Coping and Resilience Strategies Amid the Pandemic: The Case of Eatsumo Teri Haus

Date

5-2024

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Rolando G. Allam, Jr.

Committee Member

Jeanette Angeline B. Madamba, Remund Jordan D. Labios, Melodee Marciana E. De Castro

Abstract

The COVID-19 pandemic had a profound impact on business, including Eatsumo Teri Haus, a Japanese restaurant in Los Baños, Laguna, Philippines. This study focused on identifying the challenges and coping strategies employed by the restaurant as it faced the pandemic. Qualitative research methods, together with primary and secondary data were used in the analysis.

The four business functions namely finance, marketing, operations, and human resource management were investigated in three periods of time: pre-pandemic (2019), pandemic (2020), and post-pandemic (2021 onwards).

In the year 2019, the restaurant was in good financial standing as shown by its high net sales (Php 13,723,586.00), low cost of goods sold (Php 12,540,762.00) and high gross profit (Php 1,182,823.90). The majority of the revenues came from dine-in orders, takeouts, and catering services. Traditional promotional activities were employed such as in-store visibility of menus, distribution of printed flyers and postings of ads in the streets. Primary customers were students, employed such as in-store visibility of menus, distribution of printed flyers and postings of ads in the streets. Primary customers were students, employees, and households. Modes of payments were predominantly cash transactions. Employees were in the restaurant for over five years of service. competitive compensation and benefits were provided to the employees correspondingly.

In the year 2020, there was a disruption in terms of financial standing, but the business got back from it in the followings. Its net sales was low (Php 10,040,414.00), the cost of goods sold was low (Php 8,582,403.90), but the gross profit was high (Php1,673,010.10).

COVID-19 brought challenges that significantly altered the restaurant operations. In finance, the challenges faced were (1) the temporary closure of the restaurant for four months, from March to July 2020, (2) an increase in costs of raw materials, and (3) an increase in gas prices. As such, the owner paid the rent and utilities during the temporary closure of the restaurant, and implemented a gradual increase in menu prices, and lastly, they shifted from weekly to every supply acquisition. In service operations, there was a lack of dine-in services during General Community Quarantine (GCQ) and Enhance Community Quarantine (ECQ) as the government discouraged people from going out their homes. Consumer preference shifted to cashless transactions, to avoid physical contact when making purchases. Contactless payment options such as GCash and online bank transfers were introduced in the restaurant. In marketing, there was a significant reduction in foot traffic, severely affecting the revenue for the restaurant. Social media such as Facebook were used to introduce the restaurant online. Also, new menus were offered like “Baked Sushi”, “Onigiri”, and “Kaagare” meals which helped boost sales and drew new customers. In human resource management, due to the temporary closure, the employees have no salaries leading the owner to provide loans.

After the pandemic, the restaurant went back to good financial standing as shown by its high net sales (Php 15,685,911.00), low cost of goods sold (Php 12,341,996.73) and high gross profit (Php 3,343,914.00) Revenues came from dine-in and take-out orders, and catering services. New additional promotional activities were employed such as posting on Facebook. Primary customers were still students, employees, and households. A new addition to the payment method which includes GCash and online bank transfers. Employees stayed in the restaurant during the pandemic and are still existing crew. Employees still rate their stay in the restaurant as acceptable. As a result of the pandemic, some sanitary practices were still implemented in the restaurant operations.

The SWOT analysis for the business highlighted several key points. The strengths of the business include its value for money, authentic Japanese ambiance, high quality ingredients, strong customer loyalty, a long-standing presence in the market, and unique menu offerings. On the other hand, the weaknesses identified were the limited accessibility of the store due to steep stairs, poor visibility, vulnerability to unfortunate events, and the potential need to adapt to evolving trends in Japanese cuisine. Opportunities for the business include participating in regular weekend markets potential acquisition of the building. However, the business also faces threats such as emerging competition from new Japanese restaurants, uncertainty related to future health risks, ongoing health and safety concerns, and potential reputation risks from external factors.

Recommendations include the (1) establishments of sanitation protocols for safety and hygiene, (2) continuous use of cashless payment methods for customer convenience, (3) continuous understanding and being connected with the customers for new food offerings and marketing campaigns like paid advertisements, (4) setting aside emergency funds for contingency use, (5) consider offering modest loans to employees as part of employee retention program. To make the restaurant crisis-proof in the future, it us recommended to (6) hire trained professionals for marketing and finance department, (7) have a flexible business model, lastly, it is also recommended that (8) there should be an annual goal setting, using SWOT analysis. This is to review, renew the goals, and directions needed by the restaurant, anticipating future disruptions.

Language

English

LC Subject

Business enterprises--Management, COVID-19 Pandemic, 2020--Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2024 M17 R49

Notes

Not available to the general public, for consultation with author / SP Adviser, and to those bound by confidentiality agreement.

Document Type

Thesis

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