CHAPTER IINTRODUCTION

Nothing unites or divides us like coffee, the worlds favorite beverage, after water. The aroma of coffee is a universal signal of day break as the roosters crow and a far better reason to get out of bed. The popular pick me up is a fixture at work and an instrument of leisure. Drinkers who flip their lid because their 8 a.m. cup is a few sugar grains short are asserting their individuality while validating this greater truth.The Philippine Department of Agricultures Bureau of Agricultural Statistics (BAS), reported in 2008 that the total coffee production declined slightly from 97,340 MT (dried berry basis) to 96,433 MT. The source said that the downtrend in coffee production of 1.02 percent was a result of prevailing peace and order situation in Sulu and excessive rains during the flowering stage hampered harvesting in coffee farms. In addition, production was affected by the low-buying price of coffee in Caraga Provinces as well as the continuous neglect of coffee farms in Cavite and Davao del Norte. In 2009, the total area planted to all varieties of coffee dropped by 0.88 percent from 123 to 122 thousand hectares. The coffee shop industry has increased its popularity in the Philippines. An article by Anenias (2013), discussed that in our country no morning is complete without coffee. We have our own Batangas Barako to be proud of. Instant coffee then came into the scene, and lately, gourmet and specialty coffee with the introduction of foreign rates such as Starbucks, Seattles Best, and the like. Coffee drinking has now become more than just a way to wake up ones nerves, it has become a trend.Student as well business people find coffee houses as a place to relax, discuss, socialize, and study. The success of coffeehouses is reflected in the establishment of chains, such as Starbucks as well as family-owned, independent shops.Coffee production in year 2010 (which starts in July 2009) is projected to decline by 2-3 percent as a result of the hot and dry weather conditions experienced due to the El Nino phenomenon.In Cavite City there are three competing coffee shops namely Cofftea Zone, Caf Antix and Subi-Monte Caf wherein they serve food, gourmet coffees and other beverages. Mr. Davy Guinto, the sole proprietor of Caf Antix discussed that in order to provide customers with quality service, consistency and speed should always be observed. First impression always last, business has only one chance to make a good first impression. If a customer doesnt like what they see and what they pay for they wont be dropping in again. Caf Antix opened last April, 2012. Mr. Davy Guinto decided to open a coffee shop of his own concept because he is seeing that a lot of Caviteos are still going to Manila just to have gourmet coffee. Their menu offers gourmet sandwiches, pizzas, pastries. They also make specialty coffees made from premium ingredients such as Ferrero Roche and Cadbury. Caf Antix has an antique inspired interior design, which is appealing to customers. Subi-Monte is owned by a group of mountaineers. Mr. Richard Martinez who is the current supervisor of Subi-Monte stated that, its only about the coffee that they serve, it has also become a place where people can enjoy the music, ambiance and the food that they offer. People appreciate the hospitality of their staff and cleanliness of their establishment. Cofftea Zone was conceptualized as a result of the thesis of the owners daughter and it has a starting capital of 5 million pesos. Mrs. Milady S. Ponsones who is the proprietor of Cofftea Zone owns a lot of business in the Cavite City Market and it was actually her first time to own and manage a coffee shop. Cofftea Zone is located near the Petron gas station in Dalahican, Cavite City, which is the same concept of most coffee shops in Manila. Cofftea Zone offers a variety of coffee drinks and food items as well as coffee accessories.Cofftea Zone, Subi-Monte, and Caf Antix were chosen because these three are the most popular coffee shops in Cavite City. Moreover, some customers consider them as interchangeable brands; and that is why it is important to study how these establishments differentiate themselves from each other and attempt to improve brand loyalty among their customers.This study entitled A Comparative Study of the Three Coffee Shops in CaviteCity aims to compare the product, service and ambiance of Cofftea Zone, Caf Antix and Subi Monte. The results of this study will provide Review of Related Literature and StudiesForeign Related LiteratureAccording to Garvey (2004), the menu is the epicenter of your coffee shop. Everything revolves around it: the ingredients you order every day, how you design your coffee shop, which equipment you purchase, how you organize and train your staff, who your barista iswhat selections are on your coffee list, even the name of your coffee shop. Your menu should match your coffee shop concept and atmosphere, your guests expectation. What would they expect and demand? How can you delight and surprise them? How can you keep them coming more?Several components determine menu price points, including customer demographics, competition and acceptable standards. Fix your price points and get a handle on food costs and how they affect the menu prices. If youre charging more for your product, you must establish a point of difference in quality, atmosphere, service and so on to justify the price.

Whitehead (2005), found that ambient lighting is the best for restaurant and cafes. This was largely because it made people and food look good. It also made patrons fell more relaxed than in similar, brighter spaces. The use of more indirect lighting also appeared less harsh and contributed to the comfortable feel of the spaces.

The book by Schirmbeck (2003), described the need for sequence and subdivision within the space of coffee shop. There was the conclusion of separated seating areas to provide a partial privacy. For each individual table, it was suggested for agreater distance between tables, partition through lighting or physical, differing floor or ceiling level. The lighting was used for various reasons, including the space separation for privacy. The variances between light and dark within the overall space were most successful for creating more privacy within the space. Table were given individual overhead light, while the spaces around them were left in darkened light.

Above all a coffee shop must have good coffee otherwise no clients will come no matter what the environment is like or where it is located. Location is another main factor in determining the success of a coffee shop. It should be located in a busy area that has lot foot traffic. The locations also affect the type of clientele the shop will receive. The overall theme needs to be consistent with the other businesses surrounding it. The theme sets the mood of the place and causes it to stand out from other similar businesses. It must have a unique atmosphere. The layout needs to give people enough personal space to be comfortable. The furniture should be moveable for the different size group that may come. People like to be able to create their own space. Furniture also should be comfortable enough for people to stay awhile but not so comfortable that it affect those who want to study. The lighting should be adequate for reading, but not so bright that is overwhelming. Too much light detracts from the atmosphere and activity. Dimness creates a more relaxed environment conducive to conversation and a lengthy stay.The research observation and survey of Pegler (2004) found the success of the above attributes to determine the success of a coffee house. The coffee will get people to come to the place, but the environment will cause them to stay. The space should be unique, comfortable and flexible. If a coffee house had successfully addressed all of these issues, they will ensure a constant clientele.

Local Related LiteratureAccording to Rogo (2008), coffee drinking, both in-home/office/school and casual coffee drinking outside in Metro Manila has turned out to be as common a practice as dining. This is illustrated by the proliferation of coffee shops all around the metropolis and its outskirts, and the increased sales of instant coffee variants. More and more people are learning to appreciate coffee drinking not just as an after dining practice or a morning ritual, but as part of an emerging lifestyle. Coffee has become a convenient and easily available drink. Increased sales of both instant coffee and coffee beans and the proliferation of coffee shops have contributed to the growth in coffee sales in both retails and foodservice outlets. Retail sales of coffee have increased by 6% in volume in 2005 and more than 13% in value over 2004. This growth in the industry is remarkable considering major economic downturns and political unrest.

Monge (2004) said that government and the private sector are both making efforts to increase local coffee production, in order to reduce on imports. In 2012, however, local production in the Philippines still did not meet coffee demand in the country.The country imports the rest of its coffee requirements from Vietnam, Indonesia and other Asian countries. In 2012, the key player in the coffee industry, Nestl Philippines Inc., opened a new coffee farm in Batangas city that will increase access to new coffee farming techniques in a bid to increase the number of coffee producers and production in the Philippines.Nestle Philippines Inc. dominates coffee sales with a value share nearly 90%, due to its strong positioning and leadership in the instant coffee sector. The companys Nescafe brand was one of the first instant coffee brands in the country and hence was able to establish a large and loyal consumer base through effective advertising, continuous innovation and the good quality of its coffee products. The more widespread health and wellness trend in the forecast period will encourage various brand manufacturers to produce organic and decaffeinated coffee variants to prevent a decline in the consumer base and capture a greater share of health conscious consumers. There might be more marketing activities that will highlight the benefits of coffee, as manufacturers attempt to counter any negative perception about the drink. The positive economic outlook in the forecasted period will benefit both the instant and fresh coffee categories. The goal of any food service institution in Philippines on in any part of the world, for the matter, is the service of quality to satisfied clientele at reasonable cost. The objective maybe profit or non-profit oriented.Those who primary aim is to gain profit are the commercial restaurant, hotels, dining rooms, fast-food centers, coffee shops, carinderias and other food service establishment.

Presse (2010), said that after watching its neighbors become global coffee heavyweights, the Philippines is taking tentative steps towards regaining its status as a formidable grower of the bean.However, that era is a long way back for the Philippines, among the top five coffee exporters in the world in the 1880s after Spanish friars brought beans with them to their colonial outpost? The Philippine Coffee Board, an industry group spearheading the revival attempt, knows the country cannot compete with the likes of current regional exporting giants Indonesia and Vietnam in volume.So they are aiming for niche markets and targeting the fast-growing number of young Filipinos who crowd cafes across the country of 93 million people.

Foreign Related StudiesThe social, political, and economic relationships that constitute the global coffee industry and the many links between many points of production and consumption is stated in the study of The Evolution of Coffee Markets for Sustainable Development: A Honduran Cooperatives Experience with Fair Trade by Smith (2010). This study contributed toward an understanding of coffees role in society, the conditions of growers who produce it, and the relationship between markets based economics and politics as they affect small producers. It explored the coffee value chain, patterns of consumption, producer strategies and adaptations, and the increased globalization of trade to inform its discussion of fair trade and the meaning of alternative markets for disadvantaged growers. This has been done partly by highlighting the friction that exists between Northern and Southern participants in the coffee value chain. According to the study of Sommer (2006) there was a connection found between level of light and noise level and how affected the duration of stay at a caf. As the level of light increased so did the level of noise, both decreasing the amount of time people remained in the establishment.Smith also emphasizes several important trends: The fragmentation of the coffee supply base as new growers enters the market; increased concentration in the roasting and international trading segments of the coffee value chain, market liberalization and the loss market power for producing countries; emergence of future markets and coffees sold based on graded quality attributes; and most importantly for this study. Recent differentiation of consumption and the emergence of fair trade and other sustainable coffees.

Stanley (2005), said that cafes have certain areas where they have been consistency performing well. These are essentially the strengths of the brand, and the Barista & Caf Coffee Day need to capitalize on these strengths to increase their market and brand loyalty. Barista has a strong and clear brand image. Their customers can easily identify and relate to barista brand. This helps increase and maintains brand loyalty. Another significant area of excellence is the kind of ambiance and dcor Barista cafes have. Barista Caf Coffee Day is projected as an affordable brand. This strategy has worked extremely well so far, and Caf Coffee Day got a high rating, both for their prices and for their value for money, in the market survey.There is huge potential for them to attract customers, just based on the taste and quality of products. This is also helped by the fact that they grow their own coffee beans, and this provides an important base for future expansion and growth. Barista Caf Coffee Day even won the Barista Coffee- Making Championship for the best coffee.

Local Related Studies Based on the findings of Alonzo (2006), on his study entitled The Business Performance of Starbucks Coffee Company, Starbucks Coffee Company received a very satisfactorily rating from its customers in terms of product, ambiance, price, sales promotion, facilities and customer service. The taste of beverages and food offered by the company fits the consumers tastes and the customer find the prices of the products to be reasonable in connection to its product quality. The visibility and persuasiveness of the stores ad and the attractiveness and how frequent their promos are and the participation of customers in the said promotions received good ratings. The perception of the customers to the overall facilities of the coffee shop is excellent. The store is very clean and it is well ventilated. It is very convenient for all the customers to just sit, relax and have fun while drinking their favorite coffees. According to the respondents, the employees are friendly and approachable as well, the management is very cooperative in case of inquiries, problems and complaints reported by the customers and the service that they offer are all very fast, the customers do not have to wait that long for their orders. The proposed study entitled Coffee Pandan Tea Production by Arica (2006), will become a data bank and information for researchers who may desire to use the results of this study in terms of organization and management aspect, marketing aspect, production aspect, financial aspect and socio-economic aspect in the operation of coffee-pandan tea production or related business. Based from findings especially on the area of viability, it can be reasonably concluded that there is a great prospect for success in the production of coffee-pandan tea.

According to Lambino (2006), the customers of coffee shops are satisfied in terms of courtesy of the staff, friendliness of the staff, well groomed and sensitivity to the guests needs. Customers are satisfied in terms of accessibility of the coffee shop and they are also satisfied when the food and beverages a reserved in their right temperature but not with its price because it is quite expensive for just a cup of coffee.Advertisement should be clear enough and eye catching to attract more customers for them to have more profit and to maintain the operation stable. Brochures is used more often by the coffee shop business in promoting their business so that it must be improved more to catch the eye of the customers.Prices of the products are expensive according to the customers so that promotional strategies like Combo Meals and Discount Coupons must also be given emphasis because it makes the products become affordable that will have great effect to the satisfaction of the customers. The location of the coffee shop should be accessible to its target market and the ambiance should also be considered to satisfy its customers. Attentiveness and courtesy of the staff meets customers satisfaction. Managers must prefer to choose skilled and efficient employees to avoid problem during the operation.To hold the customers, the business should give them very satisfactory service, extra attention, personalized service and products/services innovations. From the interview conducted, the managers believe that people still want a cozy and chic atmosphere, thus they promise to give extra attention to the service to their discerning market expects and deserves.

Statement of the ProblemThis study generally aims to compare the three coffee shops in Cavite City namely Cofftea Zone, Caf Antix and Subi Monte in terms of food,service, and ambiance. Specifically, this paper attempts to answer the following questions:1. What is the profile of the customers in terms of:1.1 Age;1.2 Gender;1.3 Address;1.4 Weekly Allowance;1.5 Course; 1.6 Frequency of visit?

2. How do the customers evaluate the three coffee shops in terms of :2.1 Food; 2.2 Service; 2.3 Ambiance?

3. What are the customers comments and recommendations to the coffee shops?

Assumptions of the Study The theoretical framework is answered to be an accurate reflection of the phenomena being studied.The Researchers assumes that the variables under investigation are measurable and the instrument being used is valid and reliable instrument to measure those variables.The Researchers assumes the methodology is appropriate to the problem being addressed and the purpose of the study.Before conducting the analysis, the researcher assumes that the analysis selected and the size of the sample is sufficient to detect significant difference/relationships if they exist in the population.

Scope and Delimitation of the StudyThe study compares the three coffee shops in Cavite City namely Cofftea Zone, Subi-Monte, and Caf Antix in terms food, ambience, and service. The study also includes HM Students of San Sebastian Recoletos de Cavite enrolled this second semester, 2013-2014.The study does include HM students who have not yet experienced the three coffee shops mentioned above.

Significance of the Study Present Coffee Shop OwnersItcan save you many hours of research, help you avoid some common mistakes, and give you information you need to enhance your coffee shop business.Future Coffee Shop ownersThe findings of this study are also invaluable to would-be coffee shop owners in conceptualizing the product, service and ambiance of their own coffee shop.

Present CustomersThey can be able to voice out their comment and suggestions which concerns the business performance of the three coffee shops mentioned above.

Future CustomersTo determine the quality of the coffee shop to their visit.

Present Researchers It will broaden their knowledge on the significance of good product, service and ambiance of a coffee shop to its consumers.

Future Researchers Hope that the findings of this comparative study will also benefit future researchers in conducting their own study.

Definition of TermsAmbiance: The special atmosphere or mood created by a particular coffee shop.Barista: Person whose job involves preparing and serving different type of coffee.Coffee: A drink made from the roasted and ground beanlike seeds of a tropical shrub, serve hot or iced.Coffee Shop: A small restaurant that is either independent or attached to a hotel and where the light refreshments or regular meals are served.Competitors: One selling or buying goods or services in the same market as anotherCustomer satisfaction: Depends on the product/service performance given by the coffee shop relative to the buyers expectation.Cyber Caf: A caf or coffee shop providing computers for access to the internet.Entrepreneur: A person who organizes and operates a coffee shop, taking on greater than normal financial risks in order to do so.Espresso: Coffee brewed by forcing a small amount of nearly boiling water under pressure through finely ground coffee beans.Iced Coffee: A drink made from coffee mixed with ice and milk, or a glass of this drink.Manager: A person responsible for controlling or administering all or part of a coffee shop.Service: An act or a variety of work done for others, especially for pay.

Research ParadigmFigure 1.1 Input, Process, Output Model

OutputCredibilityStandingProcessInterviewQuestionnaireInputProductServiceAmbience

The comparative of three coffee shops will provide information in terms of their product, service and ambience. Identify their similarities and differences, it will classify the areas of excellent and the areas need to improve.This study entitledThe Comparative study of three Coffee shops in Cavite City. Consist of the three major elements input, process and output. The input refers to the areas of survey, it includes the product, service and ambience. These are the fields the respondents will evaluate with regards to their performance. The process refers to interviews. These are the methods to be practice by the researchers .The interaction of the input and process transforms the output. The output or the outcome refers to the credibility and standing of the three Coffee shops in Cavite City which is Cofftea Zone, Subi-monte and Caf antix.

CHAPTER IIRESEARCH METHODOLOGYResearch DesignThis research made use of comparison method to compare the three coffee shops in Cavite City namely Cofftea Zone, Caf Antix, and Subi Monte in terms of food service and ambiance.Comparison study (Lorenzo, 2003) is often used in the business world as means of identifying how a given good or services compares to similar products offered by a competitor.The comparison method is the method applicable to this study because it aims to identify the similarities and differences among the three coffee shops.

Population of the StudyThe respondents of this study were the selected HRM and Tourism students of San Sebastian College Recoletos de Cavite who have experienced visiting the three coffee shops in Cavite City and have tried buying its products and services.Table 2.1 Respondents of the StudyYear level and courseTotal number of studentsNumber of respondents

1st Year HRM3634

1st Year Tourism3210

2nd Year HRM269

2nd Year Tourism224

3rd Year HRM154

3rd Year Tourism188

Total14969

The total number of students who experienced visiting the three coffee shops in Cavite City is presented on the table on the previous page. The samples of this study consist of 69 HRM and Tourism students of San Sebastian College Recoletos de Cavite who filled up the survey questionnaire correctly.

The Research InstrumentThe researchers used primary and secondary data in this study.The primary data was taken from informal interviews with the owner, researchers observation, researchers actual experience in the three Coffee shops and the results of the survey questionnaires that were filled out by selected student experience the three Coffee Shops.The secondary data collected for this research were taken books, journals thesis, and some internet websites that contain related information about the study. Books, journals as well as local studies used in the study were searched from San Sebastian College Recoletos de Cavite - St. Thomas of Villanova Library.The researchers used the questionnaire for gathering the primary data needed to know the differences of the three coffee shops as perceived by is selected customer. The questionnaire as designed by the researchers, included items from published and unpublished thesis and research papers. Formal interviews on November 12, 2013 with the owner and actual experiences of the researchers were also included in creating the questionnaire on part II.The study used a self-administered survey questionnaire. This was used by the researchers because it is cost effective and can be analyzed statistically.Part I of the questionnaire covered the student profile such age, gender, weekly allowance, frequency of visit, time spent in the coffee shop, address, and course/year level. These are the factors that the owner and the researchers have set to distinguish the student profile.Part II is all about the evaluation of the student regarding the service, food, ambiance of the three coffee shops, with the following rating scale: 4 - excellent, 3 very good, 2 good, 1 poor. To asks the post purchase actions of the customers.Part III of the questionnaire their comments for improvement. In this part, the researchers have included items based on past related researches to determine the suggestions of the respondents to better improve the strategies of the establishments under study.

Data Gathering ProcedureGathering of data was done through the following procedures:1. An interview was conducted with the manager on November 12, 2013. To know the history, and the quality of food, service, and ambiance.

2. A survey questionnaire was constructed by the researchers on December 11, 2013.

3. Final draft of the questionnaire was constructed on December 16, 2013 after including all necessary variables in the questionnaire as approved by the research adviser.

4. Questionnaires were distributed to the respondents and collected on December 17, 2013. The respondents were instructed on how to answer the questionnaire and those respondents who have questions regarding the contents of the questionnaire were also given attention.

5. When all the questions were retrieved, the data collected were tallied and presented on December 20, 2013.

CHAPTER IIIPRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

Part I. ProfileTable 3.1 Distribution of Customers According to AgeAge Number of CustomersPercentage

15-185580%

19-221116%

23-2623%

27 above11%

Total69100%

Age:Table and Figure3.1 show the distribution of customers according to age. Eighty percent of the customers are under the age bracket of 15 to 18; and 16% comes from 19 to 22 years old; followed by 3% which is 23 to 26 years old; and the remaining 1% comes from 27 above.Table 3.2 Distribution of Customers According to GenderGenderNumber of CustomersPercentage

Female5072%

Male1928%

Total69100%

Gender:Table and Figure 3.2 shows that there are 50 female customers and 19 male customers. The majority of customers are females which comprise 72% while male customers consist only 28%.This shows that female students wants to socialize and most of the students of Hospitality Management were females.

Table 3.3 Distribution of Customers According to Weekly AllowanceWeekly AllowanceNumber of CustomersPercentage

Php 250-5004058%

Php 500-8001826%

Php 800 above1116%

Total69100%

Weekly Allowance:Table and Figure 3.3 show the distribution of customers according to weekly allowance. Most of the customers have a weekly allowance of Php250 to Php500 which represents 58% of the respondents; followed by Php500 to Php800 with 26%; and Php800 and above which is 16% of the customers.Customers who fall under the highest allowance bracket are most likely to visit the coffee shops in a more frequent basis because of their purchasing power.

Table 3.4 Distribution of Customers According to Frequency of Visit Days in a WeekNumber of RespondentsPercentage

1-35988%

4-6710%

722%

Total69100%

Days: Table and Figure 3.4 indicate how often the customers visit the coffee shops in a week. 88% of the customers visit 1 to 3 times, 10% of the customers visit 4 to 6 times and the remaining 2% of the customers visit 7 days in a week. The highest percentage of customers are considered regular purchasers in 1-3 days in 1 week, the second highest percentage are occasional customers 4-6 days in 1 week whereas the lowest percentage of customers are infrequent buyers.

Table 3.5 Distribution of Customers According to Hours Spent in a Coffee ShopHoursNumber of CustomersPercentage

1 or less5175%

2-31522%

4 and above23%

Total69100%

Hours: Table and Figure 3.5 represent the distribution of customers according to hours spent in the coffee shops. 75% of customers spent an hour or less, 22% of the customers spend 2-3 hours, and only 3% of the customers spend 4 hours and above. Majority of the customers spent an hour on a single visit in a coffee shop to grab a cup of coffee, spend time with friends or do some work.

Table 3.6 Distribution of Customers According to AddressAddressNumber of CustomersPercentage

Cavite City4565%

Noveleta1116%

Rosario710%

Others place69%

Total69100%

Address:Table and Figure 3.6 indicate that 65% of customers live in Cavite City; followed by 16% of customers are from Noveleta; 10% of customers reside in Rosario; and 9% of customers live in other places such as Tanza, Naic, Las Pias and Imus.Most of the customers reside in Cavite City, thus it will be more convenient for them to visit the three coffee shops.

Table 3.7 Distribution of Customers According to CourseCourseNumber of CustomersPercentage

HRM4768%

Tourism2232%

Total69100%

Course:Figure3.7Table and Figure3.7 show the distribution of customers according to their course. Sixty-eight percent are HRM students of San Sebastian College-Recoletos de Cavite; and 32% of the students are Tourism major.Most of the customers who have visited the three coffee shops are HRM students since they are more into food and beverages thus they are more eager to explore establishments related to food and beverages.

Table 3.8 Distribution of Customers According to Post Purchase Actions in Cofftea ZoneResponseNumber of CustomersPercentage

Yes 6391%

No39%

Total69100%

Table and Figure 3.8 shows that 91% of the customers would like to visit Cofftea Zone in the future, whereas the remaining 9% do not have any plan of repeating purchase. According to data 91% of customers are willing to come back and visit again and the 3% of customers said who claims not visit again cofftea zone.

Table 3.9 Distribution of Customers According to Post Purchase Actions in Subi-Monte

ResponseNumber of CustomersPercentage

Yes 5275%

No1725%

Total69100%

Table and Figure 3.9 shows that 75% of the customers would like to go back in Subi-Monte in the future and the remaining 25% do not have any plans to go back.According to the above data, majority of the customers were satisfied about the quality of service that Subi-Monte offers, and thus willing to repeat purchase.

Table 3.10 Distribution of Customers According to Post Purchase Actions to Caf AntixResponseNumber of CustomersPercentage

Yes 6289.86

No710.14%

Total69100%

Table and Figure 3.10 shows that 90% of customers like to visit Caf Antix in the future and the remaining 10% are not willing to come back again. Based on the results of the survey, a large portion of the customers plan to do some future transactions with Caf Antix.

Table 3.11 Distribution of Customers According to Positive RemarksVariableNo. of CustomersPercentage

Food535%

Service215%

Ambiance750%

Total14100%

Table and Figure 4.1 shows that 35% of customers gave positive remarks on food, and in terms of service 15% customers make positive remarks, last would be the ambiance with 50% respondents.It only shows that customers look more on the ambiance of a coffee shops rather than the service, because the first impression of the people will be the place.

Table 3.12 Distribution of Customers According to Negative RemarksVariableNo of CustomersPercentage

Food450%

Service112%

Ambiance338%

Total8100%

Table and figure 3.12 indicates that 50% of the customers respond negative remarks on food, and 12% customer gave negative remarks, and in terms of ambiance 38% customers came up with a negative interpretation. It shows that customers demand to lower the price of food, because some products are too expensive and it is not worth for the quality of food and beverages.

Table 3.13 Customers Evaluation of Cofftea ZoneVariableMeanDescriptive Interpretation

Food

Taste of food3.36Excellent

Taste of coffee/beverage3.40Excellent

Variety of coffee flavors3.26Excellent

Price3.00Very Good

Service

Friendly employee3.50Excellent

Timeliness of service3.06Very good

Service attitude3.27Excellent

Ambiance

Convenient location3.17Very Good

Cleanliness of the shop3.32Excellent

Enjoyable atmosphere3.27Excellent

Spacious area3.04Very Good

Table 4.3 indicates that Cofftea Zone provides high quality of food and beverages, which allowed it to earn an excellent overall rating. Cofftea Zone got its lowest rating of 3.00 in terms of price. This shows that Cofftea Zone needs to work on price reduction, provided that the customers are college students who have limited budget, but not to the extent that profit margin will be affected.

Table 3.14 Customers Evaluation of Subi-MonteVariableMeanDescriptive Interpretation

Food

Taste of food3.36Excellent

Taste of coffee/beverage2.67Very Good

Variety of coffee flavors3.00Excellent

Price2.96Good

Service

Friendly employee 3.14Excellent

Timeliness of service3.20Very Good

Service attitude 3.23Very Good

Ambiance

convenient location3.05Very Good

Cleanliness of the shop3.28Excellent

Enjoyable atmosphere3.07Very Good

Spacious area3.11Very Good

Table 4.4 shows that Subi-Monte got its highest rating for the cleanliness of the shop with a rating of 4.28 which renders it excellent and the lowest rating is in terms of price which is 2.96. It implies that the customers has earned satisfaction on the quantity, service and taste of food and beverages since they expect more from what they pay for.

Table 3.15 Customers Evaluation of Caf AntixVariableMeanDescriptive Interpretation

Food

Taste of food3.54Excellent

Taste of coffee/beverage3.49Excellent

Variety of coffee flavors3.44Excellent

Price3.02 Very Good

Service

Friendly employee 3.28Excellent

Timeliness of service3.38Excellent

Service attitude 3.39Excellent

Ambiance

Convenient location3.44Excellent

Cleanliness of the shop3.38Excellent

Enjoyable atmosphere3.32Excellent

Spacious area3.33Excellent

Table 4.5 shows that Caf Antix has an edge over its two competitors when it comes to taste of food, with an excellent rating of 3.54. It earned its lowest rating of 3.02 in terms of price. It shows that customers liked the quality of the food, service, and good ambiance in this coffee shop.

Table 3.16 Summarized Evaluations of the Customers of the Three Coffee ShopsCoffee ShopFood Service Ambiance Average Descriptive Interpretation

Caf Antix3.373.353.373.36Excellent

Cofftea Zone 3.263.283.203.25Very Good

Subi-Monte3.003.193.133.10Very Good

Caf Antix ranked first with a weighted mean of 3.37 in terms of food; followed by Cofftea, 3.26; and Subi Monte, 3.00. In terms of service quality, Caf Antix earned an average of 3.35; followed by Cofftea, 3.28 and Subi-Monte with a weighted mean of 3.19.The most appealing environment to them was Caf Antix with a weighted mean of 3.37; second was Cofftea, 3.20 and Subi-Monte with an average of 3.13.Generally, Caf Antix got the highest average rating of 3.36; followed by Cofftea Zone, 3.25; and Subi-Monte with 3.19. These three coffee shops are consistently performing well in all areas regarding the quality of food, service and ambiance.It indicates that respondents would not want to only pay for the product itself, but also for other factors such as ambiance and overall experience. It also shows a clear shift of consumer focus from service factors to price factors.

CHAPTER IVDISCUSSIONSummary of Findings Problem 1: What is the profile of the customers in terms of age, gender, weekly allowance, frequency of visit, time spent in the coffee shop, address, course and year level?Based on the results of the survey, majority of the customers belong to the age bracket of 15-18, are female, and reside in Cavite City. Most of the customers are HRM students, have a weekly allowance of Php250 to Php500, visit the coffee shops once to thrice a week and spend an hour or less per visit.

Problem 2: How do the customers evaluate the three coffee shops in terms of food, service and ambiance?The survey shows that the strongest point of Cofftea Zone is service with a mean of 3.28 and a descriptive interpretation of excellent food got a mean of 3.26 which is also interpreted as excellent; then ambiance got a mean of 3.20 or very good.As to the evaluation of customers on Subi-Monte, it also got its highest rating in terms of service with a mean of 3.19; followed by ambiance with a mean of 3.13; then food with a mean of 3.00, by which all aspects have a corresponding descriptive interpretation of Very Good.Caf Antix consistently earned excellent ratings of 3.37, 3.37 and 3.35 in the areas of food, ambiance and service, respectively.Generally, Cafe Antix with an average of 3.36 got the highest evaluation among the three coffee shops with regards to the food, ambiance and services. Majority of the customers are willing to have some future transaction with the three coffee shops in Cavite City.

Problem 3: What are the customers comments and recommendations to the coffee shops? Cofftea ZoneSome of the customers positive remarks were the following: good and refreshing place, excellent location, and good taste of coffee and food. However, some customers commented on high pricing and slow service. They also suggested for more choices in the menu.

Subi-MonteA number of customers gave positive remarks on good quality of food and beverage, and high sense of security on the part of customers. On the other hand, they stated negative comments on high price and lack of knowledgeable crew. Additionally, customers recommended necessary renovation and extension of the shop.

Caf AntixThis coffee shop received the most number of compliments among its two competitors. According to the customers, Caf Antix offers very good food, maintains perfect ambiance, has a spacious area, and gives excellent customer service.

RecommendationsThe research would like to recommend the following:

Implement Customer Loyalty ProgramSince the respondents have a common perception of high price on the three coffee shops, the researchers recommend that the three coffee shops can launch a customer loyalty program. This marketing strategy will help them attract customers from purchasing more products in a more frequent basis. For instance, some coffee shops like Starbucks hand out punch cards which entitle customer to avail free food and drinks after a specific amount of purchase accumulated over time. This will give a dual effect on the part of the customers and the seller. As to the consumer, reward points add justification to the price they are paying for. On the other hand, the seller will gain more loyal customers.

Offer Complementary Pricing StrategyAnother method that will increase their value in terms of pricing is by means of complementary pricing. This is a strategy in which one of the complementary products is priced without profit or cost considerations. Consequently, this will stimulate the demand for the other product. Its ultimate objective is to maximize the volume of sales; thereby generating profit that adequately covers losses sustained by the first product.The coffee shops can change their products at the price lower than those of competitors. For example, they may set the price of coffee at a cheaper price. Then, they will raise the price of sandwiches to just a little more than of their competitors in order to compensate. The low-priced item will draw customers in, and once they are in the caf, they are more likely to also buy the slightly-priced item. This is anothermarketing strategy that may increase customer value since they will have this perception that the price of their primary products is affordable.

Enhance of Ambiance in Subi-Monte One of the factors to consider in defining customer-perceived value is the experience which customers get out of the most of the time they stay in the coffee shop. Based on survey results, Subi-Monte has the lowest rating in this area. Thus, it will be beneficial for them to further develop an appealing and enjoyable environment.

Train the employees of Subi-Monte Specifically, Subi-Monte got a low rating based on the friendliness of employees, which also yields a significant difference compared with the other two coffee shops. Since employee-customer relationship is a very important element of service entitles, it is recommended that Subi-Monte can pay more attention on this. Provided that employees or the service crew are well-informed on how they are going to deal with their customers, indirectly, this will increase customer satisfaction.

Conduct Further Research and StudyThis study can be more developed by using other typesof data collection such as interviews, focus groups and observational study. This will provide a more comprehensive basis for comparison and analysis since resources would not be limited only to survey ratings.

Conclusion

Based on the findings of this study, the researchers deduced the following conclusions:As perceived by the customers, Caf Antix got an excellent rating which is highest among the three coffee shops while Cofftea Zone and Subi-Monte both got a Very Good.The customers find the services offered by Caf Antix as the most competent one, having a rating of Excellent. Cofftea Zone also got an Excellent while Subi-Monte earned a Very Good.The perception of the customers to the overall facility of Caf Antix bears an excellent rating. On the other hand, Cofftea Zone and Subi-Monte got a rating of Very Good in this aspect of performance.Generally, the researchers conclude that Caf Antix excelled among its two competitors, considering food, service and ambiance as the basis of comparison. Cofftea Zone ranked second in the overall rating, followed by Subi-Monte.

APPENDICES

BibliographyHeather Dismore, Andrew G. Dismore and Michael Gravey , Running a restaurant for adummies 2004Douglas brown, Lora Arduser and Elizabeth Godsmark Coffee espresso and tea shop 2004Grace Perdigon P., Food Service Management in the Philippines 2004wisegeek.com 2013euromonitor.com 2012Studymode.com 2012

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