Business Strategies of Family-Owned Restaurants for Sustainability in Region III: A Qualitative Study

Business Strategies of Family-Owned Restaurants for Sustainability in Region III: A Qualitative Study

Girlie M. Samson

Department of Hospitality and Tourism Management, Bulacan State University, Sarmiento Campus City of San Jose Del Monte, Bulacan, Philippines, 3023

DOI: https://dx.doi.org/10.47772/IJRISS.2025.906000202

Received: 02 June 2025; Accepted: 06 June 2025; Published: 08 July 2025

ABSTRACT

The study utilized a descriptive-exploratory research design employing a qualitative approach and inquiry to investigate the sustainable family-owned restaurant businesses’ strategies in times of crisis in Region III. The study revealed that family-owned restaurants in Region III are competitive and able to sustain their business in these now normal operations. Grounded on the balanced scorecard theory it has also been discovered that family-owned restaurants owners’ strategies led to sustaining their business in financial perspective, customer perspective internal business process and learning and growth perspective. The underlying consensus among family-owned restaurant business owners is that developing managerial and strategic approaches that prioritize retaining client focus and the basis for creating a business that endures for more than five years. The study designed a strategic framework based on the business strategies employed by the owners in the new normal operations. The strategic framework has implications for positive social change since it would benefit communities through ongoing employment creation, human capital development, economic development and job sustainability.

Keywords: balanced scorecard theory, business strategies, descriptive-exploratory research, family-owned restaurants, managerial and strategic approaches

INTRODUCTION

In March 2020, the epidemic of COVID-19 negatively impacted many industries, triggering a large business shutdown and the closure and suspension of activities for small and major businesses. The invisible enemy’s destructive effects are wreaking havoc on the entire world’s population and contributing to the current economic crisis. The coronavirus pandemic is having a detrimental effect on businesses all around the world and is endangering their ability to continue operating (Sadu & Aifuwa, 2020). Stores, factories, and several other companies have shut down, according to Fairlie (2020), due to government mandates, declining demand, health, process, customer and employee issues, or other reasons. Small businesses all throughout the world will likely be significantly impacted. Micro, small, and medium-sized enterprises (MSMEs), which made up most business entities in developing nations prior to the pandemic, were impacted by the economic downturn. Their contribution is measured in terms of capital formation and employment creation. MSMEs, viewed as the engine of growth in today’s knowledge-based economies, are essential to the economic viability of growing Asian nations (Roldan, 2015). MSMEs (micro, small, and medium-sized businesses) make up 99.56% of the economy.

The pandemic and the associated impact have led to unprecedented low levels in the MSMEs’ business operations. Despite employing 62.8% of the workforce, they only make up 25% of the Gross Value Added (GVA) and 35% exports from the Philippines. MSMEs continue to be much less productive than big businesses. Even though there are many people entering the entrepreneurial world, ASEAN has the highest failure rates, which leads to a very low number of new enterprises being established. The financial performance of MSMEs, which had a 55 overall rating, was found to be “poor.” Receivables are poorly managed by MSMEs. Because to their low stability rating, they also have a very low rate of return and a low rate of survival. In the context of marketing strategies, it was shown that MSMEs have a very low adoption rate of modern marketing techniques. MSMEs do, however, still use traditional marketing techniques to draw in clients. The performance of MSMEs financially has been found to be strongly and directly correlated with modern marketing strategies. (Cammayo et al., 2020).

Families own and run many businesses in the Philippines, including those involved in the food industry. These businesses are Micro, Small and Medium Sized Enterprises (MSMEs), which have a major impact on the Philippine Gross National Product (GNP) and provide jobs for many Filipinos. However, these businesses confront numerous difficulties during the pandemic, from the start-up, administration, and operational sustainability, which causes the collapse of most of them and the loss of numerous jobs. The lack of a plan to deal with disruptions brought on by the abrupt threat posed by the pandemic is one thing that most people have in common.

The Covid-19 breakout can severely influence the world’s socio-economic system. To survive in these new normal operations, resilience is required. However, little is known about family-owned food businesses’ difficulties and how they respond to the aftermath of the pandemic. Numerous studies on business continuity planning have been done in the developed region’s large manufacturing-based enterprises. However, few studies look at microbusiness in less developed nations, particularly in the food industry owned and managed by families.

Furthermore, most studies on crisis management techniques center on coping with the pandemic’s effects. However, there is little research on how fresh and new crises, like a pandemic, impact micro-enterprises. Microbusinesses in less developed locations face more difficulties than those in urban areas or larger businesses, particularly during times of crisis (Fabeil, Pazim, & Langgat, 2020).

The aggregate sales of full-service restaurants in the Philippines are around 1.48 billion US dollars, according to the Statista Research Department, a considerable decrease from the year before. The COVID-19 epidemic has been blamed for the drop in business, which leads to more social segregation measures that make Filipinos afraid to go to restaurants. This restaurant’s revenues were predicted to decline further in 2021 and 2022. COVID-19 demonstrates that the restaurant sector cannot remain complacent; it must constantly look for methods to improve and innovate its service, experience, and menu. Incentives, digital payment, ordering, and lowering menu pricing are just a few examples of how they must be aware of what matters to the customers and change their experiences accordingly. Restaurants can’t afford to modernize because the post-Covid-19 era frequently requires paying for new supplies, hiring new staff, and making physical improvements. Therefore, restaurants must be vigilant about everything, including their supply chain and workforce. Concentrate on cleaning and providing a dependable, trustworthy experience to keep clients returning long after the pandemic ends (Morgan, 2021).

To be more adaptable during this crisis, local family-owned food business owners must have a good method for adapting and reinventing their business model. COVID-19 impacted small enterprises because they lacked the resources to at least manage or brace for such a protracted disruption. The new coronavirus disease, also known as COVID-19, has had a significant impact on people’s lives and business activities on a regional, national, and international scale.

According to reports, the Philippines’ economic situation—higher purchasing power and social circumstances increasingly busy lifestyles of Filipinos, particularly those in the emerging middle class increased demand for a more convenient food source. Restaurant operators apparently capitalized on this demand (Euromonitor International, 2018). As a result, the food service industry in the country is growing at a phenomenal rate, and everyone wants to be a part of it (Masigan, 2019). Chen (2020), however, asserts that whereas local restaurants benefited greatly from globalization prior to the Covid-19 epidemic, they lost this advantage as the pandemic severely restricted the movement of people and goods. Evidently, most local restaurants are challenged by prohibitions in dining customers that eventually were allowed in a limited capacity. This instance led to a decrease in sales during the initial implementation of the city quarantine. Therefore, local family-owned restaurants are now conceptualizing ways to innovate their products and services to recover and retain their previous customers and look forward to a new target market.

Even though there has been a lot of research on family businesses over the past ten years (2010-2020), there isn’t a single, widely accepted definition of what constitutes a family firm. Numerous methodologies and themes have been addressed in research projects. According to this research, family businesses are characterized by a specific transgenerational vision and the significant involvement that family members play in the organization’s corporate activities and processes (Chua et., al, 2017; Habbershon & Pishtrui, 2016; Zelwegger et al., 2013).

This study was motivated by the desire to address the issues that family-owned restaurant businesses face in the current competitive environment and the great health crisis. Therefore, it is essential to investigate and accurately capture the experience from the perspectives of key participants because there is little knowledge about their actual experiences in managing a family-owned food business in times of crisis and fill the gap to evidence gap because of the lack of literature. The study used the economic and social sustainability, that the family-owned restaurants in Region III can continue operating successfully, support its employees and community, and minimize its impact on the environment, contributing to the overall sustainability. Economic Sustainability, ensuring the restaurant’s operations are financially viable over the long term. This includes profitability, cost management, and financial resilience. The family-owned restaurants should be able to maintain financial health despite competition, market changes, and economic fluctuations. And Social Sustainability, enhancing the well-being of employees, customers, and the local community. This could involve fair labor practices, customer satisfaction, and community engagement. The family-owned restaurants should provide fair wages, promote a positive work environment, and contribute to the local community.

In the Philippines, Region III, or Central Luzon, is home to several family-run restaurants that contribute significantly to the local cuisine. Provinces like Pampanga, Tarlac, Bulacan, Bataan, Zambales, Nueva Ecija, and Aurora are part of this region, which is renowned for its varied food and rich cultural history. Family-owned restaurants in Region III are a testament to the region’s rich culinary heritage and cultural identity. They continue to thrive despite challenges, offering authentic and heartfelt dining experiences.

Family-owned restaurants play a crucial role as small businesses by fostering community involvement, cultural preservation, and the local economy. Their significance in Central Luzon’s socioeconomic landscape is underscored by their persistence and adaptability in the face of multiple obstacles, which are bolstered by governmental and community initiatives. Family-owned restaurants in Region III, Central Luzon, Philippines, are significant as small enterprises due to their impact on the economy, culture, and social fabric of the region. Several academic and industry studies have explored various aspects of these businesses.

As indicated in Region III in the new normal, the study investigated and analyzed factors that affect the sustainability of family-owned and managed restaurant enterprises. It also examined the degree to which family-owned restaurant businesses are sustainable. The study results can supplement the scant amount of literature on how the restaurant industry in the Philippines fared in times of crisis. Additionally, it aimed to offer recovery plans for family-owned businesses to use as a baseline for enduring the new normal of business operations and provide plans and programs derived from the results of the study intended for Bulacan State University instruction-related activities and family run businesses program of activities. Finally, the aim of this study is to contribute to the body of academic literature by developing a new theoretical framework for family-owned restaurant enterprises functioning in the new normal based on the emerging themes that will be derived from the study’s findings. Additionally, the study will make recommendations for steps to take to develop intervention programs that favorably influence the prospective success of nearby restaurant owners and actively participate in creating success benchmarks for the restaurant sector.

This study employed horizontalization, bracketing and building to ensure unbiased and comprehensive understanding of the business sustainability of family-owned restaurants in Region III. These techniques are essential for preserving the variety of participant viewpoints and experiences while reducing the impact of researcher bias.

Background of Study

Entrepreneurship is a major factor in influencing economic growth in most nations. Family businesses the majority of which fall under the category of micro, small, and medium-sized enterprises (MSMEs) are at the heart of this expansion in the majority of emerging nations, including the Philippines. They are viewed as the catalysts for job creation, eradicating poverty, and promoting equality (Okpukpara, 2009; Ayyagari et al., 2011).

According to the Statista Research Department, full-service family-owned restaurants in the Philippines have combined sales of approximately 1.48 billion US dollars, indicating a significant decline from the preceding year. Due to increased social segregation measures brought on by the COVID-19 pandemic, which has been blamed for the decline in sales, Filipinos are reluctantly forced to go to restaurants. In the 2021 forecast, the sales of this type of restaurant continued to decrease. The failure rate of family-owned restaurants is over 15%, and there is a yearly revenue loss despite the money spent on eating out and the industry’s contribution to the economy. Recommendations for how to improve could be helpful to family-owned restaurant operators—sustaining economic growth through business success.

 The Department of Tourism (DOT) has promised to help Central Luzon recover from the financial losses brought on by the COVID-19 epidemic by boosting the country’s tourism sector. In Bulacan and Pamapanga, the DOT seeks to promote culinary tourism as part of its long-term rehabilitation plans for the region. In the process, the Office of Product and Market Development (OPMD) of the Department approved the Region Food Mapping project, which will involve, among other things, several capability-building seminars and workshops, food inventories, and audits in different provinces across the region. As Region III is currently in the resurrection stage and as part of its long-term rehabilitation initiatives, the culinary tourism of the provinces, which is primarily family-owned restaurants that are currently open for business, is being promoted.

The Department of Tourism (DOT) in the Philippines has had evolving goals for family-owned restaurants in Region III (Central Luzon) before, during, and after the pandemic. These goals reflect the changing landscape and the need to adapt to unprecedented challenges. Family-owned restaurants in Region III have adapted to the challenges posed by the pandemic, focusing on survival and recovery during the crisis and aiming for revitalization and sustainability in the post-pandemic period.

The researcher’s current goal is to identify the family-run restaurants’ business plans for their new normal operation in the region. The main goal is to identify business sustainability of family-owned restaurants in Region III after the pandemic should be to develop a comprehensive understanding of the factors that contribute to their resilience and long-term viability. By focusing on these areas, the researcher can contribute valuable insights that help family-owned restaurants in Region III achieve sustainable growth and resilience in the post-pandemic era. The study looks at how family-run restaurant owners in Region III provinces use sustainable business practices. Owners of family-run, non-franchised and franchised restaurants in the provinces of Region III that have been in business for at least five years and are listed on the travel social media platform (TripAdvisor). Guide questions are being used to acquire information on the informant profile and operational strategies. To ascertain the successful tactics of the business, the researcher gathered primary data through in-person or face-to-face interviews with the owners and/or representatives, on-site observation, and artifacts.

The total number of establishments for the accommodation and food service activities section increased by 67.5 percent with 44,487 establishments in 2018 from 26,557 in 2012. By industry group, most of the establishments were engaged in restaurants and mobile food service activities with 33,451 establishments or 75.2 percent of the total establishments in the section. This was followed by short term accommodation activities and beverage serving activities with 5,960 establishments (13.4%) and 3,506 establishments (7.9%), respectively. Across regions, the National Capital Region (NCR) registered most of the establishments with 9,706 (21.8%). This was followed by CALABARZON with 5,001 establishments (11.2%) and Central Luzon with 4,544 establishments (10.2%).

The purpose of this study is to gain a comprehensive understanding of how family-owned restaurant owners perceive the business environment, their strategies for managing and overcoming challenges, and the opportunities available to them. The findings will be used to develop strategic guidelines for best business practices in the future. Additionally, the qualitative research will provide valuable data for stakeholders to create strategic management models that can assess the sustainability of family-owned restaurant operations. The study also address economic, environmental, social, and cultural sustainability, as well as policy and institutional support.

Statement of the Problem

The study examined the resilience of family-owned restaurants in times of adversity and analyzed the elements that influence this resilience in the context of Region III.  It specifically sought to respond to the following:

What is the family-owned restaurant profile in Region III in terms of:

Style of restaurant;

Asset size;

Number of employees; and

Years of operations?

What are the business strategies that affect the sustainability of family-owned and managed restaurant businesses in the new normal based on the following factors:

New normal operations;

Government initiatives and measures;

Coping Mechanisms;

Contribution to organizations’ operational strategies; and

Learned Lessons of hope

What are the key barriers to implementing business strategies post-pandemic in the success of the family-owned restaurants in Region III?

What theoretical framework for family-owned restaurants operating in the new normal can be designed from the emerging themes that will be gleaned from the results of the study.

What managerial and strategic measures can be developed in creating intervention initiatives, positively contributing to local family-owned restaurants’ potential success and its active role in establishing success standards for the restaurant industry in Region III?

Objectives of the Study       

The main goal of the study is to investigate the business-sustaining techniques used by family-owned restaurant operators.

Specifically, the study will:

Identify the issues and challenges encountered by the selected family-owned restaurants and point out the principal challenges to implementing business strategies for the restaurant industry.

Determine the useful business strategies for sustainability development of family-owned restaurants through exploring the sources of infiormation;

Familiarize with the utilized business strategies that have an impact on the viability of the family-owned restaurants based on the theoretical framework used from the finding.

Design a theoretical framework for family-owned restaurants operating in the new normal from the emerging

themes that will be gleaned from the results of the study; and

Create a managerial and strategic approaches as intervention initiatives that will contribute to the sustainability of restaurant industry in Region III.

Significance of the Study

The results of this study should contribute to our understanding of the business tactics used by family-owned restaurant owners, both at the outset of their operations and as they continue to develop and succeed. This study tries to solve challenges like growing client demands, rising food and labor prices, and increased competition. The methods to be discovered through the research might be able to provide restaurant owners with long-term operating strategies, enduring marketing, growth, and competitive advantage plans, as well as improved revenues and survival rates. A key obligation for restaurateurs to fulfill to maintain competitiveness in the industry is to exceed client expectations in the restaurant dining sector (Cai & Chi, 2018). Globally, restaurateurs face challenges like heightened competition, rising food and labor costs, and more discerning patrons.  This study may provide other business owners with knowledge of operational efficiency, cost-cutting measures, productivity boosts, customer retention strategies, and training and development methods that may assist lower the failure rates of small businesses (Schofield, 2015). The recommendations made by this study may improve the chances of family-owned restaurants remaining in business.

The results of this research are deemed to have tremendous implications for the following stakeholders:

Restaurant Owners.

This study will increase their motivation to succeed in their chosen field endeavor. It will serve as a reference for improvement and positively influence their attitudes, self-esteem, and efficiency requisite to do well at their restaurant as owners. They stand to gain most from the research. They might gain knowledge from the study’s conclusions about more productive methods to work and interact with their loved ones, employees, and customers.

Restaurant Organizations.

Membership in organization is beneficial to all restaurants and will gain insights and information that will help attain the organization’s thrusts and objectives, aided by the provinces in Region I as an associate. Just as important, the recommendations will facilitate concern and resolve issues experienced by restaurant owners and clientele.

Management and Hospitality Students.

This research will help demolish the notion of some students that being employed in known restaurants and hotels are the only route to gaining employment and success. It will serve as their reference and boost their management roles and functions. This study will also be a form of reward because they are a significant part of the hospitality industry.

Provinces in Region III.

This study will be of great importance to the office to track their restaurants and use the information to improve the programs for small food businesses. It will also aid them in checking and monitoring the standards used by the family-owned restaurants.

General Public.

The public will benefit from knowing that family-owned restaurant owners have a bright future ahead if they make the most of their business and success strategies. The present research will make the public aware that family-owned restaurants may open doors to a better life. This is especially useful to informants from very low-income families who strive to have their own operating business cannot possibly take to operating because of the high cost entailed.

Researcher.

This study will serve as an inspiration for an instructor of hospitality management. It will enlighten the researcher on the contribution of her study to the body of knowledge and her vocation. And it will also be a steppingstone for her as she aligns herself in hospitality management for greener pasture.

Future Researcher.

The results of this study would add to the growing amount of information about the restaurant industry. This will offer pertinent and worthwhile data on family-owned restaurants’ commercial success that can be consulted for upcoming study. This study will also inspire additional research on various restaurant business techniques, with broader horizons and characteristics not included in this study.

Scope and Limitations of the Study      

The study examined the business tactics employed by Region III family-owned restaurant owners to maintain profitability. Local family-owned restaurants in the region were being covered.

The study involved fourteen (14) proprietors of family-owned restaurants located in Region III, which are non-franchised establishments, operational for at least five years and listed at the TripAdvisor platform.

The participants will be owners of family-owned restaurants currently employed and registered owners of the business who sustained business beyond five years.

Data on the profile of the informants and the operational strategies is being gathered using guide questions. In addition, the researcher collected primary data through face-to-face interviews with the owners via personal visit and dining, onsite observation, and artifacts to determine the success strategies of the restaurants.

Definition of Terms

For the benefit of the readers’ understanding and appreciation, the following terms are defined:

Asset Size. This is the sum market value of all the securities held by the fund.

Balanced scorecard (BSC). A balanced scorecard is a tool that top management uses to communicate strategic goals to lower-level management, thereby linking the organization’s goals to actionable performance targets (Johnson, Reckers, & Barlett, 2014).

Business Strategy. This is an entrepreneurial policy that affects corporate goods, enterprise capabilities, and services through business development, competitive advantages, new opportunities, significant changes, and strategy process and support (Lechner & Gudmundsson, 2014).

Business Survival. This refers to a company that is currently or has previously been on the verge of failure but is still in operation and does not match the definition of a failed or successful company (Tundui & Tundui, 2012).

Business Sustainability. This refers to doing business in a certain area without negatively impacting on the environment, community, and society.

Coping Mechanisms. These are conscious strategies used to reduce the unpleasant behavior of an individual in society.

Entrepreneur. An entrepreneur is the creator, owner, and manager of a small business (Stam, Arzlanian, & Elfring, 2014).

Entrepreneurship. The act of starting a new business venture or creating a new product or service. It encompasses the three aspects of production – land, labor, and capital (Parilla, 2013).

Independent restaurant. A restaurant that is a family-owned and operated restaurant that is not part of a national chain (Independent Restaurants of America, 2019).

Small business. A small business is a privately held, independent business that can vary in annual revenue or number of employees, usually 1500 or less, depending upon the industry (SBA, 2013).

Family-Owned Restaurant. An independent, privately held firm with an annual revenue range or employee headcount of 1500 or less is considered a small restaurant business (SBA, 2013).

Government Initiatives and Measures. These are the government plans and programs used to support people or businesses.

Small and Medium-Sized Enterprises (MSMEs). These are businesses with 500 or less employees, depending on the industry (SBA, 2016).

New Normal Operation. This refers to an unfamiliar operation that has become the standard, usual and expected.

Number of Employees. This includes all employees, regardless of status, who work in the restaurant.

Style of Restaurant. This refers to the classification of the restaurant owned, including the service offered, type of food and ambiance to satisfy the diners.

Strategy. Strategy is an entrepreneurship policy in the company creation, competitive advantages, new opportunities, and significant changes (Berman, 2012), and strategy process and support that affect company products and enterprise capabilities and services (Lechner & Gudmundsson, 2014).

Years of Operation. The number of years the business has been operating since its start-up.

Contribution to Business Practice. The study will add to the body of knowledge regarding the operational business tactics used by family-owned restaurant operators, both in the early stages of their venture and as they continue to expand and succeed. Restaurant owners may benefit from long-term operational plans, sustainable marketing, growth, and competitive advantage tactics, as well as higher revenue and survival rates, thanks to the knowledge gathered from this study. To remain competitive in the restaurant industry, restaurateurs have a major responsibility to exceed client expectations.

METHODOLOGY

The chapter presents the steps and activities done by the researcher to complete the study. The chapter demonstrates how a researcher solved the issues raised by the study, including the research design, how respondents or study subjects were chosen, the instruments or basic instrumentation techniques, as well as the statistical processing of the data gathered.

Research Design

The researcher utilized a descriptive-exploratory research design employing a qualitative approach and inquiry in gathering information about sustainable family-owned restaurant businesses’ strategies in times of crisis focusing on the lived experiences of family-owned restaurant owners in Region III.

Horizontalization is being used at the first stages of data processing, giving each item of data the same level of value. To do this, all statements from observations, interviews, and documents must be coded without any data point being given priority. This methodology guarantees that topics arise naturally from the data.

The researcher made a qualitative assessment, using non-probability sampling, of the demand and requirements for the recovery of small businesses during the pandemic. Depending on the study design they have selected, the researcher will collect data while doing their investigation. The research design for this qualitative study included a multiple-case study methodology. Comparing numerous case studies to one allows for the use of more sources, which strengthens, validates, and enhances the study (Tran, 2016). It was feasible to gather sufficient information regarding the success strategies of small, family-run business owners; thus a multiple-case study would be conducted. The multiple-case study methodology is appropriate for a qualitative study because the material comes from the individuals who have really experienced the event. In addition, interviewing participants and looking at company documentation might be valuable for examining success tactics (Epler, 2019; Yin, 2018). In qualitative research, achieving data saturation necessitates collecting deep, high-quality data. When there is enough information to answer the study topic, data saturation in qualitative research has occurred (Fusch & Ness, 2015). Because it was possible to ask the identical questions of multiple participants throughout repeated case interviews, data saturation was made possible. When no fresh concepts, patterns, or categories emerge from the interviews, the researcher has reached data saturation (Morse, 2015). Data that was rich and thick was what we were trying to gather.

Participants of the Study

The key informants should be owners or co-owners of family-owned restaurants. This ensures they have a deep understanding of the unique challenges and dynamics involved in managing a family-owned business. Preferably, informants should hold a management position within the restaurant. This includes roles such as general manager, operations manager, or head chef. Their management experience will provide insights into the operational strategies and decision-making processes critical to business sustainability.

Table 1. Distribution of Participants

The table identified the family-owned restaurant owners, managers and supervisors who were experts in the daily operations of the establishment. Fourteen (14) participants consented to an in-depth personal interview and solicited responses related to the statement of the problem. These establishments were selected based on the selection criteria set by the researcher. With one to two participants (Cedervall & Berg, 2010), to large interview studies with 60 or more participants (Mooney-Somers, Perz, & Ussher, 2008), consisting of homogenous and/or heterogeneous samples, it has been shown in prior studies that small and big data sets from various case studies have been used.

The researcher coordinated with the Department of Trade and Industry to ask for a list of family-owned restaurants operating in Region III. But due to the privacy act, they advised the researcher to look directly on the website and send a letter to the participants to access potential participants. And with the privacy act, the researcher looked on another means by utilizing her contacts through the Restaurant Owners Association of the Philippines but ended on using the travel social media platform, TripAdvisor top family-owned restaurants in Region III /Central Luzon. The researcher reached out the business contacts network via email, formal letters, and business phone calls. The participants were the restaurant owners, currently employed and registered owners of the business, who sustained business for over five years. Therefore, they are the best persons to provide input to the study because they have direct access to day-to-day operations of the restaurant. The researcher conducted visits to known family-owned restaurants to introduce herself and present the details of the study to the business owners. Finding participants interested in the study’s potential and adding pertinent information was challenging and critical to gaining access to participants (Epler, 2019).

For the potential participants of the study that expressed an interest I. participation, the researcher began the process of building rapport. Establishing good relation and first impression with key informants is necessary for productive qualitative research (White & Hind, 2015). The researcher developed a working relationship with the participants through constant communication such as initial and follow-up site visitations, reminder phone calls before meeting, and email follow-ups throughout the interview process. The researcher also ensured the key informant on the confidentiality throughout the research process. The schedule of the interview is always at the convenience of my participants. Building and sustaining trust during research requires a solid cooperation and open communication (King, Horrocks, & Brooks, 2018). The research participants were chosen based on their ability to sustain their enterprises for more than five years and their willingness to discuss the operational techniques that have enabled them to be in line with the main research question.

Instrumentation

The researcher utilized a descriptive-exploratory research design employing a qualitative approach and inquiry in gathering information about sustainable family-owned restaurant businesses. Using the qualitative method allowed the researcher to explore the strategies that small business restaurant owners in Region III area use to sustain startup businesses beyond 5 years. Qualitative approach is appropriate for exploring personal experiences and understanding real- world contextual conditions. It is adequate for gathering information from participants who have experienced the phenomenon studied (Yin, 2018). Qualitative research as a method is used to address a phenomenon that cannot be quantified or addressed with statistical measures (O’Leary, 2018). Qualitative studies can include (a) open-ended interviews, (b) content analysis, (c) quality document analysis, and (d) literature synthesis that provide an understanding of human phenomena (Holt & Goulding, 2014). Therefore, the study used semi structured, open-ended and informal interviews. An in-depth review of the literature and other similar studies supports this method’s appropriateness for the study (Onyenego, 2018; Smith, 2018; Ukorebi, 2018; Wallace, 2019). Other examples include the qualitative method used by Hubbard (2018) to study the marketing strategies used by business owners to sustain their businesses, a single qualitative case study conducted by Brown (2016) to explore how small business owners addressed funding deficits to start and operate a business in New York., and Hubbard (2018) to study sustainable marketing strategies for small business restaurants.

An interview guide/questionnaire was used to gather data. It has two parts: The first part consists of items describing the respondent’s business profile, such as type of business, asset size, and the number of employees, to classify the business accordingly. The second part covered the current situation and operational and success strategies of the business leading to opportunities to sustain the business. Expert validation will be done initially to ensure questions are framed appropriately to the target participants. The final interview guide will be found in Appendix 1.

Moreover, the researcher referred to the literature, books, unpublished and published theses and dissertations, journals, and other studies to gain insights about the topic of this study.  This data happened to the support of the researcher in constructing the questionnaires.

The researcher sought the approval of the adviser and panel of the Lyceum of the Philippines for the conduct of the study. The researcher provided the structured interview guide questionnaires before the onsite visitation via email, and approval from the participants will be granted. The participation of the informants will be completely voluntary, and they have the free will to back out before, during and after the data gathering. The researcher ensured the safe and confidential conduct of the interview by hiring a professional transcriber to help facilitate the study. The researcher also assured that the participants would be aware of the informed consent, there was no known risk in participating in the study, and no monetary benefit will be given to participating in the study. Informants will also be informed of the possibility of publishing the results and may be used as a reference for future studies.

All recordings and transcriptions will be kept in a password-encrypted device until the warrant of thematic analysis is completed. Then, a copy of the transcription will be provided to respondents to validate the content. Once data has been validated, these will be deleted. The participant’s identities and privacy will be protected, and codes will be used instead of their names or businesses. The personal contact information of the researcher will also be provided to answer inquiries from informants.

Data Gathering Method

Prior to the data collection, reflective journaling to document personal beliefs and assumptions about family-owned restaurants and their sustainability. This process is being revisited throughout the study to maintain an objective view. A communication was sent to the identified family-owned restaurants in Region III asking for permission to conduct the study. Upon confirming the participant’s schedule, a semi structured interview is conducted personally. Interview proceedings will be voice recorded (with participant consent) and transcribed. The researcher used her personal recording account and generated a random ID and password to ensure the interviewee’s privacy on a face-to-face interview and onsite observation. To cover all the questions from the guide, the interview will be about 45 to an hour. Only relevant data about the interview guide are being tackled in the interview. The raw interview recordings will be kept in a password-encrypted device. The interview will be conducted initially by seeking the appointment and availability of the informants. The disposal of the device and transcribed data will be done after the approval of the full-blown study. In the face-to-face and personal interview, the researcher followed the health and safety protocols (like wearing facemasks or PPE).

The researcher engaged in the onsite observation and fieldwork, which involved observation of the restaurant facilities and layout including the story of its construction and establishment. The researcher also tried the cuisine and food being offered in the restaurant and how the staff prepare and serve the foods. The quality of food to be served and the customer service are also being observed. The initial phase of the interview covered an in-depth conversation and analysis among the key informants of the study in the collection of data to identify the employed business strategies of family-owned restaurants in Region III. And those responses from the interviews were validated by the onsite observation and dining experience of the researcher. A qualitative approach was utilized to analyze the data using thematic analysis.

Qualitative research in a case study often includes the collection of data from multiple sources. The data that were used for analysis consisted of data collected from face-to-face interviews and company documents. The thematic analysis allowed for (a) interpreting data, (b) deductive and inductive methods, (c) analyzing different processes, and (d) coding and pattern recognition (Yin, 2018). The data analysis in qualitative research was conducted through a three-step process, which included preparation and organization of the data, identifying emergent themes within the data, using emergent themes within the data, and presenting that data. An inductive approach to analyzing using interview data, observations, and artifacts can be used to identify emergent themes (Merriam & Tisdell, 2016). NVivo software is used for coding and sorting of the data. Once the coding and sorting are complete, identification of the themes will emerge. NVivo is a data analysis tool that helps researchers manage, analyze, and draw conclusions from qualitative data, which can take many forms, including text, audio, video, and photos. NVivo is categorized as qualitative data analysis (QDA) software. To categorize and identify recurrent themes or patterns embedded in the information, scholars can use coding techniques to segment textual or multimedia materials. The methodical organization of qualitative data is facilitated by this procedure. Additionally, this theory contends that attitudes, arbitrary standards, and perceived behavioral control all have an impact on behavior. To help researchers better understand and communicate their findings, the software includes several visualization tools, including charts and diagrams. It is noteworthy that NVivo does not do statistical tests or calculations, making it impossible for it to serve as a traditional statistical tool. Although it uses a variety of approaches, such as content analysis, grounded theory, and thematic analysis, its main goal is to assist the thorough evaluation of qualitative data.

As the researcher looked for keywords and phrases related to the concepts discovered through exhaustive review of the current literature on operational strategies for small family-owned restaurant businesses. The cloud word app was also identified based from the review of the related concepts and constructs of the study. The researcher then correlated those themes within the BSC context to begin the process of category building, followed by theoretic constructs. Themes develop as the outcome of coding and sorting data (Clark & Veale, 2018). This took all of the necessary steps to analyze the data and compile the theoretical findings for presentation. The researcher also employed triangulation through interviews, surveys, observations, document review, and secondary data analysis. The findings on business sustainability in family-owned restaurants in Region III. This methodological approach not only strengthens the validity and reliability of the study but also provides a comprehensive basis for making informed recommendations and policy implications for enhancing sustainability practices in this sector.

Data Treatment Approach

The researcher regularly revisited the reflective journal to check the biases and preconceptions that influence coding process. Documentation and reflection on how personal insights evolved during analysis ensuring that the reflections were used to deepen the understanding of the data. A thematic analysis is being used to analyze the data gathered from the participants. A repertory grid is also used to present the themes that will transpire in the study. As qualitative research gains recognition and significance, it must be carried out thoroughly and deliberately to produce results that are meaningful and helpful. Qualitative researchers must document, systematize, and disclose the techniques of analysis in sufficient detail for the reader to assess the process’ credibility if they want to be believed that the data analysis was carried out in an exact, continuous, and exhaustive manner (Deborah et., al. 2017). Gain deeper understanding and come up with well-thought-out, logical conclusions that are supported by solid data. The researcher will hire a professional transcriber to help the researcher write down the conversations during the interview, which is very important in qualitative research and the study. Common themes will be extracted from the interview. A new framework is being formulated from the new emerging themes.

Table 2 Sample Document Horizonalization, Bracketing, and Bridling

Ethical Consideration

In accordance with the research guidelines, the study was subjected to some ethical evaluations. According to the process used to collect data, every respondent acknowledged their willingness to participate in the study online by agreeing to complete the survey of their own free will.  The Data Privacy Act of 2012 (RA 10173) and all applicable data privacy rules, regulations, and laws were followed during the data collection. The poll collected only information that was fully confidential and purely for academic reasons.

This study followed a defined set of ethical standards. The process began with obtaining informed consent from the potential participants before participation in the study. Obtaining the participants’ consent in a study is part of the ethical research process and requires an informed consent document (Manti & Licari, 2018; Othman & Hamid, 2018). The consent form was emailed to the participants before conducting face-to-face interviews. The informed consent form contained a brief description of the study, participant criteria, information about the researcher, purpose of the study, study procedures, the benefit of participation in the study, risks associated with participation, information on participant confidentiality, and the statement of consent. The consent form should provide the participants with full awareness of their rights (Aguila, Weidmer, Illingworth, & Martinez, 2016). A researcher provides full disclosure of the research project to the participants to include the study’s purpose, criteria for selecting participants, and the research’s nature (King, Horrocks, & Brooks, 2018; Zhang, 2017).

Participation in the study was voluntary. Participants may withdraw from the study without penalty at any time via phone, in person, or by email. Participants did not receive compensation or incentives for their participation in the study. The researcher takes steps to ensure the participants’ ethical protection, such as obtaining voluntary consent, protecting participants’ names, and keeping interview data confidential, which further supported required procedures as identified by (Manti & Licari, 2018). Participants were allowed to ask questions about the research process before signing the consent form. A portable document file referred to as an external flash drive is used to store files. All documents and data related to the study are kept secure in a locked file.

Presentation, Analysis and Interpretation of Data

Using qualitative research design, the researcher initially conducted an in-depth interview and onsite observation among experts and owners of family-owned restaurants in her locale. Engaging on the operations of the family-owned restaurants from pre-pandemic to the new normal operations paved the way for the researcher to gain more on the topic under study.  After careful examination and immersion on the family-owned restaurant operations the researcher utilized NVivo, a Computer Assisted Qualitative Data Analysis Software (CAQDAS) that manage, analyze, visualize the gathered qualitative data systematically. NVivo as Qualitative Data Analysis (QDA) is beneficial to enable the researcher developed understanding of the meaning that people ascribe to their experiences and support the researcher to easily access the thoughts and the feelings of the informants. This tool also conserves the time and energy of the researcher in time-consuming manual coding and assisted on qualitative data analysis with precision and speed.

The researcher integrated reflexivity both in the study and NVivo, personal connections to the topic under study, motivations in choosing the topic and the potential biases being identified. The informants’ interactions during the interviews were also reflected based on dynamics and the researcher role in the research setting. Coding is being done with reflexivity that allows systematically categorize and revisit the reflexive considerations during analysis. As the date is being coded, referrals on reflexive journal and notes were given. And make sure that the themes being identified are strongly supported by data. Peer debriefing was also made where discussions with colleagues, mentors and experts to gain external perspective with the analysis. This helped any potential biases that have been overlooked.

In the study conducted by Bennett, using NVivo to explore researcher-participants interactions She provides examples of how to use NVivo to record and examine these exchanges, guaranteeing a reflective approach to data analysis. ( Benett, 2015).

The value of critical reflexivity in research pertaining to ethnography. They offer helpful advice on how to record and examine reflexive thoughts using NVivo, which will improve the breadth and accuracy of their ethnographic research (Adler, 2012).

Reflexivity in NVivo focuses on reflective practice while examining how to navigate reflexivity in qualitative research. She emphasizes how reflexive discoveries can be methodically documented and incorporated into data analysis using NVivo (Ross, 2017).

The impact of reflexivity in NVivo on qualitative research is significant and multifaceted, enhancing the rigor, transparency, and depth of the research process. This identified heightened awareness on biases. NVivo’s tools facilitate the integration of reflexive thoughts into the coding process, resulting in themes that are more reflective of the informants’ perspectives.

Profile of the Business

Table 3  Family-Owned Restaurants Profile in Region III

 Family-owned businesses play a significant role in various economies, and their profiles can vary widely. This analysis explores the characteristics and factors that define the profile of family-owned businesses, including their asset size, expansion strategies, family ownership structure, years of experience in the business, and the number of employees they manage.

For the restaurant styles of the selected family-owned restaurants in Region III, mostly are casual dining, then buffet style and café / coffee shop. Restaurant styles impact the adoption of  sustainability practices in family-owned restaurants. They find that styles such as farm-to-table and organic dining are more conducive to implementing sustainable practices, which can enhance the restaurant’s reputation and appeal to environmentally conscious consumers (Green and Wallace, 2019).

Restaurant styles (e.g., fine dining, casual dining, fast casual) affect the performance of family-owned restaurants. The style of the restaurant influences customer expectations, operational costs, and revenue streams, with each style presenting unique challenges and opportunities for family-owned businesses (Garvey & Stevens, 2012).

Aligning cuisine with service style is crucial for creating a coherent dining experience that resonates with customers. Cuisine and service styles (e.g., buffet, à la carte, family-style dining) impact customer satisfaction and operational efficiency in family-owned restaurants (Rodriguez & Harrigan, 2018)

Family-owned restaurants’ performance, customer satisfaction, and capacity to adjust to market developments are just a few of the factors that influence their restaurant design. Various dining experiences, including fine dining, informal dining, ethnic dining, buffet and themed restaurants, provide different advantages and disadvantages. Family-owned restaurants can make more strategic decisions that support both their corporate objectives and core beliefs by having a better understanding of these relationships.

The asset size of family-owned businesses can range from small to large, depending on the industry, family’s resources, and business history. Small family businesses may have limited assets, often including a single storefront or a small-scale operation. In contrast, larger family-owned enterprises can possess substantial assets, including multiple locations, real estate holdings, or significant investments. The asset size often influences the scale of operations and market reach. The following statements, as articulated by the key informants, are being provided as evidence:

FOR 8: “This property is approximately fifteen million worth, as you see it has the hotel at back and the restaurant in front.”

FOR 9: “Approximately we have fifteen million (15,000,000) assets.”

FOR 10: “For the asset it has around ten million (10,000,000).”

FOR 11: “Sa business asset nagsimula kasi kami sa fifty thousand pesos (50,000) na puhunan tapos pinalago lang namin mga magkakapatid, nanay at tatay ko kasi ang nagsimula nito. Ngayon siguro nasa kulang milyon na din ang investement namin.” ( In the business asset, we ony started at fifty thousand pesos (50,000) as capital, and we made it grow with my siblings; my parents are the one who started the business then. Now I think we are million investments. )

FOR 13: “Approximately we invested around five million (5,000,000) from the start.” In the study conducted by Bertoni, Colombo & Grilli (2016) on Financial Constraints and Family Firms: How Do They Affect Growth and Performance? T examines the impact of financial constraints on the growth and performance of family firms, including family-owned restaurants. It highlights that asset size significantly affects a firm’s ability to secure financing, with larger asset bases providing more collateral and reducing financial constraints.

A study on Family Business Resource Management and the Influence of Socioemotional Wealth investigates the relationship between resource management and socioemotional wealth in family businesses. It suggests that the asset size of family-owned restaurants plays a crucial role in how they manage resources and prioritize socioemotional wealth, impacting their overall business strategy and performance (Berrone, Cruz & Gomez, Mejia, 2012)

Asset size plays a crucial role in the performance, strategic management, and financial stability of family-owned restaurants. Larger asset bases provide these businesses with better opportunities for growth, enhanced governance, and greater operational efficiency. This body of research highlights the importance of asset size in understanding the dynamics and success factors of family-owned restaurants.

The approach to business expansion varies among family-owned enterprises. Some businesses choose to maintain a niche focus, serving a local or regional market. Others aim for growth and diversification, expanding to new geographic regions or exploring different product lines. Expansion strategies depend on the family’s vision, available resources, and risk appetite. It’s worth noting that both local and global expansion strategies can be successful for family-owned businesses. Statements from the participants as evidence:

FOR 1: “As I said from sari sari-sari store cum canteen to La Familia Sizzlers and Restaurant had main restaurant here at Baliwag with our inherited land, then we had one at Malolos before, but we are not able to sustain that one since all my sibling are in different fields and industry. So, we sustained the one here at Baliwag with the catering services that we offered and now since pandemic we also engaged in frozen foods and ready to eat and ready to cook food items”.

FOR 6: “Now we have already six (6) branches from Cabanatuan to Pampanga”

FOR 8: With Chef Gerry Chan then it developed and grow into two more branches.”

Family-owned businesses typically have a distinct ownership structure. This structure may be characterized by sole proprietorship, where one family member owns and operates the business, or by shared ownership among multiple family members. Ownership structures may also involve non-family stakeholders, such as in partnerships or joint ventures. Balancing the interests and roles of family members within the business is a unique challenge that varies from one family-owned enterprise to another.

The duration of family-owned businesses in a specific industry varies significantly. Some have a long and storied history, spanning generations, while others are relatively new entrants. The number of years in business can contribute to a family-owned business’s reputation, customer loyalty, and industry expertise. Established businesses often have well-defined processes, while newcomers may focus on innovation and agility. The informants provide statements that serve as evidence:

FOR 1: “My mother took over sa sari-sari store cum canteen from her mother.”

FOR 7: “This is a family-owned hotel and restaurant here in Baler, Aurora.”

FOR 9: “It is a family-owned restaurant where we offer live seafoods tapos yung mga guests ang mamimili kung ano ang gusto nila at paano lulutuin ng chef.”  (It is a family-owned restaurant where we offer live seafoods then the gesuts will be the one to choose what and how the chef will cook their seafoods.)

FOR 12: “It’s a family-owned restaurant named after my husband, we are serving breakfast and brunch for families, tourists, and travelers here at Olongapo in Western approach.”

Family-owned businesses can have varying numbers of employees, depending on their industry, scale, and business model. Small family businesses may have a handful of employees, typically family members, and a few additional staff. Larger family-owned corporations may employ hundreds or even thousands of individuals. The number of employees influences the complexity of management, HR practices, and organizational culture. The participants articulated statements that serve as evidence of the study:

FOR 1: I have forty-five (45) regular employees during the pre-pandemic excluding the on-call servers and waitering staff during catered events. And here comes pandemic I don’t have any choice during that time but to trimmed down my employees to twenty (20) employees, it’s really heart breaking but it’s for their welfare and for the sustainability of La Familia. But right after the pandemic now, I already have thirty (30) regular employees. I may not be able to bring them all back but in God’s time.

FOR 3: “With ten (10) regular staff.”

FOR 4: “About forty (40) employees.”

FOR 5: “The restaurant has seventy-four (74) employees which are all in a combination of regular and non-regular employees. May mga hindi pa kasi kami regular may mga bago pa kasi, tapos yung mga luma naming empleyado sila pa din, pero konti lang naman ang mga hindi regular siguro wala pa sa bente (20).” (The restaurant has seventy-four (74) employees which are all in combination of regular and non-regular employees. We still have non-regular employees and our regular employees still the same. We have limited non-regular less than twenty (20).)

FOR 6: “And we have about hundred (100) emplpyees from the different branches.”

FOR 7: “I have 10 employees in this property since it started 6 are regulars and 4 are non-regular employees.

FOR 8: “There is a total of 17 staff in the main branch and 32 in the other branch, so I have a total of almost 50 employees including the driver.”

FOR 10: “For the employees we have around 50 employees both here in the restaurant and in the catering services.”

FOR 14: “We have thirty-two (32) employees during the pre-pandemic then trimmed into twelve (12) this post pandemic.”

Family-owned businesses exhibit a diverse range of profiles in terms of asset size, expansion strategies, family ownership structure, experience in the business, and the number of employees. These variations are influenced by factors such as industry dynamics, family dynamics, financial resources, and the specific goals and values of the family owners. Understanding the unique profile of a family-owned business is crucial for tailoring management strategies and addressing the challenges and opportunities that are inherent to family enterprises. Regardless of their profile, family-owned businesses contribute significantly to the economic landscape, often adding a personal touch and sense of community that sets them apart from larger corpor

Business Strategies Toward Sustainability

Table 4. Coding Statement and Theme

The COVID-19 pandemic brought about profound and rapid changes in consumer behavior and expectations as people adapted to lockdowns, social distancing measures, and economic uncertainty. Understanding these changes is crucial for businesses to navigate the challenges and opportunities presented during the pandemic. This analysis explores the considerations related to the new demands of consumers during the COVID-19 pandemic. The pandemic accelerated the adoption of digital technologies, especially for online shopping, remote work, and telehealth, as consumers sought digital solutions for everyday needs. Businesses that rapidly transitioned to e-commerce, offered remote services, and improved their online presence thrived. Consumers prioritized health and safety concerns during the pandemic, leading to a surge in demand for hygiene-related products. Businesses had to implement strict health protocols and communicate their safety measures to gain consumer trust. The closure of physical stores and lockdowns prompted a surge in e-commerce, with consumers preferring contactless delivery and online payment methods. The shift to remote work and remote learning created demand for technology products, while at-home entertainment, changes in grocery shopping, financial security, and emotional well-being became central themes in consumer behavior. Consumers also showed increased support for local businesses and emphasized the importance of long-term resilience in companies. These considerations will continue to shape consumer expectations and the business landscape in a post-pandemic world. The following claims are offered as proof, as expressed by the primary informants:

FOR 1:” As I observed since the pandemic ended naging wiser ang tao they like simple and ready to eat foods and ready to cook foods for some. As I observed din dito sa resto lahat ng halos ng diners naming and customers they are buying our food items either pambaon, ulam sa tanghalian, ulam sa hapunan, feeling ko nga di na sila nagluluto, minsan nakausap ko isang teacher like you… sabi niya mahal kasi sir lahat ngayon so why not buy na lang ng luto nakatipid pa and at the same time gusto pa ng mga bata. Pandemic really changed the game; it’s a game changer for most of us.” (As I observed since the pandemic ended the customers became wiser, they like simple and ready to eat foods for some. Another observation is the customers are buying food items eaither for their packed lunch, lunch and dinner I feel the trend is they are not having cooked meals. One time I had conversation with a teacher-customer like you, she told me at this time everything is expensive, it is much practical to buy ready to eat and the kids can choose the food they want. Pandemic really changed the game; it’s a game changer for most of us.)

FOR 2: “And knowing that scenario that made me realize to pay attention on the reviews of our customers either on personal, online or in social media. I admit ngayon naging very keen ako sa mga behavior and comments of the customers that contribute to improve more and our operations.” (And knowing that scenario that made me realize to pay attention on the reviews of our customers either on personal, online or in social media. I admit this time I became very keen on the behavior and comments of the customers that contribute to improve more and our operations.)

FOR 3: “Mga diskarte te sa pagbawi upang mapanatili ang negosyo, panatilihin ang dating presyo ng produkto, patuloy na magandang serbisyo at masarap na pagkain na angkop sa panlasa ng mga tumatangkilik ng mga customers.” (Strategies on the recovery to sustain the business, maintain the price of the product, continuous good service to the customers and quality food that will satisfy the cutomers tastebuds.)

FOR 4: “We do add new products and services aside from the known chicken and pork barbecue and bibingka.”

FOR 5: “Actually, kilala kami sa pansit palabok at baked macaroni, nuong araw kasi nagstart yan kasi yung mga galling ng pagsasaka baba sila dito sa bayan at dito sila kakain kami yung kilalang parang comfort place ng mga magsasaka kaya noon pa man uso na ang “deserve ko to” tagline. So ngayon bukod sa sepcialities namin meron na rin kaming catering services sa 2nd floor dun namin ginaganap yung mga social and even corporate events.” (Actually, we are known for pastas ( palabok and baked macaroni) since then. It started with the farmers where we served as their comfort place, afte they harvested and earned they believed they deserved to treat themselves. Now, aside from the restaurant we do catering services at our 2^nd floor of this building for social and even corporate events. )

FOR 6: “Customized and create new products.”

FOR 7: “Nag-innovate din kami ng products namin kasi nabago ang market needs and demand.” (We innovate our products as the pattern of market needs and demand changes. )

FOR 8: “We targeted tours and catering services since social events and corporate events are very in demand now.”

FOR 9: “The pastries and coffee that we are offering, making it based on the customers preferences of all ages.”

Family-owned restaurants face unique challenges and opportunities in the post-pandemic world. The “new normal” has introduced changes in consumer behavior and expectations, along with ongoing health and safety concerns. This analysis examines the considerations and requirements for family-owned restaurants to thrive in this evolving landscape. Ensuring the safety of customers and staff remains paramount. Family-owned restaurants must implement and communicate rigorous health and safety protocols, including regular cleaning, social distancing, and proper ventilation. Compliance with local health guidelines is essential to build trust with patrons. The following claims, as made by the primary informants, are offered as proof:

FOR 1: And now at the post pandemic operations I defined it as our “pivot” kailangan i-turn lahat from safety, sanitation, products, services, logistics… everything.”  (And now at the post pandemic operations I defined it as our “pivot” I need to turn everything from safetym sanitation, products, services, logistics and everything.) “ But the best strategy we employed in the new normal operations to sustain our business is letting people know that they are safe and they will be safe at La Familia Sizzlers and Restaurant we are very keen in observing all the protocols that benefitted us in the manner that customers are coming back, either thru delivery and delivery services, pick-up and when the dine in operation comes back.”

FOR 4: “After a month we strictly followed the protocol so our employees could go back to work although limited lang ang pinapasok

FOR 4: “We do have delivery services only for safety of the employees and the guests. We made skeletal workforce from the start and then as time goes by, nagdecide na kami na pwede na papasukin at buksan. But of course, a lot of preparations are being made.”

FOR 9: “Paluto and eat-all-you can ang concept ng Dampa (formerly kubo-kubo) dahil sa pandemic kailangan namin baguhin for safety and government measures.”

FOR 6: “Strict compliance on government policies on safety and sanitation measures, adjustment of hours of operations.”

The “new normal” requirements for family-owned restaurants are multifaceted, encompassing health and safety, contactless options, outdoor seating, online presence, diverse menus, sustainability, marketing, customer engagement, employee well-being, and financial planning. Family-owned restaurants that adapt to these requirements will be better positioned to thrive in a post-pandemic world. By embracing these considerations, family-owned restaurants can continue to offer exceptional dining experiences while responding to the evolving expectations of their customers.

Consistence in employee development and a good relationship between employers and employees were integral to the resilience of family-owned restaurants during the pandemic. The following claims are offered as proof, as expressed by the primary informants:

FOR 5: “Kung ano ang lasa ng palabok at baked macaroni namin noong 1982 ganon pa din hanggang ngayon na 2023 na.” (The state of the pasta that we had palabok and baked macaroni from 1982 until now 2023 is still the same. )

FOR 2: “Quality ng pagkain ang main key namin, kaya talagang bumabalik sila at kilala nila kami.” (Quality of food is the main key, that is why they keep on coming back.)

FOR 4: “Internal trainings, mental training because my wife is a psychologist that also served as cope mechanism for my employees. After the trainings by the employees, it boosted their confidence and motivation to operate again and be back on track.”

FOR 6: “Also make sure that they are all trained and vaccinated before going back.”

FOR 7: “Aside from the trainings on safety and hygiene for employees and staff I also invested din sa training on excellent customer satisfaction.”

For 7: “ Mapanitili ang mga empleyado na tapat sa serbisyo at ituring na pamilya ang bawat isa.” (Maintained all the employees passionate to their service and treat them all as family.)

FOR 8: “Wala kaming inalis na employee kahit isa we treated them na kasi bilang family members.” (We did not lay off employees even one, because we treated them as family members.)

FOR 3: “Since it’s a family business we treated all the employee’s family.”

Government interventions played a critical role in providing financial support, safety guidelines, employee retention incentives, and resources for skill development. By fostering strong connections between employers and employees and leveraging government assistance, these restaurants not only weathered the crisis but also laid the foundation for future success in a post-pandemic world. The ability to adapt, prioritize employee well-being, and maintain transparent communication were key strategies that helped these establishments emerge from the pandemic with greater strength and resilience. The following statements, as articulated by the key informants, are being provided as evidence:

FOR 6: “And the government measures served also as our guide in employing strategy on how we will handle and trained our employees especially more on hygiene and sanitation pati disinfection.”

FOR 8: “For the business strategies we employed of course aside from the curbside delivery that we have we also have express deliveries that helped the business in the new normal setup.”

FOR 9: “The local government of Angeles also provide trainings and protocols for restaurant owners that also aid us to cope with the new trend in the restaurant industry.”

FOR 10: “Since social media is the new marketing tool now, we also actively empowered advertisement through social media platforms. We also do promos and loyalty programs for repeat customers and platinum guests. Social celebrations in the restaurant are also welcome especially intimate ones.”

FOR 11: “For the government of Baler, they were able to help us assists our employees through their financial support like the DOLE, SSS, DOT ayuda. They were able to provide help to them aside of course from their benefits and support from us.”

FOR 12: “The local government provide financial assistance like tulong puhunan from SSS, DOLE and even the member of the 4Ps we are the one who updated so they can get the subsidy.”

FOR 10: “Good thing during the pandemic and after government of Tarlac is supportive to SMEs. Moral and financial support both sa owners and sa employees. They have programs and financial support together with other government agencies like DOLE, SSS, DTI and the like.”

To be competitive in the modern restaurant industry, technology must be used effectively. Point-of-sale (POS) systems, online ordering portals, and digital reservation systems can all be implemented to improve operational efficiency and consumer convenience. Furthermore, it’s critical to use social media for marketing and gathering customer feedback. A major factor in the success of family-run restaurants is innovation. Developing inventive menu options, providing distinctive eating experiences, and adjusting for shifting consumer tastes are all necessary to remain competitive and relevant. Using creative methods can include developing new menu items, investigating sustainable and local sourcing, or even redesigning the interior decor of the eatery. The informants provide statements that serve as evidence:

FOR 1: “If before we made food items that are mostly saucy now, we provide fried foods for the kids and millennials something like that, and those small reviews matter to our customers and to us. And last month after careful study, we revamp some of our menus to fit the needs of our customers and catered events.”

FOR 2: “Then I boost and concentrate on our marketing strategies like social media postings, inviting vloggers in the restaurants to dine and vlog, branching out and opening franchizes.”

FOR 4: “That is why we engaged ourselves in social media, made it boosted and active if you will check our page. Everything now can be seen online diba, even reviews of customers kaya very particular kami. I told my employees social media can make or break our business yun ang downside niya. But in a long time, our customers feedback is still good, of course you cannot please everybody naman, but we haven’t encounter super negative and destructive comments and reviews. I think best contribution is being “engaging” I do engage in everything even pre-pandemic time. But now I am actively engaging personal and online. I need to be kasi that is the trend of restaurant industry now, we must be techy and creative in everything. We should always go with the trends and be updated.”

FOR 6: “Online engagement is also a trend now in the restaurant world. A lot of innovation is also being made with our products and services, like selling by piece instead of boxes only.”

FOR 7: “I made sure that even in social media postings the approach will be relational with the prospect customers.”

FOR 9: “We made our social media more active and interactive. Saka I really made the transformation of the restaurant visible, from old kubo to a refurbished structure.”

FOR 10: “All possible strategies needed to cope up which we start from increased food delivery services thru food panda, grab and local riders, social media engagement like the use of social media platforms to advertise products and services.”

FOR 12: “Most of our marketing is being done online, I made the page and our social media very active.”

Key Barriers On The Implementation Of Business Strategies

Table5. Coding Statement and Theme

Family-owned restaurants, while cherished by their communities, face a unique set of challenges that can hinder their operations and sustainability. This analysis explores the key barriers that family-owned restaurants may encounter, including a lack of demand, inflation, asset-related problems, storage challenges, and the ongoing threat of the COVID-19 pandemic. Family-owned restaurants can struggle with inconsistent or declining demand due to various factors, such as changing consumer preferences, competition, or economic downturns. The pandemic has further exacerbated this issue, with lockdowns and social distancing measures reducing customer footfall. Overcoming this barrier requires creative marketing, diversifying menu offerings, and adapting to evolving consumer needs through online ordering, takeout, and delivery services. While inflation affects family-owned restaurants by increasing the costs of essential ingredients, supplies, and operational expenses. Restaurants may absorb some of these costs, leading to reduced profit margins. Inflation can also influence menu prices, potentially deterring cost-conscious diners. To address inflation, restaurants must carefully manage costs, explore local sourcing, and consider strategic pricing adjustments to maintain profitability. The following claims are offered as proof, as expressed by the primary informants:

FOR 2: “And of course, another is inflation, ang hirap ng buhay, lahat ng bilihin mataas at papataas pa.”

FOR 3: “Increasing cost of all the raw materials and ingredients, lahat mataas ngayon at lalo pa tumataas, hindi lang naman sa amin sa restaurant industry yan all industries now are suffering with the increase cost.”

FOR 4: ‘High cost of ingredients are the main barrier we have. Everything went up from flour and other ingredients.”

FOR 5: “The prices of raw materials and ingredients and food products are getting higher, so we need to cope and reinvent in order to come up with good margin.”

Family-owned restaurants often rely on kitchen equipment, appliances, and technology to maintain smooth operations. Issues such as equipment breakdowns, maintenance challenges, or technology obsolescence can disrupt daily functions. Timely equipment maintenance and regular inspections are necessary to prevent unexpected downtime. A well-planned replacement strategy for aging assets can also help mitigate these problems. Also, storage issues can affect the efficiency and organization of family-owned restaurants, especially in kitchens and pantries with limited space. Insufficient storage can lead to chaotic kitchens, inventory management problems, and increased food wastage. Family-owned restaurants should consider optimizing storage solutions and implementing inventory management systems to address these challenges effectively.  The following statements, as articulated by the key informants, are being provided as evidence:

FOR 4: “Time and financial resources are the key barriers.”

FOR 6: “Financial support and resources are also a key barrier in the implementation of business strategies, kahit saan naman business lalo ngayon.”

FOR 8: “Lack of knowledge on financial management.”

The COVID-19 pandemic has been particularly disruptive to family-owned restaurants. Lockdowns, capacity restrictions, and public health concerns have led to decreased sales and increased operational complexities. To mitigate the pandemic’s ongoing threat, family-owned restaurants must adapt by offering safe dining environments, enhancing online ordering and delivery capabilities, and implementing strict health and safety protocols. Additionally, building resilience through financial planning and flexible business models is crucial. The following statements, as articulated by the key informants, are being provided as evidence:

FOR 1:” Like what I said in the previous question, safety of my customers now is the main concerm. And daming may takot pa din, fear is everywhere. Some although they want to dine or celebrate, they prefer not because they are after the safety of each family members.”

FOR 5: “Labor-related challenges I do have señor citizens employees, so I need to make necessary adjustment on things siyempre I need to consider their health and safety as well as their needs and their families.”

FOR 6: “Instead of buying they will just make themselves with the fear of going out even at this time.”

FOR 7: “Aftermath of pandemic including the new normal operations and protocols and the fear of the people.”

amily-owned restaurants face a set of unique challenges, including a lack of demand, inflation, asset-related problems, storage issues, and the ongoing threat of the COVID-19 pandemic. Overcoming these barriers requires adaptability, careful financial planning, and proactive measures. By understanding local market dynamics, embracing online ordering and delivery services, managing costs, and investing in equipment maintenance and efficient storage solutions, family-owned restaurants can navigate these obstacles and remain vital contributors to their communities. The ability to adapt and innovate will be essential in addressing these challenges while maintaining the cherished traditions of family-owned restaurants.

Theoretical Framework

The designed theoretical framework for family-owned restaurants operating in the new normal from the emerging themes that gleaned from the results of the study.

Financial Perspective.

Maximizing assets is one of the family-run restaurant’s main objectives. From a financial standpoint, the corporation is viewed from the perspective of its stockholders. Asset utilization (a), cost-cutting (a), and revenue growth (a) are the three main strategic pillars of this point of view (Utama, 2012). The company’s financial objectives are met by making sure that revenue and profitability are elevated through the accomplishment of client objectives, internal process objectives, and growth and learning objectives (Kaplan, 1992). The financial perspective offers a plan.

Customer Perspective.

Consistency, consideration now normal requirements and consideration of the new demand of the customers are essential to the restaurant industry’s success. The customers goals and objectives are linked to everything that catches their interest, including the products, services, and cost-effectiveness, which leads to an increase in income.  The top priority should be customer retention and market and account share because these are essential for profitability. Managers define their markets and customers in the customer segment of the BSC theory and track their success in these areas. To assess a company’s performance in the market, you must first determine its target audience and target market. The objective of creating customer happiness must take precedence after establishing the target market and client.

Internal-business Process Perspective.

Although both internal and external factors can affect a company’s success, the internal business processes that support its value offer are under its control. From an internal company perspective, all business processes that benefit clients and shareholders are carried out. Employees development, good relationship of employees and employers and government interventions are processes and competences give the business the ability to generate products and services that add value for customers and improve operational efficiency, increasing sales and profit margins. The needed to function at peak performance capability is determined by the internal business process, which focuses on the value proposition, innovation, operations, and service. For instance, cost effectiveness, along with quality in food production, procedure, and service, may be one of the internal business process goals and objectives in the restaurant industry. measures of internal business processes, such as those related to customer management, innovation, regulatory processes, and social processes, among others.

Learning and Growth Perspective.

The learning and development component of the BSC theory focuses on finding the infrastructure required to support long-term growth and progress. The approach for developing a company that encourages consistency, innovation, learning, and change is from the perspective of growth and learning. The learning and growth perspective also considers employee training and matching employees’ abilities to workplace requirements to support consistency and innovation.

Managerial And Strategic Measures Of The Business

Table 6. Coding Statement and Theme

Table 7. Summary of Managerial and Strategic Measures of the Business

Family-owned restaurants face a unique set of challenges and opportunities, and effective managerial measures are essential for their success. This analysis delves into various managerial strategies employed by family-owned restaurants, including innovation, membership in different organizations, customer satisfaction, employee training and seminars, sustainability planning, effective communication, financial management, and the utilization of technology.

Innovation is a key driver of success for family-owned restaurants. Staying relevant and competitive requires the development of creative menu offerings, unique dining experiences, and adaptations to changing customer preferences. Innovative approaches can encompass the introduction of new dishes, explore local and sustainable sourcing, or even revamp the restaurant’s interior design. The following statements, as articulated by the key informants, are being provided as evidence:

FOR 2:” Learn to be innovative all the time.”

FOR 4: “Innovate your ways more.”

FOR 6: “We also employed healthy menu options in the menu, because there are a lot of customers now looking for healthy version of baked products.”

FOR 7: “Sustainable food packaging is also a trend now in our restaurants.”

FOR 8: “And we made sure na we customized products and services depending on the budget of the client.”

FOR 9: “Innovation and reinvention in all aspects of our business served as our strategies.”

FOR 10: “From products and services, we reinvent and innovate depending on the need for these new normal operations. Eco-friendly packaging and materials are also being used now in our restaurant.”

Family-owned restaurants can benefit from joining industry associations, culinary organizations, or local business chambers. These memberships provide networking opportunities, access to industry trends, and a platform to collaborate with peers. Sharing experiences and best practices within these organizations can help in business growth. Statement from the participant as evidence:

FOR 13: “The different organization also have a great impact to us, membership in the org. gave us also motivation and connection in crafting our measures for the betterment of the restaurant.”

Customer satisfaction is paramount for family-owned restaurants. Building and maintaining a loyal customer base requires delivering high-quality food, excellent service, and creating a welcoming atmosphere. Feedback mechanisms and customer surveys can be employed to continually gauge and enhance satisfaction levels.

Investing in employee training and development is crucial for maintaining a skilled and motivated workforce. Family-owned restaurants can organize regular training sessions and seminars to improve service quality, culinary skills, and safety practices. Well-trained staff can deliver consistent and exceptional experiences to customers. The informants provide statements that serve as evidence:

FOR 4: “I make sure that the ambiance exceeds our customer’s satisfaction.”

FOR 12: “Customer Service Management that help improve customer engagement like loyalty programs since I do have a lot of repeat customers / platinum customers.”

FOR 13: “Isa pa sa particular ako sa business is the customer feedback, palagi ko sinasabi sa employees na kapag may feedback and customer/s always take note and discuss during the meeting I also include yan sa agenda kapag may staff meeting ako sa kanila.” (One thing that I am very particular with is the customer feedback, I always remind my employees to take note all customers feedback and discuss the issues during the meetig, it’s aways part of the agenda on staff meeting.)

Sustainability is increasingly vital for restaurants as consumers focus on environmentally responsible practices. Implementing sustainability plans can include sourcing local and organic ingredients, reduce waste, and adopt energy-efficient technologies. These measures align with customer expectations and can also lead to cost savings.

FOR 5: “I think business sustainability plan may be developed and created to contribute to the restaurant industry.”

FOR 6: “Sustainable marketing plan is a must in today’s business world. Strategies for me depend on the day’s activity. For the strategic measures we do have strategic plan that we observed in the restaurants that help us to sustain the business. Strategies on marketing, selling and product development.”

FOR 7: “Best marketing and financial plan made of different strategies may be created that will help to sustain business.”

Effective communication is essential for family-owned restaurants. This involves clear and open communication with both employees and customers. Communication channels can include in-house meetings, feedback boxes, social media, and responsive customer service. Transparent and timely communication helps in resolving issues and fostering trust.

FOR 3:” House rules form ng communication.” (House rules as form of communication.)

FOR 9: “Communication to the people in the restaurant and family itself is the key to success.”

Family-owned restaurants must prioritize financial management to ensure profitability and long-term sustainability. This includes budgeting, cost control, regular financial assessments, and managing cash flow. Well-managed finances enable the restaurant to weather economic uncertainties and invest in growth opportunities.

FOR 2: “Savings and right budgeting.”

FOR 3: “If the money is intended for the business, it should be for the business only.”

FOR 6: “We also invested on energy efficient appliances and equipment.”

FOR 13: “As I see it, the strategic measures applicable on restaurants like us are first rescheduling of bank loans, rescheduling of invoice payments and reduction of operating costs.”

Effective utilization of technology is vital for staying competitive in the modern restaurant industry. Implementing digital reservation systems, online ordering platforms, and point-of-sale (POS) systems enhance operational efficiency and customer convenience. Additionally, embracing social media for marketing and feedback collection is essential. The following statements, as articulated by the key informants, are being provided as evidence:

FOR 4: “Our recipes now in the restaurant is being defined in the system so the consistency of our food is maintained even if the chef is not here. But we have of course to use the technology at the right way, so it would work better. And now I am looking after the CRM technology.”

FOR 6: “This is an interesting question, by now I do invest in innovation and taking my businesses online para sakin it’s a form of rebranding ganon, kasi La Familia naman kilala na kami dito sa Baliwag pero after pandemic dapat pala hindi mag-settle for less dapat innovative at sa paglipas ng panahon sa advent ng digital world kailangan updated din kami sa online business operations kaya meron kami sa facebook yung La Familia Baliwag active in all our engagements and services. With the processed foods that we are offering now, we also do it online more convenient and economical. Before kasi word-of-mouth is one powerful tool ngayon social media ang pinaka-easy and cost efficient. Lahat kasi ngayon nasa facebook na kahit hindi kami mag-post yung customers others can easily see our products. Social media kasi is palagi nakakatakaw kapag nanood ka may makita ka nagiging curious ka to taste and you want to try. Before kasi we got to market our restaurant with repeat customers, word-of-mouth, and printed materials. Now we rebranded na more on online and social media ang postings and marketing namin and halos lahat naman dito sa Bulacan and even in other regions they have the own restaurant page, it’s part of the growing Restaurant industry.”

FOR 9: “After the pandemic, one strategic measure that I utilized, and I think best contributed to the success of the restaurant is the social media presence. Hindi dahil we use social media for marketing of our restaurant, but its presence really helps me keep updated on things. Lahat kasi ngayon nasa social media na, everything you want to learn, to see, to check and to review lahat nasa social media but of course with moderation and learnings dapat ang paggamit. This really help me see things of the business outside the box. It’s a learning avenue for me that really made more eager to pursue more especially that our catering services now is really booming that helps. Manood ka lang ng mga events on social media you will learn, and it will make you think more.”

FOR 11: “We do marketing online most of the time now.”

FOR 12: “For me the best strategic measure now is to embrace technology. I let technology work that also helped my staff. Technology now played a very important role in marketing, cost control, POS system.”

FOR 13: “Lastly I also tasked my staff to increase marketing efforts in all platforms lalo na sa utilization ng social media and it really helped and sustain our business.”

FOR 14: “Marketing now is mostly online.”

Family-owned restaurants can excel by employing a comprehensive set of managerial measures. Being innovative, actively participating in different organizations, prioritizing customer satisfaction, investing in employee training, adopting sustainability plans, practicing transparent communication, managing finances effectively, and leveraging technology can contribute to their long-term success and competitiveness in a dynamic and competitive industry. These measures not only help in navigating challenges but also in capitalizing on the unique strengths of family-owned restaurants, including personalized service and a strong connection to the local community.

Qualitative Implication and Discussions

The themes collectively reveal several significant values and implications    on the business strategies of family-owned restaurants for sustainability generated by NVivo.

Figure 3. Word Cloud

Continuous Learning and Process Development. The importance of embracing continuous learning and putting in place processes that develop with the business’s growth. The findings revealed that continuous learning, and processes ensure that the business stays relevant and viable.

Consumer Focus and Satisfaction. This revealed the value of focusing on customer experience and satisfying the customers’ dining needs. This confirmed that developing and maintaining rapport with customers is essential to the sustainability of the business.

Efficient Operational and Business Strategies. Efficiency in daily operations with strategies that focused on the following four areas (a) food quality control strategies, (b) service quality control strategies, (c) process improvement strategies, and (d) cost control strategies. These are the key to sustainability for their business.

Commitment to Innovation and Change. Adopting innovation as a strategy and realizing that, to stay relevant and competitive over the long run, they must shift from the mentality of “this is how we have always done things” to having the ability and willingness to change and adapt.

A successful business strategy must have clear strategic goals that outline the desired financial, customer, internal processes, and employee growth performance objectives (Asiaei, & Bontis, 2019; Panggabean, & Jermias, 2020). Restaurant owners are aware of the need of preserving customer happiness and concentrating on customer service management, as well as the fact that happy customers generate good word-of-mouth that helps to maintain long-term business.

CONCLUSIONS

The success of family-run restaurants can indeed be attributed to various factors, including recognizing risk-taking behaviors, selecting appropriate business opportunities, and leveraging potential for economic growth and job creation, even in the absence of specific skills and financial resources. Successful family-run restaurants often demonstrate a willingness to take calculated risks. Embracing new ideas, menu offerings, and service innovations that appeal to changing consumer preferences. For example, introducing unique dishes or adopting sustainable practices can attract a broader customer base. Taking risks in expanding operations, such as opening new branches or venturing into new markets. This requires careful market research and financial planning but can lead to increased brand visibility and revenue streams. And risking investments in high-quality ingredients, skilled staff, and upgraded facilities to enhance customer satisfaction and loyalty.

Grounded in the balanced scorecard theory, the study explored the managerial and strategic measures used by the family-owned restaurant owners to sustain their business. Thematic analysis yielded also the key barriers for implementation of the strategies in post-pandemic that should be given consideration by the owners. The business strategies that they are implementing this new normal provide avenues towards sustainability, both economic and social. The implications for positive contribution of the strategies provide avenue for positive social change include the potential for sustainability of family-owned restaurant businesses, which would support local communities through continued job creation, human capital development, economic development, and job sustainability.

The following conclusions were drawn based on the findings:

The interview responses reveal that family-owned restaurants in Region III are thriving in their post-pandemic operations. Despite the challenges brought by the pandemic, these businesses have maintained liquidity in their assets, and some have even managed to expand by opening new branches. The strategies they employed and the obstacles they overcame have played a crucial role in their current success. These findings underscore the sustainability of family-owned restaurants in the region, highlighting their resilience and adaptability in a post-pandemic world.

From in-depth interviews and observations, eight key concepts emerged that influence the sustainability of family-owned and managed restaurant businesses in the new normal. These include adapting to new normal consumer demands, meeting now normal requirements, maintaining consistency, fostering employee development, nurturing good employer-employee relationships, leveraging government interventions, driving innovations, and maximizing assets. These findings demonstrate that the strategic approaches employed by the owners have sustained their businesses post-pandemic. There is a consensus among family-owned restaurant business owners that developing operational strategies focused on customer satisfaction, continuous learning and process improvement, effective operations, and a commitment to innovation is crucial for longevity. Those who implement balanced operational strategies are likely to achieve higher levels of success and sustainability in their restaurants.

Post-pandemic, five key barriers have impacted the implementation of business strategies for family-owned restaurants: lack of demand, inflation, asset-related issues, shortages, and ongoing threats from the pandemic. While owning a restaurant is inherently high-risk, being aware of these challenges can make the difference between success and failure. The restaurant industry is highly competitive with significant failure rates. However, observations of family-owned restaurant operations reveal that these barriers have been transformed into opportunities for profitability by focusing on customer satisfaction and retention. Small business owners must be proactive in addressing these challenges to ensure growth and sustainability. Preparing for potential problems in advance rather than reacting to them is crucial for long-term success.

The designed framework is based on the Balanced Scorecard (BSC) theory, a foundational approach for identifying restaurant performance and strategies. This framework was developed to capture the operational strategies that family-owned restaurant business owners use to sustain their businesses. It integrates four perspectives—financial, customer, internal business processes, and learning and growth—each aligned with the strategic goals of the business. Through these interrelated perspectives, the framework helps understand how daily activities align with the business vision and strategic implementation. The financial perspective focuses on maximizing assets, the customer perspective emphasizes consistency and meeting new normal requirements and demands, the internal business process perspective includes employee development, good employer-employee relationships, and government interventions, while the learning and growth perspective highlights consistency and innovations. The four BSC tenets reflect both financial and non-financial measures of assessing business performance. The day-to-day techniques adopted by these family-owned restaurant business owners demonstrate that the theory’s principles are supported by the appropriate selection of key performance indicators. This framework suggests that family-owned restaurant owners who employ balanced business strategies are more likely to maintain the viability and success of their establishments.

Four key concepts emerged from the study: the profile of the business, business strategy towards sustainability, key barriers to implementing business strategies, and managerial and strategic measures. The findings revealed the essential business strategies employed by family-owned restaurants, which can serve as practical operational practices for achieving long-term sustainability. By adopting these strategies, family-owned restaurants can overcome barriers and enhance their sustainability in the competitive market.

RECOMMENDATIONS

The following are the recommendations of the researcher based on the conclusions identified above.

Based on the conclusion drawn for thriving family-owned restaurants in Region III, it is evident that these businesses remain liquid in terms of assets, and some have even managed to expand, despite the challenges brought by the pandemic. Firstly, maintaining a strong financial and cash position is crucial for objective decision-making and transparency among family members. It is recommended to always stay liquid. Secondly, during periods of sales decline, cooperation is essential. Owners should encourage open discussions about necessary changes and the reasons behind them. Family members often have valuable insights for navigating difficult times. Having a game plan is vital. This involves specifying areas needing intervention based on facts and figures and identifying immediate necessary measures. Open communication allows family members to contribute creative solutions to mitigate impacts. Small business owners must learn to maximize their human capital by evaluating the skills needed to sustain and grow their business. Once these skills are identified, owners should either upgrade their own skills or seek out individuals who possess them to ensure the business can survive and thrive.

The sustainability of family-owned and managed restaurant businesses in the new normal is influenced by several key business strategies: addressing new normal consumer demands, meeting now normal requirements, maintaining consistency, fostering employee development, building good employer-employee relationships, leveraging government interventions, driving innovation, and maximizing assets. It is recommended that family-owned restaurants implement a measurement tool to effectively and efficiently develop and apply these business strategies. Such a tool will help in systematically considering new normal consumer demands, adhering to now normal requirements, maintaining consistency, supporting employee development, fostering good employer-employee relationships, utilizing government interventions, promoting innovation, and maximizing assets. By focusing on these operational strategies, family-owned restaurants can enhance their sustainability in the competitive market.

Based on the identified barriers in implementing business strategies post-pandemic, it is recommended that family-owned business owners maintain a positive mindset and hire individuals with positive attitudes to build a stronger team capable of overcoming these challenges. Additionally, seeking out and participating in a business incubation program is highly recommended. Government agencies offer programs that support businesses in surviving and growing, significantly increasing the chances of overcoming barriers, increasing revenue, creating jobs, and obtaining essential support.

Considering these findings, it is recommended that family-owned restaurant business owners select performance indicators that focus on their customers, finances, internal processes, and learning and growth. Customer Focus: performance indicators such as customer satisfaction score, customer retention rate, and average plate-to-table time relate to effective customer strategies. Business owners in this study used strategies like evaluating customer service surveys, measuring customer retention through loyalty programs, and actively listening to customers to enhance satisfaction. Having a customer focus and satisfaction strategy was a consistent approach among the business owners in this study. Financial Focus: Performance indicators related to business finances could include net profit margin, working capital, and current accounts payable. Efficient operational strategies such as cost control, service quality, food quality control, and process improvement were employed by the study’s business owners. These strategies helped increase working capital and net profit margins while decreasing accounts payable. Internal Processes Focus: Performance indicators for internal processes could include measuring core competencies, investing in technology, and cross-functional training. Strategies used by the restaurant owners to improve effectiveness included measuring core competencies, investing in technology to stay relevant, and reducing cycle and serving time. Learning and Growth Focus: Performance indicators related to the business and employees’ learning and growth could include monthly sales growth, server benchmarks, continuous training, and investments in innovation.

The business owners in this study consistently used a commitment to innovation, change, continuous learning, and process development as tools for growth.

Background of the MASA Framework

The strategic framework derived from the study highlights the managerial and strategic approaches employed by family-owned restaurants in Region III to sustain their businesses post-pandemic. These approaches include:

Adaptation to Post-Pandemic Conditions: Family-owned restaurants adapted their operations to meet the new demands and challenges posed by the pandemic. This likely involved implementing safety protocols, adjusting menu offerings, and enhancing delivery or takeout services.

Customer-Centric Strategies: Emphasis on customer satisfaction and retention through effective customer service, personalized experiences, and loyalty programs.

Financial Management: Strategies to maintain financial health, such as cost control measures, maximizing operational efficiencies, and prudent financial planning.

Operational Excellence: Focus on operational improvements, including staff training, quality control, and process optimization to ensure consistent service delivery and product quality.

Innovation and Adaptability: Innovation in menu offerings, service delivery methods, and marketing strategies to stay competitive and meet evolving consumer preferences.

Family-owned restaurants in Region III navigate a complex landscape where strategic agility, customer focus, and operational excellence are crucial for sustainability. Despite facing various challenges, these restaurants offer vital services that cater to community needs and cultural diversity, contributing significantly to local economies. By leveraging strategic frameworks and addressing challenges proactively, family-owned restaurants can enhance their resilience and long-term viability in the dynamic restaurant industry landscape. According to Parsa et al. (2011), restaurants may face domestic and external (economic, political, and health issues) operational problems (low management, poor service, and low-quality goods).

Innovative sustainability planning, membership in trade organizations, open communication, consumer satisfaction, employee upskilling, effective financial management, and utilization of technology and platforms are crucial elements for success in family-owned restaurants. The MASA framework has proven to be a significant driver of positive experiences across all family-owned restaurants studied. However, these managerial and strategic approaches must be implemented thoughtfully. Restaurant management should tailor strategies to their specific needs and opportunities for future growth.

Significance of the MASA Framework

The MASA framework can be disseminated to trade organizations and institutions through seminars, conferences, webinars, and in-person training sessions. Given the diverse ethnic backgrounds of family-owned restaurant business owners in Region III, the local restaurant industry supports a rich tapestry of cultures. Enhancing sustainability within these businesses will contribute to broader sustainability within their communities.

Objectives of MASA Framework

Identify Effective Business Strategies for Sustaining Restaurant Development. Determine and implement business strategies that are most effective for sustaining restaurant development. This includes strategies focused on customer satisfaction, operational efficiency, financial management, and adapting to market trends.

Understand Impactful Business Strategies for Family-Owned Restaurants. Familiarize with business strategies that significantly impact the viability and success of family-owned restaurants. Key strategies may include customer relationship management, innovation in menu and service offerings, staff training and development, and community engagement.

Identify Principal Challenges to Implementing Business Plans for Bulacan’s Restaurant Industry Growth. Highlight the primary challenges faced in implementing business plans for sustained growth in Bulacan’s restaurant industry. These challenges may include economic fluctuations, regulatory hurdles, staffing issues, and changing consumer preferences.

Share Managerial and Strategic Approaches with Trade Organizations and Institutions in Region III. Disseminate managerial and strategic approaches and best practices to trade organizations and institutions in Region III. This includes promoting effective leadership, financial planning, sustainability initiatives, and collaborative partnerships within the restaurant industry.

Promote Success Stories of Family-Owned Restaurants in Region III.  Showcase success stories of family-owned restaurants in Region III to inspire and promote their achievements. Highlighting these stories can illustrate resilience, innovation, community engagement, and sustainable business practices.

Family-owned restaurants encounter a distinctive blend of challenges and opportunities, necessitating effective managerial measures for sustained success. This analysis explores a range of strategic approaches adopted by family-owned restaurants, which include: Embracing innovative practices in menu development, service offerings, and operational processes to stay competitive and meet evolving consumer preferences. Engaging with trade organizations to access resources, network with industry peers, and stay informed about trends and regulatory changes. Prioritizing customer needs and expectations through personalized experiences, efficient service delivery, and feedback mechanisms to enhance satisfaction and loyalty. Investing in continuous training and development programs to empower employees, improve service quality, and foster a positive work culture. Implementing sustainability initiatives such as reducing environmental impact, sourcing locally, and promoting community engagement to align with modern consumer values. Establishing clear communication channels internally among staff and externally with customers and stakeholders to ensure transparency and trust. Implementing sound financial practices including budgeting, cost control, and strategic investment to maintain profitability and financial stability. And leveraging technology and digital platforms for marketing, customer engagement, operational efficiency, and data-driven decision-making.

Innovation stands as a pivotal factor driving success for family-owned restaurants. To maintain relevance and competitiveness, it’s crucial to continually develop creative menu offerings, provide unique dining experiences, and adapt to evolving customer preferences. Innovative approaches may involve introducing new dishes, sourcing ingredients locally and sustainably, or refreshing the restaurant’s interior design. Membership in industry associations, culinary organizations, or local business chambers offers significant advantages to family-owned restaurants. These memberships provide valuable networking opportunities, insights into industry trends, and a platform for collaboration with peers. By exchanging experiences and best practices within these organizations, family-owned restaurants can effectively foster business growth.

Customer satisfaction holds paramount importance for family-owned restaurants. Establishing and nurturing a loyal customer base hinges on consistently delivering high-quality food, exceptional service, and fostering a welcoming atmosphere. Implementing feedback mechanisms and conducting customer surveys are effective tools to continuously monitor and enhance satisfaction levels. Investing in employee training and development stands as a cornerstone for maintaining a skilled and motivated workforce in family-owned restaurants. Regularly organizing training sessions and seminars can significantly improve service quality, enhance culinary skills, and reinforce safety practices. A well-trained staff is pivotal in delivering consistent and exceptional experiences to customers.

Sustainability has become increasingly crucial for restaurants, driven by consumer preferences for environmentally responsible practices. Implementing sustainability plans involves initiatives such as sourcing local and organic ingredients, implementing waste reduction strategies, and adopting energy-efficient technologies. These measures not only meet customer expectations but also contribute to cost savings and operational efficiency. Aligning with sustainability practices is essential locally, as it meets the growing demand among local consumers for eco-friendly dining options. Globally, this trend reflects broader environmental consciousness and industry efforts towards sustainable practices, influencing restaurant operations worldwide.

Effective communication stands as a cornerstone for success in family-owned restaurants. It entails fostering clear and open channels of communication with both employees and customers. These channels may include regular in-house meetings, feedback collection through boxes or online platforms, active engagement on social media, and responsive customer service. Transparent and timely communication plays a crucial role in resolving issues promptly, addressing concerns, and building trust among stakeholders.

Financial management holds critical importance for family-owned restaurants aiming for profitability and long-term sustainability. Prioritizing financial health involves implementing effective budgeting strategies, stringent cost control measures, conducting regular financial assessments, and managing cash flow efficiently. These practices are essential locally, as they enable family-owned restaurants to navigate local economic conditions and sustain operations amid uncertainties. Globally, sound financial management principles are universally recognized as foundational for business resilience and the ability to seize growth opportunities.

The effective utilization of technology is indispensable for maintaining competitiveness in the modern restaurant industry. Implementing digital reservation systems, online ordering platforms, and advanced point-of-sale (POS) systems significantly enhance operational efficiency and improves customer convenience. Moreover, leveraging social media platforms for marketing initiatives and gathering customer feedback plays a crucial role. This dual approach not only enhances local operational efficiency and customer satisfaction but also aligns with global trends towards digitalization and enhanced customer engagement in the restaurant industry.

Family-owned restaurants can excel by employing a comprehensive set of managerial measures. Being innovative, actively participating in different organizations, prioritizing customer satisfaction, investing in employee training, adopting sustainability plans, practicing transparent communication, managing finances effectively, and leveraging technology can contribute to their long-term success and competitiveness in a dynamic and competitive industry. These measures not only help in navigating challenges but also in capitalizing on the unique strengths of family-owned restaurants, including personalized service and a strong connection to the local community.

ACKNOWLEDGMENT        

All glory and praises should be offered to the Lord!

The researcher wishes to acknowledge with profound gratitude and deepest appreciation the following people who helped complete this work in their own special ways:

Dr. Antonino F. Alejandro, her adviser, for her unselfish guidance and brilliant suggestions throughout the duration of the study;

Dr. Alejandro Magnaye, her critic, for scrutinizing the manuscript and motivating the researcher to carry on;

Dr. Daryle Ace Cornell, panel chairman, for his constructve comments during the oral examination; Dr. Samuel Chua, Dean of the Graduates School, for his valued suggestions and assistance to the researcher;

Owners of Family-Owned Restaurants in Region III, who helped her in gathering data for the study;

Mary Grace A. Santiago, Micah Danella V. Mamucod, Melissa V. Simpao, Ramon M. Lazaro, Ma. Ruffa Victoria P. Levoit, Deane Genevive G. Geronimo, Mary Pauline M. Alincastre, Aldwin King J. Manlong, Raymond A. Carlos, Emerson SJ. Cruz, Lena N. Cañet, Nelidiza Arceta – friends of the researcher who always extended their helping hands and support;

Teresita C. Marcelo and Edgar A. Marcelo (desceased), parents of the researcher, for their special ways of extending love and guidance;

Ferlita M. Fabian, sister of the researcher, for her unending support;

Redford C. Samson, her husband, for his support, love and care;

Rojo M. Samson, my bundle of joy and ultimate blessing;

Above all, to Almighty God, for His unconditional love and blessings. G.M.S.

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