Thesis (Master in Management) -- University of the Philippines Mindanao, 2023

The Fat Cow (TFC) is a themed and specialized restaurant founded in April 2016 by Chef Patrick Co. it provides a contemporary Wester culinary experience and is renowned for its extensive selection of premium steak in Davao City. TFC’s goals include achieving high customer satisfaction ratings, increasing profitability, and expanding the restaurant’s operational capacity. An analysis of TFC’s competitors in Davao City using Porter’s Five Forces Model reveals that new market entrants pose a significant threat due to the ease of entry and the emergence of culinary centers that provide unique dining experiences. Additionally, the availability of diversified culinary options, the influence of social media, and the convenience of ordering food for delivery or takeout have given consumers substantial bargaining power. In the highly saturated culinary industry of Davao City, restaurants must engage in intense competition to attract and retain customers amidst a high rate of customer attrition. In urban areas, the proliferation of meal delivery services, diverse culinary options, and alternative forms of entertainment threatens the viability of conventional substitutes. TFC’s proposed and developed strategy focuses on marketing, operations, and finances. Through market development, market penetration, and product development strategies, TFC seeks to drive business growth by attracting new customers, boosting customer loyalty, and meeting emerging market demands. TFC intends to increase operational capacity by 25% by analyzing current capacity, redesigning the cafeteria area, and optimizing staff training. Exploring partnership or joint ventures, recruiting angel or venture capitalists and securing growth and expansion capital are all components of the financial strategy. The implementation of these strategies will be applied to the business’s marketing, operations, and finances. In terms of marketing, the emphasis is on intensifying branding and market penetration through digital promotions. This will involve utilizing various digital channels to raise brand awareness and engage target audiences. The construction of a tagline is recommended to increase brand recall, and a strategy for utilizing taglines effectively is provided. In operations, the strategies consist of developing new concepts and innovative products/services, menu innovation to attract and retain customers, streamlining and optimizing kitchen layout and equipment for efficiency, and instituting efficient organization and human resource management practices. The finance section focuses on identifying opportunities for cost reduction by analyzing food and beverage costs, optimizing labor costs, and investigating environmentally sustainable packaging options. The importance of budgeting, regular reporting, and financial audits for monitoring and adjusting the financial plan is also emphasized. Effective governance and performance management are crucial for the success of any business strategy, including restaurants. TFC recognizes the significance of closely monitoring and controlling strategy implementation to achieved desired outcomes. TFC has established a framework for conducting periodic performance evaluations to achieve this objective. These reviews involve setting explicit performance expectations, collecting relevant performance data, conducting review meetings with employees, devising performance improvement plans as needed, and following up on progress. Key performance indicators (KPIs) are also established to measure the achievement of strategic objectives, such as partnership revenue, and brand awareness, menu performance, operational efficiency, employee satisfaction, and return on investment. By monitoring these key performance indicators (KPIs) and delineating key results areas (KRAs). TFC can evaluate its progress, identify areas of improvement, and ensure it remains on course to achieve its strategic objectives. The KRAs include market development, market penetration, product development, operational efficiency, organization and human resource management, and capital expenditure