Workplace Environment, Employees’ Productivity and Profitability at North Park Noodle House

Christian D. Tongko¹, Ernesto A. Serrano Jr.²

¹STI College Santa Rosa, PHILIPPINES

²University of Perpetual Help System Laguna – JONELTA, PHILIPPINES

ABSTRACT: This research study aimed to examine the workplace environment, including factors such as the physical environment, company culture, and working conditions, at North Park Noodle House. Additionally, it explored the relationship between these workplace factors and employees’ productivity and profitability. The study sought to determine whether there were significant relationships between the status of the workplace environment and the level of employees’ productivity, as well as between the status of the workplace environment and profitability. Furthermore, it examined the connection between employees’ productivity and profitability. The researcher also aimed to analyze how the status of the workplace environment and the level of employee productivity, either individually or in combination, could predict the profitability of North Park Noodle House. This study employed a descriptive-correlational research design, focusing on the workplace environment, employees’ productivity, and profitability as the key variables. The findings revealed a significant relationship between the status of the workplace environment and the level of employee productivity, with factors such as physical environment, company culture, and working conditions playing a crucial role. Additionally, the results showed that the level of profitability is influenced by the workplace environment, indicating that profitability is affected by factors like physical environment, company culture, and working conditions. Lastly, the study confirmed that profitability is also dependent on employee productivity, highlighting that higher productivity contributes to increased profitability.

Overall, the workplace environment and employee productivity—whether individually or together—were found to significantly predict profitability at North Park Noodle House.

KEYWORDS: Workplace environment, employees’ productivity, profitability, casual dining restaurants

INTRODUCTION

The restaurant industry is one of the largest components of the hospitality industry. It is focused on providing food services where customers can order food and eat it on the premises. In this complete guide, you can learn more about the restaurant industry, how it is defined, the different types of restaurants that exist. Before exploring the industry in-depth, one of the most important things to establish is precisely what the term ‘restaurant industry’ means. Simply put, this is the term used to describe the part of the service industry focused on providing food services within restaurants, bars, cafés, and similar settings (Barten, 2024). In addition, there are several types of restaurants like family restaurants, quick service restaurants, fine dining restaurants and casual dining restaurants. But one of the most common and loved by the people are the casual dining restaurants. According to Buenafe (2020) casual dining restaurant, often referred to as a sit-down restaurant, is a type of dining establishment that offers moderately priced food in a relaxed atmosphere. Unlike buffet-style or fast casual restaurants, these establishments typically provide table service. They often feature a full bar with a separate bar staff, a comprehensive beer menu, and a limited wine menu. Since, many people are fond with eating out to different restaurants around the country. Several households says that life is so challenging but if you visit numerous establishments, you can tell that Filipinos are always open to spend in pigging out. Most of individuals focused on the aspect that customers need to be treated fair and polite but the people who is providing the service was being taken for granted which is the employees.

The study of Weinryb (2023) stated that one of the best ways to create a great workplace is to provide a stable paycheck and restaurant benefits. Benefits like professional development opportunities, health insurance for restaurant workers, and transit stipend let your workers know car about their long-term career and personal well- being, which ultimately makes them more likely to stick around. Furthermore, Herrity (2023) indicated that personal well-being of the employees is very salient to help them to be more efficient. On factor that must be considered is the workplace environment of every establishment. A work environment is the setting, social features and physical conditions in which you perform your job. These elements can impact feelings of well-being, workplace relationships, collaboration, efficiency and employee health. Additionally, the mood that permeates the office and is shared by all employees is the working environment, which is one of the aspects of work in any organization that is challenging to describe in precise terms. It has to do with the subjective experience of each individual employee rather than being objective ( Rodriguez, 2021).Having a good working environment in a restaurants is very important so that they will have a smooth process and transaction. Restaurants is one of the establishments that must imply working environment to increase the productivity of the employee. Having a better working environment can help an employee to perform well (Kim et al., 2020) Moreover, employee productivity measures how efficiently and effectively a worker or a group of workers contribute to accomplishing organizational goals. It is a key performance indicator (KPI) that measures the output of work in relation to the inputs of time, effort and resources. Improving employee productivity is a critical component of organizational success. Improved productivity enables employees to achieve objectives faster, in a more efficient manner, leading to cost savings and enhanced profitability (Stryker, 2024). In line, profitability is one of the goal of every establishment. The business will not survive in the long run without it. It is very important measure the current and past profitability and also projecting future profitability. According to Johanns (2019), profitability is measured with income and expenses. Income is money generated from the activities of the business. While expenses are the cost of resources used up or consumed by the activities of the business.  The study builds on the work of previous scholars such as Hafeez et al. (2019), Bangwal and Tiwari (2019), and Haffar et al. (2022) and acknowledges the workplace environment in businesses. Their studies examined the impact of workplace environment, productivity and profitability.

However, despite the numerous studies about employee’s productivity and profitability, no study yet had been conducted particularly about the workplace environment, employees’ productivity and profitability at North Park Noodle House. Thus, this study determined the workplace environment, employees’ productivity and profitability at North Park Noodle House. The study helped the casual dining restaurant and its employees to know the importance of workplace environment that will further enhance the production and service in the organization. Further, this study explained the relationship between the variables covered and served as a basis for an action plan to improve workplace environment, employees’ productivity and profitability. The study will help in creating and conceptualizing strategies in terms of workplace environment for employees’ productivity and profitability and to better guide owner on the implementation of these strategies.

METHODS

The study utilized the descriptive-correlational research design.  It emphasized workplace environment, employees’ productivity and profitability at North Park Noodle House in selected provinces which served as the dependent and independent variables of the study respectively. Data used in the study came from the sample size of Ninety Seven (97) employees from one hundred thirty one (131) total population. To decide the sample size of the respondents roasoft calculator was used with a 5 % margin of error and a 95 % confidence level. Because of having different branches of North Park Noodle House, stratified sampling was utilized.

The researcher used a questionnaire to collect the needed primary data. They were in the form of a four-point (4-point) Likert scale to rate and to promote convenience  in answering questions. The questionnaire was divided on three parts. The first part dealt with the status of workplace environment, the second part focused on level of employees’ productivity and last part concentrated on the level of profitability which were measured using Likert scale ( Very Good/ Very High – 4, Good/ High – 3, Fair/ Low – 2, Poor/ Very Low – 1).  Validation of the questionnaire was done initially by consulting the dissertation adviser to evaluate the content and appropriateness of the items. The researcher sought the opinion of the experts to ascertain that the indicators used in the research questionnaire were relevant in the study. It involve gathering the data through survey by visiting the branches of  North Park Noodle House that were involved in the study. The  data gathered were tabulated and subjected to statistical treatment accordingly. To avoid errors, such questionnaires were answered voluntarily and confidentially. To ensure that the data collected are interpreted precisely; the weighted mean was used to get the mean scores of the respondents on their responses to each of the items in the survey questionnaire related to workplace environment, employees’ productivity and profitability at North Park Noodle House on Selected Provinces. Pearson r was used to determine the relationships between and among the workplace environment, employees’ productivity and profitability at North Park Noodle House on selected provinces. The details of the questionnaires to avoid errors, such questionnaires were answered voluntarily and confidentially. The researcher also used the multiple regression to test the multiple correlation of workplace environment, employees’ productivity and profitability at North Park Noodle House on Selected Provinces.

RESULT AND DISCUSSION

Discussion of workplace environment, employees’ productivity and profitability of North Park Noodle House on Selected Provinces is shown the following table and textual presentation:

Table 1. Composite Table of the Status of Workplace Environment of North Park Noodle House

Table 1 presented the summary of the workplace environment and was observed as “very good” with an overall weighted mean of 3.55. “Physical environment” and “company culture” got a weighted mean of 3.58 and were both ranked 1. Followed by “working condition” with a weighted mean of 3.51 and was rank 3. This proved that the employees agreed that North Park Noodle House have a respectable physical environment, company culture, and working condition. This also indicated that these contributed to the overall workplace environment that was agreed by the employees of North Park Noodle House.

The findings of the study were consistent with prior research, such as Briger (2019), Manabo (2019), and Herrity (2023)  who stated that your work environment consists of everything that can have an impact on your daily productivity, such as where, when, and how you work. You can pursue jobs that offer a cozy work environment that supports your achievement and is consistent with your core values as you advance in your career. Also, foundation of paid work and employment relationships is the working environment.

On the contrary, Zhu et al. (2020), compared to the increasing body of research connecting residential surroundings with PA/SB, workplace interventions—particularly the effects of physical environments—have gotten less attention. This systematic review investigated this little-explored subject and offers a thorough conceptual foundation for further study and application. Also, the study of Yenny(2023) stated that ascertain how employee motivation affected their level of productivity. To determine the extent to which the Mandarin Oriental Hotel Jakarta’s motivation program affects the work output of its kitchen staff, a study was carried out there. A correlation coefficient between the motivation and job productivity of the kitchen staff at the Mandarin Oriental Hotel Jakarta demonstrates the strong and intimate tie between the two.

Table 2. The Level of Employees’ Productivity of North Park Noodle House

As presented in table 2, it can be drawn in the data that indicators concerning the level of employees’ productivity of North Park Noodle House was revealed to be “very high” with an average weighted mean of 3.60. This means that North Park Noodle house employees were willing to do multitasking on their stations, encouraged to come up with new and better ways of doing things and always will help their colleague.

The employees were willing to do multitasking on their station. Also, they were always offering help to their colleague and encourage to come up with new and better ways of doings things. The employees job impacted the mission of the company. Furthermore, employees can be able to finish duties and responsibility efficiently and follow all the standard operating procedures. Moreover, employees always going to work on time. The employees used all the equipment properly and give solutions to every problem that I may encounter. However, they must improve handling guest complaint for a better operations.

The findings of the study were consistent with prior research, such as Albright (2020), Rouse (2020), and Smith (2020) stating that productivity is an evaluation of the productivity of the workforce. It was measured through the performance of the employees. Also, productivity can be looked at the effectiveness of one employee for a single shift or productivity of the entire production.

Additionally, Davis et al (2019) stated that two strategies can be used to increase productivity: giving workers the tools they need to complete their tasks more quickly or effectively or making their work more pleasurable. Therefore, whatever progress your team makes should aim to meet at least one of these crucial needs. You can be completely missing the point without it.

Table 3. The Level of Profitability of North Park Noodle House

As presented in table 3, it can be drawn from the data concerning level of profitability of North Park Noodle House was revealed to be “very high” with an average weighted mean of 3.51. This means that the establishment implement strategies to retain and attracts clients, maintain sufficient cash flow for day-to-day operations and ensure adequate cash reserve to meet financial obligation to make the establishment more profitable.

The management implemented strategies to retain and attract clients. Also, maintain sufficient cash flow for day-to-day operations. Likewise, they ensure adequate cash reserves to meet financial obligations. Importantly, they maintained costs while increasing revenue cut costs, analyze competitors’ offerings and implement competitive pricing strategies, and eliminate low-margin clients and reinvest resources in higher-yielding areas of the business. The establishment increases in sales. Similarly, increase revenues through improved customer service or exploring new market segments. They also monitored asset expenses monthly to keep assets costs down, However, they need to regularly assess assets to determine their contribution to revenue generation or productivity gains.

The findings of the study were consistent with prior research, such as Monica (2019) and Pistelak (2019) which demonstrated that profit is the positive gain remaining for a business after all costs and expenses have been deducted from sales. Moreover, Lagundino and Pugong (2022) stated that profitability has been examined using metrics like working capital to total assets, current ratio etc.

On the contrary, Niu, (2021) stated that a commission-based online meal delivery service and chooses to deliver online orders using either platform logistics or self-logistics. Remarkably, we discover that the online “food & logistics” price under two logistics strategies show inverse connections about the commission rate, and the offline food price of the restaurant may rise initially before the online commission rate then falls.

Table 4. Relationship between the Status of Workplace Environment and Level of Employees’ Productivity of North Park Noodle House

As presented in table 4, the relationship between the status of workplace environment in terms of physical environment, and company culture and level of employees’ productivity were both low correlation with an obtained Pearson r value of 0.227**, and 0.371**. The p value of 0.025 and 0.000 which are lower than the significant level of 0.01 indicates a relationship between the status of working environment in terms of physical environment and company culture and the level of employees’ productivity. Hence, the relationship between status of workplace environment in terms of working condition and level of employees’ productivity was moderate correlation with an obtained Pearson r value of 0.442**. The p value of 0.000 which is lower that the significant level of 0.05 indicates a relationship between the status of working environment in terms of working condition and the level of employees’ productivity. This means that the better status of workplace environment of North Park Noodle House, the higher the level of employee’s productivity.

The findings of the study was consistent with prior research, such as Kubba (2020) who stated that bad working condition create an atmosphere that effects the productivity of the employees. Unproductive employees tend to be lethargic and de-motivating. Meanwhile Zhenjing (2022) and Niere et al. (2023) demonstrated that good working environment raise the employee’s performance. Also, employee’s welfare is considered to have a much better working environment.

Table 5. Relationship between the Status of Workplace Environment and Level of Profitability of North Park Noodle House

As presented in table 5, the relationship between the status of workplace environment in terms of physical environment, company culture, and working condition and level of profitability of North Park Noodle House were all low correlation with an obtained Pearson r value of 0.229**, 0.335** and 0.390**. The p value of 0.006, 0.001, and 0.000 which are lower than the significant level of 0.01 indicated a relationship between the status of working environment in terms of physical environment, company culture, and working condition and the level of profitability. This means the better the status of workplace environment of North Park Noodle House, the higher the level of profitability.

The findings of the study was consistent with prior research such as Lagundino and Pugong (2022) who indicated that employee performance has a strong impact on the profitability of the company. Pistelak (2019) stated having a good service is very essential in improving the sales of an organizations.

Table 6. Relationship between the Level of Employees’ Productivity and Level of Profitability of North Park Noodle House

As presented in table 6, the relationship between the level of employees’ productivity and level of profitability of North Park Noodle House was moderate correlation with an obtain Pearson r value of 0.513**. The p-value is 0.000 which is lower than the significant level of 0.01indicating a relationship between the level of employees’ productivity and level of profitability. This means the higher the level of employees’ productivity, the higher the level of profitability of North Park Noodle House.

The findings of the study were consistent with prior research such as Bajo (2022) who stated that worker performance is very vital in the organizational success. He also told that performance of the employees has a strong positive relationship in profitability. Pistelak (2019) determined the profitability of business is essential to determining if the good or service you are selling is worthwhile.

On the contrary, Yadav (2019) stated that the connection between profitability and company size in the case of industrial companies in India. This study is crucial because it sheds light on how a company’s size affects its capacity to turn a profit, which has wider ramifications for economic growth, business strategy, and policy.

Table 7. Regression Analysis between the Workplace Environment and Employees’ Productivity taken Singly or in Combination of the Level of Productivity

As shown in Table 10 there was a multiple correlation between the level of employees’ productivity and level of profitability of North Park Noodle House. A value of 0.000 indicates a high level of prediction of the dependent variable (level of profitability). Furthermore, it showed that the independent variable level of employees’ productivity statistically significant predicted the dependent variable level of profitability with an F-value 9.920 and probability value of 0.000which is less than the 0.01 significance level. This implied that level of employees’ productivity is the driver of level of profitability of North Park Noodle House.

The findings of the study were consistent with prior research such as Gene at al., (2023) and Bajo (2022) who stated that the most profitable expenses for this kind of restaurant are those related to food and staff, but the latter is only true for large establishments. Also, it supported the idea that having a Michelin star increases a restaurant’s profitability independent of cost control, indicating that patrons are prepared to pay more for the distinction. Also, stated that worker performance is very vital in the organizational success.

On the contrary, Albert (2021) specified that performance bonuses boost the morale of the employees and pushes them to work better. In this case most of the employees will be more productive and the company will benefit from it. The rewards make the employees inspired to be productivity.

CONCLUSION AND RECOMMENDATION

Based on the findings of the study, the following conclusion were made: The North Park Noodle House fosters a positive workplace environment with a strong company culture and good working conditions, which enhance employee productivity and business success. Employees are encouraged to multitask, innovate, and support one another, contributing to a collaborative atmosphere. The business employed effective strategies to attract and retain clients, while maintaining sufficient cash flow and reserves to ensure profitability. A positive workplace directly correlated with increased productivity, which in turn drives higher profitability. Employee productivity was a key factor in profitability, and sustaining this environment through a strategic action plan is crucial for improving the company’s competitive advantage.

The following recommendations were based on the findings and conclusion of the study: Top management at North Park Noodle House should focus on maintaining a positive workplace environment to foster good work habits and improve working conditions, ensuring employees become more effective and efficient. The leadership team should identify areas of improvement, address challenges, and analyze feedback to continuously enhance the workplace environment. Employees should also undergo training to handle guest concerns, which would improve customer satisfaction, loyalty, and reputation. The operations manager must provide training whenever new equipment is introduced to ensure employees are familiar with its operation. Additionally, the store manager should assess assets regularly to identify those contributing significantly to revenue generation, helping improve profitability. By monitoring asset expenses monthly and implementing a revenue management system, unnecessary costs can be reduced to increase revenue. The store manager should also implement an action plan with strategies focused on company culture, productivity, and profitability, including setting clear goals, identifying key performance indicators, and establishing a budget. Finally, future research could explore additional variables of workplace environment or conduct qualitative studies in different industries to validate these findings.

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