Feasibility study of a food kiosk at university belt of Iloilo Science and Technology University

Abstract

Filipinos love to eat and they tend to spend more on food. They also prefer food that are handy and can be bought on the sidewalk. Many cannot afford to go to restaurants to have their snacks so they settle for cheaper meals but still fit their tastes. This is true for students and those on the lower social classes who stay on a budget. Ilonggos have seen how rapidly Iloilo has changed in a span of 5 years. The development of Iloilo City gives the entrepreneurs a lot of opportunity to put up food kiosk business. A food kiosk is a small, temporary and stationary booth used in high-traffic areas and frequently located in shopping malls or in busy city streets. It uses small space and needs only one or two staff for selling the product. One of the most common characteristics of a food kiosk is that it offers affordable food products usually in small servings. A food kiosk business is suited for those who are still starting up and have limited capital (Eldridge, 2015). Gelo (2015) state that food kiosk business is one of the fastest course of doing and growing a business. It has become the most preferred type of business new entrepreneurs venture into because it needs only a minimal capital but has a strong earning potential. It is a more conservative approach in entering the food business than competing immediately with the bigger and more popular food chains. As for the record, even big fast-food chains are now using food kiosks to serve as their promotional strategy for their product and to reach out to the market that is not captured by their permanent locations. Food kiosk business is popular among all age groups with different economic classes and with different backgrounds. It is the topmost small business to start with in the Philippines and the choice of most budding entrepreneur. But since it is easy to enter the food kiosk market, there are also be many competitors. So in order to be successful and achieve sustainability in this industry, the owner should make sure that his kiosk has a focus concept and with a unique business concept. Also, it is important to sell quality product at a reasonable price to have return customers. Iloilo City in particular is a highly urbanized and a developing city. Based on the 2010 Census of Population and Housing (CPH), the city has an annual population growth rate of 1.49 percent from 2000 to 2010 and if this rate continues, it is expected that the population will double in 47 years. The Iloilo Science and Technology University is one of the universities located in Iloilo City and has a total population of 6,646. It is also situated near an elementary school with an estimated population of 960. The university is located in Barangay Burgos with a population of 1,920 and the neighboring barangay is Barangay San Nicolas with a population of 1,465. With this, the researcher wants to probe how feasible it is to put up a food kiosk business along the university belt, specifically Iloilo Science and Technology University, what are the consumers’ reactions in having a product in the food kiosk which is two-in- one (beverage at the bottom and chips on top) cup and whether this business in the aforementioned location will be a captured target market for consumers. Despite the sprouting of restaurants in malls, food kiosk is still feasible because it is much cheaper and easily manageable to start with compared to a small restaurant. It does not require large spaces which means a lower monthly rent. Also, it targets a larger portion of the market since it offers cheaper food than a restaurant and the food can be prepared faster. In order to put up a food kiosk business in the Philippines, one must have enough capital. The other things to consider are a strategic location where there is a large number of foot traffic and accessible to possible customers, a good concept with a good product and a good stall design to attract customers. One can put up a food kiosk business in two ways. An entrepreneur can create his own or get a franchise. Getting a franchise is easier but can be costly than creating one’s own business since there may be franchise fees and royalties to pay every month. The legal requirements in setting up a food kiosk business is to register first the trade name with the Department of Trade and Industry if it is a sole proprietorship or with Securities and Exchange Commission if it is owned by a corporation. Then, permits must also be secured from the barangay where the business is located and also a business permit from the municipal or city hall. Lastly, the business must be registered with the Bureau of Internal Revenue and must be able to comply with the necessary requirements and taxes that go with it. Statement of the Problem The aim of this study was to determine the feasibility of a food kiosk business along the university belt of Iloilo Science and Technology University in Iloilo City for the year 2018 to 2022.