MBAH 10 Micro Market Analysis (word) China vs China

China vs. China…

A battle of the Chinese Restaurants

(David’s Tea House vs. Hap Chan)

A Micro Market Analysis

A Report Submitted to:

Prof. Jorge Saguinsin

By: (SOUTHERNERS GROUP)

Jose Emerson “Jemer” Afable

Ramir Anthony Blanco

Sherwin Pontanilla

Juan “Bong” Villamor

MBAH 10-B

In Partial Fulfillment of the Requirements in Entrepreneurship

Introduction

Let’s face it, when it comes to cooking, China could really own it! Why else would “Chinatowns” be so popular around the globe?

The history of Chinese cuisine stretches back for many centuries and produced changes from dynasty to dynasty and in each region according to climate, imperial fashions, and local preferences. Over time, techniques and ingredients from the cuisines of other cultures were also integrated into China’s cuisine due to imperial expansion, trade with other countries and the migration of its people. This led to a variety of dishes and preparation in Chinese cooking, leading the people topride themselves with what could be called traditional Chinese cuisine.

The best known and most influential in Chinese gastronomy are the Cantonese cuisine, Szechuan cuisine and the Jiangsu cuisine. And of these, the Cantonese cuisine suited the Filipino palate best amongst others and has truly touched our hearts. “Dim Sum” after all, which is a Cantonese term for small hearty dishes, literally means, “touch your heart”. These bite-sized portions are prepared using traditional cooking methods such as frying, steaming, stewing and baking. It is designed so that one person may taste a variety of different dishes. Some of these may include rice rolls, lotus leaf rice, turnip cakes, buns, dumplings, stir-fried vegetables, congee porridge and soups. On the other hand, the Cantonese style of dining, “yum cha”, combines the variety of dim sum dishes with the drinking of tea. Yum cha literally means 'drink tea'. Cantonese style is the unique and charm dishes, which enjoy a long history and a goodreputation here in the country and elsewhere.

Nowadays, Chinese cuisine has become so popular that Chinese restaurants already have franchises outside Chinatown to satisfy each and everyone’s Chinese cravings.

And with such a demand,comes the supply from numerous Chinese restaurants sprawled over the metro.

In this paper, we look at two popular and thriving Chinese restaurants that offer “Cantonese Cuisine”, David’s Tea House and Hap Chan.

Scope and Limitation

The scope of this report covers the following establishments: David’s Tea House in A. Venue Hall, Makati Avenue, Makati City and Hap Chan branch in Neptune St. Brgy Bel-Air 2 Makati City. The authors observed both businesses from 7:00 pm up to 9:00 pm on January 22 and 24, 2013 respectively.

And as for the subjects of this study, the research was only limited to observing the personnel of these restaurants and their respective customers. Online data available regarding the establishments were also used for the background of the establishments.

Methodology

The method employed in this study was purely naturalistic observation, in line with its scope and limitations. Both the restaurant staff and the customers were observed in their natural environment. Nobody was informed of the study and the authors just blended with the other customers.

Business Background

David’s Tea House is principally engaged in operating a Chain of Chinese Tea House in the Philippines, with its main branch located at TomasMapua Street, Chinatown. David’s Tea House started operations in the late 90’s and in 2003 began franchising opportunities to other Chinese food enthusiasts. As of 2012, David’s Tea House already has over 20 branches nationwide.

David’s Tea House has an above-average class style, with an ambiance of modern Chinese restaurants. It serves authentic Chinese food consisting of Noodles, Congee, Dimsum and Short Orders with classic Cantonese sauces. Despite its Chinese predominance, David’s Menu Is enriched by the adoption of Filipino & Hong Kong dishes that have been carefully redesigned to suit the local palate.

Hap Chan Teahouse is a showcase of the superior food quality and friendly neighborhood service of an authentic Hong Kong Tea House.

Starting out in 1997 as a small teahouse in Manila, and serving only the Filipino-Chinese favorites Mami, lugao and dimsum, Hap Chan Teahouse began franchising in 1999 through Hap Chan Trading and Management Corporation. Hap Chan teahouse has slowly grown its menu andestablished fifteen (15) stores by year 2009.

On September 2009, a new group of entrepreneurs joined the management to improve its commissary and restaurant operations by introducing new methods to ensure Hap Chan restaurants remain in the forefront of its kind in the food service industry. The company started its aggressive expansion in 2010, from fifteen (15), it continuously grow its business as far as Boracay and Cauayan Isabela. To date, there are a total of forty branches nationwide.

Observational Study Chart

Definition	Observations
	David’s Tea House Observation done on January 22,2013 from 7:00-9:00 PM	Hap Chan Observation done on January 24,2013 from 7:00-9:00 PM
Location
Channels of distribution that a company employs to take offerings to market and the places where its offerings can be bought or used by customers	·  Located along Makati Ave. fronting a mall and attached to a hotel (A. Venue) ·  Amidst are a number of 3-4 star hotels and other mid to high end restaurants ·  Very heavy traffic during rush hour and about 5 blocks away from Hap Chan	·  Located an establishment away from Makati Ave. and just a block away from Jupiter street and two blocks away from Buendia. ·  Very heavy traffic but is just walking distance from part of the Makati Central Business District
Establishment Description
Considers everything a customer sees, hears, feels and otherwise experiences while interacting with a company at all moments	·  About a 200 sq.m. dining area with tables of 10-20 seating capacity/table ·  Not congested looking ·  With lights a bit more softer ·  With a more high-end feel	·  About a 150 sq.m. dining area with tables with 4-10 seating capacity/table ·  Congested looking ·  With bright white lights ·  With a more cafeteria look
Customer Demographics
Individuals or organizations that use or consume a company's offerings to satisfy certain needs	·  Most of the customers were families occupying at least 75% of the establishment ·  The remaining were composed of big groups in their 20’s to 30’s ·  Customer turnover was slow as customers took a longer time than usual of stay at the establishment ·  With equal mix of males and females but mostly Chinese dominated	·  Customers were mostly smaller groups of working individuals in their 30’s up having after office dinners and a few drinks. ·  Customer turnover was much faster ·  Males dominated the crowd with an equal mix of Chinese and Filipinos
Menu and Pricing
Establishment's products and pricing	·  Dimsum – 75-95 ·  Congee – 90-155 ·  Noodles – 110-175 ·  Vegetable Dishes – 225-350 ·  Chicken Dishes – 250-340 ·  Beef Dishes – 265-340 ·  Pork Dishes – 260-430 ·  Fish Dishes – 340-430 ·  Prawn Dishes – 350-430 ·  Soups – 245-285 ·  Roastings – 220-460 ·  Rice – 195-260 ·  Fruit Shakes – 95-105 ·  Drinks – 60-90 ·  Hotpot – 350 and up ·  Rice Toppings – 165-175	·  Dimsum – 50-90 ·  Congee – 90-100 ·  Noodles – 90-160 ·  Vegetable Dishes – 150-175 ·  Chicken Dishes – 250-340 ·  Beef Dishes – 230-340 ·  Pork Dishes – 250-310 ·  Fish Dishes – 290-400 ·  Prawn Dishes – 300-450 ·  Soups – 160-260 ·  Roastings – 180-460 ·  Rice – 160-260 ·  Fruit Shakes – 75-80 ·  Drinks – 45-70 ·  Hotpot – 210-450 ·  Rice Toppings – none

Conclusion

At the start, there is a discussion on the scope and imitation, methodology and background of Happy Lemon and Serenitea. After this the results of the observational study are shown as well. And the parameters for the research are: customers, location, and establishment.

Admittedly, this report is succinct and brief, pithy to an extent. But in spite of its abridged nature, the research does speak volumes.

For instance, the data shows the observable demographics of both businesses. Customer profile, i.e., age, financial ability and buying habits can be seen as well. A discussion on the pros and cons of the each establishment's location is shown, too. Of course, this report wouldn't be complete without a deliberation of both businesses' product offerings. More important, the written work analyzes customer experience. This is vital since any business that wants to thrive must be customer centric.

All in all, the authorslearned from this research. They now have a better understanding of the milk tea industry. But aside from that, their powers of observation have been sharpened and heightened by this project. This will come in handy once they try to put up their respective businesses in the future. For that alone, this study was worth it.

Hap Chan has a better advantage in terms of:

• Price

o   Location, especially for the working crowd of Makati

David’s Tea House has a better advantage in terms of:

• Menu Offerings

o   Establishment set-up especially for family and special gatherings

Recommendations

David’s Tea House

• Lower price
• Seating for smaller groups to maximize space
• A roving DimSum  cart

Hap Chan

• A better menu (better classification of dishes)
• More choice of dishes
• HotPot offering in all branches