The Philippine population has reached 76.5 million as of May 2000 with an average annual growth of 2.36% according to the National Statistics Office (NSO). The biggest expenditure of an average Filipino family is on food and beverage. Thus, food retail outlets still form the bulk of retail outlets in the country. Although retailing may sound a lucrative business nowadays, entrepreneurs have to regularly reinvent and introduce new concepts to survive the stiff competition.

The number of retail establishments in the country is estimated to be over 400,000.However, most of these are home-based industries. These small and medium scale businesses lack the financial resources to implement the necessary improvements or expansions. To keep up with the "giants" smaller traditional retailers must stay competitive. One of the keys to obtain a firm footing despite the difficult environment without too much expenditure is by giving importance on customer service. If customers are not...