Effective Strategies For Established Small Restaurant Businesses In The Northeastern Region

Abstract

The study has the following objectives, 1) to survey the situation and problems faced by the established small restaurant businesses in the northeastern region, 2) to analyze factors impacting the effectiveness of the established small restaurant businesses in the northeastern region, and 3) to study effective strategies for established small restaurant businesses in the northeastern region. The method of this research was a mixed approach including both the qualitative and quantitative techniques. As for the latter, the sample study was from consumers and/or the restaurants’ customers, a total of 400 respondents. The tool for the study was questionnaire whose reliability was Cronbach’s Alpha score 0.678, which was good enough for the survey.  It was the descriptive approach and factor analysis was presented. From the qualitative approach, an in-depth interview was taken from 16 owners/managers. Content analysis was used to determine the presence of specific words or concepts within texts to analyze the reflections of the participants related to the business.

The results from the survey of the situation and problems faced by the  established small restaurant operators in the lower northeastern region revealed three main problems, namely the services of the restaurants’ employees, the atmosphere, and the food quality. The overall effective marketing mix factors affecting the restaurant business were at high levels, average score 4.19, of which market promotion was perceived the highest. The overall efficiency of the employees was rated at high levels, average score 3.90, of which the knowledgeable of the staff was perceived the highest. As for the effective performance of the restaurants, the high rating went to repeat purchase of customer, average score was 4.18, followed by satisfaction and increased revenue, respectively.

Factors influencing the effectiveness of the established small restaurant businesses in the lower northeastern region were analyzed based on Pearson’s correlation coefficients for three dimensions. The internal causal relationship of the structural equation modeling showed that the marketing mix factors influenced effective performance statistically significant at the level of .01. The efficiency of employees also influenced effective performance mediated directly by the marketing mix factors and indirectly with statistical significant at level of .01 and lastly the efficiency of employees influenced the marketing mix factors statistically at the level of .01.

The in-depth interviews of the restaurant operators/managers demonstrated that strategies leading to effective business performance encompassing five strategies, namely, Service, Human skills, Atmosphere, Product and Price, Promotion, which in short is called the S-H-A-P-P Model, of which the service dimension is the most effective strategy