1. The Company a. History For 28 years, the Cabalen chain of restaurants has been the standard for excellent Filipino cuisine. Combining the freshest ingredients and the most stringent quality control, Cabalen has kept its patrons coming back for more through the consistency in Taste and Quality of its dishes served in the buffet. Balikbayans and regular patrons say that dining at a Cabalen Restaurant will make you feel the aunthentic traditional home-cooked food the Kapampangan way that you have not experienced for a long time in a very reasonable priced buffet. This is why Cabalen is every family’s all-time and leading buffet favorite for 25 years now. Behind Cabalen’s growth and success is its President and founder, Maritel O. Nievera. Her innate culinary talent anchored to the native Capampangan specialty food led her to the world of fine dining, she started developing menus at the tender age of 18 and eventually went to Manila to venture to a bigger restaurant operation. She worked incessantly and was able to nurture and sustain the gradual ascend of Cabalen to prominence. Cabalen’s mission is to continue to serve its patrons affordable quality food couples with the best customer service possible. Its vision is to continue fulfilling its social role in providing stable employment, help its employees to alleviate and upgrade their standard of living through better compensation and benefits. To provide partners and investors transparent view of the operations and assure them of maximized profits and prompt return of investment. Cabalen is taking quantum leaps in terms of technological enhancement of its business processes through automation, hiring professionals and intensive training of staff in order to assimilate and keep its entire operations abreast with best practices. Cabalen Corperation as a management company provides mainly the strategic, marketing, operational, financial, human resources, and research and development support for all businesses under its ever expanding conglomerate. Founder and President, seasoned restaurateur Maritel O. Nievera, together with a team of skilled and dynamic individuals, lead the continuous success of its day to day operations. Through strategic leadership and careful decision making, Cabalen has gained access to managerial expertise, effective practices and unwavering passion, thereby enhancing its performance and establishing itself as the standard for excellent Filipino Cuisine. i. Important Milestones Cabalen considers their branches as its pride. Thus, each branch that has opened is their milestone. 1987 Cabalen West Avenue 1992 Cabalen SM Megamall 1994 Cabalen Glorietta2002 1997 Cabalen Robinson’s Place Ermita 2002 Cabalen Robinsons Starmills Pampanga 2006 Cabalen SM Clark 2997 Cabalen Trinoma 2008 Cabalen Mall of Asia 2009 Cabalen SM Cebu 2012 Cabalen Subic 2012 Cabalen Market Market 2013 Cabalen Alabang Town Center 2013 Cabalen San Bruno, USA 2014 Cabalen is now QUALIBET tested ii. Background of Industry and Market Research Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews, trade sources Cabalen is considered a Chained Asian Full Service Restaurant. Full-service restaurants are set to increase in value at a CAGR of 1% at constant 2014 prices over the forecast period, rising to PHP124.3 billion in 2019, while the number of outlets is set to increase very marginally to 18,155 in 2019. The continuous expansion of shopping centres in the Philippines is opening up more space for the operators of full-service restaurants to expand their existing brands and introduce new ones. Building one’s own brand, however, is becoming a less popular option as franchising, licensing and entering into joint ventures to bring in an international brand into the country is more commonly undertaken by entrepreneurs in full-service restaurants. Growth in full-service restaurants slowed down marginally in 2014 compared to 2013 as it registered 4% current value growth. The slight slowdown recorded in growth can be traced to the increasingly wide range of brand options overall in consumer foodservice, which makes it more challenging for full-service restaurants to sustain consistent acceleration in growth. Overall, the performance of full-service restaurants in 2014 was on par with 2013 as improvements in the country’s economy allowed consumers to eat out in full-service restaurants as well and not just in cheaper fast food outlets when visiting shopping centres to unwind during weekends. Although the wider range of brand options on offer presented challenges for some players, it was nevertheless beneficial to consumers as it gave them more variety in terms of menu choices and price ranges. Other full-service restaurants contributed 8% of total value sales to the channel during 2014. Brands operating in this category have different formats and varied menus. The biggest brand, however, is Max’s, which serves Filipino dishes and is well-known for its whole fried chicken. Another brand focused on serving chicken is Savory. Fish & Co, meanwhile, caters to seafood lovers. Via Mare, Aristocrat and Cabalen, on the other hand, offer mainly popular Filipino dishes. Dad’s offers a buffet featuring dishes from various types of cuisines such as Chinese, Thai, Indian, Italian and North American, among others.Full-service restaurants are expected to increase in value at a CAGR of 2% in constant 2014 terms over the forecast period, which is set to be superior to the marginally negative value CAGR generated in constant 2014 terms over the review period. Sales per outlet are also expected to increase at a CAGR of 2% in constant 2014 terms over the forecast period, commensurate with the growth recorded in this measure over the review period. The continuous introduction of new brands and concepts is among the factors that expected to bring major improvements to channel over the forecast period. New brands usually arouse consumer interest and stimulate trial purchases. The active posting of Filipino diners of their food adventures online is also set to assist growth as this serves as motivation for others to try out a particular foodservice brand for themselves. Given that parks and recreational centres are not available for those who want to unwind, shopping centres are set to remain popular weekend destinations for families and friends who usually eat out as well during such trips. Dining out or having food delivered to one’s home from a full-service restaurant is also set to remain as a convenient alternative for busy urban dwellers. Figure 1 shows the type of full service restaurants existing in the Philippines. Cabalen is part of the Asian Full-Service Restaurants which cover 67%. Under the Asian Full Service Restaurants, there are chained and independent full service restaurants. Figure 2 shows the sales of the chained and independent Asian full service restaurants which are 12,907.00 and 245,267,60 in millions respectively. Lastly, Table 1 shows the market share of Cabalen Corporation among the Chained Asian Full Service Restaurants in the Philippines. The market share of Cabalen Corporation is 0.8. All data are from the year 2014. Figure 1: Types of Full Service Restaurants in the Philippines 2014 Figure 2: Sales of Chained and Independent Asian Full Service Restaurants 2014 Table 1: Market Shares of Chained Asian Full Service Restaurants 2014 b. Vision, Mission and Strategy Vision To continue to grow and succeed as we keep up until the next generation and make a difference. Mission Owners, Partners and Stakeholders Together we create a mutual relationship with honesty, integrity and credibility Customers Consistently exceeding customer satisfaction through Quality Food, Quality Service, Quality Cleanliness and Maintenance and Quality People Employees Provide our employees with equal opportunity for learning and professional growth and to promote a work environment with open communications, personal accountability, trust and strong commitment Social Responsibility Spreading the good news through education for the less fortunate children. “The Cabalen para sa Kabataan” Strategy To have continuous improvement through strategic leadership and careful decision making. Cabalen has gained access to managerial expertise, effective practices and unwavering passion, thereby enhancing its performance and establishing itself as the standard for excellent Filipino Cuisine. c. Customers i. Expected and Observed Characteristics Table 2 shows the target market demographics of Cabalen. Cabalen takes pride in its competitive pricing without compromising food quality. So their main target market is the middle class Filipino family. Table 2: Target Market Demographic of Cabalen Demographic Age Description Seniors, Baby-Boomers, young married couples with children, and blue-collar workers of all ages. Main target is the Filipino Family Family Unit Young families with new babies or mature families with children under the driving age. Most of our family units will have two wage earners. Gender Equally target both sexes with a slight skew for males due to their huge appetite Income Appeal to the high side of low income individuals and to all in the middle income bracket Occupation Blue-collar worker, young professionals with a family, and most Central Luzon ii. Needs and expectations In order to know the needs and expectations of their potential customers, it is important to know what the general Filipino population need and expect when it comes to their eating and drinking lifestyles. According to the research done by Euromonitor, the Filipino eating habits are as follows: One of the ways that Filipinos celebrate their culture is through their food and cuisine. Filipino dishes are often eaten with rice. Adobo (meat marinated in garlic, soy sauce and vinegar), kare-kare (meat or vegetable stew with a savoury peanut sauce) and sinigang (sour and savoury soup dish with meat or seafood) will always remain as staples in a typical Filipino household. Most popular Philippine dishes have a Spanish influence. “The simplest way to put it is our food reflects our history", according to one Filipino chef. Most Filipinos celebrate occasions such as town fiestas, New Year’s Eve and Christmas with special meals shared among families and friends. Among the more affluent Filipino households, meat consumption is much more common and they are likely to be able to afford kilos of pork, beef and chicken even when prices increase. In contrast, lower-income households tend to consume cheaper alternatives, such as fish, vegetables, instant noodles and canned goods. Instant noodles, for example, which can be dry or soup-based, are commonly served in less affluent households that cannot afford to consume meat on a daily basis. The reliance on instant food has spurred some concerns over the typical Filipino diet, and there have been government efforts to convince consumers to be more healthconscious. It is also common for consumers, regardless of their income, to enjoy snacks anytime during the day, particularly mid-morning and mid-afternoon. Working mothers, in particular, face challenges when it comes to preparing meals for their families. “Tocino, hot dogs and chicken nuggets are always in our refrigerator. I cook them for breakfast or dinner if I really do not have time to cook for my family,” said one working mother. Buying from fast food restaurants and roasted chicken food stalls is also a common alternative to home cooked meals. Middle-class and young professionals are increasingly dining out and many enjoy the wide range of venues offering new and different cuisines. With new restaurants opening frequently, young professionals are easily lured to dine out during their lunch breaks or after-work hours. Dining out, whether at casual dining establishments or high-end restaurants, also serves as a social activity for young professionals. Zooming into Cabalen’s customer needs, the rising number of overweight and obese Filipinos and the growing awareness of the unhealthy impact of some foods has driven demand among some consumers for healthier meals. Cabalen boasts that there are no trans fat in any of their dishes served in their menu which makes their customer feel more open to dining in their buffet style restaurant. Since they target Middle-class families from grandparents down to the grandchildren, budget and serving size is what they usually look for in a restaurant besides the taste. Cabalen made it a point to serve a budget friendly Filipino buffet for the Filipino families. Because of this, Filipino families make Cabalen their go to restaurant when celebrating special occasions like birthdays, graduations and religious events. Table 3 exhibits the buffet prices of Cabalen. Table 3: Buffet Prices as of 2016 iii. Feedback There are a lot of online reviews in Cabalen from TripAdvisor, Zomato and blogs. The general feedback of Cabalen customers is that most of the return customers of Cabalen noticed that the food deteriorated over the past few years. Even though the food isn’t exactly disgusting, they found the food mediocre. No reports on food poisonings and breakouts were reported over the past 5 years. The positive feedback that can be derived from the reviews is that the staff are very approachable and accommodating. The most factor, that most customers find the most important, is the fairly low price of Cabalen compared to other buffet restaurants. Ricky Emerald’s from Makati, Philippines comment on TripAdvisor (2014): “The eat all you can at their Market! Market! branch is okay if you want to eat a lot if you're on a budget. The variety is just okay for the price of Php 300/pax. You got to try the crispy kangkong and the halohalo for dessert.” Des Tamps’ from Chicago Illinois review on TripAdvisor (2013): “We held our daughter’s christening reception at Cabalen (Fiesta Market Market, Taguig City) last 10 Feb 2013. We opted for a restaurant with buffet for this particular event because we didn’t want to go through the nitty-gritty details of organizing such event since I work overseas and we’re only in Manila for 2 weeks for the event. Contacting and booking went smoothly, the reservation was for 2 only which is good because we want to keep it simple and we just want our guests to be well-fed and satisfied. We got there 20 mins earlier than scheduled but since the area that we booked is empty, they were able to accommodate us early (and we appreciate that). 2. Food Safety a. Prerequisite programs b. HACCP practices c. Checklists and implementations d. Observations e. Conclusions and implications 3. Menu a. Content and mission and customers b. design and suitability i. Ergonomics ii. Marketing c. Kitchen facilities management implications 4. Food Production Due to confidential reasons, Cabalen’s president did not authorize our retrieval of their kitchen layout, however we got to see it and a sketch was found in order to mimic their layout. Figure 4.1 below show Cabalen’s Layout Flow diagram in the kitchen. Steps 1-6 is designed in a way that there would be no back flow of employees in order to avoid contamination. Since it is a buffet style restaurant, bulk of the restaurants activity is performed during the morning and the afternoon, before dinner. 7&8 are the automated dishwashers and dryers. These are only to be utilized at the end of each cooking shift to avoid contamination of the food being cooked and served. 1. The dry goods are stored in the storage area. 2. Wet goods are stored in the walk in cooler. 3. The goods from 1&2 are cleansed with running water if necessary. 4. The prep tables are made with food grade stainless steel. This is where all the ingredients are sliced following the chef’s guidelines and Cabalen’s slicing SOPs. 5. The cooking area is near the prep table so that there is a less probability of spillage due to the short travel distance from prep table to cooking area. 6. This is where all the food are put into their serving dishes, ready to be taken by the waiter and displayed at the buffet Figure 4.1: Cabalen’s Kitchen Layout Flow Diagram 5. Service Cabalen has established a service sequence matrix to guide their front liners on how to interact with customers in order to achieve a commendable customer journey and satisfaction. The purpose of this service sequence matrix is to set standard service sequence for Cabalen Concept, to implement new strategies in providing excellent service to our customers and lastly to meet the service satisfaction for both customers and the company. Figure 5.1: Process Flow for Front Line Customer Interaction The first step of the process is the welcoming of guests. This process requires the door attendant to greet the guests, give the door slip to the guest and endorses them to the waiter and then the waiter verifies the content of the door slip. The first activity lasts for about 20 seconds. The standard Cabalen Phraseology for this activity is “Hi Mam/Sir! Good Morning/ Afternoon/ Evening. Welcome to Cabalen” The second step is endorsing and verifying. As the waiter greets the guests endorsed by the door attendant, he verifies the content of the door slip. If there are changes, the waiter verifies it to the door attendant and signs it. This activity lasts for about 20 seconds. The standard Cabalen Phraseology for this activtity is “Hi Mam/Sir, my name is ______ and I am your server for today.” The third step is to take the order of the customers. The waiter order takes and upsell beverage list since this is not part of the buffet. The waiter also introduces the buffet to the customer, informing them what the areas of the buffet are. If the customer decided to order beverages, the waiter then fills out the order slip. The order slip is attached to the door slip for the cashier’s reference. This activity lasts for about 3-5 minutes, depending on the customer’s speed in ordering. The standard Cabalen Phraseology for this activtity is “Hi Mam/ Sir, may I take your order?.... I’ll repeat your order.” The fourth step is to prepare the order slip and food checker slip. The cashier now encodes the slip into the system and prints it. The branch manager or supervisor verifies the guest count, to know how many availed of the buffet, and the beverage order and then signs it. The waiter then places food checker slip in the FC holder on the guest table. This activity lasts for about 3-5 minutes. The standard Cabalen Phraseology for this activtity is “Mam/Sir here is your bottomless beverage”, if the customer orders one, if not offer water. The fifth step is to prepare and serve the beverage order. The barman prepares the beverage order d the waiter serves the orders to the guest. The “No Order Slip, No Beverage” rule applies at this stage. The standard Cabalen Phraseology for this activtity is “Mam/Sir here is your bottomless beverage”, if the customer orders one, if not offer water. The sixth step is establishing a rapport with the customer by checking back on them. The Branch Manager or Supervisor does table visit and asks how the customer’s dining experience was. The BM or supervisor checks if the customers’ drinks need refills and instructs the waiters to refill the drink when necessary. This activity lasts for about 30 seconds to one minute. The standard Cabalen Phraseology for this activity is “Hi Mam/ Sir, how was your food?”, “Thank you for your suggestions and comments Mam/ Sir” and “Would you like a refill?” The seventh step is the Pre Bus in order to assure that the customers’ surroundings are spacious and free of unnecessary obstructions. The waiter must do pre bussing as often as possible. The waiter should scrape, stack and segregate soiled items properly. This activity lasts for about 30 seconds to one minute. The standard Cabalen Phraseology for this activity is “Excuse me Mam/Sir may I clear your plate? Would you also want me to refill your beverage?” The eight step is the second suggestive sell of Cabalen’s other products such as Pinoy Deli items, Gift Certificates, Functions and Take outs. This activity lasts for about 1-2 minutes depending on the interest of the customer. The standard Cabalen Phraseology for this activity is “Hi Mam/Sir, would you like to buy from any of our Deli Products, Gift Certificates or Take Out? We cater to functions too if you are interested.” The ninth step is billing out. Figure 5.2 shows the billing out process of Cabalen which involves the verification and encoding of the orders, preparation and presentation of the bill, receiving of payment, presentation of official receipt and change and the cashier’s report and endorsement. Figure 5.2: Bill Out Process of Cabalen The last step is the good bye and final bus. The door attendant assists the customers by holding the door on their way out and bidding them a warm good bye. The waiter simultaneously cleans and clears the table in preparation for another customer. This activity lasts for about 30 seconds to 1 minute. The standard Cabalen Phraseology for this activity is “Thank for for dining and we are hoping to see you on your next visit!” Figures 5.3 and 5.4 shows the service blue print for the Cabalen Customer Journey. Cabalen’s customers go through a journey once they enter the restaurant, most of Cabalen’s Buffet restaurants are seen inside of malls so customers park in mall parking structures. When they enter they are greeted by Cabalen Staff and seated if there are any available seats, if not they are asked if they are willing to wait. Once seated the Cabalen Staff will ask for their drink orders and given starters/appetizers, the customer then leaves the table to check what the buffet is serving and they start eating. Once they have finished eating they raise their hands to ask for the bill, once the Cabalen staff has seen them then they will now take the action of getting the customer’s bill. Once the bill is given, customer checks the bill and gives the money. Lastly, the receipt and change (if any) are given to them, the customer leaves satisfied if Cabalen’s service goes well. The stages of a customer journey are phases the customer is going through while using the service. The actions are the jobs that are to be done, this action is what the customer wants to achieve and the emotions show the experience the customer goes through with the touch point of the service. The touch-point are where the service and the customer make contact with one another. As seen above on the customer journey map it starts off with the customer wanting to find a place to eat because he is hungry and hasn’t had a decent meal yet, since he was coming from work he opted to ask his co-workers to join him, and so they did. Upon the customer choosing the restaurant, based on what he searched on the Zomato app and online and his cravings, he finally decides on Cabalen. As they enter the restaurant they are seated and since Cabalen is a buffet, it is self-serve, but the staff still greets them and takes their drink orders. Once they finish up, they ask for the bill and the server brings it to them and they pay. Figure 5.3: Cabalen’s Customer Journey Figure 5.4: Cabalen’s Customer Journey Part 2 6. Facility Design The typical Cabalen Restaurant wants to give of the Modern Filipino home vibe. The wooden lattices and moldings give of the authentic Filipino feel while on the other hand, the chandeliers depict a more modern touch. The buffet is L-shaped and how the food is displayed is explained above. Cabalen tries its best to have a consistent customer experience among all its branches and making sure the facilities for their restaurant is within the standard. 7. Management and operations a. Inventory management All of the outlets perform monthly inventory audits to declare spoilage and expired goods. They also practice the First In First Out Method (FIFO) to maintain the freshness of their ingredients. *** insert inventory management*** b. Supply Chain Cabalen practices a centralized purchasing policy wherein the Cabalen outlet will forward their weekly marketlist to the purchasing assistant in their main office. The purchasing assistant consolidates all the weekly market lists of all branches and orders the items they need from the supplier. The main office has a warehouse which initially stores the deliveries of the suppliers. The warehouse has two sections, the wet goods section and the dry goods section. From the warehouse, the trucks will deliver the goods to each Cabalen outlet. Figure 7b.1 shows the flowchart of this process. Figure 7b.1: Supply Chain Process c. Manpower Schedules For the mall outlets, they follow a two-shift manpower schedule. The first shift comes in at work at 8 am, 2 hours before the mall opening. The second shift, the mid shift, comes in at 12 nn until the mall closes. Each Cabalen outlet has 20-25 employees, depending on the branch performance. These employees are broken down into 3 divsions, the management team, front of the house and back of the house. The breakdown and partitioning of employees are shown in Table 7c.1 below. Table7c.1: Breakdown and Partitioning of Cabalen Employees Management Team Number of Employees Manager 1 Supervisor 1 Chief Cook 1 Management Trainee 1 Front of the House Waiter 4 Cashier 1 Doorman 1 Back of the House Assistant Cook 3 Houseman (Dishwasher) 3 Janitor 2 Station Cooks 3 References: Euromonitor International from national statistics/Eurostat/UN/OECD retrieved April 2, 2016 Eat all you can! - Review of Cabalen, Quezon City, Philippines - TripAdvisor. (n.d.). Retrieved April 06, 2016, from https://www.tripadvisor.com.ph/ShowUserReviews-g298574-d1699727r160854628-Cabalen-Quezon_City_Metro_Manila_Luzon.html#