Hidalgo Restaurant, Inc.

Succeeding as an Entrepreneur

A Written Analysis of the Case

Presented to the Faculty College of Business Administration
Holy Cross of Davao College
Sta. Ana Avenue, Davao City

In Partial Fulfillment of the Requirements for the Subject

MM 8: Strategic Marketing Management

January 2011

I. Executive Summary
Hidalgo is one of the most successful restaurants in Glorietta 4. Hidalgo
was conceived in 2000 and established in 2002 when the Ayala Glorietta multimall complex expanded. Named after Felix Resurreccion Hidalgo, the
nineteenth-century Filipino painter. The restaurant is similar to the European
inspired Filipino adapted no borders cuisine of Corsica (The first cuisine
incorporating European influence restaurant) but with its own unique menu.
Tinong did not want Hidalgo to siphon customers away from Corsica, so he made
sure that the Makati restaurant had its own style and approach. Hidalgo
restaurant owned by Faustino Tinong Alfon. Tinong is a optimistic, tenacious try
and try again entrepreneur. Born to a well-to- family with modest property
holdings. Encouraged by the modest income, he graduated to selling high-end
condo units while he completed a bachelors degree in economics at the Ateneo.
He quitted his job to manage the family property rental business, and set time for
his entrepreneurial venture. For Tinong, entrepreneurs are both visionaries and
artisans. Hidalgo restaurant serves fusion food to well-heeled Filipinos and
expatriates. It was an even bigger success than his first business venture, and
the entire investment was covered in less than twelve months.

II. Statement of the Problem

General:
How will Tinong be able to stay in trend and rise for excellence in food
business industry?
Specific:
What traits and personality should he possess to face those challenges
along his way?
What are the success factors in Hidalgo ventures?
What will he do in running his restaurants constant turnover of kitchen
personnel?
What strategies should he develop?
III. Objectives of the Study
A. Statement of Objectives
General:
To be able to recognize in the business of building relationships and
partnership among customers as their best, most reliable, and most
economical quality foods.

Specific:

 To remain and improve their employees to discover themselves their

talent and their potentials and in building relationships among each
other;
To be the preferred restaurant of Filipinos and expatriates, providing
total customer satisfaction through quality, service, cleanliness, and
value.
To provide total customer satisfaction and exceed customers
expectations through setting the trend in raising the bar, to be the
change agents contributing directly to the countrys development,
creating standards of excellence which every Filipino may aspire,
To be in the business of building relationships and partnerships, among
which one partner is the customer, in order to maximize earnings that
will benefit the supplier, employees, and investors.
B. Matrix of Objectives

Objectives
1. Provide total customer satisfaction

exceed customers expectations through

quality, service, cleanliness, and value
2. Improve and increase employees

salary and benefits

3. Building relationships and

partnerships
4. Creating good and quality standards
5. Customizing food product and service

design

C. Criteria of Objectives
Objective
1

Weights
50%

Reason for the Weight Given

This must be focus and enhance to
remain the customer and be
competitive enough through the

40%

competitors
The salary and benefits of the
employee must be prioritize to gain

3
4

7%

trust and loyalty among employees

To be able to build relationship among

3%

partners is important also in business

Good and quality standards is also
important in a success of a business

TOTAL

100%

IV. Situational Analysis

A. Internal Factor Analysis Summary (IFAS)
Internal Factors

Weight

Rating

Weighte

Comments

d Score
Strengths
S1: One of the most

Because of the

successful restaurants in

owners attitude

Glorietta

towards the

S2: Gross over two

business
The business

million monthly and

netted enough profit
S3: Tinong (owner) is an

is successful
and profitable
A very good

optimistic entrepreneur

trait and

completed a bachelors

characteristic

degree in Economics at

of an

the Ateneo
S4: The good ambiance,

entrepreneur
Very important

size and consistency of

factors

the restaurant

contributing to
the success of

S5: Tinongs keen desire

the business
Competitive

to compete in Makati and

and possess a

his motivation

strong
determination
in life

Weaknesses
W1: Constant turnover of
kitchen personnel

Employees are
one of the most
important
assets in a

W2: Competitors
W3: Target market

company
Competitive
You must know
your target
market.

W4: Location
W5: Management always
keeps an excess number
of employees on the
payroll in case a crew of
employees is suddenly
pirated by a competitor

A. External Factor Analysis Summary (EFAS)

External Factors

Weight

Rating

Weighte

Comments

d Score
Opportunities
O1: The target market
who are the Makati

Big time
customers

professional and
residents
O2: Publish books on his
customers
O3: The market

Good idea to
remain their
customers
Good

segments combined by
key descriptors of taste
and lifestyles
O4: Dined and travel at

International

all upscale restaurants

restaurant

around the world

O5: International cuisine

World Class

restaurant
Threats
T1: Competitors in

Must be paid

Makati, the premier

attention

commercial location in
Metro Manila
T2: Moving on another

Moving on

location

another
location means
losing the
business

Total

1.0

C. Strategic Factor Analysis (SFAS)

Strategic
Factors

Weigh
t

Ratin
g

Weighte
d Score

Duratio
n
S
H
O
R
T

S1: One of the

I
N
T
E
R
M
E
D
I
A
T
E

Comments

L
O
N
G

Because of

most successful

the owners

restaurants in

attitude

Glorietta
S2: Gross over

towards the
business
The business

two million

is successful

monthly and

and profitable

netted enough
profit
W3: Constant

Employees

turnover of

are one of

kitchen personnel

the most
important
assets in a
company

W4: Management
always keeps an
excess number of
employees on the
payroll in case a
crew of
employees is
suddenly pirated
by a competitor
O5: The target
market who are
the Makati

Big time
customers

professional and
residents
O6: Publish

Good idea to

books on his

remain their

customers
T7: Competitors

customers
Must be paid

in Makati, the

attention

premier
commercial
location in Metro
Manila
T8: Moving on

Moving on

another location

another
location
means losing
the business

Total Score

1.0

D. The SWOT Matrix

Strengths-Opportunities Strategic
Options
(Offensive and Proactive Actions)
Hidalgo Restaurant is known as

Weaknesses-Opportunities Strategic
Options
(Defensive and Proactive Actions)
The constant turnover of kitchen

the best European cuisine in

personnel

because

of

his

Makati and was patronized by

employees were in demand in

many foreigners it could be a

the hotel and restaurant industry

world class restaurant in the

somehow help them to do by

future

their own, having the ability to

They have the good ambiance

do the work by themselves

and delicious foods that could

benefited them also because of

attract more tourists

its necessity to succeed in the

The business is the change

specialty restaurant business.

agents contributing directly to

the countrys development which
create standards of excellence
to every Filipino
Strengths-Threats Strategic Options
(Offensive and Reactive Actions)

The success of the restaurants

Weaknesses-Threats Strategic
Options
(Defensive and Reactive Actions)
The constant turnover of kitchen

can be pirated by the

personnel because they

competitors

employed international
standards at his restaurants and
his training programs were so
rigorous, his employees were so
in demand in hotel and
restaurant industry. The
competitors can use it against
them.

V. Strategic Alternatives

A. Management Action Matrix

Objective

Management
Action 1

Management
Action 2

Management
Action 3

Provide customer

Think innovative

Continue to find and

satisfaction on

ways on how to

develop ways and

customers

provide customers

ideas on customers

expectations through

expectations on

satisfaction

quality service,

quality service,

cleanliness, and

cleanliness and

value
Increase employees

value
Improve the

Think of more ways

salary and benefits

employees

to compensate

compensation and

employees

benefits to avoid
resigning of
3

Building relationships

employees
Develop more

Think more ways and

and partnerships

strategies on

use more strategies

building

on building

relationships and

relationships and

partnerships

partnerships among

Offer good and

Creating more good

customers
Continue improving

quality standards

and quality foods to

and finding ways to

the customers

innovate the food

and quality standards

of the business
Alternative Course of Action 1:
Provide customer satisfaction on customers expectations through quality
service, cleanliness, and value to continue the good relationships and
partnerships among customers.
Alternative Course of Action 2:
Think innovative ways on how to provide customers expectations on
quality service, cleanliness and value. It must be done to satisfy the customers
and strengthen the relationships among each other.
Alternative Course of Action 3:
Continue to find and develop ways and ideas to satisfy the customers.
B. Scoring of Alternative Courses of Action
Objective
1
2
3
4

ACA 1
4
3
4
3

ACA 2
4
4
3
4

ACA 3
3
3
3
4

VI. Analysis and Conclusion

A. Alternative Courses of Action Matrix
Objective
1
2
3

Weights
50%
40%
7%

ACA 1
4*0.50=2.00
3*0.40=1.20
4*0.07=0.28

ACA 2
4*0.50=2.00
4*0.40=1.60
3*0.07=0.21

ACA 3
3*0.50=1.50
3*0.40=1.20
3*0.07=0.21

4
TOTAL

3%
100%

3*0.03=0.09
3.57

4*0.03=0.12
3.93

4*0.03=0.12
3.03

B. Conclusion
The table above shows that the percentage weights used by the company
measures the effectiveness of the solutions given. Quality has always meant
ensuring that customers receive food products that are the result of the best
ingredients, strict standards, and proven preparation procedures to guarantee a
safe, great tasting food. Quality Management which instills the culture of quality
through such principles as being customer driven, managing with facts, valuing
people, and continually improving every aspect of the business.
VII. Recommendation to Management
The company should develop this strategy to improve and think of
innovative ways on how to satisfy customers expectations regarding quality
service, cleanliness and value. And also to strengthen the relationship among
each other. Service thats fast and friendly has always been the foundation for
the success of the business by using service enhancement techniques they will
be able to provide service that exceeds the customers expectations. This
process empowers restaurant teams to deliver customer satisfaction by training
crew members to think like customers and providing them with the tools and
authority to deliver exceptional customer experiences. Cleanliness should be the
principle when they first opened the doors of the restaurant. This means having
the cleanest and freshest facilities from the kitchen and dining room to the rest

rooms and parking lots. Value means low prices and much more. Today, value is
defined as the total experience you receive for what you pay and the total
experience includes great food, friendly folks, a clean environment, as well as
quick and accurate service.

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