The country’s food service industry has continued to improve over the past years due to the
stronger consumers’ purchasing power, influenced by today’s fast-paced lifestyle. Food service
players are increasing their network to cater to more Filipinos who demand for more
convenience. With the growing urbanization across the country, Filipinos are having more busy
lifestyles that pushed them to buy cooked foods or simply dine out. Also, those who are residing
or working in key cities are also facing a worsening traffic and transportation issues which
resulted to the growth of home delivery or takeaway outlets.
Different types of food establishments are being set-up across the country to provide Filipino
consumers with their needs. Based on the preliminary results of the 2017 Annual Survey of the
Philippine Business and Industry (ASBPI), there were 5,540 establishments with total
employment of 20 and over in the formal sector of the economy that were engaged in
accommodation and food service activities.
By industry, majority of the establishments with total employment of 20 and over were engaged
in restaurant and mobile food service activities numbering to 3,398 or 70.4% of the total. Across
industries, restaurants and mobile food service activities employed the highest number of
workers of 152,276 or 61.0 percent of the total. Short term accommodation activities followed
with 84,679 workers or 33.9 percent. Beverage serving activities came third with 7,723 workers
(3.1%). The average number of workers was recorded at 45 per establishment. Short term
accommodation activities posted the highest average number of workers of 65 per
establishment, followed by event catering and other food service activities with an average of
59 workers per establishment.
Among the industries, short term accommodation activities paid the highest average annual
compensation of PHP231.0 thousand per paid employee. This was followed by event catering
and other food service activities and restaurants and mobile food service activities, paying
PHP189.6 thousand and PHP150.2 thousand per paid employee, respectively. Restaurants and
mobile food service activities accounted for the highest share to income amounting to
PHP166.6 billion or 54.4 percent of the total income. This was followed by short term
accommodation activities with PHP127.8 billion income or 41.7 percent. Restaurants and
mobile food service activities had the highest contribution to total expense amounting to
PHP139.7 billion or 56.5 percent. This was followed by short term accommodation activities
and beverage serving activities with corresponding expenses of PHP97.4 billion (39.4%) and
PHP5.3 billion(2.1%).
The growing demand for convenience has led to the expansion of the Philippine food service industry in
the form of fast-food restaurants and casual dining restaurants. Full-service restaurants are also growing,
especially in fashionable shopping or dining areas in Metro Manila. Competition in this segment is keen,
with restaurant operators always interested in new and exciting menu ideas to attract customers. At
present, food service players focus on attracting millennials who comprised one third of the country’s
population and are recognized as the biggest spenders. Given this, this consumer group continues to
inspire innovations within the food service industry. More digital initiatives will be seen from the
industry players to extend their reach, especially on social media.
