1

CHAPTER I

INTRODUCTION

Background of the Study

Korean Barbeque refers to the technique of grilling meat such as beef, chicken, or pork on

gas or inlaid charcoal grills in the dining table itself. Since it became prevalent, the demand of

Korean Barbeque Restaurants can be seen in BF Paranaque. There is a vast number of Korean

Barbeque Restaurants along the Aguirre and President Avenue namely Romantic Baboy, Premiere

The Samgyupsal, Samgyupsalamat, and many more. The location of some barbeque restaurants

are just a few kilometers away, some are even close to each other, and others are hidden from the

sight of the people. One of the most important factors leading to the success of a restaurant is its

location since it can affect the sales of a certain restaurant; sales is the transaction between two or

more parties in which the buyer receives goods. Since the locations of the restaurants is either a

few kilometers away, close to each other, or hidden, the sales of each restaurant varies because not

all of them receive equal amount of attention and customers.

Theoretical Framework

Central – Place Theory

Central – place theory began with Walter Christaller in his book, Central Places in

Southern Germany (1933). According to the central-place theory, the main aim of a colony or

market town is to provide products and facilities to the neighboring market region. Such cities are

centrally situated and can be called central places. The theory of Christaller implies that central

places are spread across a standardized plane of steady population density and buying power.

Transportation across the plane is evenly simple in any direction, transport expenses differ linearly,

and customers behave rationally to minimize transportation expenses by choosing the closest place
 2

providing the required product or service. The determining factor in any central location is the

threshold, which includes the smallest market region needed for economically feasible products

and services. Once a limit is set, the main location will try to grow its business region until the

range is reached — that is, the maximum distance customers will travel to buy products and

services. Since the threshold and range define a central location's market area, market areas for a

group of central locations offering the same order of goods and services will each extend the same

distance in circular fashion in all directions.

The term “central place” has meant “urban center. It consisted of a series of assertions and

definitions, logical consequences of which were a hierarchical ranking of urban centers according

to functions and associated market areas and transportation networks. Lower – order central place

are small market areas and provide goods and services that are purchased more frequently than

higher – order goods and services. While higher – order central place are settlements that provide

goods and services than do other places, more widely distributed and fewer in number.

Hypotheses

𝑯𝟎 - There is no effect on the sales of the Korean Barbeque Restaurant in terms of its location.

𝑯𝟏 - There is an effect on the sales of the Korean Barbeque Restaurant in terms of its location.

Statement of the Problem

As previously mentioned, the number of Korean restaurants, whether individual or part of

a chain, which opened in and around BF Homes Paranaque, Aguirre and President’s Avenue is

nearly uncountable. Among others, location is an extremely important factor in a restaurant

business because it can decide how much traffic a restaurant gets, how known its brand is, and

ultimately, the future of its enterprise.

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Research Objectives

1. To identify the effect of the location of a Korean Barbeque Restaurant and its sales growth.

2. To study the effect between the location of a Korean Barbeque Restaurant and its

profitability.

3. Identify the factors that determine how owners of the businesses choose their respective

locations for their restaurants.

Research Questions

1. Does the location have an effect on the sales of the Korean Barbeque Restaurant?

2. If yes, what is the effect on the sales of the Korean Barbeque Restaurant?

3. What aspects/elements did the owners consider in choosing a location for their business?

Scope and Limitations

This research aims to determine the effect of the location of Korean Barbeque Restaurants

in BF Homes to its sales. It will be done by conducting surveys to the Senior High School students

of Manresa School in BF Homes on how the location of their chosen Korean Barbeque restaurant

made it much more convenient for them to go. The survey will only determine how the Korean

Barbeque restaurant’s location affects its sales and will only determine the other factors that

Korean Barbeque restaurant owners consider in putting up a business such as sewage capacity,

convenience of garbage disposal, extent of public facilities, size of commercial area, intensity of

competition, number of competitors, pedestrian volume, parking capacity, convenience of miss

transportation system, transportation cost, and rent cost. The Korean Barbeque Restaurants located

in Aguirre and President Avenue in BF Homes, Paranaque are the restaurants being selected by

the researchers and will only observe how the sales had increased because of the convenience of
 4

the location to the students. The respondents are only limited to Grades 11 and 12 of Manresa

School, and a total of 8 students will be randomly selected from each section.

Significance of the Study

This research will benefit the following:

 Business Owners - It will serve as a guide to the Korean Barbecue Restaurants in

BF Paranaque for the reason that, the restaurants will know or gain knowledge on

the effects of the location to the business.

 Forthcoming business owners - This research can serve as a guide on starting a

restaurant business because this does not only limit to Korean Barbecue Restaurants.

 The customers - The businesses will accommodate the needs of their target market,

so they will find a location that will suit their customers.

 Other businesses or restaurants - The people will gain knowledge on the

relationship of the business and its location, then they will regulate or carry out this

information for the future of the business.

 Students - The students will be aware about the relationship of businesses to its

location, so that in the future, when they would want to start a business, they would

be able to consider this aspect to it.

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Definition of Terms

1. BF Homes. It is a subdivision located in Paranaque City where residents settle and

establish business.

2. Profitability. It is yielding a financial profit or gain.

3. Sales. It is a transaction using money, wherein the buyer receives goods.

4. Traffic. It is the amount of clients passing through a shop during business hours.
 6

CHAPTER II

REVIEW OF RELATED LITERATURE

Location

Self, Jones, and Botieff (2015) stated in their research entitled “Where Restaurants Fail:

A Longitudinal Study of Micro Locations,” study by Parsa et al. (2005) showed that restaurant

failures are under 30% during the first year of operation. A study by Self (2004) also showed that

restaurant failures were less than 30%. Although this is far better than the 10% success rate that is

still the prevailing conventional wisdom, the success rate of 30% is still low enough to be a cause

for concern. The restaurant business is indeed a very risky business, especially for the uninformed

and the inexperienced. While there are many factors in why a restaurant fails, location is often

thought to be one of, if not the, most important factor (Chou, Hsu, & Chen, 2008; Park & Khan,

2006; Tzeng, Teng, Chen, & Opricovic, 2002). This highlights the importance for entrepreneurs

to acquire as much information as possible, especially information concerning their preferred

geographic area. This study is a longitudinal study of the raw data supplied by the Los Angeles

Environmental Health Services to ascertain whether the failure rates varied in the micro areas of

Los Angeles County. The study describes the failure experience of six cohorts of restaurants

formed in 2003 through 2008 and tracks their failure (or success) rates through the beginning of

2009. The researchers chose Los Angeles County as the subject county because it provides such a

diverse and large sample size in a relatively small area with many distinct populations allowing

ease of comparing and contrasting different types of restaurants and failure rates along with the

willingness of the health department to allow access to the data. The data for this longitudinal

study come from the Los Angeles Environmental Health Services, which provides an unbiased

and consistent data source since each foodservice establishment is required to have a health permit

to operate.
 7

Turhan, Akalin, and Zehir (2013) in their research entitled “Literature Review on Selection

Criteria of Store Location Based on Performance Measures”, mentioned that decision on store-

locations is one of the most important strategic decisions the retailer has to make for its long-term

success (i.e. profitability, Cottrell 1973; Ingene & Lusch 1980; Kuo et al. 2002). An estimation of

the market area in which the store is located is a crucial strategic tool in order to enable retailers

to attract. 2007; Grewal et al. 2009) since convenience stores have the most direct contact with

customers (Kuo et al. 2002). ‘Good locations allow ready access, attract large numbers of

customers, and increase the potential sales of retail outlets. In the extremely competitive retail

environment, even slight differences in location can have a significant impact on the market share

and profitability.’ (Ghosh & Mclafferty 1982; Craig et al. 1984). As different from other

marketing-mix elements that may be easily changed under changing environmental conditions,

store location is changed only at considerable cost, thus it represents a retailer’s long-term fixed

investment (Ghosh and Craig 1983; Craig et al. 1984).

John Self et al. (2011) in their research entitled “Why Restaurants Fail? Part II - The

Impact of Affiliation, Location, and Size on Restaurant Failures: Results from a Survival Analysis”,

mentioned that most restaurants fail because of the influence or impact of affiliation, location, and

the size of the restaurant itself. The aim of this research is to comprehend organizational failure

from the point of view of population ecology and, in particular, to define the influence of place,

competitive density and organizational size on restaurant failure. It has been discovered that chain

restaurants have considerably reduced failure rates than restaurants owned separately. Restaurants

lower in size had greater failure rates than restaurants bigger in size. It is mentioned that the

restaurants was measured by US postal zip codes as restaurants fail due to their location.

Park and Khan (2008) stated in their research entitled “An Exploratory Study to Identify

the Site Selection Factors for U.S. Franchise Restaurants,” location should provide the potential
 8

for adequate sales and profit because no matter how good the food or trendy the ambience, the

disadvantages of a poor location are difficult to overcome. The Delphi technique is a tool for

organizing group communication, without direct discussion, in order to refine group opinion and

arrive at a consensus (Linstone & Turoff, 1975; Tersine & Riggs, 1976). The Delphi technique is

one of the most well-established means of collecting expert opinion and gaining consensus among

experts on various factors under consideration (Green, Hunter, & Moore, 1990; Linstone & Turoff,

1975; Tersine & Riggs, 1976). The Delphi technique allows a group of individuals to reach

consensus on a problem under consideration, without actually meeting face to face. Using the

Delphi technique, factors can be identified over a short time period at a relatively small cost (Green

et al., 1990). The selected six site selection categories as narrowed down in this study included

general location, position of site, demographics, traffic information, competition, and cost

consideration. The Delphi technique identified 56 site selection factors under these six categories,

which were ultimately predicted as necessary for the success or failure of franchise restaurants.

Alcácer and Chung (2007) in their research entitled “Location Strategies and Knowledge

Spillovers”, mentioned that because of the significance of proximity for spillovers of information,

we examine the location decisions of companies that expect distinctions in the policies of

companies. Companies will find themselves maximizing their net spillovers as a function of the

information operation of places, their own capacities, and the expected behavior of rivals. In 1985

to 1994, companies favors location with scholarly innovative activities by using fresh entrants to

the United States. Locations with high level of industrial activities are favored by less

technologically developed companies, and technologically sophisticated companies choose only

sites with high concentrations of academic activity to distance themselves from rivals and prevent

sites with industrial activity.

 9

Indarti (2004) in their research entitled “BUSINESS LOCATION AND SUCCESS: The

Case of Internet Café Business in Indonesia”, mentioned that location selection is one of the

business decisions that have to be made carefully. Past research has shown that business location

have had relationship with business’ success (e.g. Alli et al. 1991). In this context, measurement

of business success can vary, but it is most likely related to both subjective and objective data on

multiple aspects of performance such as sales growth, market share, and profitability (Dawes 1999).

Recent studies of location decision have sought quantitative indicators of the decision’s success

by linking location selection decisions to enhance business success. Although the business success

does not depend solely upon the location of business, but then later influences the former.

Edwards et al. (2003) mentioned in their research entitled “The Influence of Eating

Location on the Acceptability of Identically Prepared Foods”, the three distinct classes of factors

contribute to the appreciation of food, namely food, person and condition. A dish prepared with

the same ingredients and a conventional recipe, was served to customers in a multitude of

environments ranging from an elderly residential home to a 4-star restaurant. Local custom and

processes have been noted for serving and consuming the meal and diners have been requested to

rate its acceptability. Results indicate that location substantially contributed to general

acceptability. With upscale restaurants getting greater ratings than institutional environments, a

hierarchy of places emerges.

Tzeng et al. (2002) mentioned in their research entitled “Multicriteria selection for a

restaurant location in Taipei”, one of the most significant variables that lead to a restaurant's

success is its location. To rank alternative restaurant sites, a decision-making technique of

multicriteria is used. For the case of Taipei, the range of standards is developed, and corresponding

criteria should be developed for each case study, although this decision-making strategy to

multicriteria has wider applicability. In this document, the five-aspect, 11-criteria analytic
 10

hierarchy process (AHP) is used to create a restaurant location assessment system. Four options

for the restaurant location in Taipei are assessed for the Pao-San (Takarazima Japanese Siki Kisegi

food). Aspects include transit, commercial area, financial, competitive, and environment. The

factors are rental costs, transport costs, comfort of mass transportation system, parking space size,

pedestrian quantity, amount of rivals, competition intensity, size of the restaurant's commercial

area, magnitude of public amenities, comfort of garbage disposal, and sewage capacity.

Sales

Nakawuka (2019) stated in her research entitled “Factors Influencing the Sales

Performance of Market Traders in the Informal Sector; Taking a Case of Wandegeya Market”,

investigates factors affecting sales performance or market traders in informal traders in

Wandegeya Market. Data analysis were measured by descriptive statistics, frequency counts,

percentages, ANOVA, and Chi-square to test the relationship between the variables. Traders that

handles enterprises are generating more sales than enterprises handled by idle traders. Educated

people have more skills than uneducated traders. The study suggests having entrepreneurship

education and training and better marketing strategies for improvement in the business’ sales.

Park and Jang (2015) mentioned in their research entitled “The Cyclical Effect of

Advertising”, the short-and long-term impacts of advertising on sales growth were more apparent

in contraction periods than in expansion periods. However, there was no significant difference

between expansion and contraction periods between the short-run effects of advertising on brand

equity. In addition, advertising's long-term effects on brand equity were greater in periods of

expansion than in periods of contraction. During times of economic contraction, restaurant

companies should not decrease their advertising expenditures to take benefit of superior marketing

development results during these phases.

 11

Hua and Templeton (2010) mentioned in their research entitled “Forces Driving the

Growth of Restaurant Industry in the USA”, annual growth of restaurants in the USA have relation

with its size and market share. Change of leverage is negatively and significant to the annual

growth of the restaurant or company. Their research implies that restaurants should increase their

market share, market size, leverage, and franchise to further improve the performance of their

business.

Yoon Koh et al. (2009) stated in their research entitled “Does Franchising Help Restaurant

Firm Value?”, financial performance of one’s company is concerned to its management,

employees, shareholders, etc., it is stated that franchising is the most commonly used strategy by

restaurants to increase its financial performance. A sigmoid relationship is proposed by the

researchers but ended with quadratic or inverted U-shaped relationship was found between the

degree of franchising and restaurant’s financial performance.

Chathoth, and Olsen (2007) stated in their research entitled “Does Corporate Growth

Really Matter in the Restaurant Industry?” performance-enhancing strategies are not the only

strategies can be applied in restaurant’s growth, but simply the restaurant’s liquidity impacts

restaurant’s growth performance. Liquidity must be considered in decision making before

introducing new products to the market. They also tested the relationship between growth and

liquidity of the corporate, which highlighted the importance of a company's liquidity.

Korean Barbeque

Jinsoo Hwang et al. (2018) mentioned in their research entitled “Exploration of the

Successful Glocalization of Ethnic Food: A Case of Korean Food,” that the study explores why

people prefer Korean food and identifies the factors affecting the restaurant’s success. Revisiting
 12

intentions and changing the image of Korea affects the outcome variable of customer satisfaction.

It is mentioned that sociocultural factors influenced customer satisfaction and Korea’s image.

Park, Ham, and Lee (2012) mentioned in their research entitled “How to improve the

promotion of Korean beef barbecue, bulgogi, for international customers. An application of

quality function deployment,” that quality function deployment is a product development

technique that translates customer requirements into activities for the development of products and

services. This study utilizes QFD to identify American customer’s requirements for bulgogi, a

popular Korean dish among international customers, and how to fulfill those requirements. The

relative importance of engineering characteristics, correlation, and technical difficulties are ranked

and integrated to develop the most effective strategy. The findings are discussed relative to

industry implications.

A study conducted by researcher Yeon-Jung Lee (2010) entitled “The Effects of Korean

Food Globalization on Foreigners' Perception of Wellbeing Value and Experience with Korean

Food,” a study meant to examine the effect of globalization of Korean food according to well-

being value perception and the foreign visitor Korean food experience, it was found that the most

important quality when eating Korean food was “taste,” with a 37.3% correspondence from foreign

visitors. Another finding was that the subjects believed that “Korean food is healthy because it

consists mainly of cereals and vegetables." the subjects recognized the improvement in service

quality of Korean restaurants as an important component of Korean food’s globalization.

Conducted by Lee, Kim, and D. Kim (2008) a study entitled “Globalization of Korean

Cuisine through the Korean Food Items Promotion -Focus on Marketing Strategy of Korean Food

Items” sought ways to promote global recognition of Korean food items. The study acknowledged

the promotion that countries such as the US, Japan, China, France, Thailand, and Australia have

adopted for their respective cuisines and contrasted such promotion with Korea’s lack thereof. The
 13

study enumerates further development of indigenous sauces by Korean food manufacturers and

processors as one route to the promotion of Korean cuisine, as well as Korean restaurant

franchising. It emphasizes the close collaboration of manufacturers and the Korean government in

order to globalize Korean cuisine.

SUMMARY

In its entirety, the studies garnered by the researchers are about the importance of choosing

the location of a business, what is the effect of the location to the business, how can the location

affect the successfulness of a business, the growth of a restaurant, and the globalization of Korean

Barbeque. Location is an essential part of the business, it determines whether the business will be

successful or not. Most restaurants fail because of the influence or impact of affiliation, location,

and the size of the restaurant itself. The customers judge the restaurant by its location, if it is put

in a nice or secluded place, or if it’s close to them or not. Some of the restaurant’s locations are in

a place where there are not a lot of competitors so that they would be able to get customers. And

some are in a location that they are surrounded by a lot of competitors which may lead to not being

able to get customers. Even though restaurants serve the same kind of food because of the location

of the restaurant the feedback of the customers vary. Past research has shown that business location

have had relationships with business’ success. However, recent studies of location decision have

sought quantitative indicators of the decision’s success by linking location selection decisions to

enhance business success. Although the business success does not depend solely upon the location

of business, but then later influences the former.

Annual growth of restaurants have relation with its size and market share, restaurants

should increase their market share, market size, leverage, and franchise to further improve the

performance of their business. Franchising is the most commonly used strategy by restaurants to
 14

increase its financial performance. Performance-enhancing strategies are not the only strategies

can be applied in restaurant’s growth, but simply the restaurant’s liquidity impacts restaurant’s

growth performance. The globalization of Korean Barbeque or Korean Food in general, was

because of its taste and foreign people generally see the cuisine as healthy because it mainly

contains vegetables and cereals. Revisiting intentions and changing the image of Korea affects the

outcome variable of customer satisfaction. It is mentioned that sociocultural factors influenced

customer satisfaction and Korea’s image.

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CHAPTER III

RESEARCH METHODOLOGY

Research Design

This study is quantitative in field, in which descriptive design will be used in this research.

Descriptive design will be used because the researchers wanted to determine if the choice of the

location of the restaurant owners affects their sales. The study focuses on how the choice of

location impacts or affects the sales of selected Korean Barbeque Restaurants along Aguirre

Avenue inside BF Homes, Paranaque City. The researchers conducted the presurvey on the 20th

of September 2019.

Population of the Study

The target population for this research defined to include the Senior Highschool students

of Manresa School, Grades 11 and 12. The sample size that would be used in this research are, 8

students each section on both grade levels. The technique that will be used in selecting the sample

is the stratified random sampling.

Instrumentation and Validation

The instruments themselves are surveys that were made with questions designed to ask the

first group of samples about their preferences with regards to Korean Barbeque restaurants, and

the second group what they were considering in selecting the locations for their respective

businesses. After asking for the participant’s name and section, first survey is composed of three

multiple choice questions and two dichotomous questions that ask about which restaurants they

would choose to eat in based on factors such as convenience, serving size, taste, and popularity.

The second survey will use a series of Likert scale questions and four dichotomous questions to
 16

inquire about the weight the second group of participants put to a Korean Barbeque place’s location,

size, costs, and other factors they would consider as businesspeople in choosing a restaurant

customer could spend their money on. The instruments have been validated by Ms. Maryknoll O.

Tiana and Mr. John Victor M. Monzon.

Data Gathering Procedure

Step 2
Step 1 Step 3
Collect the pre -
Conduct a pre - survey Give the follow - up
survey, then select 8
in all sections of the survey to the 8 students
students per section of
Grade 11 and 12. per section.
the Grade 11 and 12..

Step 6
Step 5
Step 4 After conducting a
The researchers will
Based on the follow - survey from the 3
then go to those
up survey, select the restaurants, the
restaurants and ask
top 3 Korean Barbeque researchers then
them to kindly answer
Restaurants. analyzed and
the survey.
interpreted the data.
 17

CHAPTER IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

Presentation of Data

In this study, the researchers had prepared and distributed pre – surveys to all the students

of the Senior High School department of Manresa School, and chose among those pre – surveys,

8 students each section to answer the actual survey to determine the top three Korean Barbeque

Restaurants that the students go to.

Table 1: At which Korean Barbeque Restaurant do you eat the

most?

Bulgogi Brothers 1.60%

Korean Barbeque Restaurant

Shabunoki 1.60%
UKB 1.60%
Samgyumpsal 1.60%
YES! Samgyupsal 1.60%
Premiere The Samgyupsal 3.10%
Sing Sing Restaurant 6.30%
Romantic Baboy 17.20%
Samgyupsalamat 65.60%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Percentage of Students

Table 1 shows at which Korean Barbeque Restaurant does the Senior High School students

of Manresa School eats the most. Majority of the students answered Samgyupsalamat which is

65.6% of the population's choice. Next is Romantic Baboy, which was the 2nd most voted Korean

Barbeque Restaurant by the students that is 17.2%. And lastly, Sing Sing Restaurant got 6.3% of

the population's choice.

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Table 2: Which Korean Barbeque Restaurant is the most

convenient for you in terms of its location?
Korean Barbeque Restaurant Bulgogi Brothers 1.60%
Samgyupmasarap 1.60%
UKB 1.60%
Samgyumpsal 1.60%
Bawooboy Grill 1.60%
YES! Samgyupsal 1.60%
Premiere The Samyupsal 4.70%
Sing Sing Restaurant 7.80%
Romantic Baboy 17.20%
Samgyupsalamat 60.90%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
Percentage of Students

Table 2 shows which Korean Barbeque Restaurant does the Senior High School students

of Manresa School finds the most convenient in terms of the restaurant’s location.

Samgyupsalamat has the highest percentage of convenience which is 60.9%. Following

Samgyupsalamat is Romantic Baboy which is 17.2%. The third placer in the figure is Sing Sing

restaurant which has 7.8%.

Table 3: What factors do you consider when eating at a

Korean Barbeque Restaurant?
Location 75%
Price 85.90%
Popularity 39.10%
Hospitality 37.50%
Serving Size 64.10%
Taste 92.20%
Service 64.10%
Parking Slot 3.10%
Offers 1.60%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

In the table shown above, it shows the factors that the Senior High School students of

Manresa School consider when eating at a Korean Barbeque Restaurant. The highest factor in the

chart, based on the data is the taste of the barbeque which is 92.2%. Following taste, would be the
 19

price of the food which is 85.9%, in third place would be the location of the Korean Barbeque

Restaurant that has 75%, and tied in fourth place is serving size and service which has 64.10%.

Table 4: Do you consider the location as you select your chosen

or preferred Korean Barbeque Restaurant?
10.90%

89.10%

Yes No
Table 4 shows the respondents’ answers when asked if they consider restaurant location as

a factor in selecting their preferred Korean Barbeque restaurant. Of 64 responses, an overwhelming

majority, 89.1%, which adds up to about 57 people answered that they do consider the location

when selecting a Korean Barbeque Restaurant. The remaining 10.9%, or 7 people, answered that

they do not consider restaurant location in choosing a Korean Barbeque Restaurant.

Table 5: If yes, do you think location should be the most

important when doing a business?

28.10%

71.90%

Yes No
In the table shown above, it shows the respondents’ views on the importance of location in

doing business by asking if the respondents consider location as the most important factor to
 20

consider in running a business. 71.9%, which cumulates to around 41 people, replied that they do

consider location as the primary factor to consider in the management of a business, with the

remaining 28.1%, about 16 people, taking the opposing view.

Table 6: What factors did you consider in setting up the

business?
Sewage Capacity
Convenience of Garbage Disposal
Extent of Public Facilites
Size of Commercial Area
Intensity of Competition
Number of Competitors
Pedestrian Volume
Parking Capacity
Convenience of Mass Transportation System
Transportation Cost
Rent Cost
0 0.5
1 1 1
3 0
3 0
3 0
2 0 1
3 0
2 1 0
3 0
1 1 1
1 1 1
2 0 1
1 1.5 2 2.5 3 3.5

Extreme Importance Slight Importance No Importance

In this table, it shows that three Korean Barbeque Restaurants: Samgyupsalamat, Romantic

Baboy, and Sing Sing Restaurant, put extreme importance into considering the convenience of

garbage disposal, extent of public facilities, size of commercial area, number of competitors, and

parking capacity. Two out of three Korean Barbeque Restaurants: Samgyupsalamat and Romantic

Baboy, put extreme importance into considering the intensity of competition, while Sing Sing

Restaurant put no importance in considering it. Sing Sing Restaurant and Romantic Baboy put

extreme importance into considering the pedestrian volume and rent cost, while Samgyupsalamat

put slight importance in considering the pedestrian volume and put no importance in considering

the rent cost. Samgyupsalamat put no importance in considering the sewage capacity and

convenience of mass transportation system, while Romantic Baboy put extreme importance and

Sing Sing Restaurant put slight importance in considering it. Samgyupsalamat put slight
 21

importance in considering the transportation cost, while Romantic Baboy put extreme importance

and Sing Sing Restaurant put no importance in considering it.

Table 7: How much thought did you put in considering which

location is the best for the business?
0%

100%

Extremely Important Slightly Important Not Important

In the table shown above, it shows that three of the Korean Barbeque Restaurants:

Samgyupsalamat, Romantic Baboy, and Sing Sing Restaurant, thinks that it is extremely important

to consider the best location for the business.

Table 8: In doing a business, is location really that important?

0%

100%

Yes No

In this table, it shows that all the managers of the three Korean Barbeque Restaurants:

Samgyupsalamat, Romantic Baboy, and Sing Sing Restaurant, agree that considering the location

in putting up a business is a must.

 22

Table 9: Did the location affect the sales of the business?

0%

100%

Yes No

According to Table 9, all of the respondents acknowledged that location affects the sales

of a business. This unanimous answer by the respondents further emphasizes the importance that

the owners or managers give to the location and the relationship they believe it has to its sales.

Table 10: Did it greatly affect the sales/profitability of the

business?
0%

100%

Yes No

In this table, it shows the three Korean Barbeque Restaurants, admit that the location of the

restaurant tremendously affected their sales or profitability.

 23

Table 11: If yes, did the sales increased or decreased over time?
0%

100%

Increased Decreased

According to Table 11, all of the managers of the three Korean Barbeque Restaurants

acknowledged that the location of the restaurants had a negative impact on the sales since it

decreased over time.

Analysis of Data

The researchers set out to do this study to answer three questions: (1) Does the location

have an effect on the sales of the Korean Barbeque Restaurant? (2) If yes, what is the effect on the

sales of the Korean Barbeque Restaurant? and (3) What aspects/elements did the owners consider

in choosing a location for their business?

The first question was answered when the survey’s findings stated that choosing the best

location for the business is extremely important. According to the managers of the three Korean

Barbeque Restaurants considering the location in putting up a business is a must. In 2008, Park

and Khan stated in their research that location should provide the potential for adequate sales and

profit because no matter how good the food or trendy the ambience, the disadvantages of a poor

location are difficult to overcome. To add, in 2011, John Self et al. mentioned that most restaurants

fail because of the influence or impact of affiliation, location, and the size of the restaurant itself.
 24

It has been discovered that chain restaurants have considerably reduced failure rates than

restaurants owned separately. Restaurants lower in size had greater failure rates than restaurants

bigger in size. It is mentioned that the restaurants was measured by US postal zip codes as

restaurants fail due to their location.

The second question was answered when the gathered data stated that location

tremendously affects the sales of a business. This unanimous answer by the respondents further

emphasizes the importance that the owners or managers give to the location and the relationship

they believe it has to its sales. The location of the restaurants had a negative impact on the sales

since it decreased over time. In 2015, Self, Jones, and Botieff stated in their research, that a study

by Parsa et al. (2005) showed that restaurant failures are under 30% during the first year of

operation. A study by Self (2004) also showed that restaurant failures were less than 30%.

Although this is far better than the 10% success rate that is still the prevailing conventional wisdom,

the success rate of 30% is still low enough to be a cause for concern. The restaurant business is

indeed a very risky business, especially for the uninformed and the inexperienced. While there are

many factors in why a restaurant fails, location is often thought to be one of, if not the, most

important factor (Chou, Hsu, & Chen, 2008; Park & Khan, 2006; Tzeng, Teng, Chen, & Opricovic,

2002). This highlights the importance for entrepreneurs to acquire as much information as possible,

especially information concerning their preferred geographic area.

The third question was answered when managers said they would give strong consideration

to factors such as convenience of disposal of waste, extent of public facilities, size of the

commercial area, and parking space when selecting a site. Competitive dynamics and pedestrian

size were also identified by managers as highly important influences. In 2002, Tzeng et al.,

mentioned in their research that one of the most significant variables that lead to a restaurant's

success is its location. To rank alternative restaurant sites, a decision-making technique of

 25

multicriteria is used. The range of standards is developed, and corresponding criteria should be

developed for each case study, although this decision-making strategy to multicriteria has wider

applicability. The five-aspect, 11-criteria analytic hierarchy process (AHP) is used to create a

restaurant location assessment system. Aspects include transit, commercial area, financial,

competitive, and environment. The factors are rental costs, transport costs, comfort of mass

transportation system, parking space size, pedestrian quantity, amount of rivals, competition

intensity, size of the restaurant's commercial area, magnitude of public amenities, comfort of

garbage disposal, and sewage capacity.

Interpretation of Data

With the given data, the researchers can conclude that almost all the Senior High School

students choose the nearest Korean Barbeque Restaurants to eat at, which are Samgyupsalamat,

Romantic Baboy, and Sing Sing Restaurant. From highest to lowest, the common factors that the

Senior High School Students consider when eating at a Korean Barbeque Restaurant, are taste,

price, location, serving size, and service, respectively. Meaning that most of the students consider

the location as they select their chosen or preferred restaurant to eat at. Some of the students that

considers the location in selecting their preferred restaurant, consider the location as the primary

factor to scrutinize in managing or doing a business, however, the rest does not think so.

The common factors that the managers of the three Korean Barbeque Restaurant

considered in setting up the business were parking capacity, number of competitors, size of

commercial area, extent of public facilities, and the convenience of garbage disposal. All of the

managers from the three restaurants think that it is extremely important to consider the best

location for the business and that considering the location is a must. All of the respondents
 26

acknowledged that the location greatly affects the sales of the business, and it had a negative

impact on it since it decreased over time.

 27

CHAPTER V

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

Summary

The researchers aim to determine the relationship of location and sales growth of Korean

Barbeque Restaurants, to study the effect of the location of the restaurant and its profitability, and

to identify the other factors on how owners choose location for their business or restaurants. The

researchers were able to gather information on how the location impacted the sales of selected

Korean Barbeque Restaurants in BF Homes, Parañaque. The studies that the researchers gathered

are about the importance and effect of location in a business, the growth of a restaurant, and the

globalization of Korean Barbeque. The researchers have gathered information through conduction

of surveys to the restaurant manager or owner from the top 3 most picked Korean Barbeque

Restaurants by the grades 11 and 12 of Manresa School. The majority of the students picked

Samgyupsalamat as their favorite Korean Barbeque Restaurant, followed by Romantic Baboy, and

the third most picked is Sing Sing Restaurant. The students do think that the location of the

restaurant itself affects their preference in choosing a Korean Barbeque Restaurant. They also

consider some factors other than location; namely taste, price, serving size, and service. The

surveys from the restaurant manager or owner had resulted that location were important in doing

business and the sales were greatly impacted by the location negatively as it decreased over time.

Conclusion

Having interpreted all findings and answered all research questions, the researchers

concluded that their alternative hypothesis (𝐻1 ) is correct. This means that there is an effect of the

location to the sales growth of a Korean Barbeque restaurant. Among other reasons elaborated on

previously, the hypothesis is justified by the fact that good locations allow ready access, attract
 28

large numbers of customers and increase the potential sales of outlets (Ghosh & Mclafferty 1982;

Craig et al. 1984). This leads the researchers to further conclude that although, location is not a

determining factor for success, it continues to hold significance as a factor for the long-term sales

growth of a Korean Barbeque Restaurant.

The hypothesis also is backed up by Walter Christaller’s central place theory because one

of the theory’s central assumptions is that humans will always purchase goods from the locations

most convenient to them. The closer the location of a Korean Barbeque restaurant is to its target

market, the more people will flock there to eat.

Recommendations

 Future researchers with similar studies - to further examine other factors that are considered

by consumers when eating in a restaurant other than its location, such as the price,

popularity, hospitality, taste, service, and other factors that could be considered. The

researchers believe that if a deeper understanding of these factors is achieved through

future studies, people will have more resources with which to study consumer behavior,

enabling them to gain a significantly deeper understanding of how to effectively manage a

restaurant, whether it is one that serves Korean Barbeque or otherwise.

 Business Owners - to serve this research as a guide to the Korean Barbeque Restaurants in

BF Paranaque because this will help the owners gain knowledge on the effects of the

location to the business.

 Forthcoming business owners - to understand the importance of location in starting a

business, and to study the factors previously outlined in this research.

 29

 Other businesses or restaurants - to consider the location as a factor that can affect the sales

of a business. Not just location but also other factors.

 30

REFERENCES

John T. Self, Margie Feree Jones & Mark Botieff. (2015). Where Restaurants Fail: A Longitudinal

Study of Micro Locations. Journal of Foodservice Business Research. 18:4. 328-340. DOI:

10.1080/15378020.2015.1068670.

Gülden Turhan, Mehmet Akalın, & Cemal Zehir. (2013). Literature Review on Selection Criteria

of Store Location Based on Performance Measures. Procedia - Social and Behavioral

Sciences. 99. 391-402. DOI: https://doi.org/10.1016/j.sbspro.2013.10.507.

Parsa, H. & Self, John & Sydnor, Sandra & Jin Yoon, Hae. (2011). Why Restaurants Fail? Part II

- The Impact of Affiliation, Location, and Size on Restaurant Failures: Results from a

Survival Analysis. Journal of Foodservice Business Research. 14. 360-379. DOI:

10.1080/15378020.2011.625824.

Kunsoon Park PhD & Mahmood A. Khan PhD. (2008). An Exploratory Study to Identify the Site

Selection Factors for U.S. Franchise Restaurants. Journal of Foodservice Business

Research. 8:1. 97-114. DOI: 10.1300/J369v08n01_07.

Juan Alcácer & Wilbur Chung. (2007). Location Strategies and Knowledge Spillovers.

Management Science. 53:5. 760-776. DOI: 10.1287/mnsc.1060.0637.

Indarti, Nurul. (2004). Business Location and Success: The Case of Internet Café Business in

Indonesia. Gadjah Mada International Journal of Business. 6. DOI:

10.22146/gamaijb.5543.

John S.A Edwards et al. (2003). The influence of eating location on the acceptability of identically

prepared foods. Food Quality and Preference. 14:8. 647-652. DOI:

https://doi.org/10.1016/S0950-3293(02)00189-1.

Gwo-Hshiung Tzeng et al. (2002). Multicriteria selection for a restaurant location in Taipei.
 31

International Journal of Hospitality Management. 21:2. 171-187. DOI:

https://doi.org/10.1016/S0278-4319(02)00005-1.

Nakawuka, Evelyn Deborah. (2019). Factors Influencing the Sales Performance of Market

Traders in the Informal Sector Taking a Case of Wandegeya Market.

http://dissertations.mak.ac.ug/bitstream/handle/10570/6269/Nakawuk-CoBAMS-

Bachelors.pdf?sequence=3&isAllowed=y.

Park, K. and Jang, S. (2015). The Cyclical Effect of Advertising. International Journal of

Contemporary Hospitality Management. 27:7. 1386-1408. DOI:

https://doi.org/10.1108/IJCHM-04-2014-0190.

Hua, N. and Templeton, A. (2010). Forces Driving the Growth of the Restaurant Industry in the

USA. International Journal of Contemporary Hospitality Management. 22:1. 56-68. DOI:

https://doi.org/10.1108/09596111011013471.

Yoon Koh, Seoki Lee, & Soyoung Boo. (2009). Does Franchising Help Restaurant Firm Value?.

International Journal of Hospitality Management. 28:2. 289-296. DOI:

https://doi.org/10.1016/j.ijhm.2008.10.001.

Prakash K. Chathoth & Michael D. Olsen. (2007). Does Corporate Growth Really Matter in the

Restaurant Industry?. International Journal of Hospitality Management. 26:1. 66-80. DOI:

https://doi.org/10.1016/j.ijhm.2005.09.004.

Hwang, J., Kim, S., Choe, J. and Chung, C. (2018). Exploration of the Successful Glocalization of

Ethnic Food: A Case of Korean Food. International Journal of Contemporary Hospitality

Management. 30:12. 3656-3676. DOI: https://doi.org/10.1108/IJCHM-07-2017-0452.

So-Hyun Park, Sunny Ham, & Min-A. Lee. (2012). How to Improve the Promotion of Korean

Beef Barbecue, Bulgogi, for International Customers. An Application of Quality Function

Deployment. Appetite. 59:2. 324-332. DOI: https://doi.org/10.1016/j.appet.2012.05.008.

 32

Lee, Yeon-Jung. (2010). The Effects of Korean Food Globalization on Foreigners' Perception of

Wellbeing Value and Experience with Korean Food. Journal of the Korean Society of Food

Culture. 25.

Lee, E., Kim, T., & Kim, D. (2008). Globalization of Korean Cuisine through the Korean Food

Items Promotion -Focus on Marketing Strategy of Korean Food Items.

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THEORY. Papers in Regional Science. 4: 107-120. DOI: 10.1111/j.1435-5597.1958.tb01625.x.

 33

APPENDICES

Name: Date:

Gr. & Section: Strand:

Directions: Kindly answer the following questions honestly and seriously. Thank you!

1. At which Korean Barbeque Restaurant do you eat the most?

☐ Samgyupsalamat ☐ Bawooboy Grill

☐ Romantic Baboy ☐ Sing Sing Restaurant

☐ Premiere The Samgyupsal ☐ Fusion

☐ YES! Samgyupsal ☐ Others (please specify): ______________

2. Which Korean Barbeque Restaurant is the most convenient for you in terms of its location?

☐ Samgyupsalamat ☐ Bawooboy Grill

☐ Romantic Baboy ☐ Sing Sing Restaurant

☐ Premiere The Samgyupsal ☐ Fusion

☐ YES! Samgyupsal ☐ Others (please specify): ______________

3. What factors do you consider when eating at a Korean Barbeque Restaurant? Check all

that applies.

☐ Location ☐ Serving Size

☐ Price ☐ Taste

☐ Popularity ☐ Service

☐ Hospitality ☐ Others (please specify): ______________

 34

4. Do you consider the location as you select your chosen or preferred Korean Barbeque

Restaurant?

☐ Yes ☐ No

5. If yes, do you think location should be the most important when doing a business?

☐ Yes ☐ No
 35

Name: Date:

Restaurant Name: Position:

Directions: Kindly answer this survey honestly and seriously. Thank you!

1. What factors did you consider in setting up the business?

Extreme Slight No
Importance Importance Importance

Economic

1. Rent Cost

2. Transportation Cost

Transportation

1. Convenience of Mass
Transportation System

2. Parking Capacity

3. Pedestrian Volume

Competition

1. No. of Competitors

2. Intensity of Competition

Commercial Area

1. Size of Commercial Area

2. Extent of Public Facilities

Environment

1. Convenience of Garbage
Disposal

2. Sewage Capacity
 36

2. How much thought did you put in considering which location is the best for the business?

3 2 1
Extremely Important Slightly Important Not Important

3. In doing a business, is location really that important?

☐ Yes ☐ No

4. Did the location affect the sales of the business?

☐ Yes ☐ No

5. Did it greatly affect the sales/profitability of the business?

☐ Yes ☐ No

6. If yes, did the sales increased or decreased over time?

☐ Increased ☐ Decreased
 37

CONSENT FORM
This informed consent form is for the owner or manager of the chosen Korean Barbeque Restaurants who
are invited to participate in this research study entitled: The Effect of the Location on the Sales of the
Korean Barbeque Restaurants in BF Paranaque
We, the members of Group No. 9 of Grade 12 – St. Luke will conduct a quantitative research as
part of our requirement in our Research. Your participation in this project is completely voluntary. The
result of this study will benefit everyone to determine how does the location of a Korean Barbeque
Restaurant affect its sales.
Please read the following information carefully. You may ask any one of us if there is anything that
is not clear for you or if you need clarification and more information.
This survey will take approxinamately five minutes of your time. In some uncomfortable instances
during the survey, you have the right to ask questions. This survey will only be used for statistical purposes
and will be reported in aggregated form.
Your answers will be treated with utmost confidentiality and anonymity, and you may opt out of
any question in the survey. Nobody except the members of the research group will have access to the
responses recorded during the interview and the data will be assigned with number in the research
documents.
For further questions, you may email us at faith.mercado.fcm@gmail.com.

CERTIFICATE OF CONSENT
I have been invited to participate in the quantitative research about how the location of a Korean Barbeque
Restaurant affects its sales. I have read the foregoing information and have been given the opportunity to
ask questions. I consent and voluntarily agree to take part in this study, and I am free to withdraw anytime
without question.

Participant's Signature over Printed Name: _______________________________________

Date:______________________________

We confirm that the participant was given all the needed information about this research and the opportunity
to inquire, clarify and ask questions about the study. We confirm that the individual has been given this
consent freely and voluntarily and has not been forced or coerced to participate in this study.

Researchers’ Signatures Over Printed Names

Alessandra D. Infante Faith Cerise R. Mercado Ryle Daniel O. Mungcal Daphne Nicole L. Nunez

Date:_______________________________
 38

MANRESA SCHOOL
Hijas de Jesus
Candida Maria St., BF Homes
PAASCU Accredited Parañaque City 1700
Tel. No. 842-99-18

September 19, 2019

Ms. Aida A. Gomez,

Greetings!
We, the students of Grade 12 St. Luke of Manresa School under the supervision of our teacher Ms.
Maryknoll O. Tiania, are conducting a quantitative research on which Korean Barbeque Restaurants do
the Grade 11 and Grade 12 students of Manresa School go to. In line with this, we wish to conduct the
survey on September 23, 2019 in relation to our research entitled, The Effect of the Location on the Sales
of the Korean Barbeque Restaurants in BF Paranaque.

Hoping for your kind consideration regarding this important academic matter. Thank you and God bless!

Respectfully yours,

Faith Cerise R. Mercado Daphne Nicole Caine L. Nunez

Alessandra D. Infante

Ryle Daniel O. Mungcal

Noted by:

Ms. Maryknoll O. Tiania

Research Teacher

Approved by

Mr. Eleazar D. Solas

SHS Asst. Principal

Ms. Aida A. Gomez

Principal
 39

September 19, 2019

Ms. Aida A. Gomez

Principal,
Manresa School
Hijas de Jesus
Candida Maria St., BF Homes
Parañaque City

This is to request your permission to administer/ conduct a test-conducted research to the to the 3 Korean
Barbeque Restaurants. This survey is intended to determine whether there is a relationship between the
location and the sales of a Korean Barbeque Restaurant as part of our research project for Research in Daily
Life 2, under Ms. Maryknoll O. Tiana.
Our research intends to know the effect of the location on the sales of the Korean Barbeque Restaurants.
We plan to give out the surveys to the sample number of students from the Grade 10, then is collected by
one of the researchers after answering. From the data that we will collect, we will analyze the answered
test and see whether the quality or the preparedness of the visual aid should be given considerations before
presenting it in class.
We have attached a copy of survey-questionnaire for your approval. Should you have any concerns or
questions please contact Faith Cerise Mercado either through faith.mercado.fcm@gmail.com or
09953642938.
Thank you and we are hoping for your favorable response.

________________________________
Faith Cerise R. Mercado Approved by:
Grade 12 – St. Luke
_______________________________________
_________________________________ Mr. Eleazar D. Solas
Daphne Nicole Cain L. Nunez Asst. Principal,
Grade 12 – St. Luke Senior High School Department

_________________________________
Alessandra D. Infante _______________________________________
Grade 12 – St. Luke Ms. Aida A. Gomez
Principal
_________________________________
Ryle Daniel O. Mungcal
Grade 12 – St. Luke
 40

CURRICULUM VITAE

Name: Ryle Daniel O. Mungcal

Address: Blk. 1, Lot 5 Quebec St., BF Homes Int’l South Las

Pinas City

Cell No.: 09565681150

Email: rylemungcal@gmail.com

EDUCATION

2006 - 2007, Nursery in Mindbuilders Preschool

2007 - 2008, Kindergarten in Ann Arbor Montessori

2008 - 2009, Preparatory in Manresa School

2009 - 2014, Elementary in Manresa School

2014 - 2020, Junior High School in Manresa School

 41

CURRICULUM VITAE
Name: Alessandra D. Infante
Address: 52 J. Lopez de Leon St., Greenheights Village, Paranaque
City
Cel. No.: 09278825382
Email: krishunyeol@gmail.com

EDUCATIONAL BACKGROUND
2006 to 2008 – PRESCHOOL (Escuela de San Lorenzo Ruiz)
2008 to 2014 – ELEMENTARY (Escuela de San Lorenzo Ruiz)
2014 to 2015 – JUNIOR HIGHSCHOOL (Ann Arbor Montessori)
2015 to 2016 – JUNIOR HIGHSCHOOL (Escuela de San Lorenzo Ruiz)
2016 to 2018 – JUNIOR HIGHSCHOOL (Manresa School)
2018 to 2020 – SENIOR HIGHSCHOOL (Manresa School)
 42

CURRICULUM VITAE

Name: Faith Cerise R. Mercado

Address: 11 Stardust St., Bricktown Subd., Pque. City

Cel. No.: 09953642938

Email: faith.mercado.fcm@gmail.com

EDUCATION

2008-2009, Pre-School in Sacred Heart School

2009-2013, Elementary in Sacred Heart School

2012-2014, Elementary in Manresa School

2014-2018, Junior High School in Manresa School

2018-2020, Senior High School in Manresa School

 43

CURRICULUM VITAE

Name: Daphne Nicole Caine L. Nuñez

Address: Doña Matilde Gatchalian Manuyo Dos Las Piñas City

Cel. No.: 09266200870

Email: nunezdaphne0729@gmail.com

EDUCATION

2006-2009, Pre-School in Manresa School

2009-2015, Elementary in Manresa School

2015-2018, Junior High School in Manresa School

2018-2020, Senior High School in Manresa School