Centro Escolar Las Piñas
“The Impact of Manpower to the Financial Performance of
Popular Fast-Food Companies in the Philippines”
In Partial Fulfillment
of the Requirements
for the Course
Bachelor of Science in Accountancy
Researchers:
Jessel Anne Sobredo
Christian George Gabinete
Victoria Enness
S.Y. 2022-2023
TABLE OF CONTENTS
Chapter 1: Introduction ..................................................................................................................................... 3
1.1 Background of the study ............................................................................................................................. 4
1.2 Objectives of the study .............................................................................................................................. 4
1.3 Statement of the Problem .......................................................................................................................... 4
1.4 Theoretical Framework ............................................................................................................................. 4
1.4.1 Markovian Theory .................................................................................................................................... 5
1.4.2 Goal Setting Theory................................................................................................................................... 5
1.5 Operational Framework ............................................................................................................................ 5
1.6 Research Hypothesis ................................................................................................................................ 6
1.7 Significance of the Study.......................................................................................................................... 6
1.8 Scope and delimitation of the Study ......................................................................................................... 7
1.9 Definition of Terms .................................................................................................................................. 7
Chapter 2: Review of Related Literature ......................................................................................................... 9
2.1 Introduction .............................................................................................................................................. 9
2.2 Definition of Manpower .......................................................................................................................... 9
2.3 How Manpower Affects a Business ........................................................................................................ 9
2.4 Manpower Related to Food Industry ..................................................................................................... 11
2.5 Related Research ................................................................................................................................................ 11
2.5.1 Factors Affecting Customer’s Satisfaction in Fast Food Restaurant “Jollibee” During the Covid19 Pandemic ............................................................................................................................... 11
2.5.2 Factors Affecting Employees’ Job Involvement in Fast Food Industry ....................................... 12
2.5.3 How McDonald’s, Wendy’s and other Fast-Food Brands are Dealing with Labor Shortages .... 12
2.5.4 Lack of Workers Causing a Reduction in Operating Hours ......................................................... 14
2.5.5 The Effects of Satisfaction of Employees in Fast Food Businesses on the Intention to Leave
Job: The Case of Kirklareli .......................................................................................................... 15
2.6 Research Synthesis ................................................................................................................................. 15
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Chapter 3: Methodology .................................................................................................................................. 18
3.1 Research Design .................................................................................................................................. 18
3.2 Research Technique............................................................................................................................ 18
3.3 Research Sample ................................................................................................................................ 18
3.4 Research Procedure ............................................................................................................................ 19
3.5 Data Analysis...................................................................................................................................... 21
3.6 Data Collection ............................................................................................................................................... 21
3.6.1 Listed Popular Fast-Food ..................................................................................................................... 21
3.6.2 Popular fast-food companies in the Philippines annual reports 2021 ............................................ 23
3.6.3 Summary Background of the Companies .......................................................................................... 24
3.6.4 Converted Foreign currency to Php .................................................................................................... 25
3.6.5 Comparative Analysis........................................................................................................................... 26
Chapter 4: Result and Discussion .......................................................................................................................
4.1 Scatter Plot of Total Employees vs Net Income ........................................................................................ 27
4.2 Summary Output ............................................................................................................................................ 27
Chapter 5: Conclusion and Recommendations.............................................................................................. 29
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CHAPTER 1
INTRODUCTION
Background of the Study
Adequate manpower is crucial for the smooth operations and success of companies and
corporations. The link between manpower and financial performance: more manpower
leads to higher productivity. Having a sufficient number of employees allows projects to
be completed faster and enables companies to take on more projects, ultimately driving
revenue and profit. On the other hand, a lack of adequate manpower hinders business
operations, resulting in reduced productivity, lower revenue, and even potential closure.
In the food service industry, manpower includes various roles such as waiters, counter
attendants, dining room attendants, hosts, fast food workers, and kitchen assistants. These
employees play a vital role in taking orders, serving customers, managing payments, and
ensuring overall customer satisfaction.
Having a larger workforce provides businesses with more flexibility in managing their
operations. It allows for efficient shift scheduling, ensuring that there are enough
individuals available to cover different shifts. This also enables the formation of strong
teams with diverse skills and expertise to address various company challenges.
Sufficient manpower reduces the need for excessive overtime hours, leading to less stress
and fatigue among employees. It also enhances workplace safety as there are more
personnel available to monitor adherence to regulations and help with physically
demanding tasks. By preventing issues like burnout and injuries, companies can
minimize potential legal liabilities and workers' compensation claims.
In summary, maintaining an optimal level of manpower contributes to improved
productivity, reduced operational challenges, enhanced workplace safety, and overall
financial performance.
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RESEARCH OBJECTIVES
The purpose of this research project is to study on how the of number of employees
affects the profitability of popular fast-food companies in the Philippines. This research
is also conducted to gain an additional understanding about manpower and its relation to
financial performance and how it could affect the productivity of a business.
STATEMENT OF THE PROBLEM
1. How does manpower affect fast-food companies in terms of profitability?
2. Does having more employees increase the profit of a company?
3. Could having less employees reach the same range of profit as other companies, with
them having more employees?
THEORETICAL FRAMEWORK
Markovian theory manpower planning
One of the theories that could support this study is the Markovian theory about
manpower planning. This theory could be traced back to the case study of (Parmar,
2013) entitled Application of Markovian Theory in Manpower Planning. The Manpower
planning, Markov Model Introduction explained that any organization owes its success to
the important factors viz Manpower and Planning, besides other factors. Manpower is the
most important resource and its development hold the key to the health of the
organization. A firm cannot hire several hundred engineers and get them on board
overnight; nor can it develop management talent in just a few weeks. Manpower planning
consists of putting right number of people, right kind of people at the right place, right
time doing the right things for which they are suited for achievement of goals of the
organization. Manpower planning has got an important place in the arena of
industrialization.
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Goal Setting Theory in Fast-food Industry
According to Locke's goal-setting theory, objectives should be specific, quantifiable, and
have a deadline. This translates to the idea that every employee is aware of the
expectations, and managers can use the goal as a source of motivation in the fast-food
industry. In an article for the website Flat World Knowledge, Talya Bauer and Berrin
Erdogan claim that the founders of popular fast-food companies established clear goals
by separating tasks within an operation so that employees who took food orders were not
the same as those who cooked the food or prepared the order. Employees were given
individual and communal goals, as well as a sense of purpose. All of these lead to
company’s productivity and success.
OPERATIONAL FRAMEWORK
To achieve the research objectives of this thesis, the researcher analyzed the impact of
manpower to the financial performance of fast-food companies in the Philippines by
studying the uploaded annual report among the chosen companies.
Manpower
Financial Performance
Annual Report
Annual Report
Total employees
Net Income (Loss) after tax
Impact
More employees = Increase/ decrease in Net Income
or
Less employees = Increase/ decrease in Net Income
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RESEARCH HYPOTHESIS
The proposed hypothesis of this research are as follows:
Ho1: Manpower does not significantly influence financial performance of fast-food
companies.
Ha1: Manpower significantly influence financial performance of fast-food companies.
SIGNIFICANCE OF THE STUDY
This research is significant for several reasons:
Practical Implications: The findings of the study can provide valuable insights and
practical implications for fast food companies in the Philippines. By examining the
impact of manpower on financial performance, companies can gain a better
understanding of how their workforce influences their profitability and make informed
decisions regarding workforce management strategies.
Strategic Decision-Making: The study can assist fast food companies in formulating
effective strategies and policies related to human resource management. It can help
companies determine optimal levels of manpower, identify areas for improvement in
workforce efficiency and productivity, and align their workforce with financial goals.
Industry Competitiveness: Understanding the relationship between manpower and
financial performance can enhance the competitiveness of the fast-food industry in the
Philippines. Companies can benchmark themselves against industry standards and
identify best practices to improve their financial performance by optimizing their
workforce.
Academic Contribution: The research contributes to the existing body of knowledge on
the fast-food industry and the relationship between manpower and financial performance.
It adds to the literature by providing specific insights and empirical evidence on the
context of the Philippines, thus filling a research gap, and serving as a reference for
future studies.
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Policy Implications: The findings may have policy implications for government agencies
and regulatory bodies in the Philippines. Policymakers can consider the impact of
manpower on financial performance when formulating labor-related policies or
initiatives aimed at supporting the fast-food industry and promoting economic growth.
Overall, the significance of this study lies in its potential to enhance the understanding of
the relationship between manpower and financial performance in the fast-food industry,
offering practical implications for companies, informing strategic decision-making,
contributing to academic research, and guiding policy development in the Philippines.
SCOPE AND DELIMITATIONS OF THE STUDY
The entities to be investigated are publicly listed well known fast-food companies in the
Philippines. The following are the scope and limitations of the study:
1. Some of the fast-food companies listed did not originally based in the Philippines.
2. The study focuses on the impact of manpower, particularly the total number of
employees working in the top fast-food companies to their financial performance.
3. Other factors that affect the financial performance of the companies that are not related to
the given variable of manpower is beyond the scope of the study.
DEFINITION OF TERMS
To help readers understand the specific concepts and terminology used in the thesis, the
researchers provided explanations of key terms and concepts used throughout the study.
Manpower (Independent variable) - the total number of all available workers; the
workforce.
Financial Performance (Dependent variable) – financial performance in terms of the
profitability of the company.
Income statement – summarize all income and expenses over a given period, including
the cumulative impact of revenue, gain, expense, and loss transactions.
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Net Income - net income is what the business has left over after all expenses, including
salary and wages, cost of goods or raw material and taxes.
Net income/loss after tax - refers to the profit or loss that remains after deducting all
applicable taxes from a company's total revenue.
Employees – are the people working together to achieve the company’s goal. It also
forms a manpower.
Annual Report - An annual report is a comprehensive document that provides a summary
of a company's financial performance, operations, and achievements during a specific
period, typically one year.
Regression - Regression is a statistical method used to determine the relationship
between variables and make predictions based on their association.
Simple linear regression - is a statistical method that analyzes the relationship between
two variables by fitting a straight line to the data.
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CHAPTER 2
REVIEW OF RELATED LITERATURE
INTRODUCTION
To further understand the study, this chapter will provide a detailed review of existing
literature related to manpower and financial performance and how it could affect each
other.
DEFINITION OF MANPOWER
According to the dictionary, Manpower is defined as the total of number of individuals
who are employed in a company or a business who can work to get something done. In
an organization, the manpower needed for a particular work and in future is estimated
and planned through different techniques available.
“The term manpower can mean "labor force," "workforce," "workers," or simply
"people," and despite the man, it applies to both men and women.”
HOW MANPOWER AFFECTS A BUSINESS
“Manpower affects everything in a business from production to client relationships.
Without adequate and supportive manpower, a business will never be successful. The
staff should be well trained on their tasks while managers should know how to lead.
The more staff you have to work, the faster the task can be done. The lack of productivity
reduces profits and affects your reputation, which may result in the failure of a business.
Companies can establish and maintain good rapport with their customers if they can
ensure good manpower to keep the production and delivery promises they make. This in
turn will generate more sales and more revenue for the company.” (Million, 2017)
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“Adequate manpower allows companies to keep the production and delivery promises
they make. If companies do this, they can establish and maintain good client
relationships. This can lead to additional sales. At the same time, keeping promises can
prevent companies from having to pay fines and penalties, which keeps the amount of
profit higher.” (Chron,2020)
According to Betty 1995, “Planning is an inescapable part of all rational human activity
because of its importance to organization planning process has become refined and
structured in order business efficiency. Planning encompasses all aspects of business
actions that would enable it to survive, attain growth, promote industrial efficiency
maximize the wealth of shareholder and enjoy profitability. Planning helps to provide
direction and it occupies a major part of the time of some most respected men in
business. The board objective of a business, the product to be manufactured fixed assets
to be purchased on lease, profit to be earned human capital requirement, and the social
objective to employees and consumers are all matters which should receive attention in
planning” (Betty,1995).
According to a research, Effect of manpower planning on organization performance in
Nigeria, the place and value of manpower planning as a resource for organizational
productivity and success cannot be overemphasized, we are concerned business
resources, the organization of physical and financial resources cannot take place until
manpower are organized, and the effectiveness of the organizational scheme depend on
the manner in which manpower are utilized. Everything on power is a sense, therefore we
do not organize physical and financial resources we organized people who in turn are
responsible for the utilization of resources. That concept of manpower, planning must be
applied to all resources or face the probability that their resources will not be maximized.
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MANPOWER RELATED TO FOOD INDUSTRY
“The food industry is faced with several challenges at the same time: to supply safe and
affordable foodstuff in sufficient quantity; to provide products in conditions where
demand surpasses the human population growth; to operate in circumstances of everincreasing competition; to protect the environment and respond to the population's public
health concerns. An organization's success depends on the knowledge, skills, creativity
and motivation of the company's workers and partners. Focus on its employees enables a
company's development and improvement, whereas business ethics ensures public health
and safety protection, environmental protection, and life quality improvement. The
company management's responsibility lies foremost in education, worker training and
development, thus enabling a direct and indirect influence on the foodstuff quality and
satisfying consumer requests in terms of foodstuff quality characteristics.” (Zorana Antić,
2015)
RELATED RESEARCH

FACTORS AFFECTING CUSTOMER’S SATISFACTION IN FAST FOOD
RESTAURANT “JOLLIBEE” DURING THE COVID-19 PANDEMIC
According to the researchers Ong, Prasetyo, Marinas, Perez and Persada (2022), Jollibee
is one of the most well-known fast-food chains in the Philippines and because of that its
profits are significantly high throughout the years. However, due to covid 19 pandemic it
had a significant impact on Filipino-based restaurants such as Jollibee. With a decrease in
profit, and even the closure of some branches. One of the significant reasons for its
profits to decrease would be the decrease of manpower. The study aims to determine the
relationship between Jollibee's service quality and its impact to financial performance.
Resulting in its responsiveness, reliability, and its significance to service quality that
would boost its financial stability.
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
FACTORS AFFECTING EMPLOYEES’ JOB INVOLVEMENT IN FAST FOOD
INDUSTRY
The researchers Seng G., Xin H., Tong K., and Chin T. (2012) conducted a study about
factors affecting employee's job involvement in fast food industry. Fast Food Service
Restaurant (FFSI) is the largest segment of the food industry, with over 200,000
restaurants in the US alone. It is related to selling quick, inexpensive take-out by a
restaurant, and is usually under a restaurant chain or franchise operation. To improve
firm performance, organizations should firstly improve its employees' performance, as
this is essential in the fast-food industry where workers are the major and essential asset
to the business survival. Factors affecting employees' job involvement in the Fast-Food
Industry include having employees who have fully contributed to the company, ensuring
they are fully involved in their job, and having a fully involved employee willing to
perform or perform. Hence, creating a huge impact towards the financial performance of
fast-food companies.

HOW MCDONALD’S, WENDY’S AND OTHER FAST-FOOD BRANDS ARE DEALING
WITH LABOR SHORTAGES
In 2009, McDonald’s is one of the largest fast-food companies in the world with numbers
of franchise worldwide. There are more than 31, 000 restaurants in over 188 countries
serving more 58 million customers each day. McDonald’s was founded in 1940 as a
restaurant operated by Richard and Maurice McDonald, in San Bernardino, California,
United States. McDonald’s has a great history in business industry. To stay in the market
McDonalds has always launched new products and entered into new locations to capture
the market. As of today it has become the largest global food service retailer capturing
almost the entire world. Those numbers impress. It is also one of biggest employers in
the United States, with more that 1.5 million workers worldwide. This company is
expanding continuously.
But despite these strategic positions and achievements, they do also face challenges
which turn McDonald’s into a negative impact where there are number of franchises turn
down and result to decrease of franchise. Those experiences include poor quality services
and unhealthy food image, there is also lack of manpower due to postponed of training
sessions that were once equip employees.
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Quick service and fast-food restaurants are facing several headwinds when it comes to
solving their labor problems. The pressures have been mounting throughout the year.
Seventy-eight percent of restaurant operators said that recruiting and retaining employees
was their top challenge in a National Restaurant Association survey in July — in
January, only 8% said that was their top challenge.
Overall employment in food services and drinking places has seen marginal
improvements in recent months, with nearly 120,000 workers added in October, but the
industry only added a net 150,000 employees from July to October, according to the
Labor Department, and there were nearly 800,000 less workers in October 2021 than
there were in February 2020.
That is layered on top of the broader challenges that every industry is facing to find
willing workers amid record numbers of job openings. Half of the nation’s workers
describe their workplaces being as understaffed, according to a CNBC|Momentive
Workforce Survey, with those workers more likely to say they’ve recently thought about
quitting.
Restaurants have looked to both attract and retain workers in a variety of ways, from
cutting operating hours to offering better benefits. Wages also saw an increase, with
restaurant workers seeing wages over $15 an hour for the first time this summer.
Still, many restaurants have struggled to both hire and retain workers in a sector typically
known for high levels of turnover. The U.S. Bureau of Labor Statistics reported that there
were roughly 1.7 million job openings in the leisure and hospitality sector that includes
food service workers in August, compared to approximately 1.2 million unemployed
workers.
Here are what executives at some of the biggest fast-food and fast-casual restaurants
have been saying on recent earnings calls about how labor shortages are impacting their
businesses and what they see ahead.
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LACK OF WORKERS CAUSING A REDUCTION IN OPERATING HOURS
Like McDonald’s, Burger King and Popeyes parent company Restaurant Brands
International is also seeing some of its locations having to reduce hours.
“We saw about an average of [a] one hour reduction in operating hours at Popeyes during
this quarter relative to pre-pandemic levels, which obviously, has an impact, and that was
disproportionately impacting our late-night business, which historically over indexes in
family and which comes along with a pretty high check,” CEO José Cil said on the
company’s third quarter earnings call.
Restaurant Brands International CFO Matthew Dunnigan said the company is “looking at
ways we can simplify life in the restaurants” to address staffing shortages, which could
include changing menus or processes.
Yum Brands, which operates brands like KFC, Pizza Hut, and Taco Bell, has also seen
worker shortages limit what hours its restaurants are open.
“U.S. labor availability remains tight across most industries, driving wage inflation and
staffing challenges that have resulted in a small number of our stores limiting operating
hours, particularly during the early morning and late-night,” Yum Brands CFO Chris
Turner said on the company’s third quarter earnings call.
Chipotle CEO Brian Niccol noted on the company’s third quarter earnings call that
“obviously, a fully staffed restaurant outperforms an understaffed restaurant,” saying that
the company has looked to win the “hiring competition” through competitive wages,
benefits, and a focus on worker development. “At the end of the day, I wish all our
restaurants were fully staffed and I know we’re missing sales because not all of them are
fully staffed. So, there is still upside in getting our staffing solved every single
restaurant,” he said. “I wish every restaurant was staffed, it’d be a better job for
everybody, and it’d be a better experience for every customer,” Niccol said.
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
THE EFFECTS OF SATISFACTION OF EMPLOYEES IN FAST-FOOD BUSINESSES
ON THE INTENTION TO LEAVE JOB: THE CASE OF KIRKLARELI
Within the service sector, fast food enterprises, which are a branch of the food and
beverage industry, are growing in the economy of developing countries. One of the most
important problems of the enterprises in this industry, which provides business
opportunities to many people, is that the efficiency of the manpower, which is one of the
building blocks of the industry, is weak and the turnover rates are high. For this reason,
workforce is the most important problem to be solved by fast food enterprises both in
terms of cost and availability. The success of fast-food enterprises is largely based on the
workforce of enterprises. In order to make the workforce sufficient and efficient, it is
necessary to create satisfied, motivated employees, who have embraced the basic
objectives of the enterprise and who are dependent on work and enterprise. (Barney,
1986, p.657). Among the results of Çekmecelioğlu’s research, he stated that job
satisfaction is a strong factor that has a positive effect on productivity. Low job
satisfaction decreases employees' loyalty to the organization. For this reason, they either
work towards a job they can provide more satisfaction, or they work inefficiently. The
low efficiency is the result of this. When the job satisfaction level increases, the
effectiveness of the organization will increase (Ay and Karadal, 1995, p.63).
RESEARCH SYNTHESIS
Introduction:
The relationship between the number of employees or manpower and the financial
performance of fast-food companies is a topic of interest for researchers and industry
professionals. Fast food companies operate in a labor-intensive environment, relying
heavily on their workforce to deliver efficient service and meet customer demands. This
research synthesis aims to summarize and synthesize the findings from a selection of
studies investigating the impact of the number of employees or manpower on the
financial performance of fast-food companies.
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Methodology:
A comprehensive literature search was conducted, targeting academic journals, industry
reports, and reputable sources. Studies were selected based on their relevance to the
research question and the availability of empirical data specific to fast food companies.
Key Findings:
Positive Relationship:
Several studies have found a positive relationship between the number of employees or
manpower and the financial performance of fast-food companies. These studies suggest
that increasing the number of employees can contribute to higher revenues, improved
operational efficiency, and enhanced customer service, ultimately leading to better
financial performance.
Optimal Staffing Levels:
The relationship between the number of employees and financial performance is not
linear, and there is an optimal staffing level that maximizes the benefits. Studies indicate
that understaffing can lead to reduced customer satisfaction, longer waiting times, and
decreased sales, while overstaffing may result in higher labor costs without a
proportionate increase in performance.
Quality of Workforce:
The quality and skills of the workforce play a significant role in the relationship between
the number of employees and financial performance. Studies highlight the importance of
hiring and training employees who possess the necessary skills, such as food preparation,
customer service, and operational efficiency. A skilled and motivated workforce can
positively impact financial performance through improved service quality, faster order
fulfillment, and reduced errors.
Operational Efficiency:
Efficient workforce management and operational practices are crucial for translating the
number of employees into improved financial performance. Studies suggest that effective
scheduling, task allocation, and cross-training of employees can enhance productivity,
minimize idle time, and optimize labor costs.
Market and Competitive Factors:
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The impact of the number of employees on financial performance can be influenced by
market dynamics and competitive factors. Fast food companies operating in highly
competitive markets may require a larger workforce to handle higher customer volumes
and maintain service levels. Additionally, local labor market conditions, minimum wage
regulations, and labor supply availability can influence staffing decisions and financial
performance outcomes.
Conclusion:
The research synthesis highlights a positive relationship between the number of
employees or manpower and the financial performance of fast-food companies.
Optimizing staffing levels, considering the quality of the workforce, and focusing on
operational efficiency are crucial for maximizing the positive impact on financial
performance. Fast food companies should strategically align their workforce planning
with operational demands, invest in employee training and development, and implement
effective operational practices to enhance financial performance.
Furthermore, market and competitive factors should be considered when making staffing
decisions, and the impact of technology on workforce utilization should be explored.
This research synthesis provides valuable insights for fast food industry stakeholders,
enabling evidence-based decision-making and strategic workforce management. Future
research can delve deeper into specific aspects, such as the impact of employee turnover
or the role of technology, to further enhance our understanding of the relationship
between the number of employees or manpower and the financial performance of fastfood companies.
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CHAPTER 3
RESEARCH METHODOLOGY
RESEARCH DESIGN
The research design of this study is descriptive experimental research which collects and
gather data about varying subjects as it studies the impact of manpower to the financial
performance of popular fast-food companies in the Philippines. It is a causal design
where one observes the impact caused by the independent variable on the dependent
variable. This data aims to know the extent to which different conditions can be obtained
among these subjects. It is important to note that this research design allows for the
collection of quantitative data, which can be statistically analyzed to establish the
strength and significance of the relationship between manpower and financial
performance.
SAMPLING TECHNIQUE
The sampling technique employed in this research to collect the data was purposive
sampling, which falls under the category of non-probability sampling methods. This
approach was chosen to select specific companies that possess characteristics
representative of the population under study and align with the research objectives. By
using purposive sampling, the researchers ensured that the chosen companies would
provide valuable insights into the relationship between manpower and financial
performance in the fast-food industry.
RESEARCH SAMPLE
To analyze the effect of manpower on the financial performance of popular fast-food
companies in the Philippines, a research sample was formed by gathering relevant
information from the selected companies. This data set served as the basis for conducting
a comprehensive analysis and examining the relationship between manpower and
financial performance.
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RESEARCH PROCEDURE
The research began by gathering the data required to achieve the objectives of this
paper.
PHASE 1
Understanding Manpower and Financial Performance
List the popular or well-known fast-food companies in the Philippines
PHASE 2
ANNUAL REPORT
FINANCIAL
(Obtain number of
STATEMENT
employees)
(Net Income/(Loss) After
tax)
PHASE 3
DATA ANALYSIS
Analyze the Impact of Manpower to the Financial Performance of the Fast-food
Companies
More employees = Increase/ decrease in
Net Income
Less employees = Increase/ decrease in
Net Income
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Phase 1
To determine the popular fast-food companies in the Philippines, the researchers will
Perform online searches using keywords like "popular fast-food companies in the
Philippines" or "top fast-food chains in the Philippines." Review articles, blog posts, and
rankings that discuss popular fast-food brands. These sources often provide information
about the most recognized and widely patronized fast-food chains in the country.
Phase 2
After determining all of the popular fast-food companies in the Philippines. The
researchers will now obtain the total number of employees working in each of those fastfood companies and the Net income/loss after tax. The net income can be found in the
“Financial statement/ Financial reports of the uploaded annual reports of the listed fastfood companies, go to their annual report or in the section for investor related section.
For the total number of employees, it can also be found in the annual report in the
employees related section.
Phase 3
For the data analysis, the researchers will be using Microsoft excel as a statistical tool to
conduct the study. To analyze the data, we will be using the simple linear regression
method since it is the suitable method for this study as we aim to determine the
relationship between the variables and how the independent variable affects the
dependent variable.
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DATA ANALYSIS
Data Collection
Here are some popular fast-food companies in the Philippines based on reputable sites
and blogs.
FRANCHISE MARKET PH BLOG
15 Top Fast-Food Franchises in the Philippines
Jollibee
McDonald’s
Chowking
Mang Inasal
KFC
Greenwich Pizza
Shakey’s Pizza
Goldilocks Bakeshop
Tokyo Tokyo
Yellow Cab Pizza Co.
Kenny Rogers Roasters
Dunkin’
ArmyNavy + Burrito
Mister Donut
Max’s Restaurant
DISCOVER THE PHILIPPINES
Popular Fast-Food Chains in the Philippines
Jollibee
McDonald’s
Chowking
Mang Inasal
Greenwich Pizza
Mang Inasal
KFC
Goldilocks Bakeshop
Red Ribbon
Pizza Hut
Shakey’s
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PHILIPPHINE GATEWAY
10 Best Fast-Food Restaurants in the Philippines
Jollibee
McDonald’s
Mang Inasal
KFC
Chowking
Mang Inasal
Greenwich Pizza
Shakey’s
Pizza Hut
Bon Chon
Tokyo Tokyo
To proceed with the study, the researchers have chosen to include only those fast-food
companies whose annual reports are readily available and accessible online. This
selection criterion ensures that the data used for the comparison and analysis are based on
reliable and transparent financial information. By focusing on companies with publicly
accessible reports, the study maintains a level of consistency and accountability in the
data collection process.
It is worth noting that while the inclusion criterion narrows down the scope of the study
to companies with available online reports, it may exclude some fast-food companies that
do not fulfill this requirement. Therefore, it is essential to acknowledge the limitations of
the study in terms of the specific companies included and generalize the findings with
caution.
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POPULAR FAST-FOOD COMPANIES IN THE PHILIPPINES ANNUAL REPORTS 2021
Company
Total Employees
Net Income
36,314
P5,501,991,000
200,000
$7,545,000,000
3,500
P874,402,081
2,238
P621,707,000
36,000
$1,575,000,000
Wendy’s
14,000
$117,832,000
Domino’s
14,400
$510,500,000
Berjaya Food Berhad
Kenny Rogers Roasters
4,547
RM45,726,000
Jollibee Food
Corporation
Greenwich
Chowking
Red Ribbon
Mang Inasal
Burger King
McDonald’s
Shakey`s Pizza Asia
Ventures Inc.
Max`s Group, Inc.
Yellow Cab Pizza
Pancake House
Yum Brands
Pizza Hut
KFC
Page | 23
Summary Background of the Companies
Jollibee - Jollibee is the largest and most well-known fast-food chain in the Philippines. It
offers a wide range of Filipino-style fast food, including their famous fried chicken, burgers,
and spaghetti.
McDonald's - McDonald's is a global fast-food giant with a significant presence in the
Philippines. It serves its classic menu items like burgers, fries, and milkshakes, along with
localized offerings.
KFC - Kentucky Fried Chicken (KFC) is another popular fast-food chain in the Philippines
known for its fried chicken and variety of chicken-based meals and sides.
Chowking - Chowking specializes in Chinese-inspired fast food, offering dishes like dim sum,
noodles, rice meals, and various Chinese-style fried chicken.
Greenwich - Greenwich is a popular pizza and pasta fast food chain in the Philippines. It offers
a variety of pizza flavors, pasta dishes, and other Italian-inspired meals
Mang Inasal - Mang Inasal is known for its grilled chicken, served with unlimited rice and
various Filipino side dishes. It has become a favorite among locals for its affordable and tasty
meals.
Shakey's - Shakey's is a well-established pizza chain in the Philippines, known for its thincrust pizza, chicken, and pasta dishes. It also offers a casual dining experience.
Burger King - Burger King is a global fast-food chain that has gained popularity in the
Philippines for its flame-grilled burgers, fries, and other sandwich options.
Wendy's - Wendy's is an international fast-food chain known for its square-shaped
hamburgers, chicken sandwiches, and frosty desserts.
Domino’s - The brand offers a diverse range of pizza options, including classic flavors and
innovative specialty pizzas.
Kenny Rogers - Kenny Rogers Roasters is a popular restaurant chain that specializes in
rotisserie chicken dishes.
Page | 24
CONVERTED FOREIGN CURRENCY TO PHP
Company
Total Employees
Net Income
Jollibee Food Corporation
36,314
P5,501,991,000
200,000
P423,082,102,500
3,500
P874,402,081
2,238
P621,707,000
36,000
P88,317,337,500
Wendy’s
14,000
P6,607,370,484
Domino’s
14,400
P28,626,032,250
Berjaya Food Berhad
Kenny Rogers Roasters
4,547
P555,242,905
Greenwich
Chowking
Red Ribbon
Mang Inasal
Burger King
McDonald’s
Shakey`s Pizza Asia
Ventures Inc.
Max`s Group, Inc.
Yellow Cab Pizza
Pancake House
Yum Brands
Pizza Hut
KFC
The collected data has been organized and summarized.
Based on the outcome of the collected data for this study, there are eight popular fastfood companies in the Philippines. We will be using these eight companies and the data
we have collected (Total number of employees and Net Income) on them to proceed with
the study.
Page | 25
Comparative Analysis
McDonald's has the highest number of total employees with 200,000, followed by
Jollibee Food Corporation with 36,314 employees.
In terms of net income, McDonald's also leads the pack with a substantial amount of
P423,082,102,500, indicating strong financial performance. Shakey's Pizza Asia
Ventures Inc. and Yum Brands also have notable net incomes of P874,402,081 and
P88,317,337,500, respectively.
On the other hand, Max's Group, Inc., Wendy's, and Berjaya Food Berhad have relatively
lower net incomes compared to the other companies.
Despite having a smaller number of employees, Shakey's Pizza Asia Ventures Inc., Max's
Group, Inc., Wendy's, and Domino's demonstrate respectable net incomes, suggesting
efficient operations and profitability.
Berjaya Food Berhad stands out as a company with a moderate number of employees and
a decent net income, indicating a favorable balance between workforce size and financial
performance.
Overall, this comparison highlights the variations in the number of employees and net
income among the listed fast-food companies. It emphasizes the significance of other
factors such as operational efficiency, brand strength, and market presence in
determining the financial performance of these companies.
REGRESSION
Formula for Simple Linear Regression
Y = α + βx + ε
where:
– α is the intercept term
– β is the slope
– ε is the stochastic error term
Page | 26
CHAPTER 4
RESULTS AND DISCUSSION
SCATTER PLOT OF TOTAL EMPLOYEES VS NET INCOME
450 000 000 000
400 000 000 000
350 000 000 000
NET INCOME
300 000 000 000
250 000 000 000
200 000 000 000
150 000 000 000
100 000 000 000
50 000 000 000
0
0
50 000
-50 000 000 000
100 000
150 000
200 000
250 000
TOTAL EMPLOYEES
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.9848 Correlation
R Square
0.9699 Coefficient of Determination
Adjusted R Square
0.9649
Observations
8
Page | 27
The result of the regression analysis shows the following statistical measures:
The Multiple R value of 0.9848 indicates a strong positive correlation between the total
number of employees and the financial performance of fast-food companies. This means
that as the total number of employees increases, there is a tendency for the financial
performance to improve. The closer the Multiple R value is to 1, the stronger the
relationship between the variables.
The R Square value of 0.9699 represents the proportion of the variance in the financial
performance that can be explained by the total number of employees. In this case,
approximately 96.99% of the variation in the financial performance can be accounted for
by changes in the total number of employees. This suggests a high level of predictability
and reliability in the relationship.
The Adjusted R Square value of 0.9649 considers the number of predictors in the
regression model and provides a more conservative estimate of the relationship. It
indicates that even after considering the complexity of the model, approximately 96.49%
of the variation in the financial performance can still be attributed to the total number of
employees.
Lastly, the number of Observations is 8, which indicates the number of data points or
companies used in the analysis. In this case, the conclusions are based on data from eight
fast food companies.
In summary, based on these results, it can be concluded that there is a strong positive
relationship between the total number of employees and the financial performance of
fast-food companies. Approximately 96.99% of the variation in financial performance
can be explained by changes in the total number of employees. However, it is important
to consider the limitations of the study and the specific context of each company when
interpreting and applying these findings.
Page | 28
CHAPTER 5
CONCLUSION AND RECOMMENDATION
Based on these findings, it is recommended that fast food companies consider the impact
of their total workforce on their financial performance. Increasing the number of
employees can potentially lead to improved financial outcomes. However, it is important
for companies to carefully manage their workforce to ensure efficiency and productivity.
It is evident that the fast-food industry relies heavily on human resources to drive
operational efficiency, deliver quality customer service, and meet consumer demands. A
larger workforce can contribute to increased productivity, faster service, and the ability to
handle higher customer volumes, ultimately translating into improved financial
performance for fast food companies.
To make the most of the relationship between total employees and financial performance,
companies should focus on effective workforce planning, recruitment, and training
processes. They should also strive to maintain a balance between labor costs and revenue
generation. Regular monitoring and analysis of key performance indicators related to
employee productivity and financial performance can help in making informed decisions
and implementing necessary adjustments.
Furthermore, companies should prioritize employee engagement, satisfaction, and
retention strategies to maximize the productivity and effectiveness of their workforce.
Creating a positive work environment, providing appropriate incentives and benefits, and
fostering a culture of teamwork and growth can contribute to higher employee
performance, which in turn can positively impact financial performance.
However, it is important to note that the relationship between the total number of
employees and financial performance is not solely determined by quantity, they are
influenced by various factors. While having a larger workforce may indicate higher
operational capacity, it does not guarantee superior financial performance. Factors like
brand value, market presence, operational efficiency, and financial management practices
play crucial roles in determining a company's net income.
Page | 29
Several factors can also affect the financial performance of fast-food companies beyond
the total number of employees. One crucial factor is the location of the fast-food outlets.
The choice of location can significantly impact sales and revenue. Factors such as
visibility, accessibility, proximity to target customers, and competition in the area all
play a role in determining the financial success of a fast-food establishment.
Recommendation:
Based on the findings, the following recommendations are put forth to enhance the
relationship between the total number of employees and the financial performance of
fast-food companies:
1. Workforce optimization: Conduct regular workforce assessments to determine the
optimal number of employees required to meet operational demands while maintaining
cost efficiency. This can help strike the right balance between staffing levels and
financial performance.
2. Training and development: Invest in comprehensive training and development programs
to enhance employee skills and competencies. This can improve productivity, service
quality, and overall financial performance. Focus on areas such as customer service, food
preparation, and operational efficiency.
3. Performance management: Implement robust performance management systems to set
clear expectations, provide regular feedback, and recognize employee contributions.
Align individual and team goals with the financial objectives of the company to drive
performance and motivate employees.
4. Automation and technology: Embrace automation and technology solutions to streamline
operations and reduce the dependency on manual labor. This can optimize resource
allocation, enhance efficiency, and improve financial performance.
Page | 30
5. Continuous improvement: Foster a culture of continuous improvement by encouraging
employee engagement, innovation, and feedback. Create platforms for employees to
share ideas, contribute to process enhancements, and drive operational excellence.
6. Monitor industry trends: Stay updated with industry trends and emerging technologies
that can disrupt the fast-food sector. Adapt and innovate to remain competitive, ensuring
that the workforce aligns with changing customer preferences and market dynamics.
7. To improve financial performance, companies should focus on effective cost
management, revenue optimization, market expansion strategies, and continuous
improvement in operational efficiency.
8. It is essential for companies to strike a balance between workforce size, resource
allocation.
By implementing these recommendations, fast food companies can optimize their total
number of employees, enhance their financial performance, and position themselves for
sustained growth in a highly competitive industry.
Page | 31
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