Saint Mary’s University

Bayombong, Nueva Vizcaya

School of Accountancy and Business

Anyone’s Table,
everyone’s home

Presented to the Dean and Faculty of the

School of Accountancy and Business

In Partial Fulfillment
Of the Requirements for Accounting Research Case-Analysis

Submitted by:
ANNA DOMINIQUE G. ACERET
MARILYN C. ACOB
NORELYN A. AQUINO
ANGELICA C. BALUCAS
CRISTELLE M. ESGUERRA

Submitted to:
MR. JONATHAN P. VERGARA

November, 2018

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 Introduction
Restaurant business was the leading media brand in the commercial foodservice industry,

with a focus of entrepreneurship, innovation and growth. Similarly, restaurants have always

played an essential role in the business, social, intellectual and artistic life of a thriving society

(Restaurant Business Magazine).

There were many reasons why people engaged in a business popularly in line with the

food industry. Some were interested in the business side and wanted to have a sustained income

but most people just really loved foods and liked being in the kitchen.

“Cooking is like loving someone, you do it with a lot of passion”. This passion led the

owners, Mrs. Remanel M. Esquejo-Paraiso and her husband Mr. Eduardo S. Paraiso Jr., to

establish “The Table” last February 18, 2018. In addition, the couple had a lot of food and travel

experiences together. The Table was created to serve everyone with a great taste of Filipino

foods and other countries’ delicacies especially Thailand, where they worked and gained cooking

experiences. As a piece of fact, most major events of life, personal and professional were

celebrated in restaurants. And “The Table” with a peaceful environment, brought people together

and made them feel at home. Hence, choosing the best location was an integral part of putting up

a business.

The restaurant was located at Bacarra St., Brgy. Quezon, Solano, Nueva Vizcaya. The

owners cited three reasons why they chose their current location. First, the place was peaceful

enough for the customers to unwind compared to the “centro” that was full of beeping cars, busy

people and pollution. Second, the parking space would not be enough if they established their

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business at the “centro”. Lastly, the rent expenses for the space of the restaurant would be too

costly. The cost of rental of their current place was P 8,000 per month. It was originally a house

that was renovated by the owner and was subsequently improved by the couple.

The owners started promoting their products and their business as well, through social

media, particularly on Facebook. It was also their way of reaching out the customers through

messenger. Fortunately with a few menu, the entity had a good feedback from the market. On

their opening promo, they gave 10% discount on all items in the menu and gave free drinks and

cakes that lasted for a week. The bestseller under the Thai Food was the ‘Mookata’[1] Thai

Hotpot. Almost all Thai rice meals attracted customers and ‘Sinigang seafood supreme’ on the

other hand, was the bestseller under the Filipino rice meals. The ‘Pad Thai’ [2] was popular for

those customers who love to eat pasta. ‘Spring rolls’ [3] and ‘Somtam’[4] were the favorite snacks

of most customers together with the dessert ‘Watermelon Bingsu’[5].

Managing a restaurant was also full of ups and downs. That is why a business plan is an

important blueprint that will guide and help the business to survive in the long run. On the first

two months of operation, the sales were consistently high but complemented with a declining

profit. At times, unexpected incidents really do happen. On the fourth month of operation, the

business was closed for the whole month because the owner, Mrs. Paraiso, lost her loving

mother. Due to this event, some of the customers thought that the business will not operate

anymore.

[1]
‘moo’ means pig or pork ‘kata’ means pan or skillet
[2]
A Thai dish of rice noodles that are stir-fried with other ingredients such as seafood, chicken, egg or bean sprouts.
[3]
An Asian snack consisting of rice paper filled with minced vegetables and usually meat, rolled into a cylinder and
fried.
[4]
A Thai dish of sliced sour fruits and vegetables and other ingredients which are pounded together in a mortar.
[5]
Shaved iced dessert.

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 In lieu with this, the owners found it difficult to start again. Nevertheless, with the

eagerness to serve their “ka-tables” once more, they started to reach out the market but it was not

enough to completely regain their customers. Thus, it resulted to lower sales during the months

of June and July.

Separating the business with personal matters entailed a lot of sacrifices. On the month of

August, the couple got married and the restaurant was closed again for two weeks. This

beautiful event opened a new chapter on their lives but unfortunately decreased the sales for the

said month. The sales were continuously declining on the following months that resulted to a

loss.

Despite of the negative profit, the owners continued to serve the best for their customers.

Since for them, it is only normal for the first year of operation to incur loss. In the present, both

of them were managing all the transactions of the establishment because the part-time worker

took his leave. In line with personally managing the entire restaurant, the owners tend to get too

tired and sometimes will not open on the following day.

Context 1: Organization Background

Company History

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 The Table is a business restaurant owned by Mrs. Remanel M. Esquejo-Paraiso with her

husband Mr. Eduardo S. Paraiso Jr. that was established last February 18, 2018. The owners

named their business “The Table” to conceptualize the Filipino ties especially eating together

with the family. It was created to serve everyone with a great taste of foods of the different

countries like Thailand, Korea and our very own Filipino dishes. The exquisite restaurant was

located at Bacarra St., Brgy. Quezon, Solano, Nueva Vizcaya.

Manpower was also an essential part of the business because they acted as the hands of a

company. Without them, the business would be a living corpse. The restaurant started with four

employees including them as the chef and assistant cook in the kitchen. Included in the jobs of

other employees were taking orders, accepting payments, serving and delivering foods, cleaning

and other jobs necessary to continue the business flow.The owners were very considerate when it

comes to their staff. They gave them a day-off once a week and getting their permission ahead of

time was enough for them when their employees have urgent matters to attend with. The table

was open every Monday to Saturday from 10 A.M- 9 P.M. and 2P.M- 9 P.M. every Sunday.

They were accepting reservations and deliveries but most were walk-in customers.

A good relationship with your supplier is just as important as having a good relationship

with the customers. It is vital to ensure suppliers meet the immediate needs of the business. The

owners acquired their suppliesof raw ingredients twice a week, especially seafood from

Dagupan, in line with the business of their younger brother .These supplies last for a week. Often

times, due to some natural calamities, the supplies were sometimes delayed. On the other hand,

they bought vegetables daily to serve it fresh to the customers.

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 Though the restaurantwas only operating for less than a year including the zero-sales

month, they earned the trust and loyalty of regular customers due to the warm accommodation

they have provided.

MENU

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6
 The Table
Income Statement
For the Periods Ended February-September 2018

Feb Mar Apr May Jun Jul Aug Sep

Sales 30000 60000 55000 0 20000 25000 12500 15000

Less: Cost of Goods
Sold 10000 27000 24750 0 9000 11250 5625 6750

Gross Profit 20000 33000 30250 0 11000 13750 6875 8250

Selling and
Administrative
Expenses 8300 24900 24900 8000 24900 24900 12450 24900
Operating
Profit(Loss) 11,700 8,100 5,350 (8,000) (13,900) (11,150) (5,575) (16,650)

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Figure 1: 8- Month Period Financial Performance

FINANCIAL PERFORMANCE
70000

60000

50000

40000

30000

20000

10000

0
FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER
-10000

-20000

-30000

SALES EXPENSES PROFIT (LOSS)

Figure 1 shows the financial performance of The Table for the first eight (8) months of

operation. It shows that sales are greater than expenses during the first three (3) months. Thus,

gave a positive profit to the entity. On the following months, the business incurred greater

expenses compared to sales. As a result, the restaurant suffered a loss.

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Figure 1.1: Sales data from February to September

SALES
70000
60000
60000
55000
50000

40000

30000
30000
25000
20000
20000 15000
10000 12500
0
0
February March April May June July August September

As shown by Figure 1.1, the entity’s sales for the month of February started from

P30,000.00. From this month to March, the business had a 100% increase in sales. Then, the

entity had 8.33% decrease in sales from the month of March to April. Meanwhile, as seen from

the graph, the business did not have any sales (0% sales) for the month of May due to the

suspension of the business operation. The owners decided to resume their operations on the

following month. From the month of June to July, the entity had a 25% increase in sales. Then,

the business had a 50% decrease in sales from the month of July to August. Lastly, the business

had a 20% increase in sales from the month of August to September.

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Figure 1.2: Expenses from February to September

EXPENSES
60000

51900
50000
49650

40000
33900 36150
31650
30000

20000
18300 18075

10000
8000

0
February March April May June July August September

As shown by Figure 1.2, the business entity’s expenses for the month of February started

from P18,300.00. From this month to the month of March, the entity had a 183. 61% increase in

expenses. From March to April, the business had a 4.33% decrease in expenses. However, on the

month of May, there was still a fixed cost amounting to P8,000.00 for the business rental fees.

Resuming the operations from the month of June, the business started to incur expenses again.

From the month of June to July, the business had a 6.64% increase in expenses. Then, from the

month of July to August, the business had a 50% decrease in expenses. And lastly, the business

had a 100% increase in expenses from the month of August to September.

Figure 1.3: Profit from February to September

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 PROFIT (LOSS)
15000
11,700
10000
8,100

5000 5,350

0
February March April May June July August September

-5000 (5,575)
(8,000)

-10000
(11,150)
(13,900)
-15000
(16,650)
-20000

Figure 1.3 shows the profit of the entity from the month of February to March.

Commencing from the first month, the income was decreased by P 3, 600 and subsequently

decreased by P 2,750. However, the business started to have a negative profit (loss) from the

month of May until September.

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Figure 2:Location of “The Table”

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 Context 2: Industry Overview
The food service industry in which The Table was included describes those businesses or

companies that serve foods, meals or snacks for immediate consumption of thepeople,

particularly those consumers who are away from home. Not leading away from its definition,

The Table itself catered such customers but in a unique way. They decided to locate the

restaurant in a place far from the center of the town, maintaining their theme ‘Anyone’s Table,

Everyone’s Home” in a peaceful environment.

Establishing a business in a large industry comprises of outside barriers that can affect the

entity in many aspects. There are two layers of external environment, the task and general

environment. The former has significant impacts on business. In terms of competitors, there are

restaurants that offer similar or substitute products such as, the newly established business at the

Hidden Garden. It involves different stalls that offer related foodstuffs. Other restaurants

compete for resources, since they used the same raw materials – meat, vegetables and other

ingredients for them to meet their recipes. Also, some competes for product quality. There are

restaurants that offer similar menu but they used secret formulas for their products. For instance,

the samgyeopsal [1] of The Table tastes different with other restaurants which also offer the same.

Furthermore, various restaurants offer better customer service like warm accommodation and

assistance.Good relationship between the owner/staff and customers has an impact towards the

business, especially in the economic aspects because they are the oneswho pay for the products.

[1] Grilled pork belly.

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 In this aspect, The Table has a good relationship with its customers and superior in giving

them contentment. Also, the affiliations of the entity to its suppliers which provide resources for

the business (e.g. raw materials) affect the entity. In addition, direct contact of the entity to its

supplier builds strong bond between them. The Table has an advantage in this phase because as

mentioned above, the owners acquired seafood in line with the business of their younger brother

in Dagupan. Lastly, the regulators that have potential control and can influence the business’

policies and practices. Every business must comply with the different regulatory agencies that

necessitate those requirements. With regard to this, The Table was a BIR registered entity that

complies with the SEC for its protection as well as the public.

For the general environment, it consists of the Political/legal environment in which there

are ordinances that require firms to operate under competitive conditions and to protect

consumer rights. The Table operates legally and was a socially responsible business that

overlooks the impact of their operations on the surroundings and the community as a whole.

Also, new technologies help the business for the development of new products and improvement

of services for the customers. The said restaurant is not technology ignorant since it adopted new

equipment like the hotpot [2]

that aids the customers’ thirst of Thailand/Korean-like cooking

experiences in restaurants. Moreover, technological advances in transportation enables the

customers to travel faster to the location. Likewise in communication, media makes it easier for

the business to reach the customers like the Facebook page of The Table. These technological

advances result in improved product quality and services but lesser cost. Another aspect under

the general environment is Social/Cultural.

[2]
Chinese cooking method, prepared with a simmering pot of soup stock at the dining table, containing a variety of East Asian

foodstuffs and ingredients.

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 As we all know, demographic trends and lifestyle of the peoplechanges. Nonetheless,

The Table was flexible enough to deal with its customers’ wants. This feature is the very reason

for the restaurant to cater not only young or adult but everyone who wants to experience home.

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 Context 3: Additional Context
Table 1: SWOT ANALYSIS
STRENGTHS
 Attractive appearance/ ambiance
 Affordable prices
 Fresh ingredients
 Manageable internal conflicts
 Accommodating staff/employees
 Peacefulness of the location
 Product Quality
OPPORTUNITIES
 Potential decrease in raw materials used
 Establishment ofwifi connection
 Increasing demand for outside-the-country
delicacies
 Customer loyalty
 Increasing trend for Healthy foods
 Good commendation from the customers
 Increasing number of career persons who
don’t have time to cook meals
The table 1 shows the internal and external factors of The Table. There were seven (7)
strengths, six (6) weaknesses, seven (7) opportunities and five (5) threats identified in the
restaurant.
WEAKNESSES
 Little emphasis on marketing plan
 Lack of menu description
 Lack of business management
 Lack of issuance of official receipt (OR)
 Lack of employees
 Inconsistency of the working hours
THREATS
 Emergence of competitors with similar
menu
 Competitors located at the centre of the town
 Location and accessibility of business
 Rising price of ingredients or raw materials
due to inflation
 TRAIN Law
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Table 2: INTERNAL FACTOR EVALUATION MATRIX (IFE)

Weight Rating Weighted

Score
Strengths
1. Attractive appearance/ ambiance 0.09 4 0.36
2. Affordable prices 0.06 3 0.18
3. Fresh ingredients 0.05 4 0.20
4. Manageable internal conflicts 0.04 3 0.12
5. Accommodating staff/employees 0.14 4 0.56
6. Peacefulness of the location 0.07 3 0.21
7. Product Quality 0.09 4 0.36

Weaknesses
1. Little emphasis on marketing plan 0.14 1 0.14

2. Lack of menu description 0.11 1 0.11

3. Lack of business management 0.04 2 0.08
4. Lack of issuance of official receipt (OR) 0.03 2 0.06
5. Lack of employees 0.05 2 0.10
6. Inconsistency of the working hours 0.09 1 0.09
Total 1.00 - 2.57
The rating values are as follows: 4= major strength, 3= minor strength, 2= minor weakness and
1= major weakness.

As shown by table 2, the entity’s strength “Accommodating staff/employees” with a

weighted score of 0.56 and the weakness “Little emphasis on marketing plan” with a weighted

score of 0.14 got the highest weighted score. On the other hand, the strength “Manageable

internal conflicts” and the weakness “Lack of issuance of official receipt (OR)” got the lowest

weighted score of 0.12 and 0.06 respectively. As you can see in the table, the total weighted

score value is 2.57, which exceeded the average weighted score of 2.50.The business’ internal

position is better.

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Table 3: EXTERNAL FACTOR EVALUATUON MATRIX (EFE)
Weight Rating Weighted
Score
Opportunities
1. Potential decrease in raw materials. 0.05 3 0.15
2. Establishment of wifi connection 0.04 3 0.12
3. Increasing demand for outside-country delicacies 0.09 3 0.27
4. Customer loyalty 0.11 4 0.44
5. Increasing trend for Healthy foods 0.08 3 0.24
6. Good commendation from the customers 0.13 4 0.52
7. Increasing number of career persons who don’t 0.07 3 0.21
have time to cook meals

Threats
1.Emergence of competitors with similar menu 0.11 1 0.11
2. Competitors located at the center of the town 0.10 1 0.10
3. Location and accessibility of the business 0.14 1 0.14
4. Rising price of ingredients or raw materials due to 0.05 2 0.10
inflation
5. TRAIN Law 0.03 2 0.06
Total 1.0 - 2.46
The rating values are as follows: 4= major opportunity, 3= minor opportunity, 2= minor threat
and 1= major threat

As shown by table 3, the restaurant’s opportunity “Good commendation from the customers” and

the threat “Location and accessibility of the business” got the highest weighted score of 0.52 and

0.14 in that order. In contrast, the opportunity “Establishment of wifi connection” and the threat

“TRAIN Law” got the lowest weighted score of 0.12 and 0.06 accordingly. Also, theentity got a

total weighted score of 2.46 which means that the restaurant was not responding well to

opportunities and threats.

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Table 4: COMPETITIVE PROFILE MATRIX (CPM)

Critical Success Factors THE TABLE HIDDEN GARDEN

Weight Rating Weighted Score Rating Weighted Score

Product Quality .13 4 .52 3 .39

Customer Service .12 3 .36 3 .36

Employee Management .08 3 .24 3 .24

Price Competitive .10 3 .30 3 .30

Strategic Location .10 2 .20 3 .30

Customer Loyalty .08 4 .32 2 .16

Customer satisfaction .10 4 .40 1 .10

Menu Item .13 2 .26 2 .26

Ambiance of the Establishment .07 4 .28 2 .14

Advertisement .09 2 .18 3 .27

Total 1.0 - 3.06 - 2.52

The rating values are as follows: 4= major strength, 3= minor strength, 2= minor weakness and
1= major weakness.

The table 4 shows that The Table has a higher total weighted score of 3.06 compared to

the Hidden Garden Food Park of 2.52. Both establishment scores more than 2.50, thus, it met the

average industry performance for industry’s success factors.

Both establishments exemplify its major strength from its “Product quality”, but The

Table has a greater weighted score of 0.52 compared to the Hidden Garden of 0.39. On the other

hand, the major weakness of The Table was the “Advertisement” with a weighted score of 0.18,

while Hidden Garden’s major weakness got a weighted score of 0.10 which was the “Customers’

satisfaction”.

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 Figure 3: PORTER’S FIVE-FORCES MODEL

Threat of New
Entrants
 Emergence of new
restaurants such as some
stalls at the Hidden Garden
Food Park

Bargaining Power of Bargaining Power of

Suppliers Buyers
Competitive Rivalry
 Product differentiation
 Buyers tends to be a  Quality of raw
and innovation
price sensitive which materials vary
 Quality differences
often makes the  Different suppliers
sellers give discounts  The restaurant is in a
from the market that
or other free of good location where it is
offers materials at low
charge add-ons to the only restaurant in the
prices
every food they offer particular area.

 Too many substitutes exist

in the industry
 Some restaurants offer
similar menu

Threat of Substitutes

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HIGH LOW

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AlternativesCourses of Action

ACA 1: To add more social sites like instagram, twitter and youtube.

ACA 2: To move to a more strategic location that can capture the target market.

ACA 3: To establish a visible street signage (i.e. this way).

ACA 4: To advertise through radio and television networks.

ACA 5: To establish a more impressive signature dishes to the public.

ANALYSIS:

ACA 1: To add more social sites like instagram, twitter and youtube.

From the beginning, social media has had an important impact on all of us. Social media

started out as a method for people to either connect or reconnect with each other. At this point,

social media has become much more. Businessmen use this media to successfully grow their

companies and to get their word out in a tremendous way. It was considered as one of the most

effective marketing approach that uses social media and traditional marketing in tandem. Thus,

social media sites plays a big role in achieving a greater number of customers by giving them the

important information on the things they need to know about the business.

Advantages Disadvantages

 The restaurant will become more popular  may result to misinterpretation

especially among millenials  prone to scam

 Easy to implement with lower cost  only short-term benefits

 Easier access of the business

 Act as bridge to connect with customers

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ACA 2: To move to a more strategic location that can capture the target market.

Location is of utmost importance to businesses that sell goods or services directly to

customers at brick-and-mortar establishments. Location can also influence a business's ability to

market itself. A business with a storefront on a busy street is more likely to attract customers with

signs and storefront displays than a business that is not in a busy area. A business’ location can

affect the competition it faces from businesses that sell similar products and services.

Advantages Disadvantages

 May attract more customers  Costly to implement

 Possibility of higher sales  Time-consuming

 It will not be hard for the customers to

find the business location

 Long-term benefit that will stabilize

the financial performance

ACA 3: To establish a visible street signage (i.e. this way).

When starting a business, one of the key visual elements you should consider is following

your branding design and creating an attractive sign for your business. Signs are not only useful

tools but they can also become a visual and inanimate salesperson for your business.Also, it can

be an essential component of a business's overall marketing strategy. A sign that contains the

company’s logo can help reinforce its brand. It was also used to draw attention to promotions and

to convey information about the business. Because an exterior sign is visible 24 hours a day, 365

days a year, its exposure is prominent and continuous. It’s the most common method used in

reaching thousands of potential customers.

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Advantages Disadvantages

 Easier to locate the business  People who do not know how to read

 More walk-in customers might not be able to follow properly

 Most cost-effective in comparison to the direction provided

other forms of advertising  May not be noticed by other people

 It can be a great investment when it

comes to marketing.

ACA 4: To advertise through radio and television networks.

The broadcasting industry has changed over the years, from a system of only a few television

and radio networks and affiliates to an ever-increasing variety of specialty stations. All of these

options have given broadcast marketing professionals more opportunities to promote products

and services by utilizing these networks in order to gain viewers' and listeners' attention.

Broadcast marketing techniques include not only traditional commercials, but also product

placement in television shows and endorsements by radio personalities, based on demographic

information collected by broadcast and marketing companies. Consequently, the viewers will

have an actual idea of what your business is all about. Also, it will give them a feeling of

curiosity to try and have a visit to your establishment.

Advantages Disadvantages

 Can powerfully communicate the  Expensive

business with precise information  Not all people listen to radios and

 Can widen the target market watch televisions

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ACA 5: To establish a more impressive signature dishes to the public.

A signature dish is a recipe that identifies an individual chef or restaurant. Ideally it

should be unique and allow an informed gastronome to name the chef in a blind tasting. It can be

thought of as the culinary equivalent of an artist finding their own style, or an author finding

their own voice.

Being an industry of having a lot of rivals it would be a competitive advantage of the

entity to give a unique trademark or signature dishes that will catch the attention of potential

customers.It is also a way of promoting the uniqueness of the business and reaching a more

diverse customers.

Advantages Disadvantages

 Can deliver a clearly defined and new  Time-consuming

experience in each of the customers.  Hard to come up with a unique

 The good feedback of the dish may product

impact the entire business

DECISION MATRIX

To understand the analysis above, we will rank the ACA’s one by one using four

categories namely, effectiveness, efficiency, ease of implementation and cost. This will enable us

to determine the best ACA to be implemented.

Category ACA 1 ACA 2 ACA 3 ACA 4 ACA 5

Effectiveness 6 10 2 5 3
Efficiency 5 9 4 7 3
Ease of implementation 9 7 8 6 3
Cost 7 3 6 5 4
TOTAL 27 29 20 23 13
Ranking: 10 being the highest

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Conclusion/ Solution

The tables presented at context 3summarizes the issues and challenges of the business

entity. It was discovered that the major weakness under the IFE was the “little emphasis on

market plan”, “location and accessibility of the business” was the major threat under the EFE and

“advertisement” was the downside of the entity compared to Hidden Garden Food Park.

Considering all the matrices used, it was therefore concluded that poor marketing strategies in

promoting their current location was the core problem of The Table.In view of the Decision

matrix above, it is thereby recommended that ACA 2 (To move to a more strategic location that

can capture the target market.) would be best suited to address the main problem in the case.

PLAN OF ACTION (To move to a more strategic location that can capture the target market)

No. Action Person/s Responsible Time

Frame
1 Find a prospect location. Owners 1 month
2 Finalize the contract for the new Owners and lessor 1 week
location.
3 Buy materials for renovation. Owners 3 days
4 Improve the place. Owners and interior designer 2 weeks

5 Installation of the equipment and Owners and hired workers 4 days

furniture.
6 Public notice of moving to the new site. Owners and advertisers 3 days

7 Hiring of additional employees. Owners 2 weeks

8 Advertise the business to the public for Owners and advertisers 1 week
the opening.
9 Grand opening. Owners and employees 1 day

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Recommendations
From the findings, the following are highly recommended to the owners to solve other issues

of the business.

1. Maintain the good relationship they built with their customers.

2. Maintain the good quality of the foods they serve.

3. Add a product description in the menu.

4. Always update the menu.

5. Add additional employees.

6. Try to make a vision and mission statement.

7. Conduct research and development.

8. Create a remarkable tag line.

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