GROUP 2

BUSINESS ANALYSIS
Din’s Alfresco Cafe

Prepared by:

BERMEO, IRISH MAE

BOLVAR, ELLA MAE

BORBE, ANGELINE

CABAÑA, KAYLA MARIE

CASTAÑEDA, LOUIE DEL

CLIMACO, JELLY

DE JESUS, CARMI CRISSEDA VICTORIA

DIN’S ALFRESCO CAFE
Zone 2, San Ramon, Calauag, Naga City, 4400
Owner: Dinry Ferch Fulgentes

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Din’s Alfresco Cafe
Business Analysis
 ABOUT THE BUSINESS

Din’s Alfresco Cafe is a restaurant that offers different

varieties of beverages, rice meals, snacks, and desserts. It started
its operations in September of 2021 through the management of
Mr. Dinry Ferch Fulgentes, a BSEd Major in Physical Education
student at the University of Nueva Caceres. The captivating area is
located in an open space in San Ramon, Calauag, Naga City, which
is right across from the place’s chapel.

The cafe operates from 2:00 pm to 11:00 pm. It is open from

Monday to Sunday. Mixed customers are served in the cafe may it be
adults, young adults, or kids. The cafe has more than 20 tables. Each table can accommodate
four persons, and if additional arrangements are needed, the tables are joined together to
accumulate the number of guests. The outdoor setting provides a comfortable and friendly
environment and looks perfect for hanging out with friends and family.

The cafe has no more than 20 staff, who are responsible for preparing and serving food
and beverages for consumption on the premises. Some of them are personal connections, and
some were sourced and directly hired. The owner himself, alongside his family, works for the
cafe as well to ensure that they can oversee the business operations.

Din’s Alfresco Cafe was also featured on a lot of social media sites and by social media
influencers. Naga City Guide, one of the biggest social/ internet marketing services here in Naga
City wrote a short post featuring them which garnered a lot of engagements and led to even
more exposure for the said cafe. Influencers like “Eman Stories” and “Putsaka” also featured
them on their Youtube Channel and Facebook page late last year.

The cafe operates both daytime and night time allowing the customers to experience
both outdoor “chill” and night “party vibes.” They also hire bands and singers occasionally.
Around December last year and early this 2022, they’ve also accepted event bookings,
photoshoots, catering, wedding venues, and party packages that a lot of individuals, groups,
and government and private offices will surely enjoy.

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Business Analysis
 OBSERVATIONS

Alongside the rising popularity of Din’s Alfresco Cafe comes some subtle and obvious
things from observers and their customers. Customers’ observations will be beneficial on the
part of the cafe itself as it will serve as their basis on what to improve for the betterment of
their business.
● Inconsistent operational time
Upon observation, the restaurant has been inconsistent about its business hours.
According to their social media page, they accommodate customers starting at 2:00 PM
until 11:00 PM, however, there are days that their opening hours are too early as
expected and at times are delayed. They sometimes open at 10:00 AM instead of 2:00
PM which makes them inconsistent with their schedules leaving their customers a little
confused. Conflicts like customers waiting for several minutes, heightened number of
customers upon opening, food preparations pressed for time, and employee pressure
affecting work performance may arise and could lead to bigger problems.

● Short Staffed especially during peak hours

Peak hours mean a great number of customers, and along with this good news is
the need for the staff to deal with the fast-paced environment. And since the restaurant
has a few employees to serve their customers during this time, it mostly struggles with
them to juggle many different tasks at the same time. This could result in employees
being overtired and stressed leading to lesser productivity, while customers get
impatient and frustrated, especially if the servers get their orders wrong. Connected to
this, more complaints about customer service and food quality might come about. If not
addressed, this will be difficult for the restaurant as it can damage its reputation in the
industry as well as harm the well-being of the employees.

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Business Analysis
 ● Food Quality on some occasions
Food quality is very important especially if the restaurant aims to become
famous for its specialties or signature dish. This allows the business itself to attract
customers since they are able to build trust and maintain good relationships by means of
the quality of food that they are serving. Din’s alfresco cafe is capable of serving tasty
and delicious foods to the customers. However, there are instances where they failed to
maintain the taste or the quality of food they served. This is somehow disappointing
especially for the regular customers knowing that they came back simply because they
liked the food but the moment they returned, it's the other way around. This issue must
be addressed right away because if not, they will find it difficult to earn the trust of the
customers. Their reputation is also at stake once they fail to solve this issue right away.

● Some food is too expensive than how it should be

Some food on the menu is also too expensive. Based on the observations, the
pricing of the food in this cafe is somehow aligned with the well-known restaurants here
in Naga City. The pricing of the food in Din’s Alfresco Cafe is comparable to the pricing in
Oyster Villa Restaurant and Geewan which are both notable and famous for the quality
of food they have been serving to the Bicolanos for a long period of time. Din's Alfresco
Cafe is offering too expensive foods to the point where the quality is not worth the price
anymore. Because of this, the customers might regret returning because they are
somehow not satisfied with the food itself considering that they pay for it.

● Staff Attitude
Customers will always be looking forward to positive experiences and one of the
factors that affect their overall satisfaction is the employees’ attitude towards them.
Having a pleasing attitude creates a good image for the business and it can also be a
great reason why customers love to keep coming back. The restaurant has received
some great feedback from customers about their employees mentioning that they were
accommodated well based on their experience. However, the case was not the same

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Business Analysis
 with the other customers as they commented that the staff was not really friendly and
customer service was bad. There are many causes for incidents like this including the
aforementioned understaffed situations where employees could be overworked and
time-pressured and could be misinterpreted at the times.

● Too long food preparation time

Since the food or the meal is being prepared from fresh ingredients, it is only
probable that it will take too long to be served to the customers. However, this may
affect the business as customers usually don’t like to wait. This may stain the business
image based on the reviews which will then affect the future customers. There will be an
instance wherein instead of waiting the customer might leave and eat somewhere else.
Services are essential as food for a restaurant. Time management was an issue at Din’s
alfresco cafe. They are unable to serve the food on time, which has been a concern for
customers. The meal preparation was excessively sluggish, which made customers bored
and furious, therefore they needed to hire more people to assist and support the firm.
They must enhance their abilities in order to benefit everyone.

● Low post engagements

Din’s Alfresco Cafe currently has over 4,000 followers and 3,000 likes on its
Facebook page however, their posts still have a lot to work on. During the early months
on the platform, most of its posts have garnered around 30 to 90 reactions from the
audience, but it seems that they tend to get lower engagement over time. This could be
due to their inconsistent activity on the page. Moreover, the page does not run
Facebook Ads meaning that it is relying on organic reach. But in terms of the quality of
their content and posted images of the foods offered, they did a great job to make it
look appetizing and mouth-watering using actual and unfiltered images. It also has
posted the menu and photos of the actual place making it accessible and relatable for
those who plan to visit. Knowing that the restaurant has just started its operations last

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Business Analysis
 September 2021, it is still new to the platform but has the potential to improve its post
content and grow its audience.

RECOMMENDATIONS

The marketing tools that are used in this recommendation are the 4P’s of
Marketing which includes Promotion, Place, Product, and Pricing. Using this approach,
the restaurant will be able to pinpoint even the smallest details that need to be
maintained and areas that need to be improved. As this concerns its operations and
marketing, this will eventually help the business to promote its business and increase
the profitability of the business.

PROMOTION
As we all know, social media is a powerful platform that lets you connect with a
lot of people with just the tip of your fingers. So most businesses use this as a platform
to advertise their product as well as to promote their overall business and it is the best
way to market their business. They use this platform to let the people know what they
offer as well as the ambiance of their place by posting some pictures, in the hope to
make their business more successful and reach more potential customers. However, we
cannot deny the fact that this kind of promotion may not be that efficient knowing that
there are a lot of food places here in Naga City which also use this platform to promote
their businesses. By this, we recommend that Din’s Alfresco Cafe should maximize its
way of promoting through Instagram and TikTok. Posting their appetizing food on
Instagram and TikTok might help in promoting their business, especially for those who
are food enthusiasts that are just residing around the city. Collaborations can also be an
effective tool in boosting their business. Din’s Alfresco Cafe offers delivery, making it
convenient for customers who don’t want to leave their homes. Food delivery services,
such as Food panda, are the best way to partner with business and this could help to
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Din’s Alfresco Cafe
Business Analysis
 boost and increase sales. Din’s Alfresco Cafe might want to consider offering
sponsorships on events whether school events or city-wide. They can offer gift
certificates or coupons or simply prepare food for the organizers. In return for their
generosity, the organizers of the event must include them in the event’s promotional
materials and even mention their cafe during the event itself. With this, the participants
of the event might build curiosity and may even choose to visit their place.
Also, from observing its Facebook page, the restaurant has only a few posts
featuring its customers, and if there are, it only shows an overview of the whole place.
Although it gives off an idea to people that they are visited by many people, it builds an
impression of detachedness from their customers. Therefore, the people reached by the
posts will not be able to perceive an image of the customers’ enjoyment and satisfaction
which could greatly influence them to visit the place too. With this, they have to try
connecting to people like personally asking for a short review and taking photos of them
up close. They should also consider a reward system making their loyal customers feel
they are highly valued. It is recommended to have loyalty or reward cards on which they
can earn a discounted or a free meal after reaching a certain amount of orders. In this
way, customers will be motivated to come back every time.

PLACE
The place is a component of the marketing mix that ensures the product is
distributed and made easily accessible to the consumer - at the right location at the right
time. Din's Alfresco Cafe is located in Zone 2 San Ramon Calauag Naga City. Its location is
one ride away from the Plaza Rizal which is considered the central area of Naga City.
With regards to where it is located, it's enough to tell that it is easily accessible to the
customers who might want to visit the place. The ambiance of the place itself is actually
good where you would really feel like you are connected to nature. Thus, there must be
certain improvements that need to be applied to provide comfort to the customers who
might want to visit their place. Based on the observation, the restaurant is just an open
space. Ventilation is great but during hot seasons, a feeling of discomfort might be felt

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Business Analysis
 by the customers. The same way also during rainy seasons. By this, we would like to
recommend that Din’s Alfresco Cafe should provide an enclosed space for the customers
where there is an availability of an air-conditioned unit. This is to provide comfort on
behalf of the customers during hot seasons, the same way also during rainy seasons to
prevent them from getting wet because of the rain. This can also be beneficial if there is
a private event to be held in their place. The restaurant should also provide a wifi
facility accessible for the customers during their stay. This is an additional enjoyment on
their behalf and to make sure that they will not get bored.

PRODUCT
Standing out among the competition isn’t easy. For a possibility of success,
consistency in all operations, good food, and excellent services are all essential. The
background behind menu items, as well as the restaurant itself, can be a crucial
component in attracting new customers and retaining existing ones. By this, the cafe
should focus on how they will be able to develop a product that will be remarkable on
the part of the customers. Many restaurants have become famous for their signature
dishes and Din’s Alfresco Cafe should work on this. They can achieve this by hiring
skilled cooks or chefs that are capable of creating quality and delightful dishes that will
surely satisfy the taste of the customers. It was also observed that there are a lot of
choices on the menu, however, there are some foods that are not available. This is a red
flag, especially on the part of the customers. It is highly suggested that they should come
up with an “official menu for the day” where the customers can choose. This would
prevent disappointments and would also help the cafe itself to maintain the quality of
food to be served to the customers knowing that they are not overwhelmed with what
to prepare during the day. In addition, the cafe must have an official cook responsible
for preparing the food to be served. This will allow them to become consistent with
regard to the taste and the quality of food being served considering that only one person
prepared it.
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Din’s Alfresco Cafe
Business Analysis
PRICE
One of the most difficult things for a new business owner is determining the
"right" price for a product. They may not be able to cover all of the costs if they set the
pricing too low. Sometimes, customers may pick the competitors' products if the price is
too high. Food prices should be set relative to what customers are willing and able to
pay and what similar businesses are charging for comparable food. Din’s Alfresco Cafe
should apply the cost-plus pricing strategy, this method requires only a little amount of
market research and does not consider consumer demands and competitor strategies.
Cost-plus pricing is a straightforward cost-based pricing strategy used to determine the
prices of goods and services. Cost-plus pricing requires the business to add the direct
material cost, direct labor cost, and overhead to determine how much it costs the
company to provide the product or service. To determine the selling price, a percentage
of the total cost is added. Profit is represented by this markup percentage. However, it
must begin with a solid and accurate understanding of all of the business's costs and
where those costs are derived to make sure that this strategy will be effective for the
business itself.

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Business Analysis