Future-Proofing Food Service Post-COVID
Future-Proofing Food Service Post-COVID
THERESA T. NASSER
[Link]
Theresatabuenanasser@[Link]
Bicol College
Daraga, Albay, Philippines
ABSTRACT
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INTRODUCTION
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with these challenges they were able to adjust considering the delivery and
carryout, however, it added on their supply costs because of the packaging for the
condiments and other foods. Furthermore, the best way to adjust to a challenging
situation is to make the best of it (Previsor, 2020).
Recalling what happened before, according to the Provincial Tourism
and Cultural Affairs Office (PTCAO) in Albay, the tourism sector has been
severely hit by the coronavirus disease (COVID-19) pandemic but was able to
recover leisurely. In addition, As stated by the PTCAO chief, the government’s
declaration of community quarantine rules as a health measure to limit and
prevent the spread of the virus resulted in PHP500 million in losses for the
province’s tourist and hotel industry during the first half of the year. Recognizing
data from the previous year, the office reported that during the first half of 2019,
roughly a million local and foreign visitors arrived, spending PHP499 million
on travel services, accommodation, and dining. According to the Department of
Trade and Industry (DTI) in Bicol, various businesses claimed revenue losses of
almost PHP5.4 billion because of the region’s temporary shutdown owing to the
expanded community quarantine (ECQ). According to the regional director of
DTI, 61,522 out of the 75,000 registered businesses in Bicol were closed because
of the ECQ from March 16 to April 30, 2020. 139, 321 people were temporarily
out of work because of the two-month lockdown, while only 14,000 of the
previously stated crucial and essential businesses involved in the distribution of
power, water, food production and distribution, banking, and health services
were allowed to continue operating (Serrano, 2020).
The key factors remain in the industry, not just by considering competitors
and the present trend, but as an owner and manager, one would also consider
the possible contributions of it to the economy, community, and the future
business maneuver. In the article of Katigbak (2022), future-proofing could
imply investing in measures that make you adaptive enough to expand as needed
for yet unknown events and opportunities. In addition, it also means making
sure that something does not become obsolete. It means to be ready for things
beyond the here and now. Moreover, as a result, industries and professionals
need to make investments to ensure the future viability of their offerings. The
emphasis for several years was on enhancing the current services and skills. After
all, as technology has advanced and business demands have increased, there is
increasing focus on the future. Customer demands will increase as technology
develops, and business operations will become more complex. In having the skills
to advance into more difficult roles in the future, professionals should be fully
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equipped to fulfill the tasks and responsibilities of their current positions. It’s all
about being resilient, as well as innovative and forward-thinking.
FRAMEWORK
To direct and assist the study, the study is supported with certain theories.
These were utilized to interpret and validate the replies of the Food service
businesses with various levels of experience, to explain relevant variables, and to
analyze the study’s goal.
To direct and assist the study, the study is supported by certain theories.
These were utilized to interpret and validate the replies of the Foodservice
businesses with varying levels of experience, to explain relevant variables, and to
analyze the study’s goal.
The first theory that guided the researcher’s study was Schumpeter’s Theory
of Creative Destruction by Joseph Schumpeter; during the Pandemic the
majority of businesses were affected and closed their business momentarily, also
considering the decline of the economic status. The idiosyncratic experiences of
the Food business owners and managers made them more creative and innovative
in sustaining their business operations. In addition, the use of digital platforms
made them switch to it so they could constantly communicate and serve their
customers. The profit motivation drives entrepreneurs to develop new goods
and technology with the intention of improving their circumstances. In the
marketplace, new products and services, businesses, and sectors compete with
established ones to win customers by providing lower prices, superior functionality,
novel features, eye-catching styling, quicker service, more convenient locations,
higher status, more aggressive marketing, or more appealing packaging. Another
seemingly incongruous feature of creative destruction is how the pursuit of one’s
interests sparks advancement that benefits society as a whole (Alm & Cox, n.d.).
The second theory that guided the researcher’s study was Schumpeter’s
Innovation Theory of Business Cycle by Joseph Schumpeter; the pandemic
brought numerous challenges to everyone, especially in the Food Service Industry,
since the gatherings were limited and there were protocols that needed to be
followed. Many people created their businesses, such as takeout and delivery
orders, on a lower and more affordable price and packages; thus, it challenged the
established Food service businesses to lower their prices and compete with the
new ones. Consequently, they were forced to anticipate new ideas and inventions
to keep up with the competitors. Five innovative techniques that will help your
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company succeed are as follows: the launch of a new product, the adoption of
a novel production technique, the opening of a new market, the search for new
sources of raw materials or partially manufactured goods; and reorganization of
a company’s production procedures. Innovations are entrepreneurs’ commercial
implementations of their inventions (Kumar, 2020).
The third theory that guided the researcher’s study was the Rational
Expectations Theory by John F. Muth (1961. With all the idiosyncratic
experiences and challenges encountered by the Foodservice businesses, they have
practiced and followed specific measures to steadily open their business during
the peak of the pandemic. In addition, the Food business owners became more
connected with their businesses; hence they could not be as complacent as before.
Furthermore, they always anticipate what will happen next in the Foodservice
industry; therefore, they are committed to what will happen now in the future.
In macroeconomics, the rational expectations theory is a theory and modeling
approach that is frequently applied. In the theory, people make decisions based
on three main considerations: their human rationality, the facts at hand, and
their prior experiences. Moreover, according to the concept, people’s current
expectations for the economy have the power to directly affect how the economy
will develop in the future. Contrary to popular belief, government policy has
little bearing on financial and economic decisions (Tardi, 2020).
The study’s paradigm is described below to help you comprehend the
study of Documented Experiences among Food Service Businesses towards
Future-Proofing the Industry.
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METHODOLOGY
Research Design
The researcher used a Quasi-Phenomenological Qualitative Research
Approach, a type of approach that aims to comprehend and characterize a
phenomenon’s fundamental elements. By putting the researchers’ previous
notions about the phenomenon on hold, the technique looks into how people
interact with the world on a daily basis. In other words, phenomenology research
investigates actual events to learn more about how people interpret them, as well
as to trace what accurately occurs in the study regarding its variables. It was used
in determining and explaining the data and to consider the answers given by
the participants while gathering and analyzing the interview answers; hence, it
is scrutinized, documented, and verified. The focus of this study is Document
the Experiences among Food Service Businesses towards Future-Proofing the
Industry.
Research Site
The study was conducted in the Province of Albay, Philippines specifically
in the Economic Centers of the Second District of Albay. The Researcher chose
to study Legazpi City and the Municipality of Daraga because the most known
Registered Food Service Businesses can be found that cater both onsite and
offsite. This place was chosen to interview the selected Food Business Owners or
Managers from which the researcher has acquired information. As a result, the
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research’s core informants provided the most reliable and accurate results.
Research Respondents
The participants of the study are the selected Food Business Owners and
Managers of Legazpi City and Municipality of Daraga in the Province of Albay.
The chosen participants were the ones who catered both onsite and offsite events,
so they have the most knowledge to share their experiences during a global
business disruption which is the COVID-19 Pandemic.
Instrumentation
The researcher conducted a semi-structured interview with the selected Food
Business Owners and Managers. The interview question was composed of two
parts: Part I Profile of the Participants and Part II Researcher’s Interview Guide.
An Interview Guide was formulated by the researcher after an in-depth
reading based on the instrument and interview used by other related researcher
and is revised to suit the present study. For validity and reliability of the
instrument, which is composed of two parts, was presented to the panel members
during the proposal defense for comments and suggestions.
Sources of Data
The researcher used primary and secondary sources. The primary source of
data was gathered from the responses of the participants, which are the selected
Food Business Owners and Managers of Legazpi City and Municipality of Daraga
in the Province of Albay. The secondary data came from information surfed and
reading materials.
Data Collection
The data gathering was conducted by taking into consideration the
following procedures: a written permit to conduct an interview with the selected
participants prepared and noted by the subject Professor, Adviser, and the Dean
of the Graduate School in Bicol College. The researcher personally interviewed
the Participants with the aid of an interview guide using open-ended questions
from among selected participants and asked permission from the interviewee if
the researcher could record the interview to gather necessary data and to verify
the genuineness of the information from the participants during the face-to-face
interview. Come up with the findings and recommendations out of the reactions
that were gathered, interpret data sets by identifying common responses, and
draw implications of the conclusions and recommendations that were made.
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Sampling Technique
The researcher used purposive sampling wherein the participants of the study
were chosen based on the type of food service business and the audience that they
cater to. Therefore, the total number of participants was based on the legality of
their compliance as Registered Businesses that also have complied with other
requirements such as DTI and Sanitary Permit, whether they cater and serve in
offsite and onsite locations.
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Production focused on ordering and buying the supplies, assigning the personnel in the
kitchen and service area, food preparation, and food service and food delivery.
Along with Ordering and buying the supplies, most of the participants have
the same point of view of their experiences, such as having difficulty buying
goods both at the mall and wet market because of the long line and limited
stocks. In Assigning the Personnel in the Kitchen and Service area, since it was the
peak of the pandemic, a few of the participants mentioned that their way was by
shifting the staff and assigning them half of their normal duty days since it was
needed to skeletal scheduling. In Food Preparation, each participant gave out their
insights; a participant shared that they were able to avail of same-day delivery of
fresh goods from the mall and at the wet market. Lastly, in Food Service and Food
Delivery, most of the participants had done the same routine, such as disinfecting
the service car before and after delivery and chose to avail and partner with their
preferred delivery.
Management
financial crisis.
Marketing Management Focused on Exclusive Deals or Promo, Social Media
Marketing, and Affiliate Marketing
In Exclusive Deals or Promo, many have their own experiences of delivering
it, such as by giving appreciation gifts to regular customers and giving more pax
as a freebie for their loyal and regular customers. While doing the Social Media
Marketing, it was convenient for all of them as they could post on their Facebook
account or page to promote, and most of the inquiries were coming from the
social media platforms. Lastly, in Affiliate Marketing, all the participants did not
have affiliate marketing.
B. Finance Management
also said that the LGU’s (Local Government) have been lenient and easy.
D. Technology Adoption
Production focused on ordering and buying the supplies, assigning the personnel in the
kitchen and service area, preparation of the food, and food service and food delivery.
In Ordering and Buying the Supplies, the participants’ challenges were
comparable. They have encountered various challenges, such as price increases
of the goods and commodities, and the clients refunded and canceled their
events; hence they were challenged about it since no one even booked an event
or function. In Assigning the Personnel in the Kitchen and Serving Area, a few
of the participants have stated that the first challenge or issue with it was the
transportation of their employees, and some of the staff resigned due to the
difficulty of transportation at that time, hence without them, it would be difficult
on their end to assign or re-assign the personnel. In Preparation of the Foods, a
few of them shared their challenges. A participant had difficulty finding fresh
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meat at the market since many of the consumers opted to buy canned goods at
that time. Lastly, in Food Service and Food Delivery, a couple of the participants
shared their challenges, likely the price increase of gasoline and the same food
service businesses owner they were not able to increase the menu since it was still
pandemic time.
Marketing focused on exclusive deals or promo, social media marketing, and affiliate
marketing.
In having Exclusive Deals or Promo, the participants did not share any
challenges since it was executed well. However, for Affiliate Marketing, they have
not applied it in their business yet. However, in Social Media Marketing, few
participants had their situation, such as fear of scams and the cancellation of
reservations.
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C. Finance Management
E. Technology Adoption
Production focused on ordering and buying the supplies, assigning the personnel in the
kitchen and service area, food preparation, and food service and food delivery.
In Ordering and Buying the Supplies, the participants have shared different
ways of their measures such as a participant availed and ordered from an online
grocery of the mall with free delivery, also with the free delivery of vegetables
and fruits from the wet market, and now with the new normal, they have just
maintained it. In Assigning the Personnel in the Kitchen and Service area; during
the peak of the pandemic, most of the participants have assigned their employees
with specific days, such as by MWF (Monday, Wednesday, and Friday) and
TTH (Tuesday and Thursday) and rotation of schedule as well, but now that it
is new normal, they have returned the normal days of their duty days and have
a complete staff and have provided a full service for events or functions with the
waiter. For the Food Preparation, most of the participants practiced necessary
measures both for the safety of the management and customers. Lastly, in Food
Service and Food Delivery, most participants charge mobility charges if direct
delivered by the management.
Marketing focused on exclusive deals or promo, social media marketing, and affiliate
marketing.
For the Exclusive Deals or Promo and Social Media Marketing, the
participants had different styles of executing their measures but were relatively
comparable. A participant offered a civil wedding package for fifty pax with
venue decoration and free wine and gave free use of videoke for the senior citizen.
C. Finance Management
Hiring Staff, Tracking Employee Hours, Running Payroll, Employee Records, and
Business Licenses.
In Hiring of Staff, many participants mentioned that now with the new
normal, they needed to hire more for their manpower. Additionally, with
Employee Records, they have required a vaccination card. A participant
mentioned that during the pandemic, they did not need new staff. Hence they
have just retained their previous staff. Additionally, tracking of their employee
hours was just the same. Also, the management took care of the blue card and
health cards of their staff, and they have a bookkeeper, but now they are accepting
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on-call waiters again. Relatively, for Running the Payroll, a certain number of the
participants give payment on the day of the duty, especially for the calls, and give
salary and advance payment if needed. Still, with the new normal, they give out
the normal rate on the normal days of the duty. Lastly, for the Business Licenses,
all participants have complied with all the requirements and availed installments
for their permits during and after the pandemic.
E. Technology Adoption
In using Digital Platforms and Online Payment Methods, most of the
participants focused on the use of GCash and Bank Transfers. Also, few of the
participants accepted a credit card and PayMaya payment. While for the Website
just a certain number of the participants had it, and for the Mobile Application,
all the participants did not have it.
Mishra and Tripathi (2020) concluded that throughout the past couple
of years, numerous business frameworks and innovative company models had
been created. The development of new technologies has altered how businesses
operate over time, making the study of business models in digital marketplaces
a crucial topic of study if one wants to operate sustainably in the modern digital
marketplace.
After all the experiences that the participants have faced, the challenges they
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have encountered, and the measures they have applied during the pandemic
and in the new normal, it is necessary for them to continuously safeguard their
business operations this present time regardless of any business disruption that
might come again. Based on the data gathered from the participants’ responses,
immensely guided the researcher to create a Future Proofing Framework in the
Food Service Industry.
Production and Operation Management; it is necessary to have a reliable
permanent supplier and a well-known substitute supplier. It is also necessary
to have an active and regular food delivery service partner. Respectively, it is
required to have a trusted employee besides the owner to handle the operation
during an event or function.
In the article of Blutstein (2022) titled “Rise of the digital network: Future-
proofing operations against supply chain disruption,” here are some of the
needed tactics that were mentioned by the author; Master planning with traffic
light ratings will strengthen supplier networks, Keep your finger on the supply chain
pulse with warehouse management and a smart factory setup, Optimize production
performance by keeping track of outside pressures, and Take the digital leap to avoid
the ‘butterfly effect’ on future supply chains.
Sales and Marketing Management; generally, implement creative deals and
offer an affordable menu to the clients to boost sales. Considering the peak
season and lean season of the events or function, think of a promotion that will
work on that specific season. Be permanently active on social media accounts and
consistently advertise the business page on social media.
In the article of Khanoria (2022), the author mentioned that businesses
must ensure that their marketing strategies are future-proof because market
conditions can alter at any time. For increasing brand awareness and securing
strategies for the future, a unified marketing approach that combines offline and
online strategies can be effective. Additionally, while posting about the event on
media, the author urged offline readers to go online and utilize a hashtag.
Finance Management; overall, consider the important expenses and have a
record of the expenses. Moreover, always ensure to have a safety budget for every
event, function, and restaurant supplies.
In the article by Lawrence (2022) titled “Future-Proofing Finance: Top
Three Priorities to Build the Finance Team of the Future,” as mentioned by the
author these are three strategies finance managers can use to ensure their team’s
success in the future: Prioritizing technology to attract top talent, Ushering in an
expanded set of data skills, and Harnessing data to advance environment, social
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CONCLUSIONS
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and Managers could adapt easily to the business trend. Moreover, the use
of technology helped them in many ways likely, answering inquiries and
accepting orders. Crucially, this study will help future researchers and benefit
the readers by knowing more about future-proofing studies that may secure
the Food Industry in a time of business disruption.
TRANSLATIONAL RESEARCH
Significantly, this documented study will guide the Food Service Business
Owners, Managers, and the Food Industry to manage their businesses
competently, particularly during planning, developing, and executing their
business operations. From the results of this study, the selected Food Service
Business Owners and managers had an indistinguishable experience that
assisted them in following a set of measures that helped them to survive such
business disruption. Accordingly, this study will be exceedingly improved and
explored through further studies through journals, news, surfed information
from the internet, and documentation in the Food Service Industry.
LITERATURE CITED
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