Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City

The Impression of Eatery Owners on Higher Cost Rice in

Butuan City

A Research Paper presented to the Faculty

Of Father Saturnino Urios University

Bp. Pueblos Senior High School

In Partial Fulfillment of the Requirements For

Practical Research 1

Submitted by:

Añora, Fides Marie J.

Cuenca, Ilene D.

Quijada, Klienth Jefferson J.

Sarento, Miko Evanne P.

Sauro, Jollibee O.

Timkang, Elizabeth Grace Q.

Unabia, Justine Fe M.
 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
Chapter I

THE PROBLEM AND ITS BACKGROUND

This chapter includes the introduction,

theoretical framework, statement of the problem, scope

and limitations, conceptual framework, significance of

the study, and the definition of terms used.

1.1 BACKGROUND OF THE STUDY

The global rice market is an intricate and complex

system, and fluctuations in supply and demand can cause

significant changes in prices. Rice, being a vulnerable

crop, has the highest probability of simultaneous crop

loss during an El Nino event (Agricultural Systems,

2023). One major factor affecting the price of rice

internationally is weather conditions. Natural disasters

such as floods, droughts, and hurricanes can have a

significant impact on the rice crops, affecting the

supply and causing prices to rise. El Nino could further

exacerbate risks on global production in other major

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
Asian rice producers such as Thailand, Pakistan and

Vietnam (Consumer News and Business Channel, 2023).

The Philippines is one of the largest consumers of

rice in the world. However, the country has been facing

a recurring problem of higher-cost rice which affects

the majority of its population who rely on it as their

staple food. The reasons behind the high cost of rice

are numerous and complex.

One of the main reasons is that the country is

heavily reliant on rice imports. This dependence on

imports makes the price of rice susceptible to

fluctuations in the global market. Additionally, the

high cost of transportation and distribution also

contributes to the increase in rice prices. According to

a Philstar article written by Cariaso, Bella (2023), an

official of the farmers’ group Federation of Free

Farmers warned of a repeat of the rice crisis in 2018,

saying the scenario being experienced at present on the

spike of rice prices and possible shortage was similar.

FFF national manager Raul Montemayor stated that the

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
upward trend in retail prices was due to the increase in

the cost of imported rice.

The researchers conducted this study to know the

impression of eatery owners on higher-cost rice and seek

the types of strategies and coping mechanisms they

implement in their business to adapt and adjust to the

new pricing of rice.

1.2 STATEMENT OF THE PROBLEM

In this study, the researchers aim to address the

following problems:

1. What is the owner’s experience in serving higher-cost

rice?

2. What coping strategy do they implement?

3. Based on the responses, what could be a possible program

to support the local eateries?

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
1.3 SIGNIFICANCE OF THE STUDY

The result of this study is beneficial to the

following:

STUDENTS - This study will help in properly budgeting

their allowance. Whether they should purchase rice from

eateries, bring their own, or have an alternative food

stock for consumption, making them aware of its

importance as part of their roles as consumers.

TEACHERS – Having access to greater financial status,

this study will objectively serve as the teachers’ guide

to be wise spenders in food consequently helping them

properly budget their finances.

EATERY OWNERS – This study will help them discover

better-coping mechanisms, alternatives, and strategies

for their business.

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
STAFF - This study will be an important contribution to

practicality during this increase in rice cost, making

them aware that there are other options where they can

save money and still be satisfied with the foods they

eat.

ENTREPRENEURS – The result of this study could give them

insights on what/how to promote their business by

knowing of the latest market demand.

FUTURE RESEARCHERS – This study may serve as a helpful

reference that gives relevant pieces of information to

similar or related studies.

1.4 SCOPE AND LIMITATION

This study focuses on interviewing 7 eatery owners

on their impression of higher-cost rice in Butuan City.

The scope of this study is limited only to the eateries

on San Francisco Street, Butuan City. The study relies

on the self-reported data from the eatery owners

regarding their impression of higher-cost rice.

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
1.5 RESEARCH PARADIGM

Independent Variables Dependent Variables

Eatery Owners Impression

Consumer’s Food
Consumers
Alternatives

Higher Rice Cost Coping Strategies

1.6 THEORETICAL FRAMEWORK

Price Theory

Price Theory is a methodological approach that

derives a small collection of “prices” sufficient to

characterize low-dimensional allocative problems in rich

aggregate economies. Price theory is typically defined

as the analysis of price-taking behavior in partial

equilibrium. Understanding the Price Theory is crucial

as pricing serves as one of the foundations in

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
businesses that can either result in a profit or a loss.

To understand pricing better means to know how and when

to adjust accordingly for the growth of one’s business.

Understanding your customers and creating a system to

create a satisfying experience for them will enable you

to boost your profits and repeat customers (Rana, J.

2022).

This theory supports this current study because to

better understand Price Theory is crucial for an eatery

to earn profit simply because if the customers are

dissatisfied with the pricing of a product, taking

already into account the quality and the amount served,

the chances of sales going down could still very well

occur due to its high cost, which could lead to lesser

product sold and can overall affect the business. This

study is also aligned with the knowledge an eatery owner

should possess in order to manage their business amidst

the rice price crisis the entire economy is facing.

Furthermore, they should be equipped with strategies to

deal with and adjust accordingly to the crisis in hopes

of having a better impression of serving higher-cost

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
rice, which this study hopes to dig out more in the

process.

1.7 CONCEPTUAL FRAMEWORK

The researchers will select eateries within San

Francisco Street, Butuan City disregarding an eatery’s

size and popularity, with a goal of interviewing the

owner or the current manager of the eatery. Also

depending on the researcher’s volition, additional

participants or interviewees may be added if necessary

to meet the satisfaction and standards of the

researchers.

The researchers will inquire about the selected

eatery owners with a series of questions that have been

thoroughly scanned and checked by the researchers with

the help of professionals and legitimate sites.

Furthermore, neutrality and formality must be

exercised by the researchers when the interview begins.

The researchers also discovered the strategies of how

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
eatery owners cope up with higher cost rice, and the

data to be recorded will be the outcome of thoroughly

examined results and interviews by the researchers.

1.8 DEFINITION OF TERMS

1. Eatery - a public establishment where meals are served

to paying customers for consumption on the premises

2. Higher Cost – more expensive, increase in pricing

3. Impression – an insight given about a specific matter

4. Owners - one who has a legal or rightful claim to

ownership.

5. Price - the amount of money that is demanded as payment

for something.
 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City

Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the related literature and

studies after the thorough and in-depth search of the

researchers. This chapter also includes the ideas, finished

thesis, generalization or conclusions, methodologies, and

other. Those that were included in this chapter helps in

familiarizing information that are relevant and similar to

the recent study.

2.1 IMPORTANCE OF RICE FOR GLOBAL CONSUMPTION

In a recent study conducted by Prencipe, S. A.,

Ruggeri, M., Ruggieri R., and Vinci, G. (2023), entailed

that rice is the most widely used cereal for human

consumption, and that a rise in its production is one of the

most crucial activities for the global population. Known as

a complex carbohydrate, rice is the primary source of energy

for over half of the world’s people. Depending on the strain

of rice, it can contain decent amounts of fiber and protein,

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
as well as vitamin B6 and minerals such as iron and

manganese. This means it can play a vital role against

malnutrition by providing excellent nutrition at a high

level of digestion tolerability and great taste. Rice

remains as a necessity for most people, as it is a main

source of food that can be eaten alongside viand to satiate

hunger. Without rice, people who consume it would eventually

turn to find other alternatives, thus why it is important to

increase rice production to avoid shortage of supply which

could lead to an increase in rice pricing that could affect

its placement and importance in society and economy as a

whole. In contrast, a recent article by Walsh, Karla (2023),

states that although rice is a recommended food for

consumption, it should be eaten properly and in moderation.

According to the article, there are three reasons why one

should control their consumption of rice, first is that it

can spike blood sugar levels, increase arsenic consumption,

and displace more nutrient-dense foods.

2.2 WORLDWIDE FACTORS FOR INCREASED RICE PRICING

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
In the article by Simon, S. (2019, August 26), states

that a combination of climate change and shifting trade

practices has sent the price of rice soaring. The price of

rice soared up to 20% since June. This is problematic in

many parts of the world, where the grain is the staple of

regional diets and it is a serious hardship in African and

Asian countries where hunger is a fact of life. The article

elaborates that it’s because of these factors that increased

rice pricing globally, affecting not just people but also

businesses that include rice in their menus for consumption

worldwide. According to Abdullah Al Mamun, a senior research

analyst at the International Food Policy Research Institute,

after the Russian invasion of Ukraine, the rice market -

global rice market was relatively calm. But since September

2022, there was a price rise in rice, particularly in the

Indian, Thai and Vietnam rice prices. So there are a couple

of concerns that is triggering these impacts. The El Nino

was one factor, the weather event will likely impact rice

production. The second the instability of the fertilizer

market due to the Russia-Ukraine conflict, arising concern

of fertilizer availability during the planting season.

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
2.3 PREVIOUS RICE PRICE CRISIS IN THE PH

According to the news article by Evangelista, A.

(2018), President Rodrigo Duterte’s administration was mired

in rice problems during his second year in office, pulling

it away from his target of 100% rice self-sufficiency by the

end of the year. This was solely because of soaring prices,

weevil infestations, and the depletion of reserves of rice

in several areas, causing an uproar and even raising

questions on the leadership of Jason Aquino, the National

Food Authority (NFA) Administrator. Filipinos continued to

feel the brunt of the impending crisis, as prices in

September reached up to P46 for well-milled rice, and P43

for regular milled rice. In the year 1986-1999, led by the

Corazon Aquino Administration, was still recovering from the

rice crisis in the 70's and Martial Law, Corazon Aquino's

government was not safe from impending rice issues. Increase

in rice prices were also present during this time, brought

about by the looming Asian financial crisis and El Niño.

Because of the high rice price brought about by calamities

and financial crisis, this led to rice crisis in the year

1986-1999, that affected the economy at the time for the

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
worse. On October, Former President Rodrigo Roa Duterte

lifted restrictions on rice imports to reduce inflation, he

discouraged rice importation in order to protect local rice

farmers, and only then the rice situation seemed to have

eased. And on the first week of December, The Department of

Agriculture also set suggested retail prices for rice to

combat inflation which made rice prices go down week-per-

week from October, and had eased to 8.1%.

2.4 RICE PRICE INFLATION WITHIN THE PHILIPPINES

In a news article by the Department of Finance (2018),

According to Philippine Statistics Authority (PSA) data,

rice was the number one contributor to inflation in

September 2018, while food items in the consumption basket

accounted for more than half of the inflation rate in the

same month. This measure has been certified as urgent by

President Duterte. The statement highlighted that because of

the rice price inflation, Filipinos are experiencing more

expensive prices of goods, which adds more cost to

customers, especially those who are not financially stable

or are in the poverty line. In short, the pricing has become

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
non friendly to people with a low economic status. This

affected the Philippines’ economy and society for the worse

as people were forced to adjust to a rice price crisis, that

impacted mainly consumers. The rice tariffication bill, once

passed into law, is expected to liberalize the importation

of rice in the country. It will also help lower rice prices

while providing enough support for local farmers who will be

affected by the influx of cheaper rice imports. This law

gives freedom to the groups of businessmen to import

imported rice over the country. The rice law helped decrease

the monopoly and the difficulty in importing rice in the

Philippines. Food inflation is the main driver of inflation,

especially in recent months. The DA, which is the key to

bringing down food prices, has been empowered under several

presidential directives to put in place measures to increase

food supply and bring down food prices,” said Finance

Assistant Secretary Antonio Joselito Lambino II in a

Malacañang press briefing, where he gave the same

presentation to the media. Over the medium term, Lambino

said the country needs to increase agricultural productivity

to stabilize food prices by· Individualizing the agrarian

reform collective titles to improve property rights

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
incentivize farm production; and Improve efficiency by

reallocating the budget from favoring certain crops and

production inputs to more broad-based farm infrastructure,

research and development, and support services. On the other

hand, the high price of rice in the Philippines can actually

bring several advantages to restaurants in the country. It

encourages menu diversification and creativity as

restaurants look for alternatives to rice, leading to

innovative and appealing dishes. This can boost profit

margins, as restaurants may reduce rice portions while

maintaining prices, thereby increasing their overall

profitability and it incentivizes a focus on premium dining

experiences, where restaurants can invest in better

ingredients, presentation, and service, attracting customers

willing to pay more for an elevated meal. It offers a chance

for differentiation, with some establishments specializing

in rice-based dishes and becoming sought-after destinations

for rice enthusiasts. Higher rice prices can promote

sustainability as restaurants prioritize sourcing rice

responsibly from local suppliers, aligning with

environmentally conscious consumers and fostering a sense of

social responsibility.
 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City

2.5 IMPACT ON FILIPINO BUSINESSES AND CITIZENS

According to a news article by Calonzo, A. & Lopez, D.

(2023, September 4), rice price halted a six-month decline

in Philippine inflation on August, adding pressure for the

central bank to step up vigilance against price risk.

Consumer prices rose 5.3% from a year ago after gaining 4.7%

in July, the statistics agency said on Tuesday. Rice

inflation quickened to 8.7%, marking the sixth consecutive

month of increase and the fastest pace since November 2018,

the statistics agency said. With the increase in consumer

prices due to scarcity, this gives businesses that serve

rice a much greater challenge to adjust to the current

economy, rice as a product could very well go down in sales

due to the inflation, that can affect the entire Philippines

as a whole, especially since the country's citizens are

mostly rice consumers. According to Philrice, to Filipinos,

a meal without rice is not a meal at all. The mere absence

of rice on a Filipino family’s table can trigger a person to

steal. Streets could also turn into rallying places by the

masses who demand for the availability of rice in every

 Father Saturnino Urios University

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Butuan City
meal. The truth is, meeting the demand for rice has never

been easy for the Philippine government. In guaranteeing the

availability of rice in every household, the government has

often resorted to importation. Thus, the government resorts

to rice importation whenever there is an actual or projected

shortage of rice as a result of a shortfall in production.

Riza Bernabe of the Philippine Peasant Institute said,

however, that aside from the need to import rice to feed all

Filipinos, rice importation becomes necessary so that

consumers would have access to more affordable rice. Rice in

the Philippines is very important because rice is the staple

food of Filipinos. In a situation where rice price

increases, a parallel reaction occurs toward the cost of

living of Filipinos. Achieving rice self-sufficiency in the

Philippines provides supply for the ever-increasing

population, it can also reduce our poverty, to show that we

are globally competitive and many more.

2.6 RICE PRODUCTION WITHIN CARAGA

According to Tado, C. J. (2019), rice production in

Caraga is affected by low solar radiation, high rainfall,

 Father Saturnino Urios University

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Butuan City
problem soils, episodic flooding, and rice pests and

diseases. These resulted in the region’s low average yield

at 3.87t/ha (PSA, 2019). Lowland rice soils in Agusan are

considered fertile due to their high organic matter and

available phosphorus levels. However, such soils are poorly

drained – a condition that causes the accumulation of

decomposition products, which results in nutrient

deficiencies and imbalances, leading to reduced rice growth

and yield. Rice is essential for people as it is a main

source of food for most, and rice is also essential for

businesses that serves food as their main source of income.

In a local restaurant, one of the main benefits is to

provide good food at a reasonable cost to people in the

community, but with the recent price hike in rice, it has

forced restaurants to adjust accordingly. Another benefit of

restaurants is that they contribute to the local economy and

local culture. Many towns and cities build their nightlife

and culture centers around a particular area, and a thriving

restaurant scene helps contribute mightily to those centers

for people to gather. Much like in the Philippines, eateries

are essential as they are the go to place to approach

whenever people are in a budget or are traveling, which

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
makes it a crucial place open for anyone within society and

can benefit our economy with the continuous sold of foods

that that can help circulate the process of increasing our

economic footprint.

In conclusion, the given references above showcase how

there are different factors affecting rice production that

can have a negative impact in our economy, alongside how

these factors can contribute to the increase in rice

pricing. Our study aims to discover the eatery owners’

impression on the increase of higher cost rice in Butuan

City, to see whether or not this has taken a toll in their

business for better or for worse, with a goal of

understanding more about the world of eateries, how eatery

owners cope with higher cost rice, and how they generally

operate within an ever changing economy.

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City

CHAPTER III

RESEARCH METHOD

3.1 Research Design

The qualitative research design used to conduct this

study is purposive. The study is about the impression of

eatery owners on higher-cost rice in Butuan City. The

researchers will use purposive design for the specific

eateries that are located within San Francisco Street,

Butuan City as they are “information rich” and illuminative.

In addition, purposeful design offers a useful manifestation

of the phenomenon of interest and is aimed at insight about

the phenomenon. Overall this study aims to decipher whether

or not the rice price increase leaves a positive or negative

impression on eatery owners and how it affects their

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
business along with their coping mechanisms to counter

higher cost rice.

3.2 Setting of the Study

The study takes place at San Francisco Street Corner

J.C. Aquino Avenue Butuan City, going through multiple

different eateries located within San Francisco Street,

Butuan City to obtain information the researchers strive to

attain. This research aims to explore the effects of the

higher-cost rice on the eatery owners and their business.

3.3 Participants of the Study

The researchers ought to use the Purposive sampling

procedure. The researchers chose the Purposive sampling

procedure so that gathering data is more efficient and

easier to get. Adding also that using this sampling

procedure will maximize the researcher’s satisfaction with

gathering information and converting it into data. Also,

this type of sampling fits the researcher’s study and

results in purposeful data. This study aims to interview

eatery owners to determine their impression on higher-cost

rice.

Eatery Owners. Entrepreneurs who own a small business that

 Father Saturnino Urios University

Bp. Pueblos Senior High School

Butuan City
serves a variety of food to the general public.

3.4 Research Instrument

The researchers ought to use the Semi Structured

Interview to ensure that the interview can provide accurate

information and provide more detailed data, and the

researchers can collect different responses from the

different participants using the same question. The

questions are created by the researchers prior to the

interview. The interviewers are to be unbiased, have the

right to act casual or friendly, but should never voice out

his or her opinion or shortly as he or she should be

neutral. The Matrix Presentation is based on the data

obtained by the researchers. The researchers also should be

honest in decoding the results. Validity of the result is

through providing documentations of the interviews that are

conducted and the correctness and accuracy of the data that

will be gathered.

3.5 Data Gathering Procedure

After selecting the respondents to be interviewed, a

consent form will be given to each of them before the

interview and will serve as a document proving that they

 Father Saturnino Urios University

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Butuan City
have given their permission for them to be interviewed by

the researchers. A brief description of the study is printed

in the consent form which also includes the confidentiality

and disclosure of the respondents' name during and after the

completion of the study. After the consent form has been

signed by the respondents, the interviewer will inform them

when the interview proper starts and so does the recording.

When all the respondents have already been interviewed, the

recorded answers will be transcribed into texts for

analyzation. Since this study uses naturalistic method where

they record the behaviors of your research subjects in real

world settings, the use of a semi-structured interview will

allow the researchers to be more flexible in the way they

word the questions for each individual respondent. It will

also give the researchers the opportunity to prompt for more

information and clarification when necessary. After each

interview the researchers will collect the information

gathered and will exploit it into data providing that each

data from each person is to be scored and judged by the

researchers so they can distinguish their comments into

positive, negative and neutral. The researchers will then

compile all of those data processed to complete their

 Father Saturnino Urios University

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Butuan City
research.

3.6 Data Analysis

This chapter's objective is to give a detailed overview

of the various tasks that may include interpreting the data

acquired for a qualitative investigation. The researchers

set out to investigate and characterize this phenomenon

since our study focuses on the experience and insights of

eatery owners toward higher-cost rice.

The researcher will use Thematic Analysis to analyze

the gathered data. Since the studies involve personal

experiences and engagement of the eatery owners, this will

help to better understand the various experiences of eatery

owners focusing on complex interdependencies and system

dynamics. Recording devices or cellular phones will be used

to record the interview at the same time someone from the

group of researchers will personally decode the data on-

site. The researchers have decoded the data based on the

rules and techniques of the transcription system. The

researchers are unbiased and are to record the data obtained

accurately.
 Father Saturnino Urios University

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Butuan City

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Butuan City
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