Master Siomai’s Profitability

INTRODUCTION

In the July 5, 2010 Issue of the Manila Reviews, it was emphasized that Food Business has always gained more ground than other types of business simply because it addresses a basic human need – food. Thus, the Food Business became very competitive and has reached its level of maturity compared to the other types of businesses. With the emerging growth of the Food Business, Food Cart Business has now taken its exposure. As per June 30, 2012 Article in FoodCartlink.Com entitled: “The Booming of the Food Cart Business”, Food Cart Business is the choice of most aspiring entrepreneurs.

Small Capital, easy set-up and a good chance of success are just some of the reason why Food Cart Business is thriving in the Philippines.

Indeed, Food carts became a combination of the quality a restaurant offers, and the convenience and fast service of a street food stall. Food cart is a mobile kitchen usually set-up on the streets, malls, schools, and offices that basically aims to address customers’ food needs much like regular fast food restaurant.

The first ever food cart in the Philippines opened at SM North Edsa in the year 1987. From then on, the Food Cart Business became a major contributor to the Philippine Economy constituting 5% of the country’s Gross Domestic Product (GDP) and, as well, providing jobs for millions of Filipinos. (http//:www.foodcartlink.com “The Booming of Food Cart Business”) Now, food cart business came into different formats in the market such as: pizza, waffle, fishball, siomai, rice toppings, baked goodies, rice in a bowl, hotdog and a lot more.

Masterrific Foods was considered as the “Pioneer Japanese Siomai Maker” introducing “Master Siomai” in the market. Master Siomai started small, with just five (5) outlets located along C.M. Recto, Manila. While food cart business was relatively unknown during the 90’s, Master Siomai still became one of the best if not the leading in the food business industry. At present, it has opened to nearly 700 outlets. Its success is attributed to two factors: the excellent performance of its company-owned outlets, and the aggressive franchising propaganda of the company. Almost 650 out of the 700 outlets are under franchise.

Even with the huge difference in number, both types of stores are performing above standards. Franchising has been the main mode of expansion for Master Siomai. Relatively, the success of Master Siomai maybe attributed to the remarkable growth exemplified by its increasing franchises. While Master Siomai continues to grow in the industry via franchising, company-owned outlets likewise exemplify excellent performance as to profitability. Hence, in this research, the researchers would like to determine which franchise and company – owned stores more profitable for Master Siomai. Through this research, Master Siomai would be properly guided on its decision making as to which type of store is a best option for expansion relative to the company’s profitability.

STATEMENT OF THE PROBLEM

The study aimed to get an idea and get broad and fully documented information from the respondents in some respective areas in the south, based on the questions provided by the researcher regarding in company owned versus franchised owned business This study looks also into the profile of the company., and what is the main problem encountered mostly by the company owned versus the franchisee.

SPECIFIC QUESTIONS

I. “Which type of business arrangement will generate more profit and conduct business better – Franchised or Company – owned?” II. “What is the demographic profile of the respondents in terms of the following variables;”

1.1 Age
1.2 Gender
1.3 Occupation

III. “What alternative course of action is necessary to address the problems encountered as perceived by the respondents?”

Research Objectives
* To determine which franchise or company – owned stores is more profitable for Master Siomai. * To determine which franchise and company
– owned stores of Master Siomai is easier to manage. * To find out the sustainability between franchise and company – owned store of Master Siomai