Case Study on Chowking Restaurant

1

Introduction

Chowking is one of the most promising Quick Service

Restaurants (QSR) in the Philippines and a business unit of the QSR

conglomerate Jollibee Foods Corporation.

Since the beginning of the acquisition of Jollibee Foods

Corporation of Chowking, the latter has paved its way to a better

business performance as evidenced by its overflowing increase in total

assets accounting to PhP 2.25B from PhP8M in1985.

Quintuple increase in sales have been recorded between the

periods of 2001 and 2007 that accordingly resulted to increase in its

market share penetrating that of its giant indirect industry competitors

and leaving behind its direct competitors in the race to winning the

market.

Also, Chowking has outperformed its direct target market

competitor McDonalds in terms of the number of total channels and

rate of increase in market shares.

Truly, Chowking has made a mark in its market.

The Challenge to Chowking Food Corporation; however, does

not stop here. The food industry is among the industries that is already

in its maturity stage and possesses low barriers to entry for new

market players, thus, its market is one with the bargaining power given

the availability of a number of substitutes to its products.

Simultaneously, high value for product differentiation proved to be a

powerful tool to remain in the industry and Chowking is not an

exception to those with highly positioned product differentiation.

The challenge; however, is posed by the goal of continual

growth of the company beyond the aforementioned condition of the

Food Industry. Further, Chowking must penetrate the students market

to expand its market share. Lastly, with the depreciating purchasing

power of Global Pinoys how can Chowking create opportunities in this

dilemma to support its goal for continual growth?

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Situational Analysis

The Emergence of the Prince of QSR

Chowking with its current market position can be said the

Prince of the Quick...