POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

A Case Study: Overcoming the Challenges of Toxic

Culture in Kuy's Inasal

SUBMITTED BY:
Vytingco, Shane E.
Group 5
BSBA HRM 1-4N

SUBMITTED TO:
Prof. Ma. Jocelyn L. Guevarra
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................... 3
TIME CONTEXT.......................................................................................................................... 4
VIEWPOINT..................................................................................................................................4
STATEMENT OF THE PROBLEM............................................................................................5
OBJECTIVE.................................................................................................................................. 5
AREAS OF CONSIDERATION (SWOT)...................................................................................5
Strengths.................................................................................................................................... 5
Weaknesses................................................................................................................................ 6
Opportunities..............................................................................................................................7
Threats........................................................................................................................................8
ALTERNATIVE COURSE OF ACTION....................................................................................9
ACA 1: Implement Comprehensive Employee Training and Development Programs............. 9
ACA 2: Improve Human Resource Management Practices.................................................... 10
ACA 3: Introduce Flexible Work Schedules and Work-Life Balance Initiatives.................... 11
ACA 4: Enhance Technological Integration in Operations......................................................11
ACA 5: Develop and Implement Corporate Social Responsibility (CSR) Programs..............12
ACA 6: Conduct Regular Employee Feedback Surveys and Act on the Results.................... 13
RECOMMENDATION............................................................................................................... 14
PLAN OF ACTION..................................................................................................................... 15
REFERENCES.............................................................................................................................18
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

INTRODUCTION

The food service sector, often known as the food business, plays a vital role in our society

since food is such a crucial part of our lives, providing nutrients that allow us to focus on work or

study. The food industry has a significant influence on society mainly for economic contribution

such as growth, employment that gives an opportunity to individuals to find work and the

students are able to find part time jobs to support their education. However, if the food service

business or corporation has a toxic culture within their organization, it will lead to poor work-life

balance that impacts the employees personal lives and communities. This case study focuses on

providing solutions for the food service industry in terms of the toxic culture that leads to

employees' poor work-life balance.

This food business was founded by Shane Vytingco and Rona Rona Espinosa. They

started to open the first store of Kuy’s Inasal Food Corporation (KIFC) in 2019 in San Jose Del

Monte, Bulacan. It is eventually known for its unique tagline of “We Serve What You Deserve”

and the affordable food that it offers to customers, which led to the success of the company's

ability to maintain its growth and gain customers' trust. However, the growth and significant rise

of return customers and loyalty have also caused the demand orders of customers to lead to a

lack of employees, resulting in the toxic culture of the KIFC. The food business problem of toxic

culture experienced by employees leading to poor work-life balance is the one that will be

analyzed in the study.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

In this case study, the researchers will focus on creating a solution to overcome the

challenges of toxic culture in the food business of Kuy’s Inasal. It describes the effects on the

toxic culture experienced by Kuy’s employees that determine its SWOT, the alternative courses

of action, the plan of action, and recommendations. This case study is intended to examine the

wide range of causes of toxic culture among employees of Kuy’s Inasal that led to poor work-life

balance.

TIME CONTEXT

In 2019, Kuy's Inasal established his first store in San Jose Del Monte, Bulacan, and has

10 franchises in Luzon, Philippines. The issue occurred in 2021 due to the significant rise in

customer order demand up to the present, and the study was conducted in 2024.

VIEWPOINT

Kuy’s Inasal Food Corporation has been a successful restaurant in the food sector for 5

years. Despite the fact that KIFC has successfully driven growth and innovation in the

quick-service restaurant sector, which specializes in operation and franchising, there’s still

unforeseen challenges that arise. In this viewpoint, Kuy’s CEO, HR Manager, and employees

will play a vital role in overcoming the challenges seen in the toxic culture within the food

corporation.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

STATEMENT OF THE PROBLEM

Kuy’s Inasal Food Corporation is one of the trusted restaurants of customers that values

the honesty, respect, excellence, innovation, community, and collaboration that the customers

deserve. KIFC has been well known for its tagline and offers a diverse menu of affordable and

delectable dishes, catering to customers of all ages and backgrounds. In this case study, the

problem that will be addressed is the Toxic Culture Experience of Employees at Kuy’s Inasal.

The study aims to answer the question:

● How can Kuy’s Inasal Food Corporation provide a solution to overcome the challenges of

a toxic culture experienced by employees?

OBJECTIVE

This study aims to provide a comprehensive solution to overcome the challenges of a

toxic culture experienced by employees at Kuy's inasal.

AREAS OF CONSIDERATION (SWOT)

Strengths

1. Strong Brand Reputation :Recognized by its slogan “We Serve What You Deserve,”

KIFC has also cultivated a favorable image for a restaurant that serves delicious and
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

cheap meals. The company has maintained a strong brand image that has assisted it in the

selling of its products and retaining the clients.

2. Customer Loyalty: The turnover at the restaurant is very low and this implies frequent

repeat business by patrons – this is due to satisfaction. This loyalty is important for the

constant flow of earnings and recommendation of the company to other people by those

who have already bought the product.

3. Affordable Pricing: Since KIFC offers meals at fairly cheap prices on its menu, it is

suitable for consumers with low spending power. The application of this pricing strategy

in the business has allowed the firm to gain a large market share in its region.

4. Successful Franchising Model: At the same time, the experience of the establishment of

ten franchise offices in Luzon within several years proves the company’s successful

scalability of the KIFC business model. The franchising success gives evidence of good

operational and brand management skills.

5. Diverse Menu: Offering a wide variety of dishes catering to different tastes and dietary

preferences, KIFC attracts a broad customer base. This diversity in menu options helps in

meeting varying customer demands and enhances customer satisfaction.

Weaknesses

1. Toxic Workplace Culture: Reports of toxic culture and poor work-life balance among

employees can lead to high turnover rates and low morale. Addressing these issues is

critical to maintaining a productive and satisfied workforce.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

2. Understaffing Issues: The significant rise in customer demand has led to a lack of

employees, exacerbating workplace stress and burnout. This understaffing can impact

service quality and customer satisfaction.

3. Inadequate HR Practices: There are certain human resource weaknesses that have not

been thoroughly addressed in managing employees’ complaints and creating a healthy

organizational climate that needs to be looked into for HRM to exhibit optimal health.

4. Operational Strain: Rapid growth and increased demand may strain existing operational

processes and resources, leading to inefficiencies and potential service quality issues.

Efficient resource management and process optimization are needed to handle this strain.

5. Limited Geographical Presence: While successful in Luzon, KIFC’s presence is still

limited to one region. This geographical limitation poses a risk if local market conditions

change, highlighting the need for regional diversification.

Opportunities

1. Expansion Potential: Currently there is the possibility to open more outlets in other

regions of Philippines, as well as in other countries using a franchising strategy. This

expansion can serve for the further advancement and the increase in brand association.

2. Employee Development Programs: Implementing comprehensive training and

development programs can improve employee satisfaction and retention. Investing in

employee development can also enhance service quality and operational efficiency.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

3. Technological Advancements: Focusing on operations, customers, and employees’

application of technology can offer distinct advantages over rivals. In the operational

level, innovations in order processing, inventory management and customer relationship

management is particularly important.

4. Health and Wellness Trends: Introducing healthier menu options can cater to the

growing demand for nutritious and healthy food. This can attract health-conscious

consumers and diversify the customer base.

5. Corporate Social Responsibility (CSR) Initiatives: Engaging in CSR activities can

enhance brand image and strengthen community relations. CSR initiatives can also

differentiate KIFC from competitors and build a positive reputation.

Threats

1. Intense Competition: The food service industry is generally considered to be very

saturated and cut-throat due to many conventional and emergent players. Thus, KIFC

faces competitive threats because it has to constantly innovate and strive for high quality

to be a competitive player.

2. Economic Fluctuations: Economic downturns or fluctuations can affect consumer

spending on dining out, impacting revenue. Financial planning and diversification

strategies are essential to mitigate this risk.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

3. Regulatory Changes: Changes in health and safety regulations can increase operational

costs and require significant adjustments. Staying compliant while managing costs is

crucial for sustaining operations.

4. Negative Publicity: Reports of toxic workplace culture and poor employee treatment can

lead to negative publicity and damage the brand’s reputation. Proactive measures to

improve workplace culture and address issues are necessary to avoid such risks.

5. Supply Chain Disruptions: Dependence on a stable supply chain for ingredients;

disruptions can affect the quality and consistency of the food served. Developing strong

supplier relationships and contingency plans is essential to manage this threat.

ALTERNATIVE COURSE OF ACTION

ACA 1: Implement Comprehensive Employee Training and Development Programs

Advantages:

● Enhances employee skills and knowledge, leading to better job performance.

● Increases employee satisfaction and retention by providing career growth

opportunities.

● Promotes a positive work environment and improves overall workplace culture.

Disadvantages:
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

● Requires significant investment in terms of time and financial resources.

● May temporarily disrupt operations during training periods.

● Initial resistance from employees who are reluctant to change or attend training

sessions.

ACA 2: Improve Human Resource Management Practices

Advantages:

● Addresses employee grievances effectively, leading to improved morale and

reduced turnover.

● Enhances the recruitment process, ensuring better employee-organization fit.

● Develops a transparent communication system that fosters trust and respect.

Disadvantages:

● Requires a revamp of existing HR processes and possibly hiring additional HR

personnel.

● Takes time to see tangible results from improved HR practices.

● Potential resistance from management if they are accustomed to the old HR

system.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

ACA 3: Introduce Flexible Work Schedules and Work-Life Balance Initiatives

Advantages:

● Improves work-life balance for employees, leading to higher job satisfaction and

productivity.

● Reduces employee burnout and stress, contributing to a healthier workplace

culture.

● Attracts talent who prioritize work-life balance.

Disadvantages:

● Could complicate scheduling and operations, particularly during peak hours.

● May require changes in company policies and operational procedures.

● Potential resistance from management who prefer traditional work schedules.

ACA 4: Enhance Technological Integration in Operations

Advantages:

● Streamlines operations, reducing workload and stress for employees.

● Improves efficiency and accuracy in order processing, inventory management,

and customer service.

● Provides tools for better communication and collaboration among staff.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Disadvantages:

● Requires significant initial investment in technology and training for staff.

● Potential resistance from employees who are not tech-savvy.

● Risk of technical issues or downtime affecting operations.

ACA 5: Develop and Implement Corporate Social Responsibility (CSR) Programs

Advantages:

● Enhances company reputation and strengthens community relations.

● Provides employees with a sense of purpose and pride in their work.

● Differentiates KIFC from competitors, potentially attracting more customers and

talent.

Disadvantages:

● Requires dedicated resources and coordination to plan and execute CSR

initiatives.

● May not directly address the immediate issue of toxic workplace culture.

● Results are more long-term and not immediately visible.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

ACA 6: Conduct Regular Employee Feedback Surveys and Act on the Results

Advantages:

● Provides insights into employee concerns and areas needing improvement.

● Demonstrates management’s commitment to listening and responding to

employee needs.

● Helps identify and address issues before they escalate.

Disadvantages:

● Requires consistent effort to collect, analyze, and act on feedback.

● Potentially overwhelming volume of feedback to manage and prioritize.

● Risk of not being able to address all concerns, leading to employee dissatisfaction

if expectations are not met.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

RECOMMENDATION

ACA 2: Improve Human Resource Management Practices

It is recommended that Kuy's Inasal enhance the quality of HR management practices to

provide a comprehensive solution to the problem of toxic culture that will create friendly and

non-bias working conditions for Kuy’s employees. In doing this, HR practices will assist in

creating and retaining a competent and motivated workforce with improved work-life balance,

hence improving the organizational performances.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

PLAN OF ACTION

ACTION TASK PERSON BUDGET TIME FRAME

RESPONSIBLE

Conduct an HR Audit ● Hire an external HR HR Manager, ₱300,000 1-2 Months

consultant to assess External HR
current HR practices and Consultant
policies.
● Collect and analyze
employee feedback
through surveys and
interviews.
● Identify gaps and areas
needing improvement.

● Create a strategic HR HR Manager, HR ₱0 2-3 Months

Develop a plan focusing on Team, Senior
Comprehensive HR employee well-being, Management
Strategy grievance handling, and
transparent
communication.
● Define specific
objectives, timelines, and
key performance
indicators (KPIs).
● Communicate the HR
strategy to all
stakeholders

● Implement rigorous HR Manager, ₱300,000 2-4 months

Enhance Recruitment recruitment processes to Recruitment Team (ongoing for
and Onboarding ensure the right fit. continuous
● Develop and standardize improvement)
a structured onboarding
program to help new
hires integrate smoothly.
● Train hiring managers on
best practices in
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

recruitment and
onboarding.

● Establish a confidential HR Manager, ₱150,000 1-2 Months

Implement Employee and efficient system for Legal Team
Grievance Redressal employees to report
System grievances.
● Develop a clear process
for handling complaints,
including timelines for
resolution.
● Train HR staff and
managers to handle
complaints sensitively
and effectively

● Set up regular meetings HR Manager, ₱50,000 Ongoing

Promote Transparent and feedback sessions Communication
Communication between management and Team, Department
employees. Heads
● Use communication tools
(e.g., intranet,
newsletters, meetings) to
ensure information is
accessible and
transparent.
● Encourage an open-door
policy where employees
feel comfortable voicing
concerns

● Ensure HR personnel are HR Manager, ₱300,000 3-6 months

Provide Training for trained in conflict Training and (ongoing for
HR Staff resolution, employee Development continuous
relations, and modern HR Team improvement)
practices.
● Conduct workshops and
training sessions for HR
staff.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

● Encourage continuous
professional development
through certifications and
courses

● Regularly review HR HR Manager, ₱200,000 Quarterly

Monitor and Evaluate practices and their impact Senior reviews
on workplace culture Management
through surveys and
performance metrics.
● Adjust strategies based
on feedback and
performance data.
● Report progress to senior
management and
stakeholders
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

REFERENCES

“SWOT Analysis for Restaurant: Examples and Guide.” Edrawsoft,

www.edrawmind.com/article/swot-analysis-for-restaurant.html.
Andrews, Ryan. “SWOT Analysis for Restaurants: Ultimate Guide + Examples for 2024.” Blog,
29 May 2024, restaurant.eatapp.co/blog/restaurant-swot-analysis.

Chandley, Ross. “The Shadow World of Catering, Part 2: Addiction.” New Thinking, 11 Sept.
2023, www.newthinking.com/culture/the-shadow-world-of-catering-part-2-addiction.

Danis, Lindsey. “Leaving the Restaurant Industry Allowed Me to See Its Problems Clearly.”
Eater, 4 Feb. 2021,
www.eater.com/22264517/restaurant-kitchens-abusive-working-conditions.
Leyshon, Jessica. “12 Ways to Support a Better Work-life Balance for Your Employees.” Sage
Advice United Kingdom, 6 Nov. 2023,
www.sage.com/en-gb/blog/hr-support-better-work-life-balance-workplace.
Pope, Jennifer. “Risk Factors of a Toxic Workplace in the Food Service Industry.” Work Shield,
7 Nov. 2023,
workshield.com/risk-factors-of-a-toxic-workplace-in-the-food-service-industry.
Shaw, Francine L. “Enhancing Food Safety Culture in the Food Service Industry: A Call to
Action - FoodSafetyTech.” FoodSafetyTech, 10 May 2024,
foodsafetytech.com/column/enhancing-food-safety-culture-in-the-food-service-industry-a
-call-to-a.
What Strategies Can Food and Beverage Operations Managers Use to Improve Employee
Work-life Balance? 10 Dec. 2023,
www.linkedin.com/advice/0/what-strategies-can-food-beverage-operations-cwlmc.