An Assessment on the Strategic Partnership of Just Chicken Restaurant to Food

Panda and Grab Food during covid-19 outbreak in Tacloban City

A Case Study

Presented to the Faculty of

ACLC College Tacloban

In Partial Fulfilment of the Requirements

For the degree of

Bachelor of Science in Hospitality Management

By:

Kristel Leigh L. Cabahaga

Presa Alia S. Abad

Karl Anthony Y. Golong

October 2021
 CHAPTER I

INTRODUCTION

In the written history for the past several years the world also experienced a pandemic

outbreak namely the Spanish flu, Black death, and Ebola virus, etc. When the time goes by

the effect of every virus mutated in a generation of human life are getting alarming. The

COVID-19 is more aggressive to mutate one person to another that could rapidly attack the

respiratory system of an individual. Which causes to absence of taste and smell, high fever,

cough and colds resulting to a critical condition that is more dangerous than having flu.

The COVID-19 pandemic affects the hospitality industry especially in the food and

beverage sector and food delivery sector. On the early months of Covid-19 outbreak, a lot of

restaurants around the world closes their businesses to avoid spreading the variants of the

virus in their workplace. Many employee’s loss their jobs and countless business owners had

a financial loss. On the article written by Reynaldo Lugto Jr. stated, “The prolonged

quarantines in many places, as well as many business' work-from-home setups, as well as the

thousands of people who lost their jobs then started their own businesses at home. Not to

mention the restaurants that have switched to meal delivery as a business model and the

numerous food delivery apps developed by technology companies” (2020, Lugtu Jr.).

Advances and innovations in electronic commerce, as well as the "online to offline"

(O2O) model, have enabled these developments (Cho et al., 2019, LI, J., & Mo, W., 2015,

Liu et al., 2017, Liu et al., 2017). Online food delivery services cater to the needs of urban

residents by delivering quick and easy meals to their homes during or after busy working

days (Ali et a.,2021). Food delivery has become one of the key ties between individuals and

the outside world as a result of the pandemic and restrictions on individual contact (Blumtritt,

2020).
 This will imply that a restaurant owner needs a strategic plan to collaborate to a food

delivery company in order to advertise the food product and reach the restaurant by

costumers ordering their food product through service delivery apps in mobile phones.

According to (Barney 1991, Teece 1992, Zahra et al. 2000), a single business rarely possesses

all of the resources and knowledge required to produce and market cost-effective and timely

products or cutting-edge technology in industries where rapid technical advancement and

severe rivalry are the norms. Within their existing business, organizations must gain new

competencies. Minority equity investments, joint ventures, and non-traditional contracts

which are all indications of strategic partnerships (Henderson 2014). Highly needed because

of the situation right now, costumers more likely to connect by using mobile apps through

their favorite or variety of restaurants and try different kinds of foods while keeping safe of

oneself to avoid having coronavirus.

According to Lugtu Jr. “Social media is littered with posts of consumers looking for a

delicious lunch that can be delivered, prompting home-based food delivery businesses in the

community to go on a bidding rage and reply with pictures and attractive offerings. This is

the nature of the food delivery business industry now.” (2020, Lugtu Jr.). The goal is to be

able discover what factors influence a restaurant owner's decision to engage with a delivery

provider. The advantages that a restaurant and delivery companies offer. Determine the

hurdles that you will have in delivering on time. The relevance is to assess the meal quality,

service speed, accessibility of use, and confirmation of beliefs all had a significant impact on

a satisfaction during quarantine (Belarmino et al., 2021).

In the Philippines, selling via walking is highly dominant, in Tagalog we called it

“Paglalako”. Every place in the country walking vendors is everywhere. They can be seen in

parks, schools, and other public places. In this study, the researchers want to know about Just

Chicken Restaurant's strategic partnership with Food Panda and Grab Food in Tacloban City.

Everyone has been exposed to the concept of food delivery since they were young.

Almost every restaurant in the globe offers meal delivery services to meet the needs of their

customers as much as possible. When a person requests or calls to order food from a

restaurant or a fast-food restaurant, the restaurant prepares the food and drinks, which require

someone (a delivery man) to the customer's residence to deliver the food. Fast food

establishments are particularly fond of food delivery services known for that are the Jollibee

and Mc do.

The Just Chicken Restaurant is located in 707 corner San Isidro, Cavite East, Palo,

Leyte and has a branch in the opposite side of Primark, 2nd floor (above of Sushi Point),

Caibaan Road, Barangay 95, Tacloban City. Owned by a nautical by profession, an instructor

and a businessman which, his goal is to introduce the Korean style fried chicken in the city of

Tacloban.

The restaurant is very much important for travelers, to those people that don't have

enough time to cook for themselves or their family, and also to those who want to enjoy and

explore some cooking products. Home delivery is helpful to those people who are not capable

of buying food or any products by themselves. Restaurant and delivery companies collaborate

to meet the needs of the community. They achieve this by broadening the breadth of services

and goods they are willing to offer. Similarly, this type of reform is required, particularly to
address the challenges posed by the Covid-19 issue. People in the neighborhood are

increasingly using the supplied services since they are convenient and practical in this time of

distress brought on by the covid-19 outbreak.

The researchers were able to come up with the idea of assessing the strategic

partnership of Just Chicken Restaurant to Food Panda and Grab Food to learn the determining

factors of the owner to participate in a delivery firm because the establishment began during a

pandemic. The advantages that the Just Chicken Restaurant can obtain by collaborating with

a delivery company, as well as the problems that the delivery time brings in providing the

product required.

As part of the graduating class, the study was considered to be vital since it would

give students insight into how to strategically work in different delivery companies around

the country or in Tacloban as future hoteliers, managers, and business owners. The study's

findings will aid them in operating a related strategic business in the near future.

Statement of the Problem

The study focused in the assessment on the strategic partnership of Just Chicken

Restaurant to Food Panda and Grab Food. Specifically, the goal was to respond to the

following questions:

1. What are the deciding factors of Just Chicken Restaurant informing delivery

partnership?

2. What are the benefits of Just Chicken Restaurant can get in partnering with Food

Panda and Grab Food?

midst of pandemic when providing the product as to:

3.1 Weather Condition;

3.2 Large Quantities of orders;

3.3 Market Prices; and

3.4 Delivery orders?

4. Asses the performance of the restaurant through sales.

5. Asses the performance of the restaurant through demand.

The objective of the Study

This study aims to assess the strategic partnership of Just Chicken Restaurant to Food

Panda and Grab Food in Tacloban City. Moreover, the study aimed to:

1. To identify the deciding factors of Just Chicken Restaurant informing delivery

partnership.

2. To identify the benefits of the restaurant can get in partnering to the two-delivery

companies.

3. To identify the challenges that a restaurant encounters when it comes to food delivery

amid Covid-19.

4. Asses the restaurant performance through sales for the entire year of May 2020 to

May 2021 by monthly sales.

5. Asses the restaurant performance through sales for the entire year of May 2020 to

May 2021 by monthly sales.

In general, the study focuses on assessing Just Chicken Restaurant's strategic

partnership with Food Panda and Grab Food in Tacloban City. The researchers will

communicate with the proprietor of Just Chicken Restaurant for an interview. To respond to

the five questions posed in the statement of the problem, which the proprietor must address.

The study will not go any farther and will not include personal questions and protect the

proprietor's privacy.

Significance of the Study

The study's findings were thought to be useful to the following groups:

The Management of Just Chicken. The study offers them insights and ideas for

developing a strategic plan to improve service by providing customers with what they want

while they wait in the comfort of their own homes. To reduce stress and risk in light of the

current situation, which is a pandemic of Covid-19, and to avoid or prevent the inconvenience

of long queues.

The Delivery Company. The study offers a fresh set of ideas for restaurant

partnerships to broaden their business horizons. Allow them to improve their delivery service

and commercial partnership terms as well.

interested in the study's topic since they will act as a reference and guide for relevant future

investigations.

Definition of Terms

The following terms and their definitions are used in the study:

Assessment. The systematic collection, review, and use of information about

educational programs undertaken to improve student learning and development. (Assessment

Essentials: planning, implementing, and improving assessment in higher education by

Palomba and Banta 1999)

Bandwagon. The act of dogmatically following a particular point of view or

repeatedly responding in a particular way because it is fashionable, despite its logical merit.

In other words, “Trend”.

Dabbawala meal delivery system. Constitute a lunchbox delivery and return system that

delivers hot lunches from homes and restaurants to people at work in India, especially in Mumbai.

Food Delivery. A courier service in which a restaurant, store, or independent food

delivery company delivers food to a customer. An order is typically made either through a

restaurant or grocer's website or phone or through a food ordering company.

Strategic Partnership. An arrangement between two companies or organizations to

help each other or work together, to make it easier for each of them to achieve the things they

want to achieve.
 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

The published research and related literature included in this chapter were all related

to the study's topic. These studies aided the researchers in completely understanding the

situation surrounding the study. Furthermore, the published research served as both a

framework and a reference for the study that was being undertaken.

Related Literature

The online food delivery (OFD) service is a new trend that is growing rapidly (Chai

and Yat 2019). It is expected that food delivery industry will generate USD 956 million in

annual sales by 2022 and one of the most rapidly expanding segments of the food industry

(EC Insider, 2018). When the world was turned upside down by the Covid-19 outbreak,

businesses were forced to maintain and create relationships with customers. Businesses must

now balance the need to create revenue during a time of unprecedented economic distress

with the need to recognize the dangers to life and livelihood that have shifted customer

priorities and preferences (Waldron and Wetherbe, 2020). Although the pandemic had a big

impact on many businesses throughout the world. It's also not the first, there are existed
human-caused disease in the history recorded before such as the Influenza virus, Spanish flu

and Ebola virus.

According to Jim Collins, CEO (2021) of Kitchen United says “The restaurant sector

is in a "colossal state of crisis" as consumers increasingly opt to enjoy restaurant cuisine at

home. He added that restaurants are having difficulty keeping up with the increased demand

because they were created for consumers to come in and dine rather than for home delivery.

The sector's quick transition, he claims, has an influence on major, medium, and small chains.

In an online news briefing, Llena Arcenas, a manager at San Miguel Foods Culinary Center,

remarked, "More restaurants will go digital." "That is why, in contrast to traditional food

takeout or delivery, resto meal kits and the availability of their ingredients will be their

creative advantage." Several restaurants have been forced to close; however, some have been

able to convert their business models to food delivery and through technology company-

created apps (Garcia 2021).

As the online business continues to grow, innovations in the restaurant industry have

resulted in a surge on online food ordering. Different ways are taken by business owners

when providing online ordering services to their customers, with the goal of making the

ordering process easier for the customers (See-Kwong, 2017). According to Bao Vuong,

IBISWorld senior industry analyst, “The food delivery sector has benefited from consumers’

changing lifestyle trends, including busier lives, higher workloads and diminishing leisure

time. These social trends have helped boost demand for food delivery services, as time-poor

consumers look to cut down on cooking time and make better use of their spare time,”.

Restaurants are creating their own websites, smartphone applications, and text messages to

allow consumers to place orders. There are smartphone apps such as Food Panda and Grab

Food that provide information about various restaurants where customers can place orders,

saving time and effort. It was also claimed that clients like the ease and convenience of online
food ordering because it avoids the inconveniences of poor traffic or bad weather. Food

delivery services have altered the look of restaurants as well as customers' expectations of

restaurants and restaurant food delivery (Neogi 2018).

Restaurant owners come up with a plan in order to be technologically competent in

the food industry right now, they partnered to different kinds of delivery companies which

will help them advertise and introduce their food product on the online market. More than

80% of US CEOs are either exploring strategic partnerships or plan to do so in the near

future, according to a 2014 PwC CEO poll. However, only around 65% of those seeking new

strategic alliances have been successful in the last three years (Henderson et al, 2014).

According to Hughes and Weiss (2007), partnerships aren't just any kind of business

collaboration. They demand a high level of interconnection among firms in order for them to

continue to compete in the market. They demand the ability to navigate and actively

harness major differences in partner capabilities and operational approaches. Hitt et al.,

(2004) defined that strategic partnerships can give companies access to fresh information,

complementary resources, new markets, and new technologies, making it easier for them to

learn, develop and upgrade resources and capabilities, and expand their strategic network.

Strategic partnership is a sort of cooperative strategy, are becoming increasingly popular

around the world due to the value provided by these outcomes. Developing and managing

effective partnership demands a series of steps, including the successful coordination and

collaboration of varied resources and expertise across different companies.

Related Studies

Around the last two decades, hundreds of collaborations have been forged all over the

world. Some have lasted a brief time, while others have been in operation for a long time.
Some are focused on specific local goals, while others are attempting to coordinate broad

policy issues over enormous regions with millions of people living and working. There are

partnerships aimed largely at corporate circles, as well as those focusing on labor markets or

social issues, Brandstetter et al (2006).

According to the definition of strategic partnership by (Cambridge Dictionary, 2017),

“It is an agreement between two companies or organizations to help or collaborate in order to

make it easier for each of them to achieve their goals. For example, one way to break into the

market is to form a strategic partnership with a large player who is already successful in the

sector”. All aspects of human endeavor, including entrepreneurship, are characterized by

alliances and partnerships. An alliance is defined as a formal agreement between two or more

parties who work together to achieve a similar goal in order to meet specific commercial

demands while maintaining their independence. The alliance's goal is to maximize the

benefits of mutual collaboration across numerous businesses, in which each partner shares its

knowledge, resources, and risks in order to collectively achieve goals that would have been

impossible to achieve separately. Although the concept refers to alliances, the explanation

applies equally well to strategic partnerships Vanags et al (2018).

In addition to this, on the research findings of Vanags et al (2018), the technique in

forming a partnership should be as clear as possible; Various principles that might be readily

included into the overall approach of SMEs must be suggested; the partnership model should

develop an understanding of different sorts of partner relationships and classified options, as

well as make assessment and discussion of data easier. The following is a sequence of events

leading for a partnership strategy: an organization should build and maintain alliances both

internally (micro) and externally (macro) to foresee and oversee numerous aspects that

influence the micro and macro environment. Stakeholders are members of organizations and

individuals in the sector (micro level), and internal partners are the firm's personnel.
 Moreover, a partnership is most likely ineffective if; The ideals and interests of

partners are not the same. It may be difficult to get an agreement on cooperation goals as a

result of this. Risk, responsibility, accountability, or advantages are not shared. The

disparities in resources and expertise among partners impact their proportional influence in

partnership decision-making. One individual or partner wields complete control over and/or

directs the process. A secret ’s outlook that is not revealed to all partners. The partnership

was formed just to "maintain appearances." Members of the partnership lack the skills to

recognize problems or manage internal issues. Moreover, Partners are not carefully selected,

especially if it is tough to "de-partner”, According to Regina Brandstetter (Austrian Co-

ordination Unit of Territorial Employment Pacts at the Centre for Social Innovation, Vienna,

2006).

Base on the research of Henderson et al (2014), when looking for potential partners,

one of the most typical mistakes firms make is they focus only on a few options rather than

the overall environment of strategic partnerships. As a result, decentralized and ad-hoc

search, screening, and selection processes persist (except for the companies with developed

capability and a history of successful strategic partnerships).

Expert advice is fairly reliable: create a robust business plan that is backed up by a

clear contract. Define measures for evaluating the value your alliance brings to the table.

Identify mutual understanding with your partners and keep a close eye on how you interact

with them. Formalize your processes and structures. All of the suggestions are reasonable,

and you could use them in any work settings (Hughes and Weiss,2007).

According to a survey conducted by Rakuten Insight in the Philippines, due to the

imposed shutdown of all restaurants during the COVID-19 outbreak as of June 2020, 71% of

respondents claimed that they are ordering more through food delivery apps. Only 4% of

those polled said they ordered food online because they couldn't cook. Many restaurant
owners strategically partnered to different kinds of delivery company in the Philippines. To

be able to cope up the primary need to adjust on the online trend and what costumers fond of

doing so. Costumers like to use delivery mobile apps to buy personal necessity instead of

going to a crowded place and avoid having infected by corona virus.

CHAPTER III

METHODOLOGY

The instruments that the researchers used to collect all of the data or information they

needed for the study were explained in this chapter. In this part, you'll find more information

about the study's research design, respondents, research site, research instrument, and

research processes.

Research Design

The study is a business type of research which uses descriptive method technique. On

the descriptive type of research, the researchers want to gain an understanding on the

deciding factors of the restaurant owner to make partners in two-delivery company and the

benefits the restaurant can have. Also, the challenges face by the restaurant during a

pandemic. On the quantitative type of research, the researchers want to study the restaurant’s

performance through sales and demand.

Respondents of the Study

researchers will be going to conduct an interview and ask for data or estimated data in

gathering information on the restaurants sales and demand on the differences between the

period which they have in partnered to the delivery company and haven’t. It is incorporated

with follow up questions for further information related on the study.

Research Locale

The Just Chicken Restaurant is located in 707 corner San Isidro, Cavite East,

Palo, Leyte and has a branch in the opposite side of Primark, 2nd floor (above of Sushi

Point), Caibaan Road, Barangay 95, Tacloban City. Owned by a nautical in profession, an

instructor and a businessman which, his goal is to introduce the Korean style fried chicken in

the city of Tacloban.

An interview will be use for the study on the performance of the Just Chicken

restaurant. The interview will be divided into two parts: the first part will be going to tackle

on the strategies, the deciding factors, the benefits, and the challenges the restaurant

encounter in this trying times. The second part is by gathering the data through the sales and

demand of the restaurant which the researcher will going to ask for the estimated data from

the restaurant owner.

Data Gathering Procedure

The researchers will be going to visit the restaurant owner on his main branch in Palo,

Leyte to give the letter of consent to conduct an interview. It consists of the purpose, the goal

of the study and most especially the needed data. After the approval, the researcher will ask

the restaurant owner on the specific date on his free time for the interview to be conducted.

Statistical Tool

In order to fully analyze the data, the researchers will use sales performance analysis

and demand performance analysis as the main tools in gathering the data. (The researchers

will make a sale and demand performance sheet from the restaurant’s data from last year on

the weekly or monthly sale and demand).