Task Performance: Distribution, production, and purchasing of the hospitality

sector in its supply chain.

Group 2

BH401A

I. Find and identify one (1) tourism and hospitality establishment and research the following

information:

Chooks to go started in 2007 with ten outlets. Eight of the ten outlets failed after two months

due to low daily sales, only 5 to 20 chicken per outlet per day To break even, each outlet needed to sell

at least 30 chicken per day.

Tennyson Chen, a businessman, started the company in the 1980s in Sta Maria, Bulacan, with just 5,000

chickens in a layer farm. Chen wanted to take the business to the next level in 2002.
In 2008, Bounty Agro Ventures Inc. BAVI launched Chooks to Go. Its take-out-only format is reflected in

its name, which combines "chooks," which is the informal Australian term for chicken, with "to-go." It is

marketed as the only roast chicken that can be enjoyed without the use of sauce (masarap kahit walang

sauce) to distinguish itself from competitors' products.

The country’s largest rotisserie chicken chain.

Chooks-to-Go ranked 2 in the Philippines and 63 in the World’s Most Popular Fast Food Franchises list.

believed to be unneeded from the cooking process. It turned out that their chicken was incredibly

flavorful and well-liked by customers.

Years Awards

2012 Chooks-to-Go has been named the Number 1 Chicken Restaurant in the Philippines

Volume VIII Certificate Superbrands Accreditation and Awarding of Certificate

2013
(Superbrand Award Seal for 2013 to 2015)

Chooks-to-Go has the highest ratings across all nominated roasted chicken brands
2015
across key areas of Luzon, Visayas, and Mindanao.

a) The role of distribution, production, and purchasing in its supply chain

Purchasing

Chooks to Go is a chain of stores owned by Bounty Fresh Company. Bounty Fresh offering roast

chicken and process meats and it is the largest roasted chicken retail business in the country. For

chooks to go the supplier power is high because they have their own poultry company. Bounty

Agro Ventures Inc or BAVI is the company behind Chooks to Go - sells over 200 million chicken
 products ever year. They started the company to be in the business of operating poultry farms.

BAVI’s retail brands include Chooks-to-Go, Uling Roasters, Adobo Connection, and HeiHei. The

company also distributes dressed chicken products in supermarkets, wet markets, hotels, and

restaurants outside Metro Manila under the Bounty Fresh Chicken brand. It has 1800 stores

nationwide and 20000 partner resellers that sells an average of 100000 roasted chickens daily

with the help of 978 employees1.

Bounty Agro Ventures Inc or BAVI is the second largest and most innovative poultry integrator in

the Philippines. With a large network of contract growing (poultry farming) partners nationwide,

that cater to an ever-burgeoning market for high-quality chicken.

 Win-Win Situation – the supplier provides birds with technical expertise, and feed; while

you supply the labor, utilities, and housing. This framework has proven to be mutually

efficient and beneficial.

 Pioneering Work – they embark on an intensified Antibiotic Stewardship program, in

preventing antimicrobial resistance (AMR), a looming global health threat.

 Advance Payment Scheme – the Chick In, Check In payment scheme, contract growing

partners are assured of payment even before they are given chicks to grow.

Bounty Agro Ventures Inc is a sustainable supplier, here are blogs that supports the statement:

 BAVI Supports Army Retirees from Region 10 – 46 Philippine Army retirees assigned in

the provinces of Misamis Oriental, Misamis Occidental, Bukidnon, Agusan del Norte,

Agusan del Sur, Surigao del Norte, and Surigao del Sur participated in the “Tara, Work

Tayo!” Business and Livelihood Seminar of the Army Personnel Management Center’s

(APMC) Transition Assistance Program (TAP) in partnership with Bounty Agro Ventures

1
https://bavi.com.ph/about/
 Inc. (BAVI). The participants also visited the BAVI Regional Center Office where they

learned about the Chooks-to-Go Reseller Program.

 BAVI: Producing Zero Antibiotics Chicken Can Help Save Lives – Being the pioneer of

Zero Antibiotics Chicken in the Philippines, Bounty Agro Ventures, Inc. (BAVI) has shared

in an international conference how raising antibiotics-free chicken can help save millions

of human lives.

 BAVI Offers Livelihood Opportunities to Army Retirees – Bounty Agro Ventures, Inc.

(BAVI) has gone out of its way to see to it that those who made the vow to serve and

protect are now, well, served and protected.

The brand has 23 processing plants across the country, allowing logistical and recessing

flexibility to match daily orders. A cold-chain system delivers fresh products every day. Food

safety is constantly monitored, with Hack compliance underway SWOT analysis.

Video link for “inside the bounty fresh factory”: https://youtu.be/ZpI9HEQTbos

Production

One of the biggest poultry producers in the Philippines is called Bounty. In the roast chicken

industry, its subsidiary, Chooks to Go menu, quickly rose to the top spot in the nation. To keep

up with rising demand, the company is now focusing on provincial towns and overseas sales. For

many years, charcoal-roasted chicken predominated the Philippine market, while the fried

chicken business was just starting to gain traction. All that changed with Chooks to Go.

They began working with outside investors, which allowed them to expand into other chicken

farms and eventually into a network of farms, processing centers, and delivery services. As a

result, BAVI began to change from being an operator into this self-sufficient money-making

machine.

Main materials that Chooks-To-Go purchase to produce their Products.

As seen from the menus above, chooks-to-go mostly purchase ingredients that is used for

marinades.

Aside from the ingredients, chook-to-go also purchase coals used for roasting their main

products.

Chooks to go specializes in roasted chicken dishes and processed meat. Chooks to go menu

offers a wide variety of dishes such as Sweet Roast, Pepper Roast, Fried Chooks, and many more

chicken dishes in addition to their special offers such as the oven-roasted pork Liempo dish.

Chooks to go offers food deliveries in all the major cities in the Philippines, namely Makati,

Mandaluyong, Manila, and many others. Chooks to Go roast chicken was so popular in the

consumer. The chicken is weighted of 1.5 kg to produced dressed chicken with a serving size of
900 grams to 1 kg. What set its roast chicken apart from the rest is the taste which describe as

“a bit sweet, like a sweet ham”.

Chooks To Go Menu Best Seller

 Fried Chicken - It comes in a different number of pieces, but the delicious taste is still

the same. In addition to being crispy and crunchy, fried chicken has also been juicy. The

meal has also been referred to be salty and hot. To give the fried chicken a spicy flavor,

hot sauce or chili powder may occasionally be added on top.

 Hot & Spicy Roast Jumbo - For those who enjoy spicy meals, hot and spicy chicken from

the Chooks to Go menu is ideal. Chicken that has been lightly battered and fried in a hot,

spicy sauce with sriracha and vegetables. It tastes twice as spicy and twice as crispy as

conventional fried chicken when it has the Extra Hot and Spicy flavor.

 Bounty Fresh Valentino - Bounty Fresh Chicken is the end product of an advanced

poultry integration that makes use of cutting-edge agricultural production methods and

adheres to a tight quality control program at every stage. The greatest, tastiest meals

are made from the safest, healthiest, and freshest chickens. With protocols in place to

help the birds produce eggs that are uniform in size and weight, the company's

sophisticated breeder houses also make the eggs free of detritus and dirt.

 Chooks To Go Pepper Roast Menu – A thick layer of delicious sauce is applied to the

chicken. It has a strong garlic flavor and is a little bit acidic and spicy. A variation of it is

the roast chicken, which has far less political baggage.

 Chooks To Go Harissa Roast Menu – The fiery chili pepper pastes from North Africa,

which mixes roasted red or serrano peppers with spices and herbs, is a source of

inspiration for harissa roast. The ingredients used to make harissa differ by region,
 nation, and ethnicity. The flavor of this blend of peppery, spicily hot, and lightly sweet

notes especially appeals to Filipinos' sense of taste.

 Chooks To Go Liempo – Fresh from the rotisserie, delectable slices of soft, supple flesh

that are infused with just the proper amount of fat and glistening with liquid are hidden

beneath the gleaming tin foil.

In 2013 the company processes around 200,000 birds per day, about half of which is set aside

for Chooks to Go stores and the balance distributed to wet markets, supermarkets and

institutional accounts.

Distribution

In order to better target take-out customers, Chooks to Go changed the way it promoted roast

chicken and processed meat items. It’s extremely low overhead and fixed expenses are by far

this strategy's biggest benefit. In the take-out market, Mascarias claims that it is possible to offer

the same quality of product at a price that is half that of a sit-down eatery while still making a

profit because the cost of take-out operations is substantially lower. Chooks to Go has since

been growing at an astonishing rate. The company has plans and preparations in place to add

500 new outlets in 2013. Chooks to Go has entered a niche market in rural areas and small

towns instead of going head-to-head with major companies in Metro Manila and other major

cities. It has been able to expand quickly because starting a new outlet only requires small to

low financial investments. All of the broiler farms and processing facilities that are a part of

Chooks to Go are privately owned and run. As a result, important operating capital is made

available for business expansion and investment in new prospects. It enables the business to

control and run every store. Additionally, it can be successful in rural areas where standard fast
food entrepreneurs find their fixed expenses to be prohibitive. Reduced competition and

frequently higher earnings than those possible in urban regions are characteristics of small-town

environments. The product combination is flexible and can be changed to suit regional tastes.

For instance, certain regions have a preference for cold dressed chicken during the week and

roast chicken on the weekends.

 Delivery service - Chooks to Go runs a call centre and charges a flat rate of 30 pesos per

order. The customer service associates take telephone orders and pass them on to the

hubs that are closest to the customers. Software calculates and points out the hub that

can deliver to a particular customer within the shortest possible time. Presently, there

are several hubs servicing the delivery requirements of the entire Metro Manila area.

https://chookstogodelivery.com/
b) Advantages and disadvantages of all three (3) functions in its supply chain

Advantages

Purchasing

 Chooks to Go is a chain of stores owned by Bounty Fresh Company. Bounty Fresh

offering roast chicken and process meats and it is the largest roasted chicken retail

business in the country. For chooks to go the supplier power is high because they have

their own poultry company.

 One of the advantages, discussing the purchasing function, chooks-to-go help and

promote supplies from the local suppliers for their main ingredient, which is the

chicken, as they set the Bounty Fresh company their supplier for their chicken.

 Poultry Industry – The Philippines has well-attained self-sufficiency in poultry, a prolific

producer of poultry products. About 800 million broilers are produced annually and

despite rising population, the country’s supply continues to meet consumer demands.

 Poultry is the most progressive animal enterprise today. It is one of the world’s major

and fastest producers of meats while in the Philippines, it has been a significant

contributor to the country’s agriculture sector.

Product

 READY to EAT – So it became convenient for them because when buyers arrive from

work, especially if they are fatigued, they will purchase a food that has already been

ready to go.

Because of its distinct flavor, Chooks to Go has established itself as the only ready-to-eat

chicken sold without sauce. Chooks to Go's roast chicken was "delicious even without
 sauce" in the Philippine market, which has a strong preference for eating chicken with

sauce. This one-of-a-kind feature, on the other hand, piqued buyers' attention.

 Potential for New Entrants – Chooks to Go is the only roasted chicken that taste good

without sauce. For the new Entrants of competitors, they cannot be easy to copy the

very delicious roasted chicken of Chooks to Go and they Can’t easy to get the loyalty of

the buyers.

Distribution

 As discussed, chooks-to-go has reached out to some rural places, the advantage of this

is that it enables the people of that rural community to taste the unique flavor of the

chooks-to-go chicken, and now it is not limited to those people that lived in the cities.

 They promote their product through: Trade shows, In-store displays, Discounts, Print

ads, and T.V advertisement.

Disadvantages

Purchasing

 single supplier strategy - Relying on single sourcing can expose you to the possibility of

not being able to get critical supplies if the supplier's operations are disrupted. Common

drawbacks of this strategy include:

o increased vulnerability of supply

o increased risk of supply interruption

o greater dependency between your business and the supplier

when a single supplier failed and put on a crisis it may become unable to meet the

demand, you may find the Chooks to go in difficulties.

Product

 The cooked chicken is minimized – The challenge is that the staff of chickens must only

cook minimally because when they cook a lot, they will sell it and it will no longer look

new and fresh. You will know right away because when you bite into it, you will notice

its texture and the white meat is typically dry and different than before cooked. There

may also be a problem if it becomes spoiled or greasy to be served. and the sometimes

buyer must wait when many people purchase and fails to buy the cooked chicken;

occasionally, during the long cooking period, the others just leave.

 Chooks - to - Go products is no longer affordable – One whole chicken price is 345

pesos, which is expensive for the people who have a tight budget.

 The change in health and safety law, consumer law, and food and sanitation law may

affect Chook to Go operations, it costs and demand for its product.

Distribution

 The disadvantage of this is that, as we know some rural places have a low budget, and

there are only some that can buy worth 300 pesos of chicken, this can result in a loss of

sales or large number of products will not be sold.

 Increasing number of competitors – Andoks & Baliwag are very in demand in the past

years. Chooks to Go has the highest ratings across all nominated roasted chicken brands

across key areas of Luzon, Visayas, and Mindanao as of 2015. In 2016 many roasted

chickens have built their own image in the market like Sr. Pedro and Mang Boks the

competitors are increasing every year.

 Chooks to Go has a large volume of competitors in the market. Many buyers can’t

decide what to buy, in this case many roasted chains in the market the buyers go to the
 nearly roasted chicken chain because they don’t have enough time to find the roasted

chicken of what they like.

c) Actions to take to improve the distribution, production, and purchasing functions in the

establishment.

Purchasing

As discussed from previous information, Chooks-to-go’s supplier of their main

ingredient which is chicken is the Bounty Fresh. Their existing purchasing actions is

indeed passing the standard but, Here are some actions that needed in order to improve

their purchasing function:

 Optimizing their supplier for other materials: The supplier of their chicken is

indeed high quality and pass the standard, but chooks-to-go should also look on

the supplier of their other materials.

 Maintaining availability: When it comes to availability chooks-to-go stores are

fully opened for the customers, but chooks-to-go should also look and be

prepared if issues and problems exist such as, if the bird flu rises again, this issue

targets the supply of the poultry products, iand it has a huge impact to the

production of products.

 Lower price means a lot of customers: in this aspect let’s exclude the supply of

chicken, chooks-to-go also must look for supply that offers much lower price for

their needed supply, including all needs to produce 1 order of the chicken, from

the raw ingredients to the packaging, because the lower the price of the supply
 of their raw materials and other materials, the lower the price of their SRP

(suggested Retail Price), and can result to gain more customers.

 Success through quality: chooks-to-go would not go this far if they don’t have

quality, in this last aspect of this improvement there is no more words to

discuss, because chooks-to-go is one of the leading Roast chicken company, the

only thing is, they should maintain and protect the quality of their products,

below all the improvement discussed above if all of those aspects were applied

their product will maintain its shine.

Production

Chooks-to-go has only three oven-roasted chicken, which are Harissa roast, sweet roast,

and pepper roast. To improve their sales and boost their sales, they should be creative

with their menu. Based on my gathered information, customers were interested in

seeing more flavors of roasted chicken. In addition, customers would be more

interested in purchasing a meal kit that goes along with roasted chicken like salad or

soup. You can also serve breads, pasta salad, macaroni and cheese, assorted vegetables,

mashed potatoes and gravy, corn, beverages, and desserts. Some branches of Chooks-

to-go would start cooking around lunch time “to provide the freshest of product”,

resulting in queues and customers stepping across the street to the competition. 94% of

consumers responded that the reason they choose a rotisserie chicken is due to

convenience. To improve the speed of the products to be serve to the customers, they

should cook the chicken prior to their opening hours and put it in the heat display to

keep it hot and juicy.

Distribution

communication between suppliers and retailers - we all know communication is crucial

in every aspect, communication can avoid some instances like lack of supplies, there

was a time that a costumer expected a whole Roasted Chicken to be served to her but

when the time came she only received half of it, so of course she demanded that her

order is whole Roasted Chicken not half and the crew said due to our lack of supplies we

can't give a whole Roasted Chicken for now. in that situation they break the costumer’s

trust. So, they should always check the supply before or after opening their chooks to go

chain.

adopt distribution management strategies through electronic platforms, which can help

simplify the process and boost product sales.

i
Adel, R. (2017, September 8). ‘Fast food chains not affected by bird flu.’ Philstar.com.
https://www.philstar.com/business/2017/08/15/1729465/fast-food-chains-not-affected-bird-flu#:~:text=MANILA%2C
%20Philippines%20%E2%80%94%20A%20number%20of,flu%20outbreak%20in%20the%20country.

Calero-Holmes, B. (2023). Why Low Prices Can Scare Off Customers. Business News Daily.
https://www.businessnewsdaily.com/3455-cheap-prices-customers.html#:~:text=It's%20about%20combining%20value
%20and,sales%20and%20build%20customer%20loyalty.

Thailand, A. B. B. (2021). Philippines’ Chooks to Go is a Bounty success story. Poultry World.

https://www.poultryworld.net/home/philippines-chooks-to-go-is-a-bounty-success-story/

Thailand, A. B. B. (2021b). Philippines’ Chooks to Go is a Bounty success story. Poultry World.

https://www.poultryworld.net/home/philippines-chooks-to-go-is-a-bounty-success-story/#:~:text=Because%20of%20its
%20unique%20taste,%E2%80%9Cdelicious%20even%20without%20sauce%E2%80%9D