants, and 507 coffee shops, bakeries, and confectioneries. The industry in which the restaurant and fast food firms operate has increasing consumer demand for every improving product. The growth is proven by the rapid expansion of food outlets in key areas in Metro Manila and the provinces. The popularity of fast food establishments came in the 1980’s, 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. Market strategies of industry players, therefore, aim to achieve two primary objectives: 1) hammer in â€Å"value-for-money† concepts; and 2) create brand consciousness and loyalty. Market shares in the restaurants are won or lost in pricing. Industry players regularly offer price cuts and discounts to lure in new customers. Moreover, major players invest heavily in advertising to create brand consciousness and loyalty. Marketing strategies include raffle draws, free gift items and specially prized meal combinations, discounted toys and school items for every certain minimum food purchase. Celebrity endorsements are used in the hopes that the market will identify with the endorser. Likewise, intense competition urges players to come up with new products to capture bigger market shares. Restauranteurs have to be keen at finding the latest food and wine concoctions here and abroad and adapting them to local taste. Targeting the Filipino’s tastebuds, several fastfood chains that usually serve only western food have introduced items that appeal to the local market’s palate. Raising quality standards and improving service have also been focal points of competition, particularly in the fast food sub-sector. Players give incentives and compensations to motivate employees to be efficient on their jobs and thus help maintain the fast food outlet’s 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 attributes people would highly expect from a fast food restaurant.