In business and engineering, a problem is a difference between actual conditions and those hat are required or desired. Often, the causes of a problem are not known, in which case root cause analysis is employed to find the causes and identify corrective actions. At present, there are many problems encountered in the field of business which involves money and improvement of the quality of life that have a great impact on economy and each individual. A business is also known as an enterprise or firm.
Business is any activity involved in the production and distribution of goods and services, aimed to meet the economic needs of consumers with an objective of eventually earning profit (Gig, 2012). This term is usually related to demand and supply. There are three basic forms of business ownership namely, sole proprietorship, partnership, and corporation. Business is also classified as agriculture and mining, financial business, manufacturers, information business, real estate, retailers and distributors, service business, transportation business and utilities (Wisped).
Restaurants and fast food chains are included in service businesses. A restaurant is an establishment which prepares and serves food and drinks or the so-called meals, which are generally eaten on premises, to customers in return for money. It originated from Ancient Rome where thermopile, small-restaurant-bars, offered food and drinks to the costumer. A typical thermopile had L-shaped counters into which large storage vessels were sunk, which contain either hot or cold foods.
On the other hand, a fast food restaurant, also known as Quick Service Restaurants, is a specific type of restaurant characterized by both fast food cuisine and minimal TABLE service. Food served is typically based on a Western pattern diet’, commonly known as ‘meat-sweet diet’, and limited menu. Fast food restaurant are usually part of restaurant chain or franchise operation (Wisped). At present, Philippines just like other countries have numerous fast food chains and restaurants running inside and outside the country. Some Of these fast food chains are McDonald’s, Jollied, Kentucky Fried Chicken, Chocking, Greenwich and many others.
The food industry is truly developed in the country. The fact that Filipinos love to eat was the reason why there are many restaurants and fast food chains especially in the cities. The Jollied Food Corporation is the largest fast food industry in the Philippines. Fast food restaurants in the Philippines specialize fried chicken, French fries, ambushers, spaghetti and a beverage. But having a great number of customers requires not just attractive and delicious food because this is only a part of the total dining experience for customers.
Second, fast food chains and restaurants aid in the improvement of the quality of life through the different jobs it provides. Nowadays, most of the employees working on fast food chains are students or the so-called ‘working students’. This study fall be of great help to those persons interested to work on fast food chains or restaurants for it is important for them to know the problems presently encountered by these businesses so that they could properly carry out their responsibilities and take part in the success of the equines.
Third, one of the most popular during these days is the franchising of businesses like fast food chains and restaurants. Many individuals are interested in this kind of activity thus one needs to have an adequate knowledge and information about this business. This study will be of benefit to those willing to franchise a fast food chain or restaurant because this research gives information about the common problems of this business. Through this, additional skills and knowledge will be acquired in becoming an effective manager of the business.
Lastly, this type of business has a vital role n increasing and improving the economy of a country. Quality products and taxes are only some of the numerous contributions of business in general. This research will serve as a guide towards the development of possible solutions to problems for the continuous sTABLE operation of the business. To sum up, through this study, the students and especially those interested in fast food chains and restaurants will be prepared in facing the problems, will have sufficient knowledge, and become an effective, competent and knowledgeTABLE business manager in the future.
Also for the succeeding searchers, this study will serve as a reference to their respective research related to this topic. Scope, Delimitation, and Limitation of the Study This research focuses on determining the problems encountered by selected fast food chains and restaurants in Battings City. This study was restricted to the problems because for the purpose of effective management of the business, adequate and necessary information and knowledge about the factors affecting not only the business itself but also the employees and consumer or customer are needed to be known.
Having a successful business is a step-by-step process. Just like the scientific method which requires one to know the problem first before constructing a model or making a decision, solving business problems follows the same procedure. The leadership styles employed by the manager of the business and the profile of the selected fast food chains and restaurants are included within the scope of this study in order to have a deep understanding of the respective topic of research.
This study also involves the managers of the selected fast food chains and restaurants as respondents because they are reliTABLE sources of information for having the necessary knowledge and information about that type of equines. These managers know each particular aspect of the business and they are the ones who are finding best solutions to the problems encountered. This study does not include other fast food chains on other locations and other problems encountered by fast food chains and restaurants pertaining to the other aspects of the business like the technical, marketing, and socio-economic aspect.
The limitation Of this study includes the unwillingness of the respondents to answer the given questionnaire and limited time span needed to complete this undertaking for the part of the researchers. Definition of Terms Business. This refers to the sum total of all the enterprises that play a vital part in the production and marketing of goods and services to ultimate consumers (Inning, 2012). Cafeteria. This pertains to a restaurant in which the customers serve themselves or are served at a counter and take the food to TABLEs to eat (Merriam-Webster, 2012). Corporation.
This refers to an artificial being created by the operation of Law, having the rights of succession and the powers, attributes and properties expressly authorized by law or incident to its existence (Inning, 2012). Consumers. This pertains to the one who buys odds or services for personal needs only rather than to produce other goods (Webster, 2000). Cuisine. This refers to the manner of preparing food; style of cooking (Merriam ? Webster, 2012). Demand. The term is defined as the quantity of goods and services that an individual is willing and TABLE to buy at an alternative price (Imperial, et al. 2011). Fast Food. The term refers to the food that can be prepared and served quickly (Merriam – Webster, 2012). Fast Food Chain. This pertains to a specific type of restaurant characterized by both fast food cuisine and minimal TABLE service (Wisped). Franchising. This is the right to use the franchisers name and sell its product (Imperial, et al. , 201 1). Management. This refers to the force that runs an enterprise and is responsible for its success and failure ( Inning, 2012). Manager. This refers to the one who manages the business. Money.
This pertains to the medium of exchange for goods and services Partnership. This refers to a type of business organization owned by two or more persons. Problems. This term means an obstacle, impediment, difficulty or challenge, or any situation that invites a resolution (Wisped). Restaurant. This pertains to a business establishment where meals or refreshments may be purchased (Merriam – Webster, 2012). Satisfaction. This refers to the fulfillment of a need or want. Sole proprietorship. This refers to a type Of business organization owned by one person only.
Service Business. This pertains to a kind of business primary concerned with the satisfaction of the needs and wants of consumers (logo, 2012). Take-out. This concept is related to selling and the food that is not to be consumed on the premises (Merriam – Webster, 2012). Thermopile. This pertains to the small-restaurants-bars (Wisped). Western pattern diet. This term is also called meat-sweet-diet, a dietary habit characterized by high intakes of red meat, sugary deserts, high- fat foods and refined grains (Wisped).
CHAPTER 2 REVIEW OF RELATED LITERATURE AND STUDIES TO have a better understanding about the problems encountered by fast food chains and restaurants, the researchers managed to gather related literature and studies which are of significance to achieve the purpose of this study. The researchers made use of different books, magazines, journals and unpublished theses that will contribute to the in-depth study of the given epic of research. Related Literature Fast food. Hearing this term will surely give us the concept of the dine-in or take-out or foods like fried chicken, hamburger, French fries, pizza, ice cream and a beverage.
Advanced technology and new inventions have really brought a world where anything that a person needs can be satisfied in the least possible time. Living in this world at present truly reflects the contributions of different inventions and sophisticated technology. The term ‘instant’ is really inseparTABLE to life at present. The term ‘fast food’ is very popular and often heard nowadays. But the question is: Where did it come from? The term ‘fast food’ gained more prominence when it was recognized by the popular Merriam-Webster Dictionary in 1951(http:/Ann.. Puzzle. Com/ articles/fast-food-history. HTML).
The concept of fast food is generally associated with urban development. But research reveals its roots in the bread-and-wine stands in Ancient Rome and popular ready-to-eat noodle shops in East Asian cities (https://WV. Puzzle. Com/articles/history-of-the-fast- food-industry. HTML). The terms ‘instant’ and ‘fast food’ relates too kind of Irvine businesses particularly fast food chains and restaurants. Fast food chains are also known as Quick Service Restaurants or USSR. These businesses are very popular nowadays. Their products are accepted by most people and received a high demand from consumers.
Admit it or not, our days are full of fast food snacks or meals. History of Fast Food Chains. To have a better understanding about the concept of fast food chains and restaurants, the history of these businesses should be clear. The famous restaurants of the 20th century and its founders are enumerated and described in the succeeding paragraphs. The modern history of fast food began in America on July 7, 1912 with the opening of Automat in New York. Automat is a cafeteria opened by Joseph Horn and Frank Hardhat which created a sensation causing numerous Automat restaurants to be built around the city to deal with the demand.
Automata remained extremely popular throughout the sass and sass. The company popularized the notion of ‘take-out’ food with their slogan “Less work for Mother (https://en. Wisped. Org/wick/ Fast_food_restaurant). The credit of being the first restaurant that offered pre-prepared food goes to Horn and Hardhat (Kumara, 2012). However, some historians and secondary school textbooks say that A&W, which opened in 1919 and began franchising in 1921 , was the first fast food restaurant (E. Tapers). Roy Allen and Frank Wright (A&W) were the pioneers of this drive-in food outlet, a root beer stand (Kumara, 2012).
White Castle in 1921 is the first hamburger chain. 7-Eleven, formerly known as Southland Ice Company, is a fast food store established in 1927. Presently, 7-Eleven has now over 31 ,OHO branches all around the world. KEF, popular with its special fried chicken, became immensely popular during the sass. Harlan Sanders, its founder, introduced pressure cooker to make finger-linking’ chicken skillets. Today, it has over 15,000 branches in 105 countries. McDonald’s was established on 19405 by Dick and Mac McDonald.
This is the first fast food business which introduced plastic utensils, multiplier milkshake machines, and a quick efficient and new style of production. Serving nearly 68 million people in more than 1 1 9 countries every day, McDonald’s has more than 33,000 restaurants. Dunking Donuts was opened by William Rosenberg in 1950 and has more than 8,000 shops around the world while Burger King was established by David Edgerton and James Micromole in 1954. Burger King is the second largest fast food hamburger chain. Pizza Hut in 1 958 was established by Frank and Dan Carney in Kansas.
Pizza Hut franchise is the pioneer of fast food pizza. Subway was established by partners Dry. Peter Buck and Fred Delude in Bridgeport in 1965. Lastly, Wendy/s was opened by Dave Thomas, a former KEF employee, in 1969 (Kumara, 2012). Having a prosperous business history, it is undeniTABLE that fast food chains and restaurants are one of the most successful undertakings in the business world. These businesses are continually developing and growing in number. “There’s just no stopping! Fast-food chains are seeping into places – and times of the day – that until recently were mostly fast-food-free zones,” said Brad Tuttle.
Fast food chains are continually growing in number and providing more and more services to accommodate the growing demand from consumers and to attract more customers that will patronize their products. An article in Time Magazine entitled, “Fast food: Spreading like the Blob”, presents the means taken by these businesses to counter the stiff competition in their environment. As new fast food locations keep opening existing restaurants are trying to drum up the most business possible out of every minute of every 24-hour period.
To do so, chains are staying open longer and giving customers excuses to come in for a bite no matter what time of the day. As a consequence, employees work overtime even on holidays but the push was part of a larger one to give hungry customers access to fast food whenever and wherever they want. Not only restaurants open longer hours, menus are also packed with items that may not necessarily fit into a particular time slot for consumption. The word snack itself has spread like wildfire on menus, as has snack culture in general.
Beyond rolling out the snacks, fast food restaurants are attracting new customers by offering new and unusual menu items. Then there’s the innovation that looks to make it unnecessary to leave one’s house at all in order to get a fix of fast food. Fast food restaurants made home delivery possible (Tuttle, 2013). Fast food franchises focus on high volume, low cost and high speed product. Frequently food is preheated or precooked and served to-go, though many locations also Offer seating for on-site consumption. For stands, kiosks or sit-down locations, food is standardized and shipped from central locations.
Consumers enjoy being TABLE to get a familiar meal in each location, and menus and marketing are the same in every location (https://WV. Franchisee. Com/industry-reports/fast-food- industry-report). For fast food franchises, it’s easier and cheaper to set up and run an operation within another store -and take advantage of the steady stream of customers – rather than build from the ground up (Tuttle, 2013). Franchising continues to permeate an increasing number of countries and business sectors. In fact, the fast food industry is probably responsible for today’s proliferation of franchising.
The fast food sector is a dynamic industry featuring a high density franchising. It is also one of the most challenging sectors to operate in, due to an ever-increasing number of operations competing for the same dollar. Intense rivalry exists between concepts. Indeed, such is the challenge within the sector that Ray Crock, the man who franchised McDonald’s, once stated, “if you see a competitor drowning, you stick a hose down their throat. “Competing and defending market share within the fast food market has always been a challenging task.
Operating within the current environment is even more demanding. The sector has been rocked by a number of trends requiring rapid and fundamental action. Clearly, franchisers need to work very closely with franchisees on new initiatives. As noted in Jeffrey Branch’s book, Franchise Organizations, which explores restaurant chain management, affecting system wide adaptation is a complex and challenging task. Successful adaptation requires not only an understanding of organizational change, but also an understanding of franchiser-franchisee relationship dynamics (Floyd, 2004).
The success of a equines depends on several factors. According to https://w. NM. Harris- management-solutions. Com, there are six business fundamentals that define the basic organizational skills and behaviors that a business must possess to succeed. These are strategy, organization, people, customer, process and performance. As businesses grow and develop, they move through business development stages and improve their business competence. Organizations need to have a business structure and capability that will enTABLE the business to develop and grow to reach its full potential.
In addition to having a sound Truckee, the business needs to be well governed by its directors, understand the needs of its stakeholders, be effectively managed, and have clear lines of accountability. Management and Leadership Styles. Management is the force that runs an enterprise and is responsible for its success and failure. It is a distinct process of planning, organizing, staffing directing, and controlling, performed to determine and accomplish stated objectives by the use of human being and other business resources (logo, 2012). Leadership is an important function for effective management.
Leadership is defined in a umber of ways. One common meaning is that it is a process of influencing the actions of an organizational group in goal setting and accomplishment. Another view of leadership is that of influence. Leadership is invariably viewed as a management concept. According to McGregor, “leadership is a relationship”. The very essence of the leadership role in business is found in the extent to which an executive can influence the behavior of his fellow executives along the lines he himself desires. To be effective, the leader must retain and develop the continued acceptance of and the confidence of the roof members.
Successful managers know for a fact that power is an important facet of organizational life (Miranda, 2002). Kurt Lenin, a popular management scientist, was the first to introduce the following leadership styles (Cabal, 2011 Autocratic or authoritarian leadership style is a type wherein all decisions are completely taken by the leader himself. No input is taken by the team or group. The leader can be called as dictator leader. The leader actually tells employees what to do and very closely supervises them. Participative or democratic, on the other hand, involves the team in decision aging process.
The leader consults the team and gives instructions. He works with the employees, tells what to do, and does not closely supervises them (Lousier and ACH, 2009). Laissez-fairer or free rein is a kind of leadership wherein the leader does not lead but, leaves the group entirely to itself. The leader gives the maximum independence to his subordinates, and actually, they are free to make their own policies and method. The leader plays a passive role in group affairs and usually takes part in decision making when things are initiated by the team (Sadler, 2003).
The kind of leadership Tyler that the manager of a business employs can be seen on the operation of the business enterprise. Good leadership results to a sTABLE business while ineffective leadership causes problems to arise that can cause the business to fail. Effective administrative leadership is a professional responsibility. Successful- and thus, professionally responsible- leaders have sense of responsibility, technical and professional competence, enthusiasm, communication skills, high ethical standards, flexibility, and a vision.
To sum up, leadership is widely touted as a cure-all for organizational problems. Managers face decisions about how to organize foddering departments for the efficient procurement, production, distribution, and service of their food and meals. Many options are availTABLE based on the type of food purchased, where the food is prepared in relation to where it is served, the time span between preparation and service, and the amount and kind of personnel and equipment required (Paladin and Theist 10:2005). Robert L. Katz proposed a three-skill approach as a method of classifying managerial skills.
The following skills are: technical, human and conceptual skills. Technical skills are involved n performing specialized activities, human skills in understanding and motivating individuals and groups, and conceptual skills in understanding and integrating all the activities and interests of the organization toward a common objective. According to Henry Integer, as leaders, managers establish the work atmosphere within the organization and activate subordinates to achieve organizational goals (Paladin and Theist 1 0: 2005).
The managers should have the necessary skills and must employ an appropriate leadership style for the business to be successful. The managers should perform their duties and responsibilities. According to Rick Settle, the general manager is usually the manager in charge of a fast food restaurant. General Managers may have one or more assistant managers to help run various shifts, depending on the restaurant’s hours of operation. The roles and responsibilities of a fast food manager can include a number of functions.
The roles and responsibilities of a fast food manager are the following: Meeting Financial Goals, Managing Daily Operations, Hiring and Firing, Training, Resolving Customer Complaints, Bank Duties, and Community Events (https://www. Oho. Com/list_6428133 _roles-responsibilities-fast-food- anger. HTML). A fast food manager must meet the sales and profit goals of the restaurant. Increasing sales can often be accomplished by simply improving the speed of customer service at the drive-thru or in the dining area or ensuring that customers are served only hot food with the proper portions.
Keeping labor costs down and minimizing food waste can help drive higher profits. He is also in charge of managing operations on a daily basis. Operations management can entail making sure the restaurant is fully staffed, preventing out-of-stock situations, having equipment serviced when deed, ensuring that all walk-in freezers, refrigerators and steamers are set at the right temperature and properly handling all opening or closing procedures, depending on the manager’s hours. Fast food managers are responsible for interviewing and hiring intelligent teenagers or adults with a good work ethic.
The roles and responsibilities of a fast food manager may, at times, require that he fire employees for a variety of reasons (Settle). A fast food manager trains employees. Many fast food restaurants have formal training guides that show the proper food portions for various meals, how to kook meat or fries and how to work the various stations. The fast food manager often delegates individual training to his assistant or shift manager. However, the fast food manager must oversee all training and ensure that all hourly employees complete their training in a timely manner.
At times, a fast food manager handles and resolves customer complaints. Whatever the case, the fast food manager needs to oblige the customer and make sure they leave the restaurant fully satisfied with their food and service. Fast food managers need to make sure that the cash registers have an adequate supply f change, singles and bills in the morning. They might need to run to the bank to get proper change. Furthermore, a fast food manager must make sure that money is counted on each shift and that deposits are made on a daily basis.
Sometimes, a fast food manager may participate in community events like fairs or city food gatherings. To attend the event, it is the responsibility of the fast food manager to obtain the proper carts or trailers, as well as workers (Settle). According to https://smelliness’s. Chronic. Com, success in the fast food industry requires mastery of different parameters Han fine dining. Customers who go to a fast food business are looking for speed, convenience and predictability rather than a memorTABLE dining experience.
Fast food entrepreneurs who understand this can master these elements of the business and perhaps make a profit. One parameter is branding. Fast food chains and restaurants should provide consistent, easily recognizTABLE, simple branding and simple slogans. Second is Location. Fast food is about convenience, so to be successful a fast food outlet should be located in a high-traffic area, according to the website Plans. Third is Speed. Fast food that lives up to its name gains more business than fast food that is actually slow. Many people grab fast food on the way to work or to another destination.
The reason that drive-through windows are popular is that people don’t even want to take the time to get out of the car. The faster a restaurant can deliver the ordered food, the happier the customer is. Setting up efficient and standardized kitchens and focusing on foods that can be cooked quickly are two of the ways that McDonald’s became so successful in this competitive industry, according to Business Week. Last is Efficiency. Fast food restaurants run on thin profit margins and make their money by selling lots of product, according to the website Street Directory.
In this commercial environment, functioning efficiently is critical. This means minimizing food waste, hiring help at minimum wage and benefiting from economies of scale when purchasing supplies. Every dollar that is unnecessarily spent on operations is a dollar subtracted from profits. Because of high employee turnover in the industry, training regimens for new employees need to be standardized, rapid and effective. An article entitled “Fast Food Industry Analysis 2013 – Cost & Trends” from NNW. Franchisee. Com presents the main problems experienced in the fast food industry.
The fast food industry is not without its challenges, especially in the United States. From rising food costs, economic recession and changing perceptions about health, many fast food franchises have been feeling some heat. But rather than flee from this challenge, the fast food industry has been adopting new practices and offering new products. Modern society is on the go, and there is plenty of demand for a quick bite at all times of the day. There have been challenges or the fast food industry in recent years that have been pressuring profit margins.