Presented to the College of Business

De La Salle University - Manila

Term 3,​ ​A.Y. 2018 - 2019

In partial fulfillment
of the course
In MARKET1 K31

SWOT and TOWS Matrix of Ate Rica’s Bacsilog.

Submitted by:
Banaag, Miguel
Dee, Nikki
Caesar, Paul
Galupe, Alec Gideon

Submitted to:
Dr. Bob Capistrano

June 19, 2019

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Company Profile

Ate Rica’s Bacsilog is an on-the-go food market that is managed by Rica Peñalosa and is best
known for serving tasty, quality, fast, and clean meals located in schools, commercial spaces, and
supermarkets. Their primary product is the bacsilog or also known as bacon silog. It is an innovative and
alternative variant on the Filipino silog variety. In addition, they also have a unique cheese sauce to add
to their ingredients that establishes their competitive edge in the industry. Moreover, with their efficient
and friendly services, they are able to provide all-day breakfast combo meals that prioritizes their value
for students, young professionals, office workers, mothers, and the public in terms of monetary units.
Thus, allowing them to build connections with their customers towards not only profitability, but also
brand loyalty.

The company began when Rica, who was 46 years old at that time, decided to work hard to
achieve her dream with the idea to prove that she does not have to work abroad just to earn money.
Though it was a tough challenge, her determination led to her accomplishment and now shares her story
of success. She started as an end-of-contract employee who transferred from one job to another because
despite being an information and technology graduate, she had a hard time searching for a regular job. For
this reason, she decided that it was time to work abroad. However, while waiting for her work visa, she
established a food cart behind De La Salle University’s Taft Avenue campus, which happens to be near
her place. She also borrowed some money worth P20,000 from her father so she could start.
Consequently, it became popular because of the uniqueness with the bacsilog meal, making her the owner
of Baconnoisseur Corporation, the company behind the famous Ate Rica’s Bacsilog outlets.

SWOT Analysis

Strengths Weaknesses

1. Well-known 1. Proportion Size

2. Unique cheese sauce and bacon silog 2. Sanitation and Risk of Contamination
3. Affordable 3. Unhealthy Menu
4. Quality taste a. Oily
5. Fast service b. Preserved Foods
6. Good customer interaction
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MATRIX
Opportunities Threats

1. Expansion 1. Pricing
2. Collaborate with other companies 2. Unclean Environment
3. Adapt to new systems 3. High Rent
4. Cheaper Alternatives
5. Limited Seating

Strengths

Ate Rica’s Bacsilog is well-known around the area and it has been operating since 2006. Today,
Ate Rica’s Bacsilogan has over 14 branches across Metro Manila. This gives them the advantage of being
well recognized for their delicious food, thus, attracting for customers.

Another strength trait is its unique cheese sauce and bacon silog. This is used as one of their key
ingredients which separates them from other competitors. This provides them an edge in terms of
competitiveness.

In addition, the meals offered are affordable, in comparison to restaurants such as McDonald’s,
Jollibee, KFC, etc., Ate Rica’s Bacsilog is the best bet for a budget meal. The quality taste of their
products are one of the reasons they are continuing to make more profit for the company. The delicious
ingredients being included and the oil substance which gives it a better taste.

Since the stall is “on-the-go”, it is expected to have fast services from their staff and employees.
They give the foods as quick as possible and simultaneously providing tasty food products. Lastly, the
company also offers efficiency, as well as proper customer interaction. Moreover, staff members always
make sure that the customer is receiving the meals he ordered and also giving recommendations on which
to purchase if they are undecided, further boosting their brand awareness. ​Blah blah blah

Weaknesses

Ate Rica’s Bacsilog proportion sizes are considered to be a weakness in their business which
could lead them to a loss from their customers and their profits. When purchasing their products, the
employees have this tendency to put less meat in all the meals they are serving. The quality of food, in
terms of taste, of Ate Rica’s Bacsilog are in no doubt consistent, however, serving sizes are an issue. This
issue is present in majority of the products they are serving. This weakness is one of the reasons
customers choose not to purchase food from Ate Rica’s Bacsilog, due to the “less meat, and more rice”
scheme they are using.
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Sanitation is the key factor to sustainability of any restaurant or food serving business. One of the
factors we can observe with Ate Rica’s Bacsilog is that they lack cleanliness in their station. The material
they use to cook is not properly washed sometimes, and most of their equipment are already rusty. The
employees seem to lack the discipline and initiative to pursue cleanliness in their business. This weakness
also leads them into having a risk of contamination with insects or rodents. In a post in the DLSU
community forum, a student posted that a baby roach was found in their food served by Ate Rica’s
Bacsilog. This is a huge damage to the image of their company and if they would focus on being a high
sanitation centered business, then this incident would have never taken place.

Another weakness one can observe is the unhealthy food they produce and serve to the public.
Most of the products they serve contain and are cooked in a large amount of oil. This is a health risk and
could cause acne or pimples, and may lead to heart problems. The food used in Ate Rica’s is mainly
frozen and preserved foods, which contain many chemicals and are usually the main causes of cancer
(Mann, 2019)
.
Opportunities

One opportunities that Ate Rica’s Bacsilog has compared to other similar competitors that they
have this area growth. It was 2017 when they first expand their business, and it is in Cebu ​After receiving
inquiries for franchising, Peñalosa sought help from one of her loyal customers in DLSU to help her craft
a franchising program. In 2017 they formed a corporation towards the franchise of Ate Rica’s Bacsilog
and named it Baconnoisseur Corp., which will not only operate Ate Rica’s Bacsilog outlets, but also
franchise it to other investors. Four months later they opened their first franchise branch. As present,
Baconnoisseur Corp. has a total of 34 franchised outlets across the Philippines and is opening three new
branches in Cebu. With the fast rising of Ate Rica’s Bacsilog, Peñalosa also said that they were aiming
for 150 stalls by 2020.

Ate Rica’s Bacsilog is one of the most prominent all-day breakfast food stalls based on its
popularity among different schools/universities. It is not only known for its tasty and delicious recipe of
famous their Bacsilog because they also have a wide variety of food that never gets old to the taste of
their customers, which makes Ate Rica’s Bacsilog a non-seasonal food business that is unlike any other.

Ate Rica’s Bacsilog are commonly located outside school campuses and workplaces. The
company aim to produce a quality and tasty food with a fair value for market, who mainly targets students
and workers. Ate Rica’s Bacsilog has cheaper prices compared to similar competitors. As common
knowledge, customers know that Bacon is expensive, but Ate Rica’s was able to adjust and make a budget
friendly meal that attracts mostly students and workers who wants to eat food that is worth their money.
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Threats

Ate Rica’s Bacsilog, being situated in Agno, is challenged by its competitive, yet profitable
environment because of the amount of food stalls and restaurants in the area along with the given fact that
Agno is within the vicinity of multiple DLSU buildings, making it the next best area to raise start-up
businesses along with AnimoBiz in Bloemen Hall. Agno is faced with multiple challenges of its own such
as limited seating, high rental costs, a lack of facilities, and a dirty environment. A tradeoff for this is to
cater to the LaSallian community, which is comprised of people who are busy and need quick meals to fill
their stomachs in between classes. For those who prefer to eat their food in Agno, seating is provided, but
LaSallians are expected to practice CLAYGO and to clean up after themselves.

The main competition of Ate Rica’s Bacsilog consists of the stalls that provide fast yet quality
food. Ate Rica’s sells their famous ​Bacsilog for a higher price in DLSU compared to other branches due
to a high renting cost. It costs Php90 for one bowl of Bacsilog, but compared to other food stalls, Ate
Rica’s portion sizes fall short. It is possible, however, to get a larger portion size and/or more food for the
same price in other food stalls such as Caric’s, Ged and Bart’s, Good Munch, etc…

SWOT Matrix:

Threats Strengths-Threats Weaknesses-Threats

Action Plans Action Plans

T1 ​Pricing - The purchase of quality - Proportion sizes are

T2 ​Unclean Environment food is not only what
T3 ​High Rent the customers are
T4 ​Cheaper Alternatives getting, but good
T5 ​Limited Seating customer service as
well. The good and fast
customer service makes
worth the price and
that’s why customers
continue to purchase the
products. (T1, S6)
- Agno merely provides
convenient seating, but
students are willing to
go to nearby areas such
- Implementing sanitary
as Gokongwei Study
Hall and the rest of the
DLSU campus to
improve the
reasonable in relation to
high rent expense. The
ingredients and
equipment are
expensive, and cutting
proportion sizes makes
it convenient for them
because high rent
expense. Cutting
expense for meat and
other raw goods provide
a benefit for them to
have a n increase in
profit. (T3, W1)
measures solves an
unclean environment.
The improvement of
their equipment and
MARKET1 K31
MATRIX
environment in which
they eat. Their fast
service makes it
convenient for students
so they get it on the go
instead of waiting where
there are limited seats.
(T5, S5)
- The unique cheese sauce
and Bacsilog are more
preferred than other
cheaper alternatives
because of their unique
signature dishes. Unlike
other tapsilog stalls,
they produce similar
products. However, Ate
Rica’s provides
something different that
customers are interested
in. (T4, S2)
-
Opportunities Strengths-Opportunities Weaknesses-Opportunities
Action Plans Action Plans
O1​ Expansion - Since the company is
O2​ Collaborate with other well-known, it is more
companies capable of expanding to
O3​ Adapt to a new system other areas more than
just within Metro
Manila. (O1, S1)
- Since the company is
well-known, it can start
collaborating with other
companies to further
boost its exposure
within the market.
(O2, S1)
- With the company’s
good customer
interaction, it has the
opportunity to adapt to
new systems such as
SWOT-TOWS
facility will help boost
the customer
satisfaction. (T2, W2)
- Unhealthy menu makes
the pricing reasonable
since people are lining
up for quality food of
their preference
regardless of how pricey
it is when comparing to
other food stalls.
(T1,W3)
- The company proportion
size might improve if it
collaborates with other
companies because from
there, they can alter
some of the content like
how make-up industry
works where the gurus
work with other gurus
for product inspirations.
(O2, W1)
- The company may be
able to solve its issues
with sanitation and
contamination by
adapting to new systems
where they implement
an accessible and easier
MARKET1 K31
MATRIX
implementing a delivery
system to those who’d
like to stay at home or
are busy with their
schedules. (O3, S6)
SWOT-TOWS
way to manage it.
(O3, W2)
- The company may be
able to solve its issues
concerning sanitation
and contamination by
collaborating with other
companies in cleaning
since their stalls are
usually beside other
stalls that are owned by
different managers.
(O2, W2)

Recommendation

The group recommends that the company expands further to other areas and also implement a
delivery system where people can order from their homes since the location for Ate Rica’s Bacsilog are
quite specific and are nearer around commercial areas, and not around townhouses.

The group also suggests that they would purchase new equipment and be consistent with
sanitation. Although, agno is an unclean environment, the LaSallian community should still be committed
to providing a clean and proper environment for their customers.
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References

Baconnoisseur Corporation. (2017). The Bacsilog: Ate Rica's Bacsilog. Retrieved from
https://www.bacsilog.com/the-basilog

Cosep, M. (2019). The success story behind Ate Rica's Bacsilog. Retrieved from
https://cebudailynews.inquirer.net/219577/the-success-story-behind-ate-ricas-bacsilog

Gunnars, K. (August 1, 2017). Nine ways that processed foods are harming people. Retrieved from
https://www.medicalnewstoday.com/articles/318630.php