Analysis of Street Food Vending Operations in Los Baños, Laguna

Date

5-2017

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Noriza Q. Herrera

Committee Member

Nanette A. Aquino, Normito R. Zapata, Jr., Agnes T. Banzon, Dinah Pura T. Depositario

Abstract

Street food vending is one of the most visible local economic activities not only in the Philippines but also across the globe. However, it is always linked with many issues such as food safety and sanitary practices. Between two to three decades ago, many government and international agencies started to take interest in it not just for food safety but also for its opportunities to grow and sustain. Although street food vending is seen as an unprofitable activity, several literatures concluded that street food vending is indeed a lucrative business. FAO (1997) reported that street food hawkers in Calcutta, India have a combined annual profit of US$100 million. In Latin America, it was also reported in the same study that vendors earn an average monthly sales of US$150 to US$500 (FAO, 1997). According to Proietti (2011), street food vending contributes about 12.70% to Mexico’s GNP and 18.50% in the national labor force. Meanwhile, IBISWorld (2016) reported that street food vending in the US has US$2 billion revenue and an annual growth of 3.7% from 2011 to 2016.

The primary objective of the study was to analyze the different street food vending operations in Los Baños, Laguna. Specifically, the study aimed to present the profile of street food vendors; determine the profile of street food vending operations; describe the street food enterprises in terms of the four business functions; analyze the issues and challenges faced by street food enterprises; identify the prospects for the street food enterprises; and formulate recommendations to address issues related to the street food vending operations.

The location of the study was in Los Baños, Laguna since it is situated near different learning and research institutions as well as to other organizations where street food vending was said to be present. Descriptive approach, both quantitative and qualitative research methodologies, was used for the study. There were a total of 72 respondents that came from 11 out of 14 barangays in the municipality namely: Anos, Bambang, Batong Malake, Baybayin, Lalakay, Maahas, Malinta, Mayondon, San Antonio, Timugan, and Tuntungin-Putho. Due to its informal nature and absence of a list, purposive sampling was used in selecting respondents. Secondary data from the Municipal Planning Division Office (MPDO) of Los Baños was obtained which aided in supporting the primary data as well as the discussion of the results. Other secondary data from several literatures accessible both in print and online helped immensely during the duration of the study. Management tools specifically Porter’s Five Forces and SWOT listing were used for integrated analysis.

Discussion of this study revolved around two types of operations: stationary and ambulatory. Stationary operations were enterprises that vend in one permanent place and offer more street vended foods. Meanwhile, ambulatory operations roam and vend in different places with limited street products to offer. Hawkers under this type of operation returned to the same locations each day by following regular routes and they typically moved through means of walking or either riding a bicycle or motorcycle.

Baseline information about the profile of street food vendors were presented through socio-demographic and other characteristics. Females dominated stationary operations while males led ambulatory operations. Only 29% stationary and 59% ambulatory operations stated that their main source of income comes from street food vending. Other sources came from the employment of spouses in jobs such as traffic enforcer, teacher, and government worker. Moreover, stationary (60%) and ambulatory (57%) hawkers stated that the main reason for engaging in street food vending was out of necessity.

The business profile of street food vending operations was further dissected based on the prevailing type of street food vended. The most frequently listed types of street food under stationary operations were turon, bananacue, and grilled street foods (e.g. chicken entrails and barbecue). As for ambulatory operations, it was dominated by taho, fish ball, kikiam, and peeled mangoes.

Four functional areas of a business were also evaluated. The production of street food vendors could either be at home, point of sale, and in both backyard and small-scale production facilities. Since street food was viewed as generic and highly undifferentiated food product, heavy promotions were deemed unnecessary. Most street food hawkers were self-operators and usually asked the help of family members for additional labor. Financially, street food vending gave daily cash inflow for the enterprise.

Issues and challenges were mainly directed to street food hawkers’ non-compliance to government regulations. None of the respondents were registered and licensed to operate under the municipality’s regulations. Moreover, hawkers face difficulties for the enterprise to grow since the working capital could easily be used for more important familial expenses such as medical fees.

Nevertheless, street food vending is still an income generating activity for households. It was found to be a better alternative as compared to being unemployed. The prospects identified were: (1) increasing popularity of street food parks and expositions, (2) food innovation, and (3) micronutrient fortification of street foods.

As an understudied industry, more researches should be done to present areas for development of street food vending industry. Recommendations mainly focused on the steps and procedures needed for the compliance of street food hawkers to government regulations particularly on a municipal level. Two types of compliance: (1) Business License and Mayor’s Permit and (2) Barangay Micro-Business Enterprise (BMBEs) Certification were suggested.

Language

English

LC Subject

Street-food industry, Business enterprises

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2017 M17 O44

Notes

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Document Type

Thesis

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