EQUITY

POLICY
CENTER
Iloilo City
Philippines
STREET
FOODS
Informal Sector
Food Preparation
and Marketing
Gerald A. Barth

1983
Equity Policy Center
Iloilo City, Philippines

BEST AVAILABLE COpy

 ACKNOWLEDGMEN1S

This monograph is the fmal report to the Equity Policy Center,

Washington, D.C., on the Philippine portion of an international project being
carried out on Street Foods in Senegal, in Bangladesh, in Indonesia, and in the
Philippines. The research was funded by the United States Agency for Inter-
national Development (USAID). My wife, Mei-Jean, and I directed the research
which was conducted in Iloilo City, Philippines. While this undertaking was
discussed with numerous people at USAID/Philippines, the, project was
coordinated through the office of Gary W. Cook, Health Development Officer,
Office of Population, Health, and Nutrition.
The initial phase of the project, started in November, 1982, consisted of
meetings and discussions in Manila with numerous people who had a potential
interest in the research. The valuable assistance provided by these people was
an important input into the study. Particular help was provided by those who
attended two consultative meetings which were held in Manila. The project was
accomplished while my wife and I were Visiting Research Associates at the
Institute of Philippine Culture, Ateneo de Manila University. The computer
processing was done at the University of the Philippines, Los Banos, under the
direction of Dr~ Henry F. Magalit, who was instrumental in developing the
sample design and who assisted with the analyses.
The field work in Iloilo City was carried out from December, 1982, to
December, 1983. During this time, the official value of the Philippine peso
dropped from approximately 9 to 14 pesos per U.S. dollar. At the time that
the questionnaires were actually administered, the average rate of exchange
was approximately ten Philippines pesos for one U.S. dollar.
A primary intention of the study was to obtain as much local support as
possible. In Iloilo City, the project operated under the umbrella of the Regional
Development Council, Region VI (Western Visayas). Advisory support was
provided by a Consultative Committee consisting of the chainnan of the
Regional Development Council, Region VI, Governor Conrado J. Norada; the
iv Street Foods
Mayor of Iloilo City, Hon. Luis C. Herrera; the Regional Executive Director of
the National Economic and Development Authority, Region VI, Attorney Alex
G. Umadhay; the Manager of the Small Business Advisory Center, Region VI,
JoseM. Divinagracia; and the Coordinator of the National Nutrition Council,
Region VI, Attorney Rhodora J. Laurea.
The Consultative Committee was assisted by a technical group composed
of Dr. Venancio B. Ardales and Fely P. David from the Central Philippine
University - Panay Island Consortium for Research and Development; Professor
Candelaria S. Formacion of the University of the Philippines in the Visayas; and
Estela F. Paredes of the National and Economic Development Authority. The
members of the technical group also served as consultants on the project. Our
actual research staff consisted of Lina E. Doregnil, Florenda D. Foja, and Leah
N. Ledesma, who were involved in various phases of the research.
The bacteriological examinations were conducted under the direction of
Dr. Alicia Tayag-Saldana of the Regional Health Laboratory. The maps in this
report were prepared by Arnold E. Foster, and the cover design was the work
of Benjie F.E. Estuche.
Mei-Jean and I wish to extend our sincere gratitude to all of the people
mentioned above. This project could not have been accomplished without their
help. A special debt of gratitude is owed to Attorney Alex G. Umadhay, who
provided a great deal of assistance on various aspects of the project.
Our fmal a<;knowledgement is the assistance provided by Street Food
sellers who took the time and had the patience to answer oui' questions. Various
names have been changed in this report to protect their anonymity. Hopefully,
the recommendations being put forward will be to their benefit.

GERALD A. BARTH

Iloilo City, Philippines

pecember, 1983
 EXECUTIVE SUMMARY

The preparation and sale of prepared, ready-to-eat food represents a

significant portion of informal sector enterprises in many countries. These
enterprises were the focus of this study, which was conducted in Iloilo City,
Philippines. Results from the study revealed that these firms provided relatively
good income opportunities for their owners, offered employment to a significant
portion of the urban labor force, especially women, absorbed an important
amount of agricultural produce, and frequently furnished low-cost, nutritious
food to a variety of consumers.
Even though food expenditures in the Philippines represent a tremendous
percentage of the household budget, especially among lower-income groups,
nutrient intake appears to be below recommended levels. With the movement of
people to non-agricultural employment with the place of work removed from
the place of residence, and with the rapid expansion of female labor force
participation in the past decade, the·increased demand for food prepared outside
of the consumer's household has provided additional opportunities for
enterprises involved in this activity. The ability to provide meals and snacks at
affordable prices, partially due to low capital expenditures, and to sell at
locations which are convenient for customers, has allowed small-scale prepared
food enterprises to supply food to numerous customers, many of whom have
very limited purchasing power.
Results from a h~usehold survey conducted in Iloilo City revealed that 30
percent of household food expenditures were devoted to prepared food
purchased outside of the household. Approximately two-thirds of these
expenditures were made at street food establishments, which also sold to people
living outside the city who were in the city for various reasons. The generally
low levels of income found in Iloilo City prevented many people from making
prepared food purchases at more expensive formal sector enterprises, and even
relatively higher income people preferred to make numerous purchases at
informal sector enterprises.
vi Street Foods
The fmdings of relatively high earnings for street food vendors in Iloilo
City, compared to the general level of income, has allowed many of these food
sellers to escape from some aspects of absolute poverty. However, many
businesses were susceptible to failure due to disruptions caused by illness and
family problems. This was often connected with a lack of access to operating
capital or the high cost of credit. Problems with government regulations were
also faced by store owners who could not purchase the land on which they
were squatting, market vendors who were unable to have their stalls registered
in their own names, and sellers operating without permanent structures who
could not obtain licenses to ply their trade.
Rather than placing barriers in the way of these hard working people,
planners should initiate a dialogue with them in order to develop creative
approaches adapted to local conditions. An initial step is to develop regulations
which encourage the long term operation of these businesses that appear to
fulfIll the demand of Doilo City consumers. Once the legitimacy of these firms
is established, operators need more access to sources of operating capital in
order to maintain control of their business operations. This could be
accomplished through the existing banking system.
However, sanitary improvements in the preparation and handling of food
are needed to prevent consumers from receiving contaminated food. This must
be done without causing increases in cost. Street food sellers may also offer
an important entry point for the introduction of more nutritious foods that
could be locally grown at relatively low costs. These food vendors provide
linkages to the agricultural producer and to food processors that could be
utilized to increase the nutrient intake in Iloilo City. These linkages are
extremely important in an agricultural country that has not been able to
adequately feed its own people.
 CONTENTS

Page
ACKNOWLEDGEMENTS iii
EXECUTNE SUMMARY v
Chapter 1. INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
Small Businesses and the Informal Sector 3
Food Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
Food and Nutrition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7
The Setting . . . . . . . . . . . '.' . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9
Research Methods. . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12
Street Foods in Iloilo City . . . . . . . . . . . . . . . . . . .. 17
Chapter 2. STREET FOOD ESTABLISHMENTS 20
Personal Features of Respondents 20
Women's Role in Business Operations 23
Type and Scale of Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Sources of Food and Linkages to Suppliers '" 29
Relations with Customers 32
Summary and Assessment ~ 34
Chapter 3. ECONOMIC CHARACTERISTICS OF ENTERPRISES 37
Sources of Credit 40
Pricing and Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .' . . . . . . . . . 42
Upward Mobility 47
Discussion and Policy Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Chapter 4. DEMAND FOR STREET FOODS 67
Household Features ; 67
Household Food Expenditures 69
Customer Profile 73
Customer Purchases 75
Purchasing and Consumption Patterns 78
viii Stree t Foods
Chapter 5. STREET FOODS AND HEALTH 80
Food Preparation and Handling 80
Laboratory Analysis of Selected Foods 83
Nutritional Significance of Street Foods .' 85
Policies Toward Sanitary and Nutritional Improvements 91
Chapter 6. CONCLUSIONS AND RECOMMENDATIONS 95
Income Generation and Employment 95
Adaptation and Change .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 97
Access to Institutional Support . . . . . . . . . . . . . . . . . . . . . . . . . . .. 100
Recommendations 100
Some Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
REFERENCES CITED 108
APPENDIX , , 114
 TABLES AND FIGURES

Table Page
1-1. Primary Item Sold by Food Seller Respondents 16
1·2. Street Food Sellers Operating With and Without Licenses 18
2·1. Daily Sales Based on Sex of Respondent 23
2·2. Daily Sales Based on Type of Operator . . . . . . . . . . . . . . . . . . . . 23
2-3. Control of Business Income and Decisions 24
2-4. Decade Enterprise Founded 2S
2-5. Street Food Sellers in Iloilo City Z7
2-6. Daily Sales of Street Food Vendors 28
2-7. Sales Per Day by Enterprise Classification 28
2-8. Comparison of Age, Sex, and Education of Respondents 34
3-1. Sources of Credit to Start the Enterprise .. , 40
3-2. Sources of Credit for Operating Capital .41
3-3. General Linear Models Procedure .45
3-4. Sales of Enterprises by Decade Founded 47
3-5. Sales Quartiles of Enterprises 47
3-6. Street Food Sellers Average Daily Income Statement 50
3-7. Major Constraint to Business Expansion 55
4-1. Adjusted MontWy Household Income 68
4-2. Monthly Household Food Expenditures , ." 69
.4-3. Prepared Food Brought Home 70
4-4. Expenditures on Food for Household Preparation 71
4-5. Monthly Income Quartiles and Food Expenditures 71
4-6. Percentage ofMontWy Food Expenditures by Income Level ~ 72
4-7. Source of Food for Household Preparation by Income Level 73
4-8. Position of Customers in their Household 74
4-9. Primary Activities of Respondents 74
4-10. Reasons for Food Preferences 75
4-11. Most Important Reason for Buying at Enterprise '. . . . . . . . . . . . . . . 76
x Street Foods
4-12.Usual Place of Prepared Food Purchases 76
4-13.Monthly Prepared Food Purchases 77
4-14.Prepared Food Expenditures and Consumption by Income Level 77
4·15.Average Per Capita Food Expenditures by Income Level 79
5-1. Primary Items of Household Food Consumption 86
5-2. Percentage Eating the Following Food Items on a Daily Basis 87
5-3. Evaluation of Household Food Consumption 87
5-4. Nutrient Content of Meal Dishes 88
5-5. Nutrient Cost Per Peso for Meal Dishes 88
5-6. Nutrient Contribution of Single Snack Foods 89
5-7. Nutrient Contribution of Single Snack Foods
by Age, Sex, and Occupational Group 90
5-8. Nutrient Value of Snacks Purchased Today and Yesterday 90
6-1. Additional Sources of Income of Owners of Street
Food Enterprises 96

Figure
1-1. Map of the Philippine Islands 2
1-2. Map of the Western Visayas 10
1-3. Survey Area of the Street Foods Study . . . . . . . . . . . . . . . . . . . . . . 15
 CHAPTERl

INTRODUCTION

In the Philippines (see Figure 1-1), surveys have consistently shown that
over 50 percent of total family expenditures have. been devoted to food
purchases (NEDA 1983:116-119). Expenditures for housing, the second largest
expenditure group, have amounted to less than 10 percent of family
expenditures. In spite of the large percentage of income devoted to food
purchases, nutrient intake per capita appears to be below recommended standards
(FNRI 1981: 17). While considerable disagreement exists over recommended
nutritional standards (Berg 1981 :97), measures of income, health, and
malnutrition tend to confirm nutritional studies and indicate a high incidence
of poverty (World Bank 1980:4).
The Philippine Islands are blessed with a relatively good natural resource
base that has led to a reliance on cash crop exports, such as, coconut products,
wood, sugar, tobacco, pineapples, and bananas (Ranis 1974: 18). The
government also has encouraged large-scale manufacturing. Unfortunately,
the economy has not been able to generate enough employment to absorb
the growing labor force that has resulted from high rates of growth of
the population. This has prevented real wages from increasing, and there are
indications that mean family income, measured in constant pesos, has failed to
increase, or may actually have fallen, from the mid-1950s to the mid-1970s
(cf. World Bank 1980: 10-11; Prado 1979:273). This may have had a deleterious
effect on nutrition since "It is now apparent that the dominant malnutrition
problem in large populations is insufficient intake of food energy, or calories,
which is related essentially to the problem of inadequate income" (Berg 1981: 1).
Although the registered rate of infant mortality for children under the age
of one appears to be declining, pneumonia, gastroenteritis and colitis, and
nutritional deficiencies are the leading causes of infant deaths (NEDA
1983 :436438). A study of over three thousand children below the age of seven
revealed that almost 69 percent were underweight (FNRI 1981 :88). The
prevalence of poor health and underweight children is certainly related to
 LEGEND:

City --------- •

North

~
a 100
MILES

FIGURE 1·1 MAP OF THE PHILIPPINE ISLANDS

Introduction
inadequate income and lack of sufficient food intake, but poor sanitation and
a shortage of health care facilities also contribute to the proble,m. The prevalence
of intestinal parasites reduces the ability of a person to properly utilize the
food which has been consumed. A lack of knowledge of proper nutritional
practices and an uneven distribution of food within the household may also
contribute to childhood malnutrition.
Nevertheless, the Philippine government clearly recognizes the need to
increase food production and has undertaken a variety of programs to assist
farmers. Some success has been achieved, but more remains to be accomplished.
It is important to remember that the supply and demand for locally-consumed
food is closely related to the overall level of economic activity. Food will not
be produced for the local market unless the effective demand, not just the need,
is transmitted to producers. Farmers will not increase production significantly
unless they believe they can sell the increased production at a profit. A portion
of this demand for food is represented by customers purchasing ready-to-eat
packaged or prepared food items.
With the movement of people in the Philippines to non-agricultural
employment with the place of work removed from the place of residence, and
with t~e rapid expansion of female labor force participation in the past decade,
the increased demand for food prepared outside of the consumer's household
has provided additional opportunities for enterprises involved in the preparation
and selling of processed and cooked meals and snacks. The ability to provide
~eals and snacks at affordable prices, partially due to low capital expenditures,
and to sell at locations which are convenient for customers, has allowed
small-scale prepared food enterprises to supply food to numerous customers.
These small food businesses in the informal sector are the focus of this study
which was undertaken in Iloilo City, the regional capital of Region VI, the
Western Visayas.

Small Businesses and the Informal Sector

An awareness of the limited opportunities for employment provided by

large-scale industrialization and the rapid growth of the population of many
urban areas has led to a realization that the urban informal sector plays an
increasingly important role in many cities. This has not prevented a great deal
of confusion about what various writers actually mean by the informal sector.
"Since the utility of the .informal sector concept was first recognized; researchers
and policy-makers in a number of different but related disciplines have applied it
to a diversity of empirical data, and in many different contexts" (Moser
1978:1051).
While agriculture still remains. the major source of employment in the
Philippines, small businesses in the informal sector provide jobs for a significant
4 Street Foods
percentage of the labor force. In the urban areas of many regions of the world,
the informal sector appears to have been growing more rapidly than the formal
sector and is expected to continue to do so (Farbman 1980:5). This observation
is supported by survey results from Davao City in the southern Philippine So
which indicate that the informal sector has acted as the primary source of new
employment during the 1970s (Hackenberg 1982: 23). Philippine trends also
indicate that the informal sector will continue to absorb an increasing percentage
of the labor force through the creation of new small businesses and the
employment of additional workers in the small businesses that now exist (Brown
1981 :328).
In addition to providing employment, the informal sector often offers
higher wages than are earned in the formal s.ector (Hackenberg 1980: 399).
While contradictory evidence certainly can be found, numerous studies of
specific groups in the informal sector have found above average earnings for
the operators of various enterprises. In Davao City. above average earnings were
found for the owners of firms engaged in fdod selling (Barth 1984). In Manila,
scavengers - people collecting usable waste material - were even found to be
earning approximately the legal minimum wage (Keyes 1982:14). However,
considerable differences in earnings may exist between owners and employees.
A study of 3500 informal sector firms in Manila revealed that the heads of
these eneterprises earned consid.erab1y more than the legal minimum wage,
while a majority of their workers earned less than the minimum wage (Jurado
1981:141).
While a great deal of agreement exists in regard to the importance of
small businesses and the informal sector, these terms have not been consistently
applied in the Philippines. Gibb dermes small businesses as firms employing less
than ten workers and believes that they account for over 90 percent of the
employment in non-agricultural enterprises (1982: 1). In his analysis of man-
ufacturing establishments, Bautista considered small-scale firms to consist of
those employing less than five workers. These firms supplied over 68 percent
of the manufacturing employment in 1968 (Bautista 1974:49). In its Small
and Medium Enterprise Development project, the U.S. Agency for International
Development (USAID) has categorized enterprises based on their total assets.
The categories include medium, small cottage, and micro enterprises.
1

The lack of agreement in regard to the unit of analysis is even greater in

regard to the informal sector. Rather than. using the structural characteristics of
enterprises, some studies use the size of the enterprise based on the number of
workers or on assets. This size criteria enables researchers to use available survey
data, but prevents valid comparisons between studies. By using an existing
sample frame, Jurado was able to study enterprises with fewer than ten workers,
but probably excluded firms without fixed or permanent locations (1981 :121).
By limiting the informal sector to fmns with an investment of less than $500,
Brown (1981: 259) was able to focus his study, but probably precluded
Introduction 5
comparisons with other studies.
An additional problem is that government surveys of business
establishments in the Philippines do not include market stalls, people operating
without a pennanent structure, and a large number of household enterprises. In
an attempt to provide an indication of the extent of production, processing, and
marketing activities carried on by people without a regular business
establishment, Cook compared a survey of business enterprises with a survey of
households. He estimated that almost 72 percent of the total work force was
not covered in the business survey (Cook 1959: 502-503). When faced with a
similar problem in regard to changes in infonnal sector employment between
1961 and 1971 in an area of Luzon, Gibb used impressionistic estimates which
were based on their internal consistency with evidence obtained from fonnal
sector surveys (1978: 16).
Hackenberg was able to provide a considerably more precise idea of
infonnal sector employment in Davao City through a listing of occupations
obtained in a large household survey (1982 :20). Nevertheless, the analysis was
complicated by the fact that people and households often pursue a mixed
occupational strategy. Anderson has explained the reason for this activity
(1969:646).

Multiple occupations, which frequently include trading activities and small

scale enterprises, reflect aspirations for expanding incomes .... They also
reflect the value of spreading risks not only to increase chances of success
but to assure against complete economic failure.

This type of occupational activity is very difficult to measure. In this

study of street food selling, we have tried to study these multiple occupations
as they relate to the preparation and sale of these food products. By focusing
upon a particular commodity in a circumscribed area, we have been able to
detennine the business activity at stores, marketplaces, on the street and
sidewalks, and in households throughout the neighborhoods of this survey
area. This has required more intensive data collection procedures than are
normally used in surveys, but hopefully the results have made this worthwhile.
Unfortunately, defmitional and measurement problems will always exist. It is
therefore necessary that the reader is aware of them when evaluating the results
of any study and when comparing these results to those of other studies.

Food Marketing

"In the least advanced economics, with the lowest per capita gross national
product, cities are dominated by the poor majority who spend at least three-fifths
,of their meagre incomes on food, have a limited personal mobility, and fe,,:
6 Street Foods
storage facilities" (Jackson 1976:134). In the Philippines, urban residents are
supplied with food through a marketing system consisting of stores,
marketplaces, and food sellers operating without pennanent selling structures.
My study in Davao City featured these three elements of the food distribution
system (Barth 1982). Many Philippine studies have focused on one aspect of the
distribution system, but were not confmed to food alone. Dannhaeuser (1977)
examined the grocery trade in Dagupan, while featuring a survey of
252 sari-sari (variety) stores. Silverio (1982) also studied sari-sari stores, but
confined his study to a more detailed analysis of five finns located in Manila.
Both studies emphasized food sales, but respondents also sold numerous other
items for household use.
Both Davis (1973) and Szanton (1972) perfonned detailed studies of
single marketplaces: Davis in Baguio City in Luzon, and Szanton in Estancia
on the island of Panay. Neither study was confmed to food items, but food
sales dominated both marketplaces. These two marketplaces· were located in
towns in which a considerable amount of selling activity was also taking places
outside of the main marketplace. Some of this type of activity was the focus of a
study of hawkers, people that " ... should be distinguished from store owners
or vendors with pennanent market stalls" (Guerrero 1975:265). The study was
later incorporated into a larger study of six cities; two cities in the Philippines,
two in Malaysia, and two in Indonesia (McGee and Yeung 1977). The two cities
studied in the Phijippines were Manila and Baguio.
Women sellers were predominant in all of the Philippine studies mentioned
above. My study in Davao City revealed that 74 percent of the respondents were
women (Barth 1984). Both Szanton (1972:73) and Davis (1973:97) found a
similar percentage of women selling in markeplaces. Neither Dannhaeuser nor
Silverio provided the percentage of women sellers at sari-sari stores. Nevertheless,
Dannhaeuser believed that these stores were often operated by females
(1977:480), while Silverio believed that women, old people, the disabled, and
children played a larger role in their operation than men (1982: 127). Sixty
seven percent of Guerrero's Manila respondents were female, while 64 percent
of those in Baguio were female (1975:82, 128).
Differences in the years in which these studies were conducted, differences
in the ways earnings were calculated, measurement difficulties in detennining
earnings combined with resistance from respondents, and lack of data from
some studies do not permit an accurate evaluation of earnings. In addition,
many of these businesses were family operations in which various family
members contributed to total household income. Nevertheless, Guerrero found
hawking to be a primary source of income and a major source of livelihood
(1975:248-249). Davis detennined that small-scale operators in the marketplaces
earned considerably more than agricultural laborers (1973:98). While my data
from Davao revealed that the average earnings of food selling establishments
approximated the city's household average, but that many respondents had
Introduction 7
. other sources of household incomes (Barth 1984).
In addition to providing incomes to their operators, small-scale enterprises
often provide outlets for goods from larger enterprises to reach low-income
consumers who wish to make small purchases without incurring transportation
costs. Examples of this are provided by sari-sari stores and non-permanent sellers
that provide additional outlets for supermarkets, groceries, and stallkeepers.
This enables larger operators to increase sales without having to obtain increased
capital to open additional outlets, an important consideration under present
conditions in which interest rates on borrowed capital are high, and without
hiring and supervising additional employees. In this way, smaller operators both
complement and supplement the activities of larger enterprises.

Food and Nutrition

While information on enterprises involved in food distribution systems

is certainly lacking, studies of the marketing of selected agricultural commodities
have been· undertaken in various areas of the Philippines. A great deal more
information is available on the production and consumption of agricultural
commodities. The most frequently studied commodity is rice, the major dietary
staple of the Philippines. It is hardly possible to overestimate the importance of
this commodity. Rice is the major source of income for almost one-half of the
farmers and farm laborers in the Philippines (Republic of the Pchilippines
1980:5). It accounts for more than 58 percent of the calories, 43 percent of the
protein, and 34 percent of the iron in the average Filipino diet (FNRI 1981:20).
Corn is the next most important staple, but its dietary importance is
minimal compared to rice. A great deal of the corn is not used for human
consumption, but is used for animal feeds or industrial purposes. Two other
important agricultural crops are coconut and sugar. Coconuts are consumed
locally and can be processed into cooking oil, but the vast majority of the
coconuts are exported after being made into oil that is used for industrial
purposes, such as making soap. Sugar is also primarily an export crop, but It
is also consumed locally. Whereas the Philippines is self-sufficient in regard to
rice and does not import this commodity, the country does import meat, dairy
products, fish, wheat, corn, and other food products (NEDA 1983:392-393).
The Ministry of Agriculture has set import targets for the period from 1980
to 1990 which indicate increases in the amount of wheat, soybeans, fish, meat,
and dairy products which will be imported (Republic of the Philippines
1980:39). However, these targets m'~y be changed in view of the recent
devaluations of the Philippine peso.
The domestic marketing system for rice has historically been the most
developed for a non-export crop. In recent years, the government has
supplemented the private distribution system, and large increases in production
 8 Street Foods
have been handled fairly well. Unfortunately, the domestic marketing system
for fruits, vegetables, legumes, root crops, fish, and the necessary input
requirements for small-scale poultry and pork production is less well-developed
(Republic of the Philippines' 1980: 12). A better developed distribution system
for domestically consumed food crops would lead to an improvement in the
quantity of the local food supply. This would have the effect of lowering the
food costs of consumers, should provide for more adequate diets, and would
lead to increased purchasing power for other necessities.
Throughout the Philippines, consumers have a preference for fresh food,
partially because processing adds to· the cost of the food. This means that the
distribution system must move items quickly or they will spoil. Rice and corn,
which is made into com grits, are milled, beans are frequently dried, but most
fruits and vegetables are purchased by consumers while they are fresh. A small
portion of the meat is cured, and almost one-fifth of the fish and seafood eaten
in the average Filipino diet is dried or processed (FNRI 1981: 3). This processing
of meat and fish is usually done by small-scale establishments. There is presently
no major reliance on the packaged, processed, and frozen foods that are very
popular in the United States. Nevertheless, some of the largest corporations in
the Philippines are engaged in food processing, frequently with a strong emphasis
on condiments. Some corporations also manufacture packaged snacks that
appear to be fmding increasing acceptance. In spite of the recent increases in the
volume of food processed by large companies, the agricultural sector has not
produced the large surpluses which are required to allow the industry to
effectively compete with the fresh market in regard to price (Lustre 1978:403).
Studies of food consumption in the Philippines have consistently revealed
that diets are less than adequate. The first nationwide survey conducted by
the Food and Nutrition Research Institute (FNRI) revealed that the nutrient
intake of protein was adequate, but intake of calories, iron, and vitamin A were
below recommended levels (1981: 17). Since the food is not divided evenly
among people, these problems are magnified for low income groups. Data from
the Western Visayas revealed that although one-third of the food budget was
spent on fish, meat, and poultry, the intake was only 80 percent of recommended
standards (FNRI 1976). The 39 percent of food budget spent on cereals in
the Western Visayas did at least provide more than the Recommended Daily
Allowance (RDA) (FNRI1976).
The two main nationwide food consumption surveys in the Philippines
are presently conducted by the Food and Nutrition Research Institute and the
Special Studies Division of the Ministry of Agriculture, working in cooperation
with the National Food Authority. Each survey is based on household data
collection. Disputes exist on the measurements used to determine nutrient
intake and in regard to the determination of Recommended Daily Allowances.
But both sets of data clearly show that undernutrition is a serious problem in

I
Introduction 9
the Philippines.
The FNRI nationwide survey is certainly the most commonly used food
consumption survey and is the only one that provides an examination of
nationwide food consumption patterns by income level. However, it appears
that understating incomes is common in the Philippines, and these· figures must
be used cautiously. Another problem is that the survey did not consider food
consumption outside of the household, and only figures on food consumption
in the home were used in the calculations. This does not pennit any allowance
for differences in food consumption patterns for people eating outside of the
household. It is possible that they may eat a different type of food than the
food consumed at home. For example, the FNRI data indicated that people
were consuming less than one-half of the recommended amount of fats and
oils (1981: 1).When a person eats away from home, the person may have a
tendency to eat more of the fried snacks that are so common in Iloilo City.
This may alter some of the figures on average per capita consumption. The
street foods project provides an initial step in answering some of the questions
concerning the types of food purchased and eaten outside of the household.

The Setting

The Western Visayas, which consists of the four provinces on the island
of Panay and the province of Negros Occidental on the island of Negros, has a
population of over 4.5 million people (see Figure 1-2). The region is primarily
dependent on agricultural activities, and approximately two-thirds of regional
employment is found in the agricultural sector, which includes fishing and
forestry (Luning 1981: 51). The major uses of agricultural land are in growing
rice and sugar. Iloilo Province is a major producer of rice, while Negros
Occidental Province is the country's major sugar producing area. The region is
able to export both crops. Other significant crops are corn, coconut, root
crops, bananas, vegetables, and fruit trees. In addition, the fishing industry is
very important in the region. Both fishpond operations, which cover a large
number of hectares, and commercial fishing make the region a major exporter
of fish, mussels, oysters, shrimps, and crabs to Manila and Japan.
While the region is able to export rice, sugar, and fish and also produce
coconuts, fruits, and vegetables, the levels of productivity in most farms is
still very low (USAID 1982:30). A large percentage of the region's inhabitants
also have income levels that are inadequate to supply a low-cost food diet
and average nonfood expenditures. Problems of food, nutrition, sanitation,
and poverty are further reflected in the high incidence of diarrheal diseases,
bronchitis, influenza, tuberculosis, and pneumonia. Government programs
p-ave been developed to build or improve drinking water facilities, provide
.basic health services, and extend nutritional infonnation, but the major problem
 NEGROS OCCIDENTAL
San Jose

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FIGURE 1-2 MAP OF THE WESTERN VISAYAS \ ,,-//
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Introduction 11

is the low purchasing power of a large percentage of the population (Luning

1981 :50).
A labor surplus situation presently exists and maintains low wages, while
keeping the competition high for existing jobs (USAID 1981 :25). This has led
to high rates of out-migration to other areas of the Philippines, primarily to
Manila and Mindanao, and to a search for overseas employment. Manufacturing
industries have not been able to employ a significant portion of the population.
Problems with marketing facilities, expensive power services, poor roads, an
inadequately developed infrastructure, and the low income of local people
make many types of manufacturing uncompetitive with large national and
international corporations.
The two major cities in the region, Bacolod and Iloilo, are primarily
commercial and service centers. Iloilo City has the major port in the region
which is able to handle foreign and domestic cargo. The city, as the regional
capital of the Western Visayas and the provincial capital of Iloilo Province,
is the major administrative center of the region containing the offices of the
government bureaucracy. The city also serves as the major educational center
for the region, with over 115,000 students enrolled in elementary, high school,
college, vocational, and university courses.
Iloilo City had a population of 244,827 in 1980 (NCSO 1981:23). It
became a chartered city in 1937 when five surrounding towns were incorporated
with the municipality of Iloilo. The city now consists of six districts: Iloilo,
Arevalo, Molo, Mandurriao, Jaro, and La Paz. The central district, known as
the Iloilo City Proper, is completely urban, but the other five districts are active
agricultural areas, and large areas are also devoted to fishponds throughout
these five districts of the city.
The little industry which does exist is primarily spread among numerous
small-scale establishments. The only fairly large-scale manufacturing is related
to food processing and metal fabrication. Employment is primarily related to
government agencies, commerce, arid services that are concentrated in the
central business district, the marketplaces, and the port area. General business
activity is closely related to educational and agricultural cycles. Commercial
activity is at a low from March, the dry season and the start of the school
vacation, until September or October when the rice harvest has started.
There are nine marketplaces inside of Iloilo City. The two largest
marketplaces, the Central and Tenninal Markets, are part of the central business
district. These two marketplaces are only one kilometer apart and both serve
the general public. The only other large marketplace operating on a daily basis is
the La Paz Market, which is located adjacent to the central business district. The
La Paz Market primarily serves residents of the La Paz and Jaro districts. The
other marketplaces are small and primarily serve their immediate neighborhoods,
except for a large marketplace in Jaro operating only on Thursdays. Vendors
12 S tree t Foods
operating in this marketplace come from other areas of the city or are part of
a periodic marketplace system operating throughout the province.
While Iloilo City is a bustling commercial center, has a pleasant climate,
and is located in rich agricultural and fishing areas, problems with health,
sanitation, and low income are serious. The prevalence of dilapidated housing
in unhealthy environments is evidence of absolute poverty . The city suffers
from a shortage of housing and has a large squatter population, frequently living
above swamps or in tidal areas.. While electricity is available at relatively high
rates, potable water is a scarce commodity. Water pressure is very low and piped
water is only directly available in certain areas. Others have to purchase water
from water carriers and/or utilize wells which are frequently polluted. This
appears to have had a serious negative effect on public health and hygiene.

Research Methods

The preparation and sale of prepared, ready-to-eat food represents a

significant portion of informal sector enterprises in many countries. In the
Philippines, these small businesses provide employment fi>r numerous people,
especially women, in rapidly growing urban areas, and at the same time furnish
low-cost, nutritious food. Urban living is sometimes associated with indus-
trialization. However, in many areas, such as Iloilo City, only a small
percentage of the urban population is able to fmd employment in factories
and other establishments associated with the formal sector. Until the middle
of the 1960s or so, most models of development tended to concentrate on the
formal sector, and the informal sector was seen by those favoring rapid growth
within a capitalist structure as a blockage to growth, and by Marxists and
neo-Marxists as a " ... symptom of the poverty-creating capacity of international
capitalism" (McGee 1978:3).
The informal sector was sometimes viewed as a symbol of
underdevelopment that should or will disappear with development. It was also
seen as a transitional stage in which unskilled rural workers migrated to the
city and worked until they were able to fmd a more permanent modem sector
job (Todaro 1969:139). However, studies have subsequently been undertaken
which reveal that many participants in the informal sector have spent many
years in their present occupations and do not expect to enter the formal sector
(Sethuraman 1981:20). In fact, many of these enterprises are very competitive
with larger operations and are able to serve a very useful function by meeting
the demand of consumers for convenient purchasing at low costs.
The most significant question that needs to be asked is under what
conditions change is accomplished, since no sector is inherently static or
dynamic (Weeks 1975:4). Economic efficiency can only be related to patterns
of demand based on the income and preferences of consumers (Lo, Salih, and
Introduction 13
Douglass 1978:86). This study will examine informal sector prepared food
establishments in order to determine their importance as a source of
employment for an expanding urban population, the earnings of owners and
workers at these enterprises, and their role in providing inexpensive food to
consumers. An attempt will be made to expand the small amount ofinformation
available on informal, urban food distribution systems and forms of food
preparation and handling. The focus is upon food and beverages sold in Doilo
City, the operations of enterprises selling these foods, the household and
small-scale production of food and beverages for sale, patterns of food,
consumption, preparation and handling of cooked food, and the nutritional I
value of the food consumed.
For the purposes of this study, the term "street food" will be utilized
to separate formal and informal sector enterprises. Street foods consist of
food and beverages prepared outside of the consuming household, which are
sold by enterprises in the informal sector, and are sold for direct consumption.
The International Labor Organization has attributed the following characteristics
to the informal sector: comparatively easy entry of new enterprises, a
reliance upon indigenous resources, family ownership of enterprises, a small
scale of operation, labor intensive and adapted technology, worker skills
acquired outside the formal school system, and unregulated competitive markets
(ILO 1972). The infonnal sector in this study is used as a descriptive term
referring to enterprises, not the people working at these firms, and is used to
examine a subsector of an operating general system.
Carenderias - traditional eating establishments serving cooked portions
of meals (viands) from display counters and/or containers - and refreshment
parlors - establishments selling drinks with snacks which do not constitute a
meal - were included in the informal sector. Vendors cutting up fruits and
vegetables also met the criteria to a street food establishment, as did small,
mobile variety stands. Institutional sources of prepared food, such as school,
hospital, or office canteens, were considered to be operating in the formal
sector. Restaurants - establishments serving meals which are selected from a
menu, in an enclosed area, and providing waiter service - and fast food
establishments - enterprises selling Western-style food and using imported
ingredients and cooking technology - were also considered to be operating in
the formal sector.
The criterion for inclusion in the survey was also related to the purpose
for which the food was purchased - direct consumption versus household
preparation. This provided a way of distinguishing selling units by the source
of demand for their products. Small variety stores, sari-sari, operating primarily
as' packaged food stores or selling primarily to customers for household
preparation and consumption were excluded. Those with a significant percentage
of their sales devoted to the sale of meals or prepared snacks were included.
14 Street Foods
In this study the survey 'area was limited to the Iloilo City Proper district
and the contiguous business district in La Paz (see Figure 1-3). This allowed a
study of street food sellers in the three major marketplaces of Dollo City,
throughout the central business district, in the port area, and throughout the
neighborhoods of the central district, an area with a population of approximately
55,000 people. A random, stratified sample of ten percent of these street food
sellers amounted to a total of 135 respondents out of 1,350 street
food sellers, and questionnaires were administered to these 135 food
sellers. Projections based on counts made in business areas of the surrounding
districts, combined with household samples, indicated that there were over 5000
street food sellers throughout the six districts of Iloilo City.
A different set of questionnaires was administered to two respondents at
each of the 123 street food seller locations throughout the survey area (12 fQod
sellers were either not operating or not selling street foods at the time of the
customer survey). A third set of questionnaires was given to respondents at 150
households in six barangays, the smallest political unit in the Philippines. Three
barangays were in the City Proper and one each was in the districts of Molo,
La Paz, and Jaro. The barangays were selected on the basis of ensuring the
inclusion of various· income levels in the survey. Since we did not know the
income characteristics of the population by area of residence, it was not possible
to select a completely representative sample without drawing a large sample
frame. The primary r~ason for drawing the household sample was to examine
the influence of income levels on food purchasing and consumption patterns,
and household income was always used as the independent variable in the
analyses.
All questionnaires were prepared in English, but were usually administered
in Hiligaynon, the primary language of Iloilo City. The preparation of each
questionnaire required a period of pretesting in which a number of questions
were deleted when responses were unsatisfactory. Three permanent members of
our staff, who were fluent in Hiligaynon and English, performed almost all of
the interviews. The response of street food sellers was remarkably good, and
many sellers were willing to answer questions even when they were very busy
with customers. Actually, some respondents were so adept at operating their
businesses that they could answer questions while simultaneously working at
the enterprise. Direct questions regarding earnings were avoided since some
people tended to become evasive when these questions were asked.
In or,der to provide more depth of analysis than can be provided by the
moresuperflcial technique of administering questionnaires, three families in
each of five categories, a total of;:, 15 respondents, were selected, as the
subjects of detailed case studies.. Researchers spent a considerable amount of
time at these firms and learning the roles of various household members in the
total Business operation, both in regard to production and sales.
 RKET
LA PAZ MA

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CENTRAL

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STREET
FOODs ST
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 16 Street Foods

The selection of five food categories was based upon the criteria of an
assessment of the most popular and widely consumed street foods, both meals
and snacks, and the foods in whose preparation, distribution, and sale, women
. played a significant role. The case studies provided interesting information on
the history of household involvement in food processing and distribution, the
availability and acquisition of raw materials, and the actual experience of
obtaining credit and licensing. In addition, nutritional analyses were conducted,
the safety of food handling, preservation, and cooking procedures assessed,
sources of potential competition determined, and perceived constraints to
business expansion identified.
Table 1-1· is based on the primary item sold by food seller respondents in
the sample.
TABLE 1-1 PRIMARY ITEM SOLD BY FOOD SELLER RESPONDENTS.

Food Category # of sellers Percentage

Meals (viands) 47 35%

Fried Snacks 18 13%
Beverages 18 13%
Packaged Snacks 12 9%
Soups 8 6%
Ices 8 6%
Native Cakes 7 5%
Barbecue 6 4%
Sandwiches & Siopao 4 3%
Meat & Eggs 3 2%
Fruits/Vegetables 2 1%
Bakery Goods 1 1%
Boile d Snacks 1 1%
-
Total 135 99%

The sampling of respondents was not done by food groups, and the primary item
sold sometimes changed at different times of the year, but these categories
provided a rough framework in which to select five foods for detailed case
studies.
The following five food categories, selected from Table 1-1, were used
in the case studieL
Meals. This was th-e largest food group representing more than one-third of the
sample. It provided the best indication of local food· consumption and was a
category with relatively high average sales.
Fried Snacks. This· category was second in popularity among food sellers,
with peanuts being the most commonly sold item. Fried bananas and cashews
-'r
Introduction 17
were also popular. Beverages and packaged snacks represented the next most
commoply sold items. Since they were both frequently produced by
corporations which, with the exception of Pepsi.cola and Coca.cola, had
factories outside of Iloilo, they were not selected for case studies. However,
firms primarily selling fried peanuts while also selling packaged snacks were
included in the case studies.
Soups. Since soups were popular and represented local speciality items, they
were included. Numerous firms featuring soup also received items for sale
from outside households or firms, such as bakery products, sandwiches, siopao,
and native cakes, while also selling soft drinks and beer. Ices were as popular as
soups, but were not included because women did not usually play a significant
role in the sale of these items.
Native Cakes. These were fairly common and allowed an examination of
production outside of the selling establishment, since many of these items
were made by different households. They were commonly sold by ambulant
vendors who operated in marketplaces and throughout the business district of
Iloilo City. Native cakes were commonly produced and sold by women and
represented a traditional production technology.
Barbecue. This category consisted primarily of chicken and meat barbecue,
which was sold throughout Doilo City. Barbecue was actually more common
than the numbers suggest because numerous eating establishments barbecued in
front of their firms in the late afternoon and evening. Barbecued corn was also
popular, but was only available at certain times of the year.

Street Foods in Dollo City

One-fourth of the street food sellers were located in the three marketplaces
of the survey area. The remaining sellers were found throughout the survey area,
with concentrations near offices, commercial establishments,scheols, theatres,
at the port, and at terminals and along the transportation routes of public utility
vehicles. For purposes of enumeration and sampling, food sellers were divided
into those selling from permanent establishments, market stalls and stores, and
those without a permanent structure, semi-static and ambulant vendors. The
enumeration of sellers without permanent structures was more difficult to
obtain than that of permanent establishments because the number of sellers
fluctuated at different times of the day. Both the enumeration and sampling
were timed to coincide with estimated peak times for sellers. These tended to
be in the morning at marketplaces and in the late afternoon in the central
business district and throughout neighborhoods, but lunch sales in the business
district were covered and the port area was visited after ships had arrived.
Enumerations of non-permanent sellers were conducted throughout the
year in order to try to determine seasonality. Evidence from the enumerations
18 Stree t Foods
and from our sample indicated a large main core of~ellers that sold throughout
the year. Respondents indicated that they sold an average of ·11.93 months a
year and 97 percent report~d selling continually throughout the year. However,
it was rather common for sellers to switch to different items at various times
of the year or in response to perceived opportunities. Some of these switches
were heavily influenced by the costs of supplies. For example, some people
stopped selling fried bananas when the price of bananas was high, but remained
in business selling other items.
One of the reasons that lloilo City was selected as the site for this project
was the variety and quantity of street foods. The appendix provides a list of
popillar street foods. Two local soups, batchoy and pancit Molo, were alleged
to originate in the La Paz and Molo districts of the city. Both items have now
spread to other areas of the Philippines and are rather popular.
Results of the food seller survey revealed that. street foods in noilo City
were being primarily sold by women. Almost four-fifths of the respondents
were female, while less than one-fifth were male. Just using the sex of the
respondent can be misleading since most of the firms were family operations,
and since more than one-fourth of the firms were operated by husband and wife
together. Nevertheless, women dominated the control of business income at
fmns operated by husband and wife together and shared equally in making
decisions regarding busint:ss operations. Women also sold at 86 percent of the
firms not operated by husband and wife together.
Only 36 percent of respondents claimed to be operating with a business
license (see Table 1-2).

TABLE 1-2. STREET FOOD SELLERS OPERATING WITH AND WITHOUT

LICENSES

Permanent Non..,Permanent Total

Number Percentage Number Percentage Number Percentage

With License 42 67% 7 10% 49 36%

Without License 21 33% 65 90% 86 64%
Total 63 100% 72 100% 135 100%

The table clearly shows that respondents selling from permanent structures
were more likely to claim to be licensed than those without a permanent
structure. A chi--square· test revealed these differences to be significant at the
.001 level. Firms operating stores were supposed to have a business license from
the city to operate, licenses or permits to sell certain items, a permit from the
Bureau of Internal Revenue, and sanitary and-health permits. The National Food
Authority also has plans to obtain license and registration fees from food
In troduc tion 19
businesses, but these plans had not been implemented at the time of the survey.
Market vendors were required, in addition to the above licenses ·and
permits, to have their stalls registered -in their names. The owner of a stall in a
government-owned marketplace was expected to personally operate the stall.
Actually, many stallkeepers bought the right to the stall from the previous
owner and were not offiCially listed on the rolls of the city. It was also common
for people at stalls and stores to report sales revenues that were far below actual
sales in order to lower taxes, and to sell some items for which they had no
permit. Larger firms were watched more closely than smaller ones.
The licensing situation for people selling on a semi-static or ambulant
basis was considerably different. In Iloilo City, these vendors were seldom
able to obtain business licenses. Those non-permanent vendors selling in the
vicinity of marketplaces were usually able to buy daily cash tickets which
allowed them to sell. Others were prohibited from selling on the main streets,
but were usually tolerated by authorities if they did not block the street or
sidewalk, stayed away from certain areas at certain times, and followed other
restrictions, such as, keeping their areas clean, following certain regulations
regarding covering their food, and cooking only in certain areas.
Many sidewalk vendors on the main business streets in Iloilo City belong
to a vendors' association, with a president who represents their interests to the
city mayor. They also have a group of officials who receive voluntary
contributions in exchange for watching for pickpockets, preventing sidewalk
obstructions, asking vendors to keep the sidewalk clean, maintaining order"
and preserving the selling places of vendors. The association is not limited to
food sellers but only actually collected voluntary payments from a portion of
the actual number of sidewalk and street vendors. Throughout the past 10
years or so, the association has not been able to prevent periodic crackdowns
by police in which vendors have. been arrested and their carts confiscated.
This study of street foods ex.amines an informal sector activity that plays
an Important role in Iloilo City. Since food is a necessity of life, it cannot be
considered only in the same manner as other commodities. In the next chapter,
various features of street food establishments are considered. Chapter 3 then
provides a detailed analysis of some of the economic attributes of these
enterprises. Chapter 4 represents a shift in emphasis to the consumer, and
various consumption and purchasing patterns are considered. In Chapter 5, street
foods are related to hygiene and nutrition, and bacterial and nutritional analyses
are utilized. Chapter 6 then considers some theoretical and practical applications
of information obtained in the study.
 CHAPTER 2

STREET FOOD ESTABLISHMENTS

Prior to initiating our survey of food sellers, it was decided to only

conduct interviews with the actual owners of each establishment. This was done
to enable interviewers to obtain personal information that could be related to
the development of the business enterprises. Interviewing was facilitated by the
fact that almost three-fourths of the firms hired no employees. There were no
corporations in the survey, and the owner-operator was generally present at
these family businesses. Niriety six percent of the firms were sole proprietor-
ships, three percent were partnerships, and one establishment was a cooperative.
Interviews were conducted with the owners in every case except for two: one in
which the owner did not operate the business, and the other in which the
manager of the cooperative was interviewed.
Respondents were fairly well spread throughout the survey area, with
12 percent at the Central Market, 7 percent at the Terminal Market, 6 percent
at the La Paz Market, and 75 percent in establishments .on the streets, alleys,
passageways, and sidewalks of the survey area. Sellers were acutely aware that
they needed to be located where they were conveniently accessible to potential
customers. When asked why they selected a particular location, sellers
commonly replied that numerous people were in the area, or otherwise
identified the particular source of their customers. Of course, the exact location
depended on the purchase price of the business, if they inherited the firm,
whether they . could receive permission to sell there, and an evaluation of what
they could afford to pay to establish the business in relation to expected sales.

Personal Features of Respondents

Respondents ranged from a low of 15 to a high of 74 years of age. The

average age was slightly over 41, and the median of 40 was only one year less.
The average education amounted to slightly less than 8 years. Forty seven per-
cent of the respondents had a 6 year elementary school education or less, one-
Street Foods Establishments 21
third had been to high school, and one-fifth had some college education.
Forty six percent of the respondents were born in the city, and owners
of these businesses were seldom recent migrants to IloiloCity. Those respondents
not born in lloilo City had lived there for an average of 21 years. A further
indication of their deep ties to the area was reflected by the 93 percent who
used Hiligaynon (Ilongo), the language of Iloilo City, as primary language spoken
in their home. An additional six percent spoke Kinaraya, a common language
on Panay Island, at home. The remaining one percent spoke Cebuano, .the
primary language of the Central Philippines..'Only two respondents with Chinese
ancestry were found and both spoke Ilongo at home. Many of the employees
at these firms appeared to be recent migrants to Iloilo City, and their low wages
were an indication of the surplus labor situation existing in the region.
Almost 10 percent of the respondents had been in .their present
occupation for less than six months. The remainder had been in the same
occupation· for an average of over nine years. Fifty two perc~nt had no previous
occupation; they were either students, housewives, or were unemployed. This
is a reflection of the tremendous labor absorption provided by this activity.
Nonetheless, housewives frequently had a long history of selling food and were
frequently entering this occupation with a great deal of experience that may
have been obtained before they were married. In addition, almost one-fourth
of the respondents had previous sales occupations that provided them with
experience. This type of experience partially accounts for the fact that 60
percent of the respondents indicated that the benefits of the occupation was
their most important reason for choosing their present occupation. However,
low educational levels and the absence of other opportunities certainly helped
influence their occupational choices. Another factor which must be considered
is that people frequently have multiple occupations. Almost one-fifth of the
respondents had an additional occupation, while just less than one-third had
additional sources of income not connected with this occupational activity.
Some of the rich experience gained by respondents prior to entering
their present activity can be illustrated by some examples from the case studies.
At the time Norma, a 28 year old barbecue vendor, was born, her mother was
operating a market stall selling fruits and vegetables. When Norma reached the
age of seven, she began helping her mother at the stall and selling throughout
the marketplace as an ambulant vendor~ When she was in high school, she con-
tinued working for her mother, but also started selling cigarettes on her own.
She continued these selling activities until she was married at the age of 19.
After the marriage, she stopped working for approximately five years.
She then returned to· work selling vegetables in nearby towns on their weekly
'~market day." She operated as one of the many bulantero who travel through-
out the island of Panay on a weekly cycle. She stopped this activity after one
year because it was difficult for her to travel and also take care of her small
22 Street Foods
children. Nonna decided to return to her mother's market stall, but, instead of
selling fruits and vegetables, she took over the stall in the afternoon and started
selling barbecued chicken and fish, along with beer. She has been operating this
business for 3 years now and is doing well. In the meantime, her husband found
a job as a fireman. He and his fellow workers often visit Nonna's establishment
after they have fmished their working day.
Capring, a 42 year old unmarried woman born in Doilo City, provides
another example of early training in sales. Her mother sold laundry soap,
peanuts, and anything else she thought would provide eamingsto supplement
the salary of her husband, a warehouse worker. When Capring was 7 years old,
she started selling in the marketplace near their house. She continued selling
until she had the, opportunity to go to" Manila as a housekeeper.
"
She stayed
.
thereI
for two years, but had to return to Iloilo when her father became ill. Upon
her return, she found a selling location in the marketplace, began selling peanuts,
and has been there for the past 23 years.
Loreta, a 53 year old woman with eight children, has also been selling
food since she was a child. She was born in Doilo City, and her mother operated
a stall selling fresh fish at a small local marketplace. Loreta, the eldest child,
helped her mother and also started selling boiled bananas when she was 12 years
old. After her mother's death, she took oyer the stall and operated it for the
next nine years. When her husb~d stopped working as a laborer in Guam,
they purchased a farm and moved to the countryside. The farm was unsuccess-
ful, and after four years, Loreta and three children returned to Iloilo City,
and she began selling fish at the Terminal Market. Her husband, two years later,
also returned to the city and started working at the port as a stevedore, a job
he has held for more than 20 years.
Loreta eventually decided that the earnings from selling fish were
insufficie~t and started selling snacks as an ambulant vendor. One of the ar~as
she covered was the port. She noticed that people selling meals at the port
seemed to be achieving fairly high earnings, and decided to set up a small eating
establishment, a carenderia. After experiencing difficulty with the police - her
cart was confiscated by them· - she established her present store at the port~
alongside the wall of the warehouse where her brother is employed.
Of course , not all street food sellers received sales training when they
were young, and the small capital investment required makes this activity
attractive. Meding, a 38 year old woman with five children, migrated to Iloilo
City when she was 13 years old. She had no sales experience and worked as a
domestic helper until her marriage. For the first 12 years of "her marriage,
she confmed her activities to primarily being a housewife. In 1975, she started
selling food, prepared by someone else, as an ambulant seller who walked around
the central business district of the city. When her husband had to be hospitalized
due to tuberculosis and could no longer work as a private driver for a wealthy
 Street Foods Establishments 23
Filipino family, Meding's food sales became the sole means of support for the
family. After learning a "secret" formula for the preparation of a barbecue
sauce from a patient who was in the hospital with her husband, Meding started
selling barbecued pork and beef liver. In less than a year, her husband joined
her in the business, and they presently operate a successful business that
provides them with a rather high income for the area in which they live.

Women's Role in Business Operations

As was previously indicated, female respondents dominated the survey.

However, fIrms at which males were the respondents had signifIcantly higher
sales than those at which a female owner was interviewed (see Table 2-1)
TABLE 2-1. DAILY SALES BASED ON SEX OF RESPONDENT

Respondent Number Percentage Daily Sales

Male 29 21% P387

Female 106 79% P195

A general linear models procedure indicated that these differences in sales were
signifIcant at the .01 level. However, when controlling the effect of other
variables upon·sales, the sex of the respondent did not signifIcantly affect sales.
This will be elaborated .upon further when discussing the effect of various
, independent variables upon sales.
Seventy one percent of the respondents were married, and both husband
and wife worked together on a full-time basis at 27 percent of the firms. Those
fIrms in which husband and wife worked together had higher sales than· other
enterprises. Table 2-2 shows that other firms operated by men had comparable
sales, but those operated by women had appreciably lower sales.

TABLE 2-2. DAILY SALES BASED ON TYPE OF OPERATOR

Operator Number Percentage Daily Sales

Husband & wife together 37 27% ~373.78

Male only 14 10% P363.22
Female only 84
135
--_.
62%
99%
P154.46
Total

An analysis of variance procedure indicated that these difference in sales were

signifIcant at the .01 level.
24 Street Foods
Since many of these fmns were family enterprises, the operators may be
consanguineous relatives, rather than husband and wife. Therefore, the sex
of the person controlling the business income and making decisions may be
different than· that of the' respondent. Table 2-3 reveals that women completely
dominated the control of business income.
TABLE 2.-3. CONTROL OF BUSINESS INCOME AND DECISIONS

Male Female Joint Control

Business Income 13% 19% 7%

Business Decisions 17% 60% 23%

Males had a more activ~ role in business decisions, but these were still dominated
by women. These results reveal that men were likely to be involved in businesses
with higher sales, but this does not necessarily mean that they controlled these
enterprises. This lends some support to the hypothesis that the husband joins
his wife in the business after it achieves a In'eaSure of success, but the reality
appears to be considerably more complicated.
Even though street food vending was dominated by women, the only
type of activity that was almost exclusively confmed to one sex was ice cream
vending from mobile wooden carts~ a male actiyity. Most of these vendors
were provided with a cart to use by the producer of the ice cream and received
the ice cream on a consignment basis. They were then told to sell in certain
areas and to return in the evening to pay for the ice cream and to store the
cart and the unsold ice cream. This activity provided relatively low earnings,
but, if the seller owned his cart and made his own ice cream, earnings were
considerably higher.
Szanton's study of a marketplace in Estancia led her to believe that, in
general, women became vendors when they were young and served as helpers
to their mothers, as a way to supplement the income of their husbands, or after
their husbands died or became disabled (1972:76-77). While this also appears
to be partially true for prepared food sellers in Iloilo City, more women have
certainly entered the labor force in the 15 years since Szanton conducted her
research. But cultural and social factors must also be considered. In the Philip-
pines, strong cultural supports for women engaged in commerce exists, and
women evaluate each other in terms of their business activities. Social exchanges
are considered valuable for the information they provide, as a reinforcement of
status; and f-o~. the opportunities they offer (Hackenberg and Barth 1982 :31).

Type and Scale of Enterprises

The me.an founding date for street.food establishments was 1971; meaning
Street Foods Establishments 25
that these firms have been in operation for an average of 12 years. Some of the
older firms helped raise the average, and more than one-half of the firms started
in 1976 or later. Table 24 lists the founding dates of these enterprises by
decades.
TABLE 24. DECADE ENTERPRISE FOUNDED

Decade Number Percentage

1940 - 1949 9 7%
1950-1959 15 11%
1960 - 1969 23 17%
1970 - 1979 50 37%
1980 - 1983 38 28%

The table confirms the expected progression by: decade in which fewer firms
remain from earlier decades. Naturally, firms have been at their present location
for a shorter period of time, with an average arrival date of 1975 and a median
arrival date of 1979.
While almost all respondents indicated that they sold on a continual
basis throughout the year, and most were open seven days a week, attempts
to recontact sellers indicated that a significant portion of these enterprises
closed for certain periods of time. This was frequently related to an illness
of the seller or to a loss of operating capital, which was often related to an
illness in the family. In addition, unsuccessful operations closed permanently.
The failure rate of small businesses is high throughout the world, and these
food sellers are no exception.
These firms represented the primary source of household income for
83 percent of the respondents' households. This remained relatively constant
for those operating stores and market stalls, considered to be selling from
permanent structures in this survey, and those operating as semi-static or
ambulant vendors, considered to be selling without permanent structures. :Store
owners operated from permanent physical structures that may, or may not,
have also served as the residence of the owners. Market stallkeepers, for the
purposes of this survey, were confmed to people operating from a permanent
structure in one of the three public markets in the survey area. These structures
are often physically indistinguishable from stores, but the operator had to pay
rent to the city of Iloilo, and the marketplaces were clearly demarcated by
the city. Some of these market stalls also served as the residence of their
operators. In the survey, 44 percent of the stores and stalls combined were used
as the residence of the operator.
On the other hand, sellers operating without permanent structures may
have been operating in the same place for a number of years. In fact, chi-square
.26 Street Foods
tests revealed no significant differences between firms operating with permanent
or without permanent structures in regard to the decade of the founding of the
enterprise and the decade the firm started in its present location. A non-
permanent structure is one that has the appearance of being temporary and can
be easily'disassembled or moved. It is usually possible to visit the area, when the
business is not operating, and not realize that anyone sells there. These firms
may be found inside or outside of a marketplace. They are very prevalent
throughout the Philippines and are, by no means, confmed to prepared food
sellers.
Sqme examples of sellers operating from both permanent and without
permanent structures may be useful to help clarify the distinction between
each group of sellers. Many prepared food sellers in Iloilo City operated inside
areas on the first floor of large buildings containing more than one story. These
firms were clearly operating inside pennanent structures, which were usually
open in the front to allow people easy access from the sidewalk and street.
A large number of street food sellers also operated from small bamboo and/or
wooden buildings with some type of roof overhead. These buildings could not
be easily disassembled or moved, and their operators frequently lived there.
These sellers were also considered to be operating from a permanent structure.
An example of a permanent structure from the port area, which is
i1 r mgside the mouth of an estuary that follows a winding course through the
city, illustrates a relatively less formal, permanent structu~e. It is in this area,
in front of a large warehouse, that the small establishment owned and operated
by Loreta is located. The store actually consists of two counters, one supplied
by the Coca-Cola Company and one supplied by the San Miguel beer company,
with a galvanized iron roof that is attached to the warehouse wall and with
walls on the other two sides. The space behind the counters contains a make-
shift stove, a table, a wat~r_drum, some shelving, and a bedroom. A large San
Miguel beer. sign sits on top of the roof. Customers sit on wooden benches that
are usually placed in front of the counters. The business was started in this
location in 1975, and the store presently provides a home for seven people.
Another enterprise is found alongside one of the entrances to a large
public market. The firm, owned by Juanita" actually consists of two market
stalls which are rented from the city. The establishment· faces the street, which
contains a fair amount of traffic and is also used as a parking space for public
jeepneys and buses going to various towns throughout the island of Panay.
The building is solidly made of wood with a galvanized iron roof. Juanita only
rents a part of the large structure built by the city in 1970, and partitioned into
compartments. The main room is used to serve soup and drinks to customers
and is large enough to hold 16 tables. The mezzanine over this room serves as
the living quarters for Juanita and her husband. The back-rooms are used for
preparing the food and for storage. The one large back room that opens into the
Street Foods Establishments 27
interior of the marketplace is also used by Juanita's daughter to sell chicken
adobo, a popular viand, at night.
While stores tend to be larger than the one operated by Loreta, and
market stalls tend to be smaller than the one of Juanita, these two illustra-
tions provide support for my decision to group these two types of firms together
for part of the analysis. These are then compared to sellers operating without
permanent structures, such as sidewalk vendors, which are a common sight
throughout the business district of Iloilo City. These sellers are usually found
lined up next to buildings or next to the building pillars that are in the center
of the sidewalk. Peanuts and cashews, fried in coconut oil, are very commonly
sold items. These are frequently fried in pans on the top of mobile wooden
carts containing a small kerosene stove.
Rolando, a 42 year old native of Iloilo City, started frying peanuts and
cashews on the sidewalk in 1982. After investing about P500 in a wooden cart,
a kerosene stove, and other equipment, he began his present operation. At
about 6:00 A.M. each morning, he goes to the store where he keeps his cart
and rolls it out onto the sidewalk. He cooks and sells peanuts and cashews next
to his wife's small variety stand until approximately 11 :00 A.M. He then moves
to an area of the sidewalk about 25 meters away and sells until the late evening.
His cart is then put away, and he and his wife return home to enjoy their evening
meal.
The sample drawn to be interviewed was stratified according to sellers
with permanent and without permanent structures and also in regard to whether
they were selling meals or snacks (see Table 2-5).

TABLE 2-5. STREET FOOD SELLERS IN ILOILO CITY

Permanent Non-permanent Totals
Total Sample Total Sample Total Sample
Meals 414 42 64 6 478 48
Snacks 207 21 665 66 872 87
Total 621 63 729 72 1350 135

Sellers of snacks without permanent structures were further stratified into those
selling prepared snacks, such as peanuts, and those operating variety stands
selling packaged items, such as candy, provided by suppliers. Before establishing
this packaged goods category, we talked to over 100 vendors and found that
about 95 percent said their cu~tomers usually did not take this food home for
household consumption. Firms selling packaged snacks from permanent
structures were excluded because their products were usually for /home
consumption. Nevertheless, many of these stores sold some items for direct
consumption, and this activity was not included in this study since only the
28 Street Foods

major activity of the enterprise was considered. The only way to avoid this
problem would have been to include all food sellers, since any of them could
sell food that may be eaten outside the household.
Firms selling from permanent structures had much higher sales per day
than other sellers (see Table 2-6).

TABLE 2-6. DAILY SALES OF STREET FOOD VENDORS

Permanent Non-permanent

Sales P376 Pl.13

A general linear models procedure indicated that this difference was significant
at the .001 level. The differences remained significant when the effects of other
variables upon sales were held constant.
In Davao City, overall sales were lower, but sales were also over three times
higher at Street Food Firms operating from permanent structures than at those
without a permanent structure. These differences in the type of selling structure
clearly overshadowed any differences between enterprises selling meals and
selling snacks (see Table 2-7).

TABLE 2-7. SALES PER DAY BY ENTERPRISE CLASSIFICATION

Permanent Non-permanent

Meals P375 PlIO

Snacks p380 PlIO

Chi-square tests· were used to determine the differences between sellers at

pennanent and sellers without pennanent structures in regard to some important
variables. These differences were not significant in regard to the sex or marital
stCitus of the respondent, but were significant at the .01 level in regard to educa-
tion, which was grouped according to the attendance at elementary school,
high school, or college. Sellers with permanent locations were more highly
educated.
I have previously mentioned that sellers without pennanent structures
were seldom able to obtain licenses and that only ten percent claimed to have a
license. This is very close to the 13 percent of the prepared food hawkers found
to have licenses in Manila, but is far below the 80 percent found to have licenses
in Baguio City (Guerrero 1975:53, 121). It does indicate that many of these
vendors will follow legal licensing restrictions if they are given the opportunity
to purchase a license. .
 Street Foods Establishments 29
The distinction between finns selling meals and snacks was used in drawing
the sample because little movement between these categories was expected.
That there was little difference in sales volume was not known until the results .
of the survey were obtained. The sample was not divided into the primary item
sold by respondents due to the changes made by vendors throughout the year.
Yet the results taken from our sample were used as the basis for the case studies.

Sources· of Food and Linkages to Suppliers

As part of the interviewing process, street food sellers were asked to

provide information on the origin of their products. All respondents were
familiar with items, such as native cakes, that were locally produced. Many
people selling cooked food were not familiar with the original source of fresh
items, so the researchers had to trace the item through the marketing system.
It was impossible to trace each particular item, but we were able to obtain
general patterns on the movement of products, some of which were seasonal.
. Since the interviews were conducted during March and April, these patterns
were reflected on the questionnaires.
Fifty six percent of the respondents sold some items originating in Iloilo
City. Since five of the six districts of the city were agricultural, some of these
items included fruits, vegetables, meat, fish, and milled rice. However, these
items were more commonly provided from the surrounding areas of Iloilo
Province, where 85 percent of the respondents obtained some items. The city
contained numerous bakeries and noodle factories, which were also found in
smaller numbers throughout the towns surrounding the city. Numerous bakery
products and native cakes were also produced in households in the city and
sold by food vendors.
Competition with Manila-based corporations appears to have led to the
replacement of some items, such as candy, which were formerly produced
locally. "The market for consumer goods from Manila has extended into many
provincial areas, and Chinese who once ran shoe or candy factories now have
closed down and distribute these Manila goods instead" (Omohundro 1981 :53).
This change appears to have occured in regard to some food items, but small
local producers are frequently able to compete very effectively with outside
corporations in regard to the price of many food items.
Nonetheless, local small-scale beverage producers 'have been completely
replaced by large corporations. The Pepsi:.cola and Coca-Cola companies com-
pletely dominate the sale of soft drinks, but each operates a factory in Iloilo
Province. Instant coffee, processed in Manila, has also largely replaced locally
brewed coffee. Dairy products are imported into the Philippines and packaged
by large Manila-based corporations. The only other non-alcoholic drinks that
are popular are fruit drinks made by local vendors, often with canned pineapple
30 Street Foods
juice, and tahu, a drink made with ginger and hot water. Most juice drinks are
packaged in Manila, then sold locally. The only popular alcoholic beverage
produced locally is tuba, the fermented sap from the coconut palm tree. Beer
is manufactured in the Manila area and in Cebu, and is shipped to Iloilo. It is
very popular, and along with soft drinks, constitutes a major sales item for
many food sellers. Other bottled alcoholic beverages usually are produced in
Manila or abroad, but these are seldom sold by street food sellers.
The linkages of Iloilo City street food sellers to the large food processors -
in the metropolitan Manila area is reflected by the fact that 78 percent of the
respondents sold some items originating in Luzon, the island on which Manila
is located. Ties to Region VI food producers outside of Iloilo Province were
minimal. Ties to the rest of the Visayan area and to Mindanao were also minimal.
Some beer and flour did come from Cebu, while canned pineapple products
and some flour came from Mindanao. Almost all Philippine wheat is imported
and then processed at large flour mills. The main suppliers of flour to Iloilo
City are located in Luzon. Street food sellers seldom sold food or beverage
items that were directly imported into the Philippines.
More than one-half of the respondents had some items delivered to their
firms. The elaborate marketing system extended downward to some sidewalk
vendors who received deliveries of cases of soft drinks. It also included sidewalk
vendors, primarily selling packaged items from Manila purchased at local stores,
who received deliveries of locally-made sandwiches, bakery goods, and native
cakes.
Other common sources of supply were marketplaces, supermarkets,
groceries, sari-sari (variety) stores, and bakeries. While no significant differences
existed between the number of sellers operating from permanent or without
permanent structures making purchases at supermarkets, chi-square tests
revealed statistically significant differences between purchases from groceries
and at the producer's location. Non-permanent sellers made more purchases
at groceries, where they frequently were given credit, and were forced to go to
the producer's location more frequently.
During the survey, firms that supplied food to street food enterprises
were divided into those who produced the item themselves, those who only
operated as middlemen and had no actual selling location, and those operating
wholesale/retail firms. Chi-square tests revealed no statistically significant
differences between sellers operating from permanent and without permanent
structures in regard to purchases from wholesale/retail firms. However,
permanent sellers were more often able to make purchases directly from
producers, often without having to go to their location, while non-permanent
sellers dealt with middlemen more frequently. This presents further evidence
of the effectiveness of the distribution system. It also indicates that
non-permanent sellers may have had to pay more for their supplies, or that
Street Foods Establishments 31
they were obtaining different types of items. Their reduced operating expenses
may have enabled them to still be competitive with permanent sellers in regard
to price, or their accessibility may have prompted consumers to pay more. I
found no evidence that they sold any items which could not be obtained from
sellers operating at permanent structures.
Supplies were obtained very frequently, and 86 percent of the respondents
made some purchases every day. Bargaining with suppliers was common, but 44
percent of the street food sellers made all their purchases at fixed prices set by
the suppliers. Payments to suppliers were usually made on a cash basis, but 10
percent of the firms made purchases exclusiv~ly with credit, and 36 percent
were able to make some purchases with credit. .These purchases on consignment,
referred to locally as alsada, were usually on a very short term basis, and almost
two-thirds of -those receiving credit had to pay for their goods in one day or less.
Supplies were often provided in the morning, and charges were collected in the
afternoon.
Very few of those enterprises making purchases on a credit basis believed
that they had to pay more for their supplies than if they paid at the time of
purchase. Some people also had to make payments with cash because they could
not obtain credit.,Nevertheless, my observations lead me to believe that people
making purchases with cash are frequently in a better position to bargain for a
lower price or are able to acquire a larger quantity at the same price. Purchases
with credit do form a bond between the buyer and seller that may help ensure
the availaoility' of supply in times of scarcity. This may be more effectively
accomplished through advance' payments to suppliers, but no street food sellers
did this. Twelve percent of the respondents did experience shortages of supplies
that prevented maximum sales. These shortages were sometimes related to the
seasonal production of certain commodities, but were also related to the daily
availability of some items, such as meat, fish, and vegetables.
Many operators of food businesses had to make decisions whether to
obtain supplies at the lowest possible price, or whether to obtain them at more
convenient locations. Many also had to decide how much of the food processing
they wished to perform themselves. A couple of examples will illustrate these
decisions. The operator of a 9hicken barbecue stand can purchase dressed
chicken in the marketplace. Tnis"usually requires only a small time commitment
because the public markets are easily accessible by public transportation.
Chickens can also be purchased while they are still alive. The price is lower but
the buyer has to dress the chickens. Another alternative is to travel' to the
countryside and make purchases closer to the source of chickens that are riot
grown by large-scale producers. The price is usually lower, but the time
commitment increases considerably. If the firm is only operated by one person,
the time commitment usually precludes a trip to the countryside. Yet, if a
second person is brought into the business, the increase in profits may be appre-
 32 Street Foods
ciable if someone goes to the countryside to make purchases. The choices are
actually more complex, and the alternatives are wider than I have illustrated,
but this example shows the type of.decisions constantly faced by food sellers.
The same type of decision is faced by sellers of native cakes. They can
.purchase their cakes from a local supplier, or they can produce the cakes
themselves at a lower cost. In order to make the cakes themselves, they must
make a time commitment of several hours a day. Their decision is based on a
wide variety of factors. However, if large~scale producers could lower the unit
cost of production, it would be in the interest of street food sellers to purchase
from their producers. This has occured to some extent with bakeries using flour
pro,ducts, especially in the production of bread, but not extensively in regard to
native cakes.

Relations with Customers

Throughout the Philippines, the term suk4 is used to refer to a special

. relationship between the buyer and seller of numerous goods. Davis believed
that the suki relationship was especially important in the central marketplace
in Baguio since the majority of transactions took place between buyers and
sellers who considered each other to be suki (1973: 217). While almost everyone
in the Philippines is familiar with the term, suki, the use of the term varies
widely. Szanton felt that, in Estancia, the most important aspects of the suki
relationship were regular contacts and credit (1972:97). In Baguio, Davis
indicated that

In addition to the all~important extension of credit, the seller~suki is expected

to give his customer~suki a small reduction in the going market price for the
commodities purchased, or its equivalent in better quality goods, or a more
generous measure for the same price. In some cases, especially when
conditions favor a seller's market, the price reduction may be more fiction
than fact, althou~ the seller always attempts to disguise the fact by stressing
the relative quality· of his goods, and by addressing the suki-buyer in terms
which suggest special treatment .... '(1968: 14).

While Davis very clearly describes certain aspects of the suki relationship,
in Dagupan, Dannhaeuser found that credit is not always necessary in suki
relationships and that people purchasing from someone who maintained overall
low prices with no special concessions considered the relationship to be suki
(1977:483). In Davao City, I found that some people ". . . even used the term
to refer to someone from whom they bought, or to whom they sold, for the
first time that day, and not one with whom they have a special or regular trade
Street Foods Establishments 33
relationship" (Barth 1982: 121). Due to the conceptual confusion surrounding
the concept of suki, it was not used in the street food study, but the regularity
of dealing with customers, the bargaining taking place, and the credit provided
were examined individually.
Respondents indicated that they dealt with 37 percent of their customers
on a regular basis. Three-fourths of the respondents also were willing to bargain
with some customers. This bargaining is done in one of two ways. One involves
discussing the amount to be paid. This is known locally as ayo. The other way
is for the seller to sell a larger quantity at the Sallie price, paaman. Both forms
of bargaining are very common in Iloilo. In the survey, bargaining was not
considered to be adjustments in the price, while maintaining the same unit price;
for example, if someone sells one-half of a one peso portion of rice for 50
centavos. The rounding off of purchases from PS.05 to PS.OO was also not
considered to be bargaining. This is usually done to maintain good will between
the buyer and seller, and there was little evidence of any negotiations between
the two.
Seventy one percent of the respondents provided some credit to customers.
It was not possible to determine the exact percentage of customers provided
with credit, but in most cases it was only a very small percentage. However,
some fIrmS with a very regular clientele were willing to provide credit to many
customers. These customers frequently worked at a particular place known
to the food seller who often went there to collect these debts on a regular
basis. An example of this is provided by Loreta who kept a list of each person's
purchases on the back of opened cigarette cartons. She collected from the
stevedores when she went to the offices of her husband's employer to obtain
his pay.
Numerous sellers were also willing to provide credit to people who made
purchases for resale. These people often had to pay for the goods later that
day. In general, loans were only for short periods of time, often until pay day,
and 9n1y seven percent of firms providing credit extended it for more than 15
days. Collecting debts frequently becomes a very serious problem for sellers,
and stories of fIrmS going out of business due to uncollectible debts are very
common. Unfortunately, it is, also not unusual for a customer to frequent an
establishment until he becomes known- by the proprietor. He then starts asking
for credit which is difficult for the proprietor to refuse to a regular customer.
The customer then builds up a list of debts and, rather than paying off the
debt, starts patronizing a different establishment and never returns to pay the
debt.
Decisions concerning bargaining and to whom to extend credit are crucial
to the success of many street food businesses. These are seldom left in the hands
of employees, and the proprietors are often required to be physically present
at the firm for long hours in order to ensure that customers are handled properly.
34 Street Foods
Observations of numerous food sellers have allowed me to witness some
excell~nt salesmanship and the psychology involved in dealing with customers.
Bargaining and requests for credit must be handled tactfully, and a joke told at
the proper time makes customers more comfortable and often prevents disputes.
Some of these skills require a considerable amount of time for most people to
acquire, but others develop the knack at an early age.

Summary and Assessment

The age, sex, and educational level of respondents in Iloilo was similar
to that of street food sellers found in my 1981 study in Davao City (see Table
2~8).

TABLE 2-8. COMPARISON OF AGE, SEX, AND EDUCATION OF

RESPONDENTS

Location Sex Average Average

Male Female Age Education

Iloilo City 21% 79% 42 8 years

Davao City 20% 80% 39 9 years

Neither group was composed of recent migrants to the city, and sellers
frequently based locational decisions on considerable knowledge of the city
itSelf The age of the respondents indicated a degree of experience in -life that
was undoubtedly very helpful when dealing with other -people. The exposure
of many respondents to business activity at an early age by their parents or
other relatives prepared them to operate a small business. While small capital
requirements may allow easy entry to street selling ·activity, the experience
and skills necessary for success may raise qualifications to fairly -high levels.
The age of respondents, the level of skills, and the fact that respondents
were not recent migrants is contrary to dualistic models, such as the Todaro
model, which assume that informal sector self-employment is only temporary
until the person can find formal.~.~~tQJ; ·~.orJ( (Todaro 1969). It is in agreement
with studies of migration in Bangkok which indicate that migrants do not
usually get into self-employment until after they have been in the city for a
period of years (Tongudai 1982:19). This has important policy implications
in that these skills and experience represent an important resource which should
be utilized to encourage economic development, rather than being subject to
unfavorable governmental policies.
Even though women dominated street food selling activity in Iloilo City,
sales were higher at firms with men involved in the business. Over half of the
Street Foods Establishments 35
men operated these businesses with their wives, but the other half operated firms
with comparable sales, which were far higher than those operated by women.
Using sales figures as an indication of size, these results are in agreement with
USAID's study of small urban businesses. "In general, the smaller the size of
the business reached, the larger the proportion of women business owners"
(Ashe 1981 :45). Nevertheless, street food businesses were not just supplying
earnings to supplement family incomes. They were often family operations that
provided the primary source of household income for over four-fifths of the
respondents.
Many of these enterprises were not operating within the letter of the law,
and only a little over one-third of them claimed to be licensed to operate.
However, as was noted by Jellinek for Indonesia, but is equally true for the
Philippines, ". . . one must distinguish between what is legal and what is
permissible ...." (1977:244). While street food vendors faced some common
problems with certain governmental regulating and licensing organizations,
other regulations applied to each group differently. Storeowners were generally
encouraged to operate as long as they paid certain fees. But squatters on
government or private land were frequently not issued permits or licenses for
fear· of legitimating their operation. Unfortunately, they were seldom given the
option to purchase the land.
Market stallkeepers frequently paid market fees, but ignored other
operating requirements, especially if their stalls were not registered in their
own names. This saved them money, but prevented them from obtaining access
to credit programs designed for stallkeepers. These programs usually required
them to prove that they were registered as bona fide stallkeepers with the
market administration.
The most serious legal problems belonged to non-permanent sellers who
usually could not obtain licenses to operate without a permanent structure.
If they were able to purchase a cash ticket, they were able to sell for a day at a
time. Others were usually viewed very leniently by local authorities. As long as
they did not cause major obstructions for vehicular or sidewalk traffic, they
were usually left alone provided they did not cook in certain areas and stayed
out of other areas during certain hours. These hours were only loosely enforced
and the attitude toward ambulant and sidewalk vendors was rather benign.
No one that we questioned ever, indicated that they have to pay tong, fees,
to authorities. Of course, it took an unusual vendor to turn down a request
for food from a policeman.
This relaxed situation did not always exist, and police have periodically
tried to remove sidewalk and ambulant vendors from the city. These actions
seem to vary with different administrations, but vendors were always concerned
that policies may change at any time. In Manila, the official policy for a number
of years has been the eventual elimination of sidewalk vendors and hawkers
36 Street Foods
(Guerrero 1975:144). The present mayor has a policy of clearing the streets
and sidewalks of illegal sidewalk vendors, but has agreed to only warn the
vendors for a first offense, while arresting those guilty of a second offense
(Manila Bulletin Today, November 9, 1983).
Administrators frequently· want to ban sidewalk and ambulant vendors
from commercial areas because they cause traffic congestion and because they
offer unfair competition to storeowners and regular stallkeepers by avoiding
payments for fees and licenses (Guerrero 1975 :142). This complaint of unfair
competition is not limited to government administrators. In Manila,· the
Chamber of Filipino Retailers and the United Metro Manila Market Stallholders
Association have asked the mayor to strictly enforce laws against sidewalk
vendors who allegedly offer unfair competition to legitimate retailers and market
stallholders (Manila Bulletin Today, November 21, 1983). This same situation
of competition between the various types of prepared food sellers certainly
exists in Iloilo. While many small-scale vendors ml gaps in the food distribution
system and provide low costs and convenience to customers, thereby serving
complementary functions, they are certainly in competition regarding the
limited purchasing power of consumers.
Numerous small-scale food sellers also may provide more variety of choice
to consumers. In Iloilo City, street food sellers are also involved in production
and make decisions regarding whether they can effectively compete with
larger-scale producers in regard to production or whether to purchase these
items for resale. They can also buy from local small-scale producers. I have
mentioned that large-scale producers dominate in regard to beverages and candy,
but hundreds of local households cook food and prepare bakery items. Bakeries
dominate in the production of loaves of bread, but many are also themselves
supplied with small cakes and other items made in local households. Street
food sellers also offer additional outlets for these producers.
Various suppliers to prepared food sellers also perform the important
function of allowing the prepared food seller to obtain his goods without any
capital, and to pay for them afterthey have.been resold. An example is provided
by a meat vendor who sells to a carenderia owner. The meat may be delivered
to the store in the morning, but the meat vendor will not collect until later in
the day after the carenderia operator has cooked the meat and sold it. The meat
vendor then uses the money he has coll~cted to make purchases from his
suppliers early the next morning. Meanwhile, the carenderia operator may have
made some sales on a credit basis. ~hese credit transactions are extremely
important in a country, such as the Philippines, where capital is relatively scarce.
 CHAPTER 3

ECONOMIC CHARACTERISTICS OF ENTERPRISES

The classification of street food sellers according to their economic

activity would involve three major divisions of the Philippine Standard Industrial
Classification (NEDA: 1978). The one-fourth of the sellers who did not
transform the products they sold would be considered to be operating in the
trade sector. Establishments selling prepared food and drinks for immediate
consumption would be considered in the services sector. Those baking bread,
cakes, doughnuts, or preparing snack products, such as peanut products and
popcorn, would be considered under the manufacturing sector. Of course, a
firm may have beel) involved in more than one activity and may have changed
its activities frequently. These classifications, therefore, only provide very
rough guidelines in regard to street food sellers.
The three-fourths of the respondents using cooking fuel had a choice
of using wood, charcoal, kerosene, bottled gas, electricity, or some combination
of these fuels. Charcoal, made from wood, was the most popular fuel for
cooking. Average fuel expenses for those involved in cooking amounted to
approximately P7.50 per day. Different products, preparation techniques,
and income levels strongly influenced the types of fuel used. Some examples
of food preparation will help to clarify this point.
A carenderia serving meals, viands and rice, located on government-owned
land in the commercial area of the city offers a variety of 15 to 20 entrees. Most
food is prepared on small circular stoves that are less than one and a half feet
high. These stoves are extremely popular and are used in homes and businesses
throughout Iloilo City. They can be made of clay, cement, or metal, and are
used to bum wood or charcoal. Food is cooked on openings at the top of these
stoves and is not placed inside; These stoves seem to perfonn well but, when
made of clay, are not very durable. However, they are produced locally and are
rather inexpensive.
At the carenderia, charcoal is used in five of their stoves. After fish, meat,
and vegetables have been cleaned and frequently sliced, they are boiled or fried
38 Street Foods
in pans, or broiled directly above the heat. The ftsh and meat are usually
boiled or fried with vegetables. Salt, sugar, garlic, ginger, onions, pepper,
monosodium glutamate, vinegar, soy sauce, and tomatoes are popular seasonings.
As is common throughout Iloilo City, no dishes are baked at the .earenderia.
The firm has one additional stove, a different type, with two burners that uses
bottled gas. This stove is used for cooking, but its pnmary function is to keep
soup hot.
By 7 :00 A.M. each day, the establishment is selling meals to a steady
stream of customers that does not slow .appreciably until 1:00 P.M. or so.
Customers select dishes that are displayed in aluminum pans or on plates in a
glass enclosed display counter. Once the food is cooked, it is placed in the
cabinet and will usually not be reheated unless it is kept until the following
day. The soup is· served hot, and customers can have extra servings of the broth
at no additional charge. These viands are served with boiled rice that costs
'P0.50 per s.erving.. The cost of the viands range.s from PO.50 to t=3.00, with
most viands in the P2 .00 to P2.50 range.
While rt:J.ost carenderias offer soup, along with fish, meat, and vegetable
dishes for consumption with rice, some eating establishments primarily feature
a popular soup that is usually eaten as a merienda (snack). One common item
is batchoy, a soup that allegedly originated locally. This popular noodle soup
is sold in the Central Market by one of our case study respondents. At this
market stall, the soup consists of noodles, made from wheat flour, that are
cut with a ~cissors and placed in a bowl.· Then small slices of pork intestine,
beef liver, and pork are put on top of the noodles. This is seasoned with soy
sauce, black pepper, monosodium glutamate, fried garlic, and cut green onions.
Then a hot broth in which meat has been boiled, and in which meat bones have
been placed, is poured into the bowl. The broth is kept hot over a wood frre.
The batchoy is sold for M.50 per bowl, and the establishment also sells soft
drinks and beer.
Throughout the Philippines, native cakes, usually made with rice, are an
.important food eaten for breakfast and as snacks. These items are usually
prepared in individual households by women and represent a traditional
production technology. For the past 43 years, Coroy has been making two types
of native cakes, ibos and alupi, in her house in the place of her birth, a muni-
cipality south of Iloilo City. After learning how to prepare these native cakes
from her mother, she started selling in her neighborhood and then switched to a
large marketplace in Iloilo City. She has been selling there ever since.
On a usual day, the native cakes are displayed on a plastic sheet on top
of a bamboo table. The price of the native cakes varies from PO.20 each to PO.60
each, depending on their size and how the bargaining with customers develops.
Prices are frequently higher in the early morning and are reduced as the morning
progresses. By noon, the cakes have usually been sold, and Coroy has made

BEST AVAILABLE COpy

Economic Characteristics 39
her purchases of ingredients to begin preparations for the sales of the "ext
day.
When she arrives home in the early afternoon, she eats lunch, soaks her
glutinous rice in coconut milk with a little salt, and rests for awhile. At about
3:00 P.M., she starts wrapping the rice in coconut palm leaves to prepare the
ibos. The work is very time consuming and each individual item is separately
wrapped. The items are then placed in a large kettle and cooked in water. The
process for the alupi is only slightly faster. The glutinous rice is ground at the
marketplace before being mixed by Coroy with brown sugar and grated coconnt.
Individual servings are wrapped in banana leaves and are then placed in a kettle.
Water is added, and the kettle i$ kept on the fire until the water has evaporated.
The process of preparing both types of cakes usually takes until about 7:30 in
the evening.
A fmal example of prepared food production is provided by a family
living in a nice house in the Molodistrict of the city. In front of the house,
the family operates a sari-sari store, while other areas of the lot and house
are used for the production of fresh lumpia (a local snack made of coconut
hearts, pork, shrimp, onions, garlic, with a flour wrapping) and various baked
goods. The lumpia is made by one of the sons of the owners of the house.
He actually lives ne~rby and only stores his coconut hearts at the house.
His sister, Letty, is a college graduate who worked as a secretary for one
year before she resigned to set up her own business. She started selling banana
bread to sidewalk vendors. This business prospered for awhile, but then
competition increased, and she had to search for another outlet for her products.
She also started selling chiffon cake and found an outlet at the canteen of the
College of Nursing at a local university. The dean of the college required her
to be properly licensed by the city health department. In order to obtain the
license, she had to pay P20.00 and attend a one week seminar. She was the
only person to whom we spoke that actually attended the seminar. Even her
two sisters who operate similar businesses have not attended and are not
licensed.
Letty is now making four items - banana bread, chiffon cake, camote
pudding, and pineapple muffins -' that are distributed to additional canteens
at the university. Each Saturday, unsold items are given to her sister who sells
cakes and native cakes, some of which she prepares herself, at a local
marketplace. A third sister makes banana cakes that she sells primarily to
vendors at a different marketplace. All three sisters are hard working and appear
to be doing well. Each now has her own modern oven, using bottled gas as
fuel, with which to make various items. The cost of Letty's oven, which she
acquired in early 1983, was P6,000.00, with payments on an installment basis.
40 Street Foods
Sources of Credit

Fifty eight per~nt of the enterprises, which were able to provide

informantion on starting capital, were started exclusively with the savings of
the owners, 36 percent used credit exclusively, and 6 percent used a
combination of savings and credit. The average amount of money required to
start the business amounted to PI ,074.00, but this figure actually has .little
_meaning since it has not been adjusted to a price index covering the various
years in which the fmns were founded. Table 3-1 shows the source of credit
for those who borrowed to meet all or part of their initial capital requirements.

TABLE 3-1. SOURCES OF CREDIT TO START THE ENTERPRISE

Source # of Vendors Percentage

Relatives 9 16%
Friends 1 2%
Moneylenders 23 42%
Employers 1 2%
Government agencies 1 2%
Producers 11 20%
Wholesale/Retail Firms
Total -9
55
16%
--
100%

Moneylenders were the primary source of credit for those borrowing for
starting capital. They. were also the only lenders that charged any -interest on
their loans. The 23 respondents borrowing from moneylenders paid interest
rates that varied from 5 to 40 percent per month. No respondent received a
loan from a bank, and the only governmental agency involved set up a project
for handicapped people. The average loan amounted to P579, but a few large
loans raised the average. Loans were usually for a short duration; 27 percent for
one day or less, 46 percent for 2-30 days, and 27 percent for more than 30 days.
Those who started their enterprises exclusively with their own or family
savings had higher sales than others. However, a general linear models procedure
using the .categories of exclusively savings, exclusively credit, and a combination
of credit and savings revealed that these differences were not statistically
significant. Firms at which the respondents were female tended to borrow more
frequently than those which were operated by males, but the differences were
very slight.
Respondents were usually very willing to discuss their source of initial
capital, but were more reluctant to discuss features of the daily fmancial
Economic Characteristics 41
. operations of their businesses. However, 37 percent of the respondents admitted
to having outstanding loans for operating capital at the time of the interview
(see Table 3-2).
TABLE 3~2. SOURCES OF CREDIT FOR OPERATING CAPITAL

Source # of Vendors Percentage

Relatives 7 14%
Friends or Moneylenders 40 80%
Banks 3 6%
Total 50 100%

Friends and moneylenders were grouped together in the table because

respondents wo~d frequently borrow from their friends, who were often fellow
food vendors who also provided loans at interest rates from 5 to 40 percent per
month. The 40 respondents who had these loans represented 30 percent of the
total sample.
It is interesting to note that no governmental agencies were involved in
providing loans for operating capital, but that three respondents had loans from
banks. These respondents were all market stallkeepers that were eligible for
toans under programs developed for stall owners. One program is administered
by a government-owned bank. The other was set up due to pressure from the
government to increase the availability of credit to small-scale borrowers (Brown
1981:323). The private bank requires a fmancial statement, a business permit,
a cosigner, and certification showing that the recipient is a bona fide stall owner
(Barth 1982: 117). Loans are unsecured and collections are made daily.
In the course of the research, other street food vendors who had loans
from the private bank were encountered. These people were not stallkeepers,
and were not actually eligible for their loans. They were known by people
working at the bank and were thereby able to obtain the loans. One lady, a
sidewalk vendor,has received and repaid two loans from the bank. She said
that, since she had a good record of repayment, she can get another loan for a
larger amount whenever she wants. Nevertheless, she recently made a loan
from a moneylender at astronomical interest rates to help fmance overseas
employment for her brother. She would not say exactly why she did not get a
business loan from the bank at lower interest rates and use part of it for her
brother's trip. Perhaps she did not want to deceive her friends at the bank, or
perhaps she did not want to damage her credit line for the business, in the event
that her brother did not make promised repayments from Saudi Arabia.
- Other sources of credit for businesses were their suppliers. Table 3-1 shows
that producers and wholesale/retail finns made 36 percent of the loans for initial
42 Stree t Foods
capital. Interest was not charged, but many of the loans were on a very short
term basis. This source of obtaining capital is not shown in Table 3-2, but,
in Chapter 2, it was pointed out that 46 percent of the respondents obtained
some goods on a consignment basiS. This, plus the evidence from both tables,
demonstrates the lack of access to outside sources of credit. Even the
moneylenders who provide credit are seldom specialized. They usually have
their own businesses and provide credit only as a sideline. Further evidence of
credit internally generated in the distribution system itself is provided by the
71 percent of respondents who made some credit sales to customers.
Twenty two percent of the respondents belonged to business associations.
To my knowledge, none of these associations were providing loans to members.
Most vendors' associations were not permitted by- law to make loans, but they
could form cooperatives and then make loans. Vendors at one of the public
markets had plans to fonn a cooperative and to start lending money in 1984.
In Baguio, Dav.is only found a few successful credit cooperatives among market
vendors, even though many attempts had been made (1973: 177). In Davao,. I
was informed that ". . . some associations no longer provide cash to members
due to problems with nonpayment and that some associations have discontinued
operations due to these loses" (Barth 1982:116).
. Throughout the Philippines, people of Chinese ancestry have formed
business associations that facilitate credit exchanges between members. These
are often on a personal basis and are not directly linked to the association,
but the association often haS at least informal sanctions against members who'
do not pay their debts. In Iloilo City, Omohundro found that mutual aid
societies, where members contribute funds that are then given to one member
at established interest rates, did not exist (1981: 64). He also believed that
these did not exist anywhere in the Philippines.

Pricing and Sales

An extremely important aspect of every business operation concerns the

establishment of the selling price {)f its products. This is especially important in
regard to street food sellers because many customers were acutely aware of the
price they paid for prepared food. Throughout the formal interviewing, the
markup above the purchase price of goods was obtained from respondents.
Their responses certainly only provided rough approximations, but, due to
respondents' experience in the business, it was felt that their responses were
worth eliciting. Many sellers handled numerous items which were purchased
and sold at variable prices. It would have been impossible to prepare lists
ourselves and try to compute. the markup for a significant number of sellers.
We hoped that the sellers themselves would be able to calculate these price
variations to provide an average figure.
Economic Characteristics 43
One would naturally expect that sellers who did not alter their product
to charge less above their acquisition costs than those cooking or otherwise
processing the food, assuming bdth operated under the same conditions. This
probably accounted for some of the variation found in the markups, which
ranged from 10 to over 100 percent. The mean markup was 42 percent, while
the median was almost the same - 40 percent. There was a very strong negative
correlation between the percentage markup and sales, which was statistically
significant at the .01 level. This means that when the markup was higher, sales
were lower.
Some sellers were aware of the prices charged by their competitiors,
and S8 percent of the respondents said that they charged the same price as
their competition. Only one percent felt that they charged more, yet 21 percent
believed that they charged less. One-fifth of the respondents did not know the
prices charged by competitors, but felt that their price had to be different since
they had their own methods of establishing prices. Almost one-third of the
respondents reduced their prices during the course of the day in order to sell
perishable items. Additional price flexibility was found in the three-fourths
that bargained with customers. Of the 71 percent who provided some credit to
customers, only one respondent admitted to c.harging higher prices when doing
so.
Shortages of supply only prevented maximum sales at the establishment
of one seller with a permanent structure. Yet 11 percent of the other sellers
experienced shortages that prevented maximum sales. This is partially
attributable to the larger purchases of firms with permanent structures helping
to ensure their supply. Nevertheless, quite a few sellers had to change their
products at various times of the year to avoid shortages, and 84 percent of the
respondents experienced seasonal fluctuations in sales.
Since Iloilo City is located in a predominantly agricultural area, its
business activity is strongly influenced by agrarian cycles. Another extremely
important influence on business activity is the Christmas season, which starts
shortly after rice harvesting begins in September or October. Many farmers
grow two rice crops, and some harvesting continues through February. After
January, business is at a relatively low ebb through the dry season until the rice
harvesting starts again. The school year also influences business activity since
many students leave the city during the summer vacation, which starts in March
and ends'in June.
Various enumerations of sellers operating without a permanent structure,
semi-static and ambulant vendors, reflected this yearly cycle somewhat. The
counts of 679 sellers in February and 677 sellers in April were taken during
times of low activity. The count of 78S semi-static and ambulant sellers in
August was higher, but 11 0 of these sellers were selling barbecued corn on the
cob, an activity lasting less than two months. If these sellers are subtracted
44 Street Foods
from the total, the count remains almost the same -675. The last count of 782
taken in November (the harvest did not start this year until October) appeared
to reflect an actual increase in the number of sellers in the central business
district as general levels of business activity increased. The difference in the
count of prepared fQpd sellers operating from stores in November showed a ten
percent increase over the January count. This appeared to be due to more
people operating carenderias in their homes. Nonetheless, the fact that peoplt>
were able. to move in and out of the street food categories while remaining in
business, by possibly only altering their products, clouds the issue ofse'asonal
changes in the number of sellers.
An example of this change in products may be helpful.. A fmn may
operate as a sari-sari (variety) store featuring packaged products used for
household food preparation. An emergency may drain operating capital· from
the business. The owner, wishing to remain in business but short of working
capital, may start cooking and selling food for immediate consumption. This
requires less capital, and the sales turnover is on an almost daily basis. Once
the owner is able to set aside some profits, he or she may again operate a sari-sari
and stop cooking food, a time consuming activity. The fmn would only be
counted in our street food survey during the time it was involved in the acutal
preparation of food.
When asking respondents their average daily sales, interviewers informed
respondents that they wanted a yearly average. Some respondents were
obviously able to easily make this calculation, while others had difficulty and
.based their answers on recent sales. The result was that, since the survey was
conducted during a time of relatively low business activity, sales figures may
have been somewhat higher if our interviews had been conducted during a
different time of the year. However, the availability of certain commodities
frequently did not correspond to the main agricultural cycle· based on the rice
c~op.

Respondents reported average daily sales of P'236.22. In order to

determine· which variables had a significant effect on sales, a general linear
models procedure was employed. The general linear models procedure was part
of the computer software package of the Statistical Analysis System (SAS) and'
was able to handle both nominal and continuous independent variables, while
automatically generating dummy variables for the nominal variables (Magalit
1982:29). Average daily sales figures were used as the dependent variable and
various independent variables were tested to see if they had a significant effect
on sales. Some of the independent variables were nominal and were not altered.
Continuous variables, except the percentage markup, were categorized into
classes to allow a more adequate examination of non-linear relationships. This
was done because ". . . if one is in doubt of the linearity of the relation between
the predictor variables and the dependent variable it is better to use nominal
Economic Characteristics 45
predictor rather than numerical predictor variables in regression" (Magalit
1978:57-58). Table 3-3 shows the results of the procedure, but only gives the
level of significance for variables found to be significant at the .05 level or higher.

TABLE 3-3. GENERAL LINEAR MODELS PROCEDURE

Dependent Variable: R-Square

Average Sales .53
Level of Significance
Independent Variables Type I Type III

Sex of Respondent .0021

Control of Business Income
Making Business Decisions
Type of Enterprise .0001 .0020
Location of Firm .0258
Age of Respondent
Education of Respondent
Decade Finn Started in Present Location
Time Respondent in Occupation .0156
Previous Occupation of Respondent
Decade Enterprise Founded .0001 .0001
Primary or Secondary Source of HH Income
Bargaining with Customers
Providing Credit to Customers
Percentage Markup .0352 (Not tested)

An examination of the independent variables reveals that both attributes

of the· respondent and of the business enterprise are considered. The Type I
analysis only considers the effect of the individual variable under consideration.
The assumption is made that each independent variable is unrelated to other
independent variables. This is, of course, not true, so the Type III analysis is
used to control the influence of other variables by keeping their effect constant.
Some independent variables may actually be affecting other independent
variables more than the dependent variable. Another important consideration is
that the dependent variable may be influenced by residual causes that are not in
the model. The R-square is supposed to represent the proportion of the variation
in the dependent variable· "explained" by variation in the independent variables.
In this model, it indicates that just over one-half of the variation is· explained,
a fairly high level in social science.
As I have previously indicated, male respondents were interviewed at
business with significantly higher saies. These differences disappeared when
46 Street Food,
the effect of other independent variables was held constant. Seeing that the
type of enterprise - with or without a permanent structure --'- was significant
throughout the analysis, I used a chi-square test to see if men tended to more
frequently.operate enterprises with permanent structures that had higher sales.
They did not. I also examined the year that the business was founded. Almost
no difference existed between those at which men or women were interviewed.
Differences in sales between men and women respondents are therefore related
to other factors.
The differences in sales between permanent and non-permanent sellers
were highly significant and remained so when the effects of other variables
were considered. This provides justification for our use of this distinction in
sampling and subsequent analyses. Daily sales at firms located in marketplaces
were P'361, compared to P194 for those located outside of them. However,
other variables were influencing this variable. Age differences in respondents
were expected to be important, but were not. This may mean that younger,
more successful vendors moved into other endeavors.
Respondents with some college education had sales which were con-
Siderably higher than those with only high school or those with only grade
school experience. Nevertheless, the variation in sales for people in these three
groups prevented these differences from being statistically significant. This may
indicate that vendors need to possess skills which are acquired outside of the
school system, such as ability in dealing with people. This is not measured in
the model.
Whereas the age and educational level of the respondent did not have a
statistically significant influence on sales, the time that the respondent was
in his present occupation was significant. This was especially important for
those who had been in their occupation for more than 10 years. A chi-square
test revealed no significant differences between sellers with or without a
permanent structure in the number of people in each of the three groupings
used. Yet this variable should be positively correlated with the decade the
business was founded, the most important independent variable in the model,
and the time the respondent had been in his present occupation lost its statistical
significance when the effects of other variables w~re held constant.
The variable of the decade in which the enterprise was founded indicated
that the sales of older firms were higher, except for the decade of the 1950s
(see. Table 34). Those respondents who started selling in their present location
in the 1950s had higher sales than in any other decades, while businesses
founded during this decade were lower than expected. I am not able to explain
~hy the sales of fmns started in the 19508 did not conform to expectations.
The negative correlation between sales and percentage markups has
previously been discussed. The markup expectedly had a strong influence on
Economic Characteristics 47
sales. The effect of tlie markup on other in-dependent variables was held constant
in the Type III analysis. Earlier versions of the model did not include the
percentage markup variable, but the significant variables behaved in the same
manner. Whereas the sales of street food vendors were inl1uenced by factors not
considered in the general linear model, the model provides a powerful tool for
analyzing the effect of factors that are usually only assumed to be important,
or unimportant,. to the success of the enterprise.
TABLE 34. SALES OF ENTERPRISES BY DECADE FOUNDED

Decade Percentage Average Sales

1940 - 1949 7% P617

1950 - 1959 11% P204
1960 - 1969 17% P310
1970 - 1979 37% P220
1980 - 1983 28% P135

Upward Mobility

While average daily sales amounted to approximately P236 per day, a

considerable range of sales from po 15 to P'3000 per day existed. This afforded
numerous possibilities for business expansion for respondents who remained as
street food sellers. In addition, 19 percent of the firms had other operating
locations. The sales of these .additional enterprises were not considered in the
survey. Median daily sales ofP'120 at respondent's locations were considerably
below the average. Table 3-5 shows the very uneven distribution of sales by
dividing daily sales into four equal parts.
TABLE3-5. SALES QUARTILES OF ENTERPRISES

Quartile Avenige Daily Sales

First P 15 P 60
Second 'P 61 P 120
Third P121 P 250
Fourth P251 P3,OOO

Only six fIrmS reported sales of over 'P800 per day, but these firms with high
sales influenced the average.
Tw"c> examples from the case studies will illustrate some of the differences
between respondents with low and high sales. Minda, a 63 year old woman,
48 Street Foods
works as an ambulant seller of native rice cakes. She can be found every day
near the fish section of a large Iloilo marketplace carrying a basket of ibos,
suman, and sum~n latik. She initially learned how to prepare rice cakes from
her mother,. who operated a small business on a neighboring island. Minda has
now been selling for over 20 years at the same marketplace, but· has no license
and pays no market fees.
Her husband, Simon, worked on a fishing boat until 1979, when he retired
and received a small. amount of money from the owner of the boat. He now
helps her with the business by carrying supplies of coconuts, glutinous rice,
brown sugar, coconut palm leaves, banana leaves, and firewood from the
marketplace' to their house. He also assists with the preparation of the native
cakes at their house, an undertaking consuming about eight hours each day.
When Simon was working on a fishing boat, the family income was enough to
allow them to raise eight children and· acquire a house on a rented lot in a
run-down neighborhood.
Without this income and without any assistance from their five children
who are still alive, the household, consisting of Simon, Minda, and one daughter,
is eking out a rather precarious existence. Sales average aboutP85 per day, with
earnings of PIS or so, when not considering interest on loans and the
depreciation of their equipment. They pay no taxes. Minda wants to retire from
the business and fervently hopes that her 22 year old daughter will be able· to
Qbtain a job as a babysitter in Hong Kong. They needP5500 in order to pay fees
to send her to Hong Kong. The chances of borrowing this money appear to be
rather slim, but they see this as their main hope of support after retirement.
Another alternative would be for the daughter to take over the native cake
business. So far, she has shown .little inclination to do so, and does not even
know how to wrap the· native cakes.
In contrast to the lack of capital accumulation and low sales of Minda,
the business started in 1955 by Nonito and Gloria is housed in a large permanent
structure and has average daily sales of over 2000 pesos. The business was started
with goods provided by Gloria's parents, the operators of a large sari-sari store.
At frrst, the finn only sold soft drinks, cigarettes, and candy from a cart (called
a rolling store by .Nonito and Gloria). Some customers, after seeing the delicious
looking meals which Gloria· brought to Nonito, asked if they could purchase
meals at the stand.. Nonito and Gloria agreed, and the business then started
to expand. Their present building was gradually built, a section at a time.
The main room of the building now contains 15 tables, -and the carenderia
serves 18-20 viands each day. They also sell cigarettes, soft drinks, and beer.
Beer sales are especially high. The fmn now employs five workers, but only
family members act as cashiers. All four children have college degrees and their
own occupations, but two help with. the business on a part-time basis. The
family also owns land in a nearby district of the city and recently acquired a
Economic Characteristics 49
PI00,000 loan, using the land as collateral. That they are now relatively affluent
has not prevented Gloria from working from 6:00 A.M. each morning until
11 :00 P.M., with only short breaks, seven days a week.
Keeping in mind that larger operations such as the carenderia of Nonito
and Gloria raise the average sales figures, these figures still provide a basis for
computing a rough estimate of the net income derived from street food
businesses. Table 3-6 provides figures based on estimates supplied by the
respondents. Since people were unable or unwilling to provide information
on taxes, interest payments, and depreciation costs, these were not considered.
These could be important for some larger-scale operations, but were insignificant
for ambulant sellers such as Minda. Using these figures, it is possible to arrive at
a gross value added figure ofP63.58 per day per enterprise (not including taxes,
interest payments, and depreciation).
Since the sales figures used in the above analyses were supplied by the
respondents themselves, a question regarding their validity certainly exists.
If the figures were not consistent with other responses on the questionnaire,
the respondent was re-interviewed. We were careful to stress the anonymity of
the respondent and explained our reasons for cO!lducting the survey. Doubts
about fmancial infonnation provided by respondents are a frequent subject of
concern in the Philippines (cf. Ministry of Agriculture 1981). However, in
the 1978 Area Fertility Study, reported household ·income was compared to
two other variables, and the results indicated that reported household income
was useful for differentiating households by standards of living (Hackenberg,
Magalit, and Ring 1980: 154).
In order to detemiine if the responses on the questionnaire were correct,
average daily sales were calculated during the case study phase of the research.
Some of these figures were obtained by counting the actual number of specific
items sold, some were based on daily estimates made by the seller, and some
were based on a count of opening and closing stocks. They were then compared
to a list of customer purchases. By using the best estimates that we could obtain,
average daily sales figures of "645 were calculated for ten percent of the
respondents used for case studies. The figures provided on the questionnaires
for the same respondents wereP401. This indicates that reported sales were only
slightly over 60 percent of actual sales.
When using earnings figures based on reported daily sales and multiplied
by the average number of days fmns were open per week, earnings of P'1558
were slightly below average household income of P'1685 reported for the City
Proper, a high income district of the city, in the survey conducted by the City
Planning and Development Staff in 1983. When this is divided by the 1.8 ownerS
working at each establishment, it is higher in monthly earnings than the
minimum wage of approximately"33 per day, including allowances, that was
in effect at the time of the survey. Nevertheless, comparisons with minimum
50 S treet Foods
wages can lead to erroneous conclusions since only a small percentage of
Philippine workers earn the minimum wage or above, and numerous enterprises
are not covered by minimum wage laws. For example, employees working in
renill establishments of less than ten employees are not covered.

TABLE 3..6. STREET FOOD SELLERS AVERAGE DAILY

INCOME STATEMENT

Classification of Sellers

Total Survey
Value of Sales 'P236.22
Purchases from Other Enterprises P165.98
Rental Payments 4.19
Wages Paid 5.55
Spoilage Losses 1.06
Expenses for Cooking Fuel 5.60
P182.38
Net Operating Income P 53.84

Sellers with Permanent Structures

Value of Sales P376.49
Purchases from Other Enterprises P268.88
Rental Payments 8.75
Wages Paid 10.93
Spoilage Losses 3.35
Expenses for Cooking Fuel 8.51
PSOO.42
Net Operating Income ~ 76.07

Sellers without Permanent Structures

Value of Sales P113.49
Purchases from Other Enterprises P 78.62
Rental Payments .20
Wages Paid .79
Spoilage Losses .08
Expenses for Cooking Fuel 3.06
P 82.75
Net Operating Income P 30.74

Note: Excludes taxes, interest payments, and depreciation.

Economic Characteristics· 51
While the situation in which minimum wages are actually above average
wages paid to workers is unusual in industrialized countries, it is common in
other parts of the world. In her study of migrants in Bangkok, Tongudai found
that only ten percent of the sample received· the minimum wage or above
(1982 :31). In the Philippines, a number of firms from the small percentage of.
enterprises, actually covered by the provisions of the minimum wage law obtain
exemptions from the law or otherwise legally avoid minimum wage paymentS
by hiring workers for short periods of time. Workers are then frred, rehired the
next day, and never officially work the stipulated length of time to be eligible
for minimum wages. Somefrrms also do not comply with the law and rely on
not being detected by labor inspectors or reported by their workers who are
willing to work for less than the minimum wage.
The earnings of street food enterprises appear to be even more significant
when. it is realized that almost three-fourths of the enterprises were not operated
by husband and wife together. At 46 percent of the enterprises, spouses had
other occupations that further raised the income levels of people operating
these primarily family-owned businesses. Secondary occupations and other
sources of income provided additional income. In the Philippines, it is common
to invest in a number of enterprises, rather than just one, in order to spread
risks (Davis 1973 :97).
While street food sellers operated relatively prosperous businesses, it must·
be remembered that, to some extent, successful operations were featured, since
many unsuccessful firms went bankrupt and were not operating at the time of
the survey. Naturally, some of those considered in the survey, especially those
recently founded, will also not survive the test of time. Two illustrations of how
their owners achieved a measure of success will help elucidate this point.
Juamta, a 61 year Qld woman operating a market stall featuring chicken
with rice soup, arroz con caldo, has a thriving business. The frrm is operated by
Juanita. and her husband, five additional family members, and eight other
workers. Sales average over 2,000 pesos for a 24 hour operating day. A wide
variety of customers enjoy the soup, along with bread, soft drinks, and beet:.
However, Juanita and hethusband were not always so successful.
Before World. War II, Juanita's husband worked as a stevedore at the port,
a
while she operated· small sari-sari store. Both had to leave Iloilo City during
the war, but, even then, Juanita sold tahu, a hot ginger drink, to fellow evacuees.
After the war, they set up another sari-sari store that was destroyed by frre
in 1951. They established a third sari-sari store that they operated until 1958
when it too suffered the same fate as the last one. For the next eight years,
Juanita and her husband operated a fish trap and sold the fresh fish they
caught. In addition, they also sold firewood. During the years since their
marriage in 1937, they managed to produce 16 children, six of whom died of
various illnesses. .
52 Street Foods
In 1966, Juanita took over a table in the marketplace that was formerly
operated by her· friend. She initially sold various viands, but then switched to
arroz con caldo in 1967 when her husband joined her in the business. In 1970,
after a new section of the market was built, they were able to acquire a large
stall. The size of their operating area was doubled in· 1980, when they bought
an adjoining stall from Juanita's bankrupt brother-in-law forP25,OOO. Juanita
presently has plans to start a hollow block factory and is also thinking· about
starting a machine shop.
Edgar, a 36 year Qld man, and Daku, his 34 year old wife, presently
operate a relatively successful carenderia. However, they also experienced a
number of difficulties before achieving a measure of success. When he was
young, Edgar operated as a shoe shine boy in order to supplement the income
of his family. After his marriage to Daku, who was working as a sales girl in a
dry goods store, he attended college, but decided to discontinue his education
to work as a cook in a carenderia. Mter one year, he went to Mindanao, in the
southern Philippines, to work as a clerk in a government office. After deciding
that his salary was insufficient to support his growing family, Edgar' returned
to Iloilo CitY.
For the flISt year, .Edgar sold dry goods that he obtained from Mindanao
on a door-to-door basis. He then became. a cigarette vendor with an initial
capital of PIS, and Daku' joined him in the business. Mter one year, they
switched to selling fruits and vegetables. Their next move was to establish a
small sari-sari store with initial capital pfPl,500. After a year or so, they started
a carenderia, but were·forced to move when new construction was started in '
that area. Their store Was then moved to a nearby location, but they went
bankrupt.~
In 1978, they put up a small building on government-owned land and
started their present operation, a carenderia that now has sales of approximately
1,000 pesos per day. While the business at the carenderia has continued to
expand, both Edgar. and Daku pave developed sideline activities. He sells jewelry,
and she sells cosmetics. In 1982, they built a new house, one section at a time,
and established a refreshment parlor in the front room. This year they purchased
a cart forP2,OOO and set up a business selling coffee and snacks near the location
of their carenderia. This is operated by 'Edgar's mother and one assistant.
While the businesses of :Juanita and of Edgar' and Daku have continued
to expand, and their families have received many benefits, for their enterprises,
workers at these firms have not fared as well. Juanita paysP5.00 per day, plus
food and lodging, while Edgar and Daku pay 1'4.00 per day, plus food and
lodging. These salaries are comparable to the average ofPI 54 per month paid
to employees at firms in our sample and are equivalent to salaries paid to
household workers. Most firms also provided free meals. to employees and 70
percent of firms with employees provided workers with lodging if they wanted
it.
Economic Characteristics 53
Finns in the survey were operated by an average of almost three people -
1.8 owners and unpaid family members and 1.1 employees. Finns with
pennanent structures utilized over four people per establishment, while those
without pennanent structures used two people per establishment. Almost '
one-half of fmns with pennanent structures hired workers, yet only six percent
of other establishments utilized any paid employees. The family nature of
respondent enterprises was reflected in the almost three·fourths of the businesses
that hired no one. It is further reflected in the one-fifth of employees that were
related to the owners.
Workers were considerably younger than their employers, with an average
age of 24, but were slightly better educated, with an average education of over
eight years. Their low wages were an indication of the labor surplus situation
in the area, but over 30 percent of employees only worked on a part-time
basis. Quite a few employees were attending school, and were able to receive
food and lodging while doing so. Their salaries would also cover school expenses.
Nevertheless, some employees were adults with families of their own to help
support, yet their low salaries could only provide supplemental income, not full
support, to their families.

Discussion and Policy Implications

The technology used by street food sellers in preparing food was relatively
unsophisticated. The majority of respondents relied upon indigenous resources
for cooking by using clay or cement stoves that utilized wood and/or charcoal.
These stoves cost as little as three pesos for a very small one and increase in
price for larger sizes. The potential for stoves using solar energy appears to be
great, since most of the cooking is done during the day. Deforestation and the
lack of domestic sources of petroleum are important problems the Philippines
presently faces. The use of solar energy could make an important contribution
in this area. Nevertheless, the initial cost of the solar equipment would have
to be very low, or provided with installment payments, due to the lack of
operating capital of many food enterprises.
. A potential problem faced by many small-scale enterprises is that
economies. of scale and the use of better technology allows large-scale enterprises
to undersell them. This has happened with candy and beverage producers in
Iloilo City. Bakeries using ovens with imported machinery and buying flour
and sugar in bulk quantities can also undersell smaller-scale producers in regard
to some items. Yet numerous local small-scale producers can sell snack items
considerably below the cost of packaged, processed snacks produced in Manila,
but local items do not have the status associated with Manila products. The
increased use of plastic packaging to improve sanitation has allowed the
continued acceptance of many local products, and it appears that these products
 54 Street Foods
outsell Manila products by a wide margin. This type of activity should be
encouraged in order to promote local econonUc activity and to provide low-cost
. fOQd to consumers.
It is usually assumed that freedom of entry for· enterprises into the
informal sector is comparatively easy. Due to lower capital requirements, this is
probably true in comparison to the formal sector, but does pot mean that people
without skills and experience can just set up a successful business. While ten
percent of the respondents entered their present occupation during the. first
six months of 1983, only five percent of the businesses were established during
this time. These numbers may have been higher if the survey was conducted
during the second half of 1983. However, the lack of recent migrants becoming
owners of street food enterprises,and the years of experience exhibIted by
respondents may substantially raise entry requirements. Due to the low wages
and the lack of skills required, employees can easily enter the street food sector.
These employees may start their own businesses once they obtain the necessary ,
experience and skills.
Training programs for people operating small-scale businesses are frequently
,recommended. I do not believe that these will be very successful in helping
people obtain the necessary selling skills required to start their own businesses,
but they could be very valuable in providing some marketing information, basic
fmancial management skills, and information on how to effectively deal with the
various institutions that furnish capital and other types of assistance to small
businesses. The inability of many operators to leave their fmns during working
hours means that the training programs should be held in the evening or possiply
on Sundays. Another alternative is to send instructors to the place of business
of the vendor. An important consideration is that the instructor must know
more about the subject of instruction than the students. This is not always the
case when· training programs are delivered by government bureaucrats with little
practical business experience.
Competition between sellers in small-scale enterprises, such as prepared
food selling, is usually assumed to be very heavy. Naturally, one would expect
a larger number of small-scale operations than if a few large-scale firms suppHed
most of the needs of customers. In regard to street foods, the market may be
more segmented than' is initially apparent. The desire of consumers to make
frequent small purchases at nearby locations presents opportunities for
numerous sellers, even if their products are relatively lundifferentiated. An
additional indication that competition may not be as strong as the large number
of sellers signifies, is reflected by the relatively high earnings of street food
sellers. Dannhaeuser found exactly this situation in Dagupan, where ". . . a
constant consumer demand that expresses itself behaviorally through frequent
and small purchases and an economic opportunity system that makes buy and
sell one of the more favorable sectors for individuals to enter into" (1977:503).
Economic Characteristics SS
In order to ascertain what the food sellers themselves perceived as the
major constraint to expanding their business, respondents were asked to choose
from among four possible answers (see Table 3-7).

TABLE 3-7. MAJOR CONSTRAINT TO BUSINESS EXPANSION

Choices Percentage

Government Regulations 3%
Shortage of Customers 18%
Lack of Capital 6S%
Competition from other Businesses 14%

While responses indicated an appreciation that competition from other sellers

and a shortage of customers (two things that are closely related) are important,
credit was seen as the major problem. Government regulations were seldom
seen as a constraint, primarily because many sellers operated outside the area
of government control. However, their lack of legitimacy affected their chances
of obtaining bank loans. This also may have hindered access to the capital
provided by government programs, such as, the Self-Employment Assistance
Program of the Ministry of Social Services and Development (MSSD) and the
"Kflusang ·Kabuh-aya"n at Kaunldran (KKK)··"program of the" government. We
did talk to a few people who had applied for credit from the KKK program,
but none had received any funds at the time of the interview. None of the
people we spoke with indicated that they participated in the MSSD program.
, .- I have "previously mentioned that"- most credit was internally generated
through the marketing system and that most moneylenders appeared to be
people operating. their own businesses. An additional source within the
marketing system, but in the formal sector, are the two major soft drink
companies and the two major breweries, all very large corporate enterprises.
These companies furnish construction materials, signs, refrigerators, coolers,
and various other items to firms that will handle their products. They will also
make credit sales to some firms that make substantial purchases. Another
important service provided to small-scale operators are the deliveries made by
drivers in the morning, while collections may be made later in the day before
the delivery truck returns to the company's office. This enables the small-scale
operator to sell some of the drinks before making payments.
The need to increase the amount of credit available to small-scale
operators in the prepared food sector to provide assistance to these enterprising
people is an important consideration. However, any intervention must be done
56 Street Foods
with extreme caution to prevent unintended consequences that may be
detrimental to the overall system. A sudden infusion of capital may allow a few
finns to grow -at the expense of others. This may sap some of the vitality and
flexibility that is found in the present system and lead to increased prices for
consumers.
Carenderias - traditional eating establishments serving cooked portions of
meals (viands) from display counters and/or containers.
CarenderiaS. The top· photograph .shows an establishment that also sells
batchoy, a popular local soup alleged to have originated in the La Paz district
of the city. The bottom photograph shows a finn that is attached to the wall
of the warehouse behind it. The establishment serves as the residence of the
family of the owner.
Carenderias operating without pennanent structures are a common sight in
Iloilo City.
Fried snack sellers. The top photograph shows an establishment selling
fried peanuts and cashews near an entrance to the Central market. The
bottom photograph shows a man selling fried bananas (banana cue) that .are
placed on a stick and sold as a snack item.
Ambulant native cake sellers.
Barbecue. The top photograph shows chicken, bangus. (milk fish) and squid
being prepared. The bottom photograph shows a barbecue stand in operation
at a street corner.
Ices. The top photograph shows an ice cream vendor operating from a mobile
woodencart. The bottom photograph shows a vendor selling a juice drink and
halo-halo.
Customers enjoying street foods.
Squatter housing at the seashore in Iloilo City.
Houses in a tidal area of Iloilo City.
 CHAPTER 4

DEMAND FOR STREET FOODS

In order to determine the importance of street foods in the local diet,

household surveys were conducted in six neighborhoods of Iloilo City. These
areas were not randomly selected, but were chosen to insure that different
income levels at various distances from the center of the city were represented
in the survey. The inc1usioI). of various income levels was insured by a visual
examination of housing structures in each area. Upper, middle, and lower
income areas were seleCted for the City Proper district, while one upper income
area was selected in the Jaro district, a middle income area in the La Paz district,
and a lower income area in Molo. Once the area was selected, random systematic
sampling procedures were used to determine which households were to· be
interviewed.
Street food consumers were also interviewed at each of the business
locations of the food seller sample. Two customers were interviewed at each
location. However, approximately nine percent of the food seller respondents
were out of business at the time of the surveyor were no longer selling street
foods. During the pretesting phase of the research, customer responses to income
questions were found to be favorable (of course, with some under-reporting of
income), so respondents were asked their monthly income. Married respondents
were also asked the income of their spouses. Househqld income was not
determined because many respondents would not have known the income of
everyone in. their household, especially if they were not the head of the
household.

Household Features

Surveyed households had a mean monthly income of P2,055, and a

median monthly income of f'1,100. This large difference between the average
and the median was partially attributable to the selection of some high income
areas for the survey, but it also reflected the uneven income distribution found
 6.8 Street FootU
~ Iloilo City. After household income was adjusted for the value of
unpurchased fISh, seafood, farm products, and prepared food, average household
income only rose slightly toP2,Q97 (see Table 4-1).

TABLE 4-1. ADJUSTED MONnILY HOUSEHOLD INCOME

Value Percentage

Monetary Household Income P2,055 98%

Unpurchased Fish and Seafood 8
Unpurchased Farm Products 21 1%
l!npurchaseaPrepared Food 13 1%
Total P2,097 100%

These figures clearly show that food procurement in nollo City is heavily
monetized, .and that very little food is home-grown or obtaine4 at farms owned
by the respondents or their families. The household survey conducted by the
Food and Nutrition Research Institute (FNRI) in 1978 revealed that almost
eight percent· of the per capita· peso value of food for urban respondents was.
home-produced (1981:45). This difference maybe partially attributable to the .
~c1usion of urban areas considerably less metropolitan than Iloilo CitY. These
smaller urban areas would be expected to have. a higher percentage of people
with land to cultivate than was found in the survey areas of Iloilo City.
Three-fourths of the households paid no monthly amortization or· rent.
Many were squatters who built. homes of wood and split bamboo, with roofs
made of galvanized iron and/or nipa palm leaves. Many of the houses were on
stilts over tidal swamps or were off of roads in. the interior of neighborhoods.
These interior areas were often filled· with water aftel' each rainfall. Potable
water was frequently scarce, and sanitary means for the. disposal of sewage,
garbage, and human wastes were often totally lacking.
An amazing 27 percent of the households interviewed in the survey
operated a food business at their homes. This is considerably above the 11
percent of household· respondents who indicated that they owned a food
business in Davao City in 1972 (Hackenberg 1974:38). In Iloilo City,
respondents were specifically asked about food businesses, while, in Davao
City, many people may not have mentioned a small business that may have
only included a few packaged goods or home-produced sandwiches. .
Thirteen percent of the respondents in noilo City had a sari-sari store,
nine percent sold prepared viands, four percent sold prepared snacks, and one
percent had other food businesses, such as, the processing of sausage. Those
: respondents preparing Viands and snacks were operating "st~eet food"
-pusinesses. The percentage of street food establishments was higher in the City

--
 Dem(Jnd for Street Foods 69
Proper than in other areas, but quite a bit of variance between areas existed.
One area containing a modem subdivision had. the lowest percentage of street
food enterprises. By taking an actual count of street food establishments in the
business districts of the .city,and then using the household percentages found
outside these areas, the projection orover 5000 street. food businesses in Dono
City was made. An accurate projection would require random household
samples, while. the subdivision area probably makes our estimate conserv:ative.
When considering fuel usage, we found that many households had access
to electricity and. over 28 percent owned a refrigerator. These refrigerators were
not always used for food storage.' Sari-sari stores and carenderias sometimes
only used them to keep soft drinks and beer cold. Charcoal and wood were the
most commonly. used fuel. for cooking. Numerous. suppliers made household
deliveries of wood and charcoal, but some households were able to gather
fuewood for cooking.' A small' portion of households cooked with liquid'
petroleum gas, but electricity was very seldom used for cooking.

Household Food Expenditures

In determining household food expenditures, we were able to separate

those expenditures made for food businesses from those expenditures made for
household use at 81 percent of the households interviewed. At these 122
households, 51 percent of the average household monthly income ofP2,044
was spent on food. Table 4-2 pre$ents the various categories of food
expenditures.

TABLE 4-2. MONTHLY HOUSEHOLD FOOD EXPENDITURES

Category Amount Percentage of

Food Budget

ForHousehmdPrepar~tion P 732 70%

Purchased & Eaten at Institutions 68 7%
Purchased & Eaten at Prepared Food
Establishments 135 13%
Prepared Food Brought Home 106 10%
Total
--
Pl,041
--
100%

The ·30 percent of food expenditures not purchased for household prepa-
a
ration represented significant amount of the food budget. I am not sure if
bringing prepared food home to serve to the f~y is common in oth~r
countries in Southeast Asia, but the 20 percent of food expenditures spent on
food consumed away from the home closely corresponds to the amount spent
I .
70 S treet Foods
by urban inhabitants of Peninsular Malaysia in 1973 (Lam 1982: 15). It is
considerably less than the 35 percent of total food expenditures spent on
cooked food consumed away from the home in 1977-78 in Singapore (Cheng
1982:2). This trend appears to be increasing in Singapore. Cheng indicates
several reasons for this (1982: 2).

The availability of an extremely wide variety of cheap and deiicious foods

at the ubiquitous hawker centers, restaurants, and food stalls at coffee shops
has facilitated the propensity of "eating out." Furthermore, flIlI employment,
greater female participation ratio in. the work force and physical segregation
between place of work and residence have also increased the necessity of
eating ~ut.

In applying, the definition of street foods to household food expenditure

calculations, the seven percent spent at institutions - school, hospital, and
office canteens - are excluded. Unfortunately, respondents were not able to
make this informal-fonnal sector distinction in regard to restaurants and fast
food establishments. The 23 percent of food -expenditures spent on prepared
food outside of institutions included restaurants and fast food establishments.
Yet, in the survey area, only 39 of these finns were found, in comparison to
1,350 street food sellers. It should therefore be safe to assume that over 20
percent of total household food expenditures were spent on street foods.
The majority of food purchases made on prepared food brought home to
serve to the household were for snacks (see Table 4-3).

TABLE4-3. PREPARED FOOD BROUGHT HOME

Category Monthly Purchases Percentage

Snacks P6S 61%

Breakfast 4 4%
Lunch 2S 24%
Supper 12 11%
'PI 06
----
100%
Total

In the Philippines, it is very common to eat three meals a day, plusa morning
and afternoon snack called a merienda. In Doilo City, eating numerous times a
day is also prevalent. The tenn, pamahaw, refers to breakfast and snacks, paniaga
indicates lunch, and panihapon means supper. Snacks are an integral part of
the diet, and their importance was partially reflected in the amount of prepared
food brought home to the households of respondents. Other expenditures were
often for viands that were brought home to supplement the family meal. These
Demand for Street Foods 71
were served with rice that was frequently prepared in the household. Purchases
for prepared food brought home were usually made in the respondent's
neighborhood, but over 13 percent of the respoD-dents made their usual
purchases from people who delivered food to their houses.
The informal sector played an important role in providing prepared food
to households in Iloilo City. It also provided the majority of food purchased
for household preparation. Table 4-4 shows common sources of food for
household preparation.
TABLE 4-4. EXPENDITURES ON FOOD FOR HOUSEHOLD PREPARATION

Source Monthly Purchases Percentage

Marketplaces =P376 51%

Supermarkets 116 16%
Groceries 28 4%
Sari-Sari Stores 84 11%
Mobile Vendors 49 7%
Other Establishments 79 11%
Total '1'732 100%

Informal sector firms in marketplaces, sari-sari stores, and mobile vendors

accounted for 69 percent of food expenditures for household preparation.
The mean household income of P2,044 at respondents who were able to
separate household food expenses from business food expenses was slightly
lower than the general average of P2,055, but the medians of PI,IOO were
exactly the same. Table 4-5 shows incomes divided into equal quartiles and
relates each quartile to average food expenditures.

TABLE 4-5. MONTHLY INCOME QUARTILES AND FOOD EXPENDITURES

Quartile Range Average Average Food %ofIncome

Income Expenditure Spent on Food

first 'P 260- 750 P: 584 P: 451 77%

Second P: 751- 1,100 P: 935 P: 650 70%
Third PI ,101- 2,500 PI,686 PI,059 63%
Fourth P2,501-13,000 PS,172 P2,071 40%

The proportionate expenditure on food declines as incomes rise. This is in

agreement with the generalization known as Engel's Law. The average
expenditure of 51 percent of household income on food is actually far below
 72 Street Foods
the percentage of income spent on food by three of the four income levels.
The general average was pulled down by the large incomes in the highest quartile,
a reflection of a very uneven distribution of wealth.
Table 4-6 demonstrates that,· while higher income respondents spent a
lower percentage. of their income on food, the percentage of food expenses for
food for household preparation remairied almost the same for the various
income levels.

TABLE 4-6. PERCENTAGE OF MONTHLY FOOD

EXPENDITURES BY INCOME LEVEL

Category Quartiles
First Second Third Fourth

For Household Preparation 69% 72% 70% 70%

Purchased & Eaten at Institutions 3% 4% 5% 9%
Purchased & Eaten at Prepared
Food Establishments 12% 13% 15% 12%
Prepared Food Brought Home 16% 11% 10% 9%
Total
--
100%
--
100%
--
100% 100%

The percentage of food expenditures made on prepared food outside of

institutions tended to decline from 28 percent to 21 percent as iticomes rose.
However, the total amount spent at each income level increased. The 12 percent
purchased and eaten at prepared food establishments represented· a monthiy
expenditure of· 52 pesos for households at the lowest income level, while the
same percentage at the highest income level represented a monthly expenditure
of258 pesos.
One would naturally expect households with higher incomes to 'eat at
restaurailts'and fast food establishments more frequently than poorer
households, but it is very probable that they were also purchasing a lar8eamount
of street foods. Higher income households tended to spend a larger percentage
·of their food-hudget at institutions. This is an indication of children attending
school until .higher levels were achieved and more household professional
. workers eating at offic~ canteens. While· higher income households spent a
smaller percen,tage of their food budgets on pu,rchases of prepared food to bring
home, the absolute amount spent was more than that spent by their poorer
neighbors.
The percentage of the food budget spent on food for household
preparation remained constant, but the total amount increased considerably as
incomes rose. Table 4-7 shows the percentage differences among the four income
levels in ·regard to source of food.
Demand for Street Foods 73
TABLE 4-7. SOURCE OF FOOD FOR HOUSEHOLD PREPARATION
BY INCOME LEVEL

Source Quartiles
First Second Third Fourth

Marketplaces 52% 46% 52% 53%

Supennarkets 5% 8% 9% 25%
Groceries 5% 5% 6% 2%
Sari-Sari Stores 21% 19% 14% 5%
Mobile Vendors 10% 11% 8% 4%
Other Establishments 7% 11% 11% 11%
Total 100% 100% 100% 100%

As incomes rose, respondents continued shopping at public markets, and each

higher income level spent considerably more money at marketplaces. This same
situation was found in Davao City (Barth 1982:214). The influence of
supennarkets increased as incomes rose. This indicates that higher income
households were purchasing higher quality items and demonstrates a change in
preferences. The highest income level was even purchasing a lower absolute
monetary amount of food at groceries, at sari-sari stores, and from mobile
vendors than h()useholds in the income level just below it.

Customer Profile

Customers were almost equally divided between males and females, with
less than 51 percent male and over 49 percent female. Nonetheless, the case
studies revealed that some establishments, especially those selling beer, had a
predominantly male clientele. This was apparently balanced by the large
numbers of (emale workers and shoppers in the central business district and at
marketplaces. Students of both sexes were the most common customers in
the survey. Other prevalent groups of customers were housewives, clerical
workers, and semi-static and ambulant vendors - all of whom were
predominately female.
The average age of respondents was 33, with almost 60 percent of
respondents falling between the ages of 20 and 39. Fifty four percent were
married. Table 4-8 indicates that household heads or spouses were predominant,
but that other categories were also important. The average household in which
respondents were living contained 5.9 people. Children were certainly under-
represented. This was partially due to the fact that young children were not
interviewed since they would not have been able to answer all of the questions
74 Street Foods

on the questionnaire.

TABLE 4-8. POSITION OF CUSTOMERS IN THEIR HOUSEHOLDS

•
Position Number Percentage

Household Heads or Spouses 138 56%

Children 54 22%
Other Relatives 18 7%
Domestic Workers 1 1%
Boarders 33 13%
Others 2 1%
Total 246 100%

Seventy seven percent. of the customers lived in various districts of lloilo

City, an additional 18 percent lived in other areas of Iloilo Province, and the
remaining five percent lived outside of the province. Over 16 percent of the
respondents were students. This number would have certainly been even higher
if the survey had not been conducted during the summer session of the school
year. Aside from the large number of students and housewives in the -survey,
almost 70 percent of employed respondents had blue-collar occupations (see
Table 4-9).

TABLE 4-9. PRIMARY ACTNITIES OF RESPONDENTS

Activity Number Percentage

Students, Unemployed, or Housewives 78 32%

Blue-collar Workers 116 47%
White-collar Workers 52 21%
Total 246 100%

The average monthly income of customers amounted to 1"604, with a median

income ofP450 per month. The highest monthly income recorded was P9,OOO,
while over ten percent of the respondents had no income whatsoever. Of course,
respondents may have had the use of additional income available from other
household members, and the spouses of respondents earned an average off'623
per month. The large number of dependents in the survey means that income
figures must be used cautiously, but they do indicate that customers come from
various income strata.
Demand for Street Foods 75

Customer Purchases

Over 82 percent of the respondents were making purchases exclusively

for themselves. Two-thirds bought snacks while the remaining third purchased
either full meals or viands. However, since the food sellers themselves were
stratified .according to sales of meals and snacks, customer purchases were a
reflection of this stratification. When respondents were asked to rank their
three most important reasons for their food selections, the taste of the food
ranked first (see Table 4-10). .

TABLE 4-10. REASONS FOR FOOD PREFERENCES

Reasons Ranking

Taste of Food First

Low Cost Second
Nutritional Value Third
Availability Fourth
Food is Filling Fifth
Appearance of Food Sixth
Another's Preference Seventh

The vast majority of purchases were made with cash, but 13 percent of
the customers were able to make purchases at the establishment on a credit
basis. Almost one-fourth of the respondents were buying at the enterprise for
the first time, while others were frequently regular customers who averaged
19 purchases per month at the establishment. These regular customers were
certainly the ones with potential access to credit purchases. Purchases were
small and only averaged P2.30, even though 18 percent of the respondents were
buying for their household or other people. These prices must also be compared
with minimum fuel costs ofP0.50 to P1.00 to cook a meal, and with minimum
transportation costs ofPO.65 per ride - at the time of the survey - that a person
would have had to pay to go home, if one's home was not within walking
distance. This does not consider the time involved in cooking or in returning
home.
Table 4-11 lists the responses to the question of the most important reason
for buying at the location at which the interview was conducted. Responses
were quite varied, but over one-half of the respondents indicated accessibility,
the quality of the food, and low prices. When this is combined with the
frequent, small purchases previously indicated, a. clear picture of the role of
informal sector prepared food enterprises emerges.
 76 Street Foods

TABLE 4-11. MOST IMPORTANT REASON FOR BUYING AT ENTERPRISE

Response Number Percentage

Accessibility of Firm 52 21%

Quality of Food 47 19%
Low Prices 40 16%
Friends or Relatives Work at Firm 33 13%
Appearance of Enterprise 32 13%
Other Responses 42 17%
Total 246 99%

Only 59 percent of the respondents indicated that they would consume

the food they were buying at the place of purchase, 20 percent were
taking it home, 12 percent planned to eat it on the sidewalk or while walking,
and seven percent were going to take it to their place of work. Convenience
and the ability to save time were the answers given by over one-half of the
respondents to the question of why they did not prepare and consume the
food they purchased at home. However, four percent of the r:espondents did
not prepare and eat any meals at their residences.
The most common place for respondents to purchase prepared food was
in their own neighborhoods, but marketplaces, the central business district,
and establishments near the respondent's place of work were also popular (see
Table 4-12).

TABLE 4-12. USUAL PLACE OF PREPARED FOOD PURCHASES

Location Number Percentage

Neighborhood 83 34%
Marketplaces 52 21%
Near Place of Work 52 21%
Central Business District 40 16%
Other Locations 19 8%
--
Total 246 100%

I witnessed this active neighborhood food selling during the case studies and
was amazed at the variety and quantity of food which was available. This type
of activity is very difficult to measure because many people only sell during
limited hours and move in and out of the prepared food selling business
frequently. Many sell primarily to their neighbors, but their cumulative effect

I
Demand for Street Foods 77
is very important both for the amount of money changing hands and for the
nutritional impact of the food being sold.
In accordance with the propensity of Filipinos to eat numerous times
per day, snacks constituted the major portion of food purchased by respondents
outside of their households (see Table 4-13).

TABLE 4-13. MONTHLY PREPARED FOOD PURCHASES

Purchase Amount Percentage

Snacks P' 97 58%

Breakfast 20 12%
Lunch 41 24%
Supper 10 6%
-- --
Total P168 100%

These total prepared food purchases amounted to 28 percent of the average

monthly income of respondents. This actually overstated the importance of
prepared, ready-to-eat food since some purchases were for other people besides
the respondent. Customers were therefore asked to estimate the percentage of
their food intake. devoted to these foods. They indicated that it was equivalent
to over 35 percent oftheir total food intake.
In order to determine the relationship between prepared food purchases
and income, respondents were divided into four equal income groups, based on
the income of respondents and their spouses, if they were married (see Table
4-14).

TABLE 4-14. PREPARED FOOD EXPENDITURES AND CONSUMPTION

BY INCOME LEVEL

Quartile Average Monthly Percentage of

Monthly Income Expenditures Food Intake

First ¥' 195 MOl 28%

Second P 492 P151 35%
Third P 827 P176 40%
Fourth P2,341 P248 38%

The table clearly shows that as incomes rose, customers spent more each month
on prepared food. They also increased the percentage of their food intake
devoted to prepared food, until the highest income level was reached. This
78 Street Foods
indicates that customers at street food establishments in. iloilo City are not
confined to relatively poor people and cover a wide range of income levels.

Purchasing and Consumption Patterns

Unfortunately, the results of the household survey can be questioned since

the areas. of the survey were not randomly determined. The uneven income
distribution in Iloilo City would have required a large survey in order to incJude
higher income levels. Customers were interviewed at street food seller locations.
We had no way to determine the actual number of customers at any locations,
but sought only a structural description ofpurchasing behavior. By combining
the results from both surveys, a remarkably clear picture of purchasing and con-
sumption patterns emerges.
An additional problem IS that we were not able to spend the time with
each respondent in either survey in order to clearly derme what we meant by
street food establishments. Therefore, some prepared food obtained at
~estaurants and fast food chains were included in responses. Nonetheless, I do
not believe that, the amount included was significant for either survey. Most
people viewed eating in a restaurant or a fast food establishment as something
related to a special occasion, and the category of "special occasions" is actually
separated from food expenditures reported by the National Economic and
Development Authority (1983: 116-129). Most respondents normally would not
include these expenditures in their answers to the questions asked by
interviewers. The reason that many people do not patronize. restaurants and
fast food establishments is that a meal usually costs over 20 pesos, an amount
well beyond the limited budget of most consumers.
The results of the surveys demonstrate that food expenses represent a
.tremendous portion of household expenditures. In the household survey, the
three lowest· income. quartiles spent between 63 and 77 percent of their total
household income .on food. In the customer survey, respondents spept 28
percent of their individual income on prepared foods. In the survey areas, few
people had access to unpurchased food. The large number of food enterprises
involved in food preparation indicates that many people had a clear perception
of the demand generated by people coming into the city for short periods of
time who needed to purchase prepared food. It is .also a reaction to the 30
percent of household food expenditures that were devoted to prepared food
purchased outside of the household. This is related to the tendency of people
to consume food at numerous times during the day, including times when they
are away from their homes.
Respondents in both surveys indicated that they usually purchased
prepared food in their neighborhoods. As expected, customers displayed a wider
variety of responses. Since they were interviewed in the central district of the
Demand for Street Foods 79
city, they would be expected to be away from their neighborhoods more
frequently than household respondents.
An intriguing aspect of both surveys is the fact that as incomes rose,
people continued to spend more money on prepared foods, even if the
percentage dropped. However, household respondents continued to spend the
Same portion of their food budget on f09d prepared outside the household.
They tended to spend a higher percentage of tlteir food budget at institutions
and less at other prepared food establishments. Customers actually increased
their percentage of prepared food intake as incomes rose, except for a slight
drop at the highest income level. This indicates that the demand for prepared
, food should continue to increase if income levels rise. A crit,i¢al question is
whether sales at institutional sources, restaurants and fast food establishments,
or street food enterprises will expand at the expense of one of the other
prepared food sources.
The P2.30 spent by respondents at street food en~rprises seems small
by the standards of industrialized countries, but it represents a very significant
amount of money when average per capita food expenditures from the
household survey are calculated (see Table 4-15).

TABLE 4-15. AVERAGE PER CAPITA FOOD EXPENDITURES

BY INCOME LEVEL

Quartiles
First Second Third Fourth

Daily Per Capita Food Expenditures n.77 ?J.5S P4.80 P6.74

The number of people eatin~ at higher income households increased

considerably, since these households included more relatives, boarders, and
household servants. Even with this increase in the number of people per
household, food expenditures per person increased considerably.
These extremely low amounts of food expenditures demonstrate the
urgent need to supply food to consumers at low costs. Street food enterprises
appear to be indispensable in this situation: Their low capital and operating costs
enable them to prepare and sell many food items at only a small fraction of the
price charged by formal sector enterprises. Without the services provided by
these enterprises, the inadequate nutritional status of many people in Iloilo
City will deteriorate further.
 Street Foods

CHAPTER 5

STREET FOODS AND HEALTH

Now that I have examined enterprises supplying street foods and consumer
demand for these products, it is time to consider some of the implicaticms of
street food consumption on the health of consumers. This is related to hygienic
aspects of food preparation and storage and to the nutritional significance of
consuming these foods. Some improvements in sanitary practices related to food
handling could lead--to added costs for street foods, and this consideration must
always be borne in mind. This is especially important in the Philippines where a
downward trend in real-wages may exist, while food prices mcreased at a higher
rate than nonfood prices during the 19708 (World Bank 1980: 10-11).

Food Preparation and Handling

Foods c~n be contaminated from a variety of sources. The animal itself

may contain micI;oorganisms which may be harmful to humans. Cooking
temperatures QIay -kill m~y microorganisms, but contamination may set in as
the food stands. However, the temperature at which the food is heated and the
time it is heated have an influence on which bacteria will be destroyed. The ex-
terior temperature of the food being heated _may also be different than the
interior temperature. For example,
In roasting meat the internal temperature reaches only about 60 0 C in
rare beef, up to 800 C in well-done beef, and 8SoC in a pork roast. Frying
gets the outside of the food very hot, but the center ordinarily does not reach
1000 C (Frazier and Westhoff 1978:122).
Once the food has been cooked, the people handling it become very
important for hygienic purposes. Their hair, noses, skin, and nails may contain
microorganisms that contaminate the food. These people should be periodically
checked to insure that they are free from disease. The utensils and equipment
used at the food establishment may also be sources of contarniI1ation. Glasses

J
Street Foods and Health 81
and dishes should be carefully washed. In addition, the floors and walls of the
establishment need to be kept clean.
The food also has to be stored at proper temperatures and protected from
disease· organisms carried in the air, including soil dust, since the soil contains
a wide variety of microorganisms. Food also needs to be protected from flies,
roaches, and rodents, and should not be prepared or served near garbage or sew-
age. An especially serious problem in some areas of Iloilo City is the scarcity of
potable water. People without direct access to piped water-which is safe to
drink-buy from water carriers, who obtain water from the city water system or
spring water from a nearby island, or use well water. These people commonly
use well water for washing and use higher quality, and more expensive, water for
cooking and drinking.
Even if the water is obtained from a sanitary source, it may be
contaminated by the water containers used to deliver it or by the storage
containers used in street food establishments. Of course, the temptation always
exists for the street food establishment to use polluted well water for cooking
in order to avoid the cost of potable water. In fact, even some respondents
with direct· access to treated city water used well water for various purposes
in order to save money.
Unfortunately, the food handling and preparation techniques of
respondents frequently did not meet acceptable. standards. These procedures,
naturally, varied among establishments, but one example from each of the case
study groups will be used to represent the general pattern. The reader must bear
in mind that many of the actions and practices of street food sellers reflect
general conditions in Iloilo City and should be evaluated with this in· mind.
A large carenderia offering a wide variety of entrees operates one of the
best equipped kitchens in our. survey. Cooking is done over burners using either
liquid petroleum gas or electricity. The kitchen area has access to the city water
system and to a deep well, and running water is always available for washing
food and dishes, a rather unusual situation at street food establishments in lloilo
City. Kitchen utensils, glasses, and plates are washed with soap and water after
they are used. No hot water is used for washing, but boiling water is poured over
the tray of spoons and forks after they have been washed.
After a viand has been cooked, it is placed in a display cabinet with glass
on three sides and two screen doors in the rear. The food is then stored at room
temperature until it is sold. A few items are reheated after they are ordered; but
this is unusual. Care is taken to keep flies out of the display cabinet, but some
manage to get inside. Food that is not sold by 11 :00 P.M. is stored in a
refrigerator overnight: The next morning, leftovers are either recooked or are
made into different viands. For instance, unsold fried pork may become the
major ingredient in a pork dish using a sauce and spices.
The dining area of the carenderi,a is kept clean, and tables are washed
82 Street Foods
frequently. Workers have access to lavatory facilities at the enterprise. They'
do not wear uniforms, but change clothes regularly and appear to be neat and
clean. ·However, workers have not undergone any medical examinations and the
turnover is quite rapid.
The arroz con caldo, chicken with rice soup, of one of our case study
respondents is known throughout many areas of Iloilo City for its delicious
taste. The preparation of the soup starts when chickens are dressed near the
back of the f1l'1l1 in the meat section of the marketplace. The meat section is
almost empty each. afternoon when the dressing begins. The area contains
numerouS flies, and the floor is splattered with blood and small pieces of meat.
Nonetheless, the chicken is carefully washed with well water before it is cooked.
Garlic is sauteed in oil before pieces of chicken are put into the pot.
Once the oil evaporates, water is added, and the chicken is boiled. Rice is soaked
with lye and then boiled with chicken broth into a thin, watery porridge in.a
separate kettle. Once the porridge is cooked, it is kept simme$g over a constant
flame, while the chicken is stored in a container at room temperature. When a
cu;stomer orders arroz con caldo, the chicken is placed in a bowl and the rice
porridge is poured over it.
The serving utensils and dishes are washed in a basin of soapy water and
then transferred to a sink full of clear water for rinsing. No hot water is used,
but hot water is usually poured over forks and spoons before they are given to
customers. The water for washing comes from a well, but the frrm has a tailk of
water from the city system for drinking and cooking. Sewage from the market-
place runs at. the rear of the firm, while rats and other vermin are common.
Before evening descends upon Iloilo City, numerous stands barbecuing
pork, chicken, and fish are set up at strategic locations throughout the city.
One such stand is located on the sidewalk a few meters from one of the major
commercial streets of the city. Whereas barbecuing does not began until 3:00
P.M. or so, 'preparations for selling' begin with an early morning trip to the
marketplace. Then, at an apartment close to the location of the wooden cart
at which the food is barbecued and sold, chickens are dressed, cu.t into desired
pieces, marinated, and put onto bamboo sticks. Pork is sliced into thin pieces,
washed with potable water, and marinated for two hours in a mixture of vinegar,
soy sauce, monosodium glutamate, salt, brown sugar, and calamansi (philippine
lemon) juice. The pork is then placed on bamboo sticks.
Once the barb'ecue "stand .begin's operation, chicken and pork are heated
over a charcoal fire and brushed with red f~od coloring and oil. Before they
are sufficiently cooked, they are removed and set aside on top of the cart
until a customer places an order, then the food is reheated .until cooked. An
additional sauce is then placed on the food, and it is given to the customer.
Cooking is done by hand, and the food is placed on a grill above live charcoal
on top of the cart. The cart is wrapped on three sides with a piece of plastic to
Street Foods and Health 83
help keep dust off the exposed food. However, it does not keep away. flies
from a nearby pile of garbage. An added discomfort is the smell from the sewage
in the gutter of the street near the stand.
Not far from this barbecue stand, another sidewalk vendor is engaged on
a daily basis in frying peanuts and cashews on top of a slightly smaller wooden
cart. The nuts are fried in coconut cooking oil. Shelled peanuts and cashews are
purchased from suppliers. Some peanuts are soaked in hot water so that the
skins can be easily removed, and other nuts are rinsed with water before cooking.
Peanuts with skins, peanuts without skins, and cashews are each fried
separately, but the saine procedures are followed. The nuts are fried in oil and
stirred constantly to insure that they are cooked uniformly. They are then
removed from tpe pan using a strainer, sprinkled with salt, and placed in an
open container with previously fried nuts. More nuts are then added to the
cooking oil and the process is repeated. Additional oil is added as needed, and
only the dirty residue in the oil is occasionally removed.
The fried nuts are stored on top of the cart and are only partially covered
by a sheet of plastic designed to keep some..of the dust off the nuts. The. peanuts
and cashews are never reheated, and newly fried nuts are just mixed in with
other nuts. At the end of the day, unsold nuts are placed in plastic bags and
stored inside the cart until the next morning. When a customer makes a
purchase, nuts are placed in paper bags of various sizes and are taken away by
the customer.
Native cakes represent another popular snack in Iloilo. One of our
respondents is an ambulant seller who sells in a large marketplace each morning.
Each afternoon and evening, she and her husband prepare two or three types
of native cakes at their house in a squatter area of the city. Due to· a lack of
drainage and any type of sewage system, the area floods evi,ry time it rains.
Houses are packed very close together and only a few alleys lead into the area.
Most people have to reach their homes along narrow foot paths that often
contain human excrement.
The water for the household of the native cake seller comes from a well
that is frequently underwater during the rainy season. This water is utilized to
wash the glutinous rice used to make the native cakes. The rice is then allowed
to dry in the air where it is exposed to various flies and rodents. In order to
make a native cake called suman, the rice is cooked with coconut milk above a
stove using firewood. When the rice is almost cooked, brown sugar is added and
the mixture is continually stirred until a thick, sticky consistency is attained.
The suman is then wrapped in banana leaves, and the product is ready to be sold
the next morning.

Laboratory Analysis of Selected Foods

The above descriptions indicate that some problems with disease could
84 Street Foods

result from consumption of street foods. One potentially dangerous practice is

allowing cooked food to stand at room temperature exposed to the tropical
heat. Another dangerous practice is the cursory' washing given to utensils, glasses,
and dishes. In some cases, soap is not USed, partially because more water is then
required to rinse off the soap.
Numerous illnesses related to food consumption ar~ caused by bacteria,
toxins, viruses, parasitic wonns, and fungi. These c~n cause diptheria; hepatitis,
tuherculosis, gastroenteritis~ and enteric fevers, such as dysentery, typhoid fever,
and cholera. It was far beyond the potential or ambitions of this study to
det~rmine all of the microbiological contaminants that were present in street
foods, but some bacteriological analyses were conducted by personnel at the
Regional Health Laboratory in Iloilo City in order to culture for the most
common enteric pathogens in the area, such as Salmonella, Shigella, and cholera
organisms, and for the presence of coliform bacteria.
Food samples were gathered at the selling locations of street food vendors
and taken to the laboratory. We were especially concerned with contamin~tion
occurring after the food was allowed to stand and kept careful records of the
time that the food was prepared. At the laboratory, bacterial counts were taken
and a presumptive test for colifonn bacteria was performed; With a positive
presumptive test, a semi-confmnatory test proceeding to a completed test for
coliform organisms was completed, then coliform and other enteric pathogens
present were identified. In addition to revealing the presence of coliform
bacteria, which may signify fecal contamination, these tests would also identify
the presence of bacteria causing various enteric fevers.
Disagreeements exist over what counts should be considered Significant,
what the indicat()r organism should be,-and whether pathogens --..:. disease causing
agents - can be shown since, in most products, the presence of an indicator
only points out the possible presence of a pathogen. Tests for coliform bacteria
are useful to indicate the possible presence of intestinal pathogens, but the type
of pathogen most likely to be present varies with different types of food (Frazier
and Westhoff 1978:508). Tests of street foods revealed the presence of inter-
mediate coliform organisms in a significant number of specimens. Intermediate
coliform organisms are normally found in soil and surface water, but their
presence in food is undesirable and may make the food unfit for human
consumption.
A pattern emerged ··from the laboratory analyses. in which all samples,
except one, obtained within a few hours of being initially cooked, were nega-
tive .for coliform organisms. The one exception consisted of freshly cooked
doughnuts which may have been contaminated when they were brushed with
margarine and dipped into an open container of sugar. Fried peanuts remained
negative for coliform organisms even after they had been allowed to stand for
almost 24 hours.
Street Foods and Health 85
All specimens, which had been allowed to stand for over six hours before
they were obtained, were found positive for intermediate coliform organisms.
This included samples that had been recooked after having been allowed to
stand for over six hours. A locally prepared juice drink was also found to be
positive for intermediate coliform organisms. It also had a high bacterial count.
We assume that this was a result of the use of contaminated water in .its
preparation, but handling practices could also have caused the contamination.
In general, food samples with higher total bacterial counts were frequently
found positive for intermediate coliform organisms. This was certainly related
to the time that the specimen was left standing. A study of sandwiches from a
fast food chain in America revealed that longer storage time at higher
temperatures, within a narrow range between 32 0 C and 380 C, increased bacterial
growth and that the initial bacterial level was important, but less critical
(Ockerman and Stec 1980:262). This also appears to be the case with street food
sellers, yet the food medium itself must also be conSidered, as was shown by the
fried peanuts which were allowed to stand for a long period of time under
relatively unsanitary conditions.
The laboratory analyses of a small number of samples must be viewed
with caution, especially since only the presence of only a few disease-causing
microorganisms were considered. Yet the presence of intermediate coliforms
does reflect improper handling, and a large number of these organisms may be
harmful to some people. During the course of the case studies, no customers
complained of illnesses after eating the food. This may, however, be related to
the other conditions in Iloilo City that lead to frequent mild bouts of diarrhea
and illnesses that are accepted as a way of life.
An alternative point of view is that people develop immunities to certain
bacteria and are not affected by them. I suspect that this is the situation in
regard to healthy people eating food containing intermediate coliform bacteria.
My staff and I ate food from all of the street food case study establishments
with no apparent ill-effects. A more serious problemcis that undernutrition
and parasites make people prone to various diseases. Diarrheal diseases,
tuberculosis, and· other food-borne diseases may then prove fatal to these people
who have little resistance to disease. Of course, certain types of food
contamination will contribute. to malnutrition by causing infections that do
not allow the proper utilization of nutrients.

Nutritional Significance of Street Foods

Throughout most areas of the Philippines, the dietary staple is rice, which
is primarily supplemented with fish. A survey of over five hundred rural house-
holds in Luzon revealed that a rice and fish diet was complemented by a few
vegetables, coffee, and occasional snacks (Evenson, Popkin, and Quizon
86 Street Foods
1980:302). Data obtained from the household survey in Iloilo City did not
indicate such· an austere diet, but the importance of rice and fish can be clearly
seen (see Table 5-1).

TABLE 5-1. PRIMARY ITEMS OF HOUSEHOLD FOOD CONSUMPTION

Food Item Frequency

Rice 8.00
Fresh fish and seafood 7.40
Fresh vegetables 6.88
Bakery products 6.78
Eggs 5.22
Fresh fruit 5.15
Drjed fish 4.07
Beef/ 4.03
Pork 3.82
Chicken 2.94

8- more than once a day 7- once a day

6- four to six times a week 5- two to three times a week
4- once a week 3- twice a month
2- once a month 1- very seldom
0- never
The table shows that every household indicated that rice was served more
than once a day; Fish and seafood were also served an average of more than once
a day, while chicken was eaten less than twice a month. The seven most popular
items were ranked in the same order as they were ranked in an urban household
study I conducted in Davao City in 1981 (Barth 1982:200). Packaged fruit,
packaged vegetables, packaged fish, and packaged meat were not popular in
Iloilo City, and, of the four items, only packaged meat was eaten an average of
more than once a month.
While there is a strong similaiity in food consumption patterns between
urban areas of Davao. City and Iloilo City in which upper income households
were purposely included, results obtained from a study of 1400 rural households
in Iloilo Province indicated considerably less frequent consumption of beef,
chicken, pork, and eggs (Formacion and Siason 1982:139). The two surveys.
are not directly comparable for many food categories, but Tabl~ 5-2 shows
the percentage of respondents eating five comparable food items. These··· results .
are unsurprising since the consumption of all of these item~ increases at
higher income levels (FNRI 1981:5-7). The frequency of consumptioR
of fruits probably remained almost the same due to the increased accessibility

I
Street Foods and Health 87
in rural areas of certain fruits that can be obtained without the need to purchase
them.
TABLE 5-2. PERCENTAGE EATING THE FOLLOWING FOOD ITEMS
ON A DAILY BASIS

Food Item Iloilo City Iloilo Province

Fruits 34% 33%

Beef 14% 2%
Chicken 4% 2%
Pork 13% 1%
Eggs 35% 15%

In the Iloilo City· household consumption survey, respondents were asked

to evaluate the adequacy of their household food intake in the maintenance of
good health. A nutritionist then evaluated their diet based on the relative
frequency of foods consumed, but no attempt was made to quantify actual
intake. Table 5-3 shows the results of both evaluations indicating an obvious _
discrepancy between the two ratings.

TABLE 5-3. EVALUATION OF HOUSEHOLD FOOD CONSUMPTION

Evaluator Rating
Excellent Good Fair Poor

Respondents 6% 47% 38% 9%

Nutritionist 7% 18% 25% 50%

While certain limitations exist with this type of comparison, the marked
difference may indicate that a large segment of the population still do not
have a clear understanding of the various components of a proper diet.
Although the responsibility for proper nutrition basically belongs to the
individual, food establishments may be a contributing factor to either limit or
enhance the nutritional well-being of target consumer groups. Street foods, a
prominent fIxture. in urban centers, may very well serve as a channel to this
effect. The analysis <;>f street foods and their health and nutritional contribu-
tion provides baseline infonnation for a number of critical purposes; including
assessment of 'its dietary- contribution and trends, initial indications of
potential food-related health problems, and· the development of nutrition
education policies.
In order to gain insights into the nutritional contribution of street food
meal dishes, popular viands from each of the three carenderias in the case
88 Street Food,
study, along with average portions of rice from each establishment, were
an~yzed. Calculations of nutritional value were determined by actual food
weighing and then using Food Composition Tables (FNRI 1980). The
nutritional value of various viand dishes and rice were then compared to
Recommended Daily Allowances (RDA) for the Visayas, as presented by the
Food and Nutrition Research Institute (1981: 17). Since no value for ascorbic
acid was .listed in this report, the RDA for Iloilo Province was used for this
purpose (FNRI 1976). The nutritional contribution of meal dishes per usual
serving is shown in Table 54.
TABLE 54. NUTRIENT CONTENT OF MEAL DISHES

Ascorbic
Primary Energy Protein Iron Vitamin A Acid
Ingredient % % % % %
cal RDA gm RDA mgRDA LV. RDA mg RDA

Meat 193 9.5 16.0 31.3 1.5 12.9 91.6 2.5 7.7 11.8
Fish 69 3.4 9.9 19.3 0.5 4.2 17.4 0.5
Vegetables 45 2.2 8.3 16.2 2.9 24.4 433.8 12.1 12.0 18.4
Rice 178 8.8 2.8 5.5 0.8 6.7

Based upon a sample of five dishes in each of the three viand groups,
results indicate that meat dishes scored the highest in calories and proteins,
while vegetable dishes were the highest in iron, vitamin A, and ascorbic acid.
This is partly a result of other ingredients being mixed with meat and vegetable
dishes. When the cost of calories and proteins are calculated for the same food
'groups, it can be seeen that price considerations may have an important effect
on the choices of consumers (see Table 5-5).
TABLE 5-5. NUTRIENT COST PER PESO FOR MEAL DISHES

Primary Energy Protein Iron

Ingredient cal per peso gm per peso mg per peso

Meat 55 4.6 0.44

Fish 31 4.5 0.23
Vegetables 27 4.9 1.71
Rice 214 3.4 0.96

Tables 54 and 5-5 should only be considered to be very gross

approximations, since considerable nutritional variability existed between
various dishes and only a few dishes were considered. It does seem unlikely
Street Foods and Health 89
that any popular dish will offer as many calories per· peso as rice. Although
the cost of protein per peso for rice appears to be relatively high, the large
portion of the. average diet devoted to rice seems to represent a rational choice
on the part of consumers in regard to the best value for their meager food
budgets, in relation to energy, proteins, and iron contribution. Unfortunately,
various essential nutrients are not found in rice. The food cost and food
combination variability indicate that a considerable potential exists in
upgrading the nutrient density of viand dishes since less expensive food
combinations of good quality may offer high nutrient density.
The nutritional values of snacks were determined from a more
representative sample than was used to determine the nutritional value of
meal dishes. The assessment of nutritional values was accomplished by
obtaining the same type of snack items that customers had purchased. These
snacks were weighed and the nutrient content determined using the same
methods that were used in regard to meal dishes. Table 5-6 presents the list of
nutrients in the 141 out of 164 single snack purchases that were made solely
for the consumption of respondents.
TABLE 5-6. NUTRIENT CONTRIBUTION OF SINGLE SNACK FOODS

Nutrient Amount %of %of

Purchased Estimated Intake RDA

Energy (cal) 219.0 13% 11%

Protein (gm) 5.3 10% 10%
Iron (mg) 1.6 16% 14%
Vitamin A (LU.) 63.6 3% 2%
Ascorbic Acid (mg) 10.4 16% 16%

The overall contribution of single snack food was approximately 11 percent of

calories and 10 percent of protein, when compared to RDA. This fmding may
indicate that excellent possibilities exist for extending the calorie-protein density
of popular snacks. The consumption of snack foods th~t could yield health-
nutrition benefits through a reduction in the calorie-protein deficit in the
average diet of low-income families may then be encouraged.
Table 5-7 shows the nutrient contribution of single snack foods by age
groups, sex, and occupational groups. The table. reveals that respondents 20
years old and above consumed larger amounts of nutrients from their snacks
than younger customers. This is probably a reflection of greater amounts
consumed and the· higher purchasing power of these respondents. Differences
between males and females were rather small, and no discernible pattern is
observed. On the other hand, white-collar workers consumed more nutritious
90 Street Foods
snacks than blue-collar or unemployed respondents. This would appear to be
due to higher income levels.

TABLE 5-7. NUTRIENT CONTRIBUTION OF SINGLE SNACK FOODS

BY AGE, SEX, AND OCCUPATIONAL GROUP

Ascorbic
Respondents Number Energy Protein Iron Vitamin A Acid
cal gm mg LU. mg

Age
10-19 years 24 153 3.8 n.8 25.5 15.5
20 & above 117 232 5.7 1.8 71.4 9.4
Sex
Male 86 215 5.0 1.7 82.1 13.3
Female 55 223 6.0 1.6 34.4 6.1
Occupation
Unemployed 48 177 4.6 1.1 29.7 4.0
Blue-collar 67 219 4.5 1.9 42.9 14.0
White-collar 26 296 8.9 1.9 179.3 3.0

An analysis of the snacks purchased by the same respondents on two

consecutive days is shown in Table 5-8.

TABLE 5-8. NUTRIENT VALUE OF SNACKS PURCHASED TODAY AND

YESTERDAY

Energy Protein
% of % of
cal RDA mg RDA

Purchases Today 307 15% 4.2 8%

Purchases Yesterday 334 16% 4.5 9%

Results reveal that the mean. energy and protein content of snacks purchased
today and yesterday did not differ significantly in calories and proteins when
compared to their contribution to RDA. Purchases made the day before were
determined on a 24-hour recall basis and included all purchases made at the
same establishment. The calorie content of purchases made by respondents
making purchases on two consecutive days was considerably higher than the
general average of snack purchases by all respondents at the time of the survey,
while the protein content was lower. This is partially explained by the presence
of men drinking coffee, beer, or tuba at the same place each day.
Street Foods and Health 91
Policies Toward Sanitary and Nutritional Improvements

The ultimate judgment of whether certain types of food, prepared and

handled using various procedures, are appropriate to eat rests with the consumer.
Using this standard, street foods are certainly appropriate for the people of Iloilo
City who patronize these establishments. Naturally, this standard will certainly
not prevent the occurence of food-borne illnesses. While certain bacteria are able
to grow in food and may lead to illness, other pathogenic organisms are merely
carried in the food. Dieseases, such as cholera, other enteric diseases, and
tuberculosis, can be transmitted in food. Therefore, disease prevention measures
require that food handlers be subject to some type of supervision.
Whereas the intennediate coliform organisms found in the food samples
were probably not harmful to consumers, tuberculosis and gastroenteritis
are serious problems in Iloilo. The general principles of preventing food-borne
illnesses are easy to enumerate. Food should be kept free of contamination
by initially selecting uncontaminated foods, by using adequate heat processing,
by keeping vennin away, by avoiding contamination from infected food handlers
or carriers, and by employing generally good sanitary practices (Frazier and
Westhoff 1978:483). Food should also be consumed shortly after it is prepared,
unless adequate provisions for storage are undertaken.
Improved food handling practices require a general public awareness and
concern over sanitary conditions. If people do not see the value of a certain
practice, it will certainly not be adopted. In this regard, street food sellers
cannot be expected to employ better food preparation and handling procedures
than they themselves use in their own homes. Punitive government measures
can cause certain changes, but these will be resisted by food sellers and con-
sumers alike unless there is public awareness that a problem exists.
Health education classes taught in schools are changing the awareness of
consumers. Similar programs, smaller in scale, can be directed toward food
sellers. The aim of these programs may be just to create a basic awareness of
proper food preparation and handling procedures. No punitive measures should
be taken, and the goal of the programs should only be to encourage food sellers
to voluntarily change certain unsanitary practices. This has a chance of success
as long as it does not lead to large increases in the cost of food preparation and
handling that would then be passed on to consumers.
The connection between unsanitary food handling practices and disease
could be illustrated through discussions with street food sellers and through the
use of basic instructional materials, such as brochures and pamphlets. This may
cause food sellers to adopt simple procedures that are relatively cost-free, but
that may prevent certain types of food contamination. The owners of street
food businesses should be initially contacted, but their employees should
certainly not be overlooked, since the instructions of the owners can be ignored
92 Street Foods
by, employees who do not understand the reasons for certain actions.
Of course, improved facilities are necessary before certain hygienic
measures can be initiated. It is very difficult to keep a food selling' area clean
without access to clean water. This is a serious problem in Doilo City and one
that cannot be solved in relation to street food sellers until the city water system
is improved. The same situation exists in regard to the lack of a sewage system
and adequate garbage removal. Street food sellers are only one small aspect of a
general environmental sanitation problem that exists throughout the Philippines.
Until these general conditions are changed, food handling procedures will remain
below desirable levels.
In the meantime, numerous possibilities for the use of appropriate
technology exist. For example, devices to boil wate~ could lead to improvements
in the cleaning of utensils. These devices would be inexpensive to operate if
they utilized solar energy. Heating devices using solar energy could also reduce
the cost of cooking, and encourage street food establishments to prepare food
more frequently during the course of the day, thereby reducing storage times.
The possibilities for technological improvements abound and may be feasible
as long as they do not lead, in general, to increased food costs.
The problem is not how to provide food that is relatively free of
contamination, but how to do so at prices that are still affordable to the general
populace. The interrelationships between income, sanitation, and nutrition
are very importaI)t."Even though growth in incomes and food supply is not a
sufficient condition for meeting basic needs in nutrition, it is a necessary
condition" (Berg 1981 :22). As long as people can only afford to spend a small
amount of money for their daily food needs, prepared food sellers will keep
prices low by operating from portable stands and shacks. These establishments
will be' located near open sewage and may lack access to clean water.
Unfortunately, unsanitary procedures may cause infections that adversely affect
nutrition by increasing energy requirements, reducing the proper absorption of
food, and limiting food intake through a loss of appetite.
While sanitary conditions leave something to be desired, street foods may
play a very important role nutritionally by adding variety to the diets of
consumers and may provide some essential nutrients not available in many
households, or not consumed in sufficient quantities. An example of insufficient
househoId consumption is provided' by a consideration of fats and oils. The
1978 household survey of the Food and Nutrition· Research Institute indicated
that household consumption of fats and oils in the Visayas was only 28 percent
of recommended amounts (1981: 1-2). The fats and oils considered were cooking
oil, pork drippings, and other fats and oils. A 1981 survey of rural households
in Iloilo Province revealed that only a little over one-fourth of surveyed
households used fats and oils in their daily food preparations and meals
(Formacion and Si~on 1982: 168).

I
Street Foods and Health ' 93
However, street food establishments in Doilo City used cooking. oil and
fats in the preparation of many meal and snack items. Consumption of these
items may contribute to a more adequate diet. This· may also be· true in regard
to other items, and even the consumption of certain foods which are high in
calories and low in other nutrients may improve the nutritional, levels of
consumers.
Most nutrionists regard insufficient intake of calories, or food energy, as the
most serious nutritional problem in the world today. Until the early 1970s,
protein deficiency was held to be the greatest problem. But recent surveys
and studies from several parts of the world indicate that efficient use of
protein depends on an adequate intake of food energy (Berg 1982: 5).
This is also related to the question of whether street foods area valuable
part of the diet of consumers. Very few people would question the consumption
of boiled rice with a meat, fish, or vegetable viand as being an essential part of
the diet of consumers. The question usually arises in regard to the consumption
of snacks. For people with a relatively low caloric intake, these foods are very
valuable as long as they are not eaten instead of eating more nutritious food.
This is also related to the cost of-the snack, which may drain the individual's
food budget of money that could have been spent more wisely on other items.
An evaluation of whether purchases of street foods represented the optimal
allocation of the food budget of consumers is beyond the potential of this
study. Nonetheless, the frequency of purchases and the nutritional analyses
of street foods indicated that these foods were an integral part of local diets.
Street foods therefore provide a possible entry point for the enrichment of
particular foods. The Nutrition Center of the Philippines has contracted with
private firms to produce various packaged, processed foods that are high in
calories and high in protein. In Iloilo, these food items were being distributed in
several projects dealing with malnutrition. Unfortunately, these items were not
usually sold by either street food vendors or at local sari-sari stores. Street
food vendors did sell highly visible, and colorfully packaged, processed snack
food items manufactured in Manila. Incredibly, none of the customer
respondents in the survey purchased any of these items. This leads me to
conclude that general purchasing patterns at street food establishments have not
been very strongly influenced by the fairly recent introduction of these items
into Iloilo City.
This may indicate a potential for the introduction of nutritious foods
which can be grown locally and processed at relatively low costs. One potential
area of exploration may be the introduction of food items which are popular in
other areas of the Philippines. An example is provided by various products made
from soybeans, which are rich in protein and calcium. One product, known as
utaw taho (Geerlig's cheese), is popular in Manila. Soybeans are very popular in
some areas of Asia and serve as a substitute for cows' milk, an item which is
94 Street Foods
usually imported into the Philippines. Soybeans are presently being grown in
the Western Visayas and plans are being formulated to increase their production.
Programs for interventions to improve nutritional value of foods sold at
street food establishments must be very selective. If the item is not popular,
street food vendors will not sell it. Initially, various incentives may have to be
given to producers- and processors to enable them to compete effectively. If
the product is accepted, these should be discontinued. If the product does not
fmd local acceptance and the project results in failure, the information learned
in the project will hopefully increase the chances of sUccess in the future.
 CHAPTER 6

CONCLUSIONS AND RECOMMENDATIONS

Strong disagreements exist in regard to potential solutions to the problems

of poverty and unemployment. These are frequently influenced by ideological
positions, and discussions of the role of the informal sector have been framed in
terms of whether it is possible to improve the existing distribution of resources,
thereby leading to structural transformations, or whether radical change is
necessary before improvements will occur (Moser 1978:1042). The debate is
then related to whether the informal sector can absorb labor under conditions of
rising or falling average incomes.
The problem with this debate is that it tends to ignore the empirical
conditions under which incomes will rise or Jall. The informal sector is not
autonomous a.nd cannot be separated from the general system in which it
is operating. The people working in the informal sector belong to households
that may employ multiple strategies in order to increase income. Some
household members may work in the formal and some in the informal sector,
or the same person may operate in both sectors. In addition, the operation of
each sector must be considered in the context of local conditions in order to
evaluate the demand for certain products and services. In this fmal chapter, the
initial sections will discuss some of the empirical conditions existing in Iloilo
City, then a series of policy recommendations will be put forward.

Income Generation and Employment

An approximate net operating income of S4 pesos, excluding taxes,

interest payments,and depreciation, was calculated as the daily average for
street food establishments. This is only a very imprecise estimate based on
average sales and the percentage markup over the acquisition price of supplies.
However, the tendency of street food sellers to underestimate sales means that
this income figure was too low, especially if the calculations from the case
studies, which indicated that reported sales were only 60 percent of actual
96 Street Foods
sales, were correct. In addition, other sources of income added considerably to
the actual earnings of the owners of street food enterprises (see Table 6-1).

TABLE 6-1. ADDITIONAL SOURCES OF INCOME OF OWNERS

OF STREET FOOD ENTERPRISES

Source Number Percentage

Other operating locations of business 26 19%

Respondents with additional occupations 25 19%
Spouses with other occupations 62 46%
Other sources of income 42 31%

Nevertheless, street food establishments were the primary source of household

income for four-fifths of the respondents.
These family-businesses were operated by an average of 1.8 owners and
unpaid family members (excluding family members just helping out for short
periods of time). Respondents employed an average of 1.1 workers per firm,
but only 26 percent of the firms hired workers, paying them an average of only
'P154 per month. Most of these firms provided free meals to employees and
almost 70 percent provided free lodging to employees..A consideration of the
employment situation in the region and in Iloilo City, and the fact that almost
three-fourths of the firms had no employees, leads me to agree with Sethuraman
who states that "Perhaps the distinguishing feature of the infonnal sector
enterprises is that they made their appearance, not so much in response to
investment opportunities as in the neoclassical sense but out of necessity to
create one's employment" (1981: 16).
At the same time these firms were supplying employment to people
working at these establishments, they were also absorbing a significant amount
of agricultural produce, primarily originating in Region VI but also in other
areas of the Philippines. This contributed to agricultural production by
supplying an urban source of demand for food and by facilitating an efficient
marketing system. These food sellers also absorbed a large volume of processed
food, both from Iloilo City and from factories in Metro Manila. In addition to
these trading activities, food sellers performed an important service by providing
prepared food to the ultimate consumer.
Whereas informal sector prepared food sellers were the focus of this
study, the relationships and interactions between various members of the food
distribution syst~m were in no way separated by a formal-informal distinction.
Street food sellers bought supplies from other informal sector firms, such as
market stalls and sari-sari. stores, but also bought from supermarkets, groceries,
and bakeries, which were considered to be in the formal sector. An especially
Conclusions and Recommendations 97
significant fonnal sector connection was in regard to· direct purchases of beer
and soft drinks from large corporate enterprises.
An important reason why a great deal of confusion exists over defmitions
of the infonnal sector is that any division of an· economy into two sectors is an
extreme oversimplification that may lead to the conclusion that two
homogeneous sectors are competing with each other. The previous discussion of
street food Sellers has shown some of the marked variability in the informal
prepared food sector. It also indicates that competition exists between informal
sector food sellers operating from pennanent structures and those selling on a
semi-static or ambulant basis. Due to price differences in the products of formal
and informal sector prepared food establishments, the alleged competition
between the formal and informal sectors may be more a function ofa dualistic
model than any existing competition in Doilo City.
The age of street food establishments indicates that these fums have been
competitive for a number of years. The fmding that older firms. tended to
have higher sales indicates that upward mobility was possible. This was also
reflected in the sales of those finns in the highest quartile in regard. to sales
volume. Unfortunately, the fact that average sales were almost twice as high
as median sales indicates a very uneven distribution and. using averages obscures
the low earnings of many sellers.
Even though street food sellers in Iloilo City have attained above average
incomes; have· provided employment for themselves, some or" their family
members, and some employees; and have been able to supply some of the food
needs of people in Doilo City, both those living in the city and those visiting
for various reasons, some street food sellers have not escaped from many aspects
of poverty.

At its worst, poverty is associated with absolute deprivation; the fact that
a person suffers from undernourishment and/or malnutrition; frequently
has to consume contaminated food and water, suffers from a variety of
diseases and parasites for which he knows no treatment or cannot afford
to have cured, and lives in physical conditions which impair his health,
personal security, and earning capacity (Bromley and Gerry 1979: 12).

Since they sell food, the vast majority of street food sellers in Iloilo City have
escaped from undernourishment, but not problems related to sanitation, disease,
poor health, and personal security.

Adaptation and Change

The fmdings of relatively high earnings for street food vendors in Doilo
City when compared to the general level of income has important implications
98 Street Foods
in regard to future change. This must be considered in a context of the demand
for street foods and the number of sellers which enter this activity. Participants
in street food enterprises will have to adapt to external changes over which they
may have ,little or no control, and their activities cannot be separated from
general economic conditions in the region.
Evidence from the consumer and household surveys indicates that these
respondents spent more money on prepared food purchases as incomes rose.
However, extremely low expenditures for per capita food consumption reveals
that incomes would have to increase astronomically before many people would
be able to afford to eat at formal sector prepared food establishments, such as
restaurants and fast food chains, on a regular basis. Assuming that the cost of
an average meal at a restaurant or fast food establishment is more than 20
pesos, this means a person would have to spend approximately three times the
average daily per capita food expenditure at households in the highest income
quartile for one meal. Even these higher income people will either have to eat
most of their meals at home or at carenderias, at which a portion of rice and
two viands can usually be purchased for less than five pesos.
Even an expenditure ofPS .00 for a meal represents more than the average
per capita food expenditure ofP4.80 or less made by the three lowest income
quartiles in the household survey. Eating at a restaurant or a fast food establish-
ment will have to represent a rare occurrence for these people. They will there-
fore continue to seek low-cost food, and the critical question appears to be
whether they will be able to spend enough money to adequately meet their
nutritional requirements.
In the United States, numerous fast food corporate chain stores sell
cooked food at lower prices than are charged by many other cooked food
establishments. Some of these fast food establishments are now operating in
the Philippines, and are expanding, especially in Manila. However, the prices
charged by these establishments in the Philippines is comparable to that of
restaurants, not street food establishments. It therefore seems unlikely that
they will supply the food needs of more than an upper income market, unless
the food is sold at considerably lower prices than are now being charged.
It is the ability to supply the demand of local consumers for low-cost
food that makes street food establishments more popular than formal sector
enterprises. Low capital expenses and low-cost preparation procedures using
relatively labor-intensive techniques allow these firms to dominate the sale of
cooked food in Iloilo City. However, they are not competitive in regard to
the production of soft 'drinks, beer, candies, some bakery goods, and several
other items. In these cases,economics of scale appear to favor large-scale
producers.
The relative success of street food vendors in regard to lower prices for
cooked food should continue' to attract cust~mers, but the potential for labor
Conclusions and Recommendations 99
absorption in these enterprises is certainly not unlimited. Employees earn
salaries that are equivalent to that of domestic workers, and these employees
also tend to be young and unmarried. The possibilities of earning more money
are extremely limited for these workers unless they establish their own busines-
ses or fmd other occupations.
The skills and experience required to operate a street food business will
limit the number of successful entrants into this activity. Problems with the
ownership of selling locations, accessibility to credit, and obtaining licenses
also act to keep people from entering this field. Additional drawbacks are the
hard work, long hours, and low status attached to some of these activities.
Official policies to assist these enterprises must therefore be carefully designed
to help these sellers without destroying the fabric that makes them competitive
and adaptive.
An important consideration in regard to food distribution is keeping
regional production connected with· regional consumption. If the demand for
regional production is external to the region, it may result in a failure to meet
the basic needs oflocal people (Lo, Salih, and Douglass 1978:86). This is critical
in regard to food, and will result in serious nutritional problems if food
production does not meet consumption needs. Street food sellers play an
important role in the food distribution system by utilizing many relatively
inexpensive local ingredients to help provide food at prices that consumers are
able to afford.
It does not appear that many urban centers in Southeast Asia will reach
Western levels of income or standards of living in this century. Present incomes
are far too low and population growth rates are far too high. If this proves to be
correct, then street food establishments may be necessary to keep down the
costs of prepared food. Nevertheless, even areas with higher incomes than the
Philippines have not changed many traditional food purchasing habits, and
higher income people in many of these areas also have not changed their diets
to any great extent.
In Malaysia, even higher income people have retained their traditional food
preferences and still make purchases from traditional outlets, such as hawkers
(Lam 1982:28). This also appears to be true to a large extent for Taiwan and
Hong Kong. In Singapore, people have a strong tendency to purchase prepared
food away from their homes and cooked food hawkers and stallkeepers
outnumber restaurants, hotels, and coffee shops by a tremendous amount
(Cheng 1982:8). Even in Japan, a country with tremendous economic growth,
has a distribution system in which small-scale enterprises still exist and supply
a varied demand from a population that observes many traditional consumption
patterns (McGee and Yeung 1977: 114).
100 Street Foods

Access to Institutional Support

Once it is realized that small-scale, traditional, prepared food enterprises

make an important contribution to employment, provide above average incomes
for their owner-operators, and meet the needs and preferences of local
consumers, the question of what type of institutional support !hey may require
arises. Street food vendors in Iloilo City have indicated that they suffer from a
lack of access to operating capital. This is an area in which formal sector
enterprises have a tremendous advantage over most enterprises in the informal
sector.
Even though several government credit programs exist, no street food
vendors indicated that they participated in them. A few vendors had bank loans,
but this was rather unusual. Many people lived very close to the margin of
survival and lacked control over many aspects of their operation. An illness
in the family of many small operators could force them into bankruptcy. This
same situation was also found in regard to market vendors in Latin America
where medical expenses, rent,· and educational expenses placed large demands
on the operating capital of businesses (Moser 1980:376). Those street food
vendors in Iloilo City able to obtain credit for operating capital were frequently
forced to pay rates ranging up to 40 percent per month. Unlike traders who
may borrow to speculate by buying a large quantity of an item at a low price
in order to sell the item in the near future for a higher price, prepared food
sellers f~ced a relatively constant demand from consumers. These high-interest
loans therefore affected their ability to compete with other prepared food
sellers. Goods could frequently be obtained from suppliers on a credit basis,
but this often led to higher prices for supplies.
The question of whether the government should try to assist street food
sellers and what interventions are necessary is an important one. My contention
is that the government should try to incorporate these people into the system
with the rights and responsibilities of other citizens. This will hopefully lead
to an expansion of the base of development and allow more people to actively
participate in more aspects of the economic system. This will, in turn, encourage
an efficient distribution system that provides low-cost food to the [mal
consumer. This does not mean that each food seller has to expand his or her
operation. It does mean giving small-scale businessmen the tools they need to be
able to maintain control of their present level of operations (Gibb 1982 :Annex
B:4). This could be accomplished through government regulations that
encourage the long-term operation of these businesses and by providing access
to credit facilities. The result would be to allow firms to increase profits,
without raising the prices charpd to consumers, by lowering the costs of
purcooses and the high rates of interest charged on loans. .
Throughout this report, one of the basic premises has been that street food
Conclusions and Recommendations 101
sellers are hard working, productive members of society. Many of them have
been able to achieve a level of success higher than that which may have been
possible in other endeavors. Yet some of their businesses are so small and
fluid that they are frequently not even _numerated in various surveys. They
do not operate in a vacuum and need to be judged in regard to the local context.
Once their importance is recognized, policies can be designed to insure that they
are not discriminated against or overlooked in the developmenf process. To this
purpose, I will now· set forth a series of policy recommendations that are not
meant to be seen as defmite statements, but as initial proposals that. can be
used as the basis for further discussions.

Recommendations

Social Policies

A critical point that must be initially recognized is that many Southeast

Asian cities contain large numbers of very poor people. The resources to develop
these cities are far more limited than those which are available to cities in the
United States and Europe. Decisions on any type of governmental action must
consider this scarcity of resources and the general levels of poverty. "Policies
should make it easier for the poor to live respectable, though modest, human
lives,and truly to belong to their city" (Keyes 1982 :39). This means that
people, such as street food vendors, who are willing to work should be able to
do so in a supportative environment.
Street food vendors need to therefore be organized so that they can
express their opinions to government officials. While the designation of street
food vendors provided a group whose boundaries could be demarcated for
the purposes of this study, the interests of store owners, market stallkeepers,
and sellers operating on a more mobile basis are not necessarily compatible.
However, the necessity for people to eat at various times of the day
at convenient locations may mean that the competition among the various types
of prepared food sellers may be less thm that found among other types of
sellers. One indication of this is that meals were predominately sold at
enterprises with permanent structures, while non-permanent sellers concentrated
on snacks. Nonetheless, the sellers themselves must decide if existing
organizations are sufficient to meet their needs or if different groups are
necessary. The logical flISt step is to work within existing organizations, such as
those for market vendors and sidewalk vendors.
Planners must consider street food sellers in their development plans in
order to help provide policies that are related to the actual needs of people.
The potential fOf increased labor absorption if the demand for street· foods
increases can. then be realized. The skills and experiences of street food sellers
102 Street Foods
certainly do not limit them to this single activity, and profits from street food
businesses can be used for other purposes, which may lead to higher overall
levels of economic activity. What is needed in the local context are imaginative
approaches that are tailored to local conditions.

Legal Policies

I realize that in order to operate a complex, modem society, various

regulatory and licensing agencies are required. In Iloilo City, very few
respondents were even able to describe· the actual number of licenses and permits
they were required to have, and many street food sellers had to hire people to
obtain these items for them. This led to a tremendous under-reporting of sales
in order to lower fees. Since many of the licensing agencies were not usually
dealing with the actual owners of the businesses, they had little basis upon
which to reject or accept the sales figures given. The complexity of the system
also partially accounted for the almost two-thirds of the respondents who had
no licenses and chose to avoid the system completely. Of course, sellers without
permanent structures were seldom able to obtain licenses, and few of the ten
percent who claimed to have licenses actually had them.
While there is certainly no need for the government to be involved in
all aspects of the lives of its citizens, it does seem reasonable that the
government should license and regulate legitimate business operations. The
initial step in Iloilo City may be to make the procedures less complicated and
to issue licenses to more people. Street food sellers cannot expect to obtain
benefits from the government unless they are willing to provide revenues for
government use. Naturally, they do not wish to pay taxes if they do not see
any tangible results.
Simplified licensing procedures could allow collectors to visit various
business establishments on a daily basis in order to make collections. This
would enable street food vendors to pay in the manner in which they are
accustomed to doing business. Collectors could be paid relatively high salaries,
based on local standards, while government revenues could, at the same time,
be increased substantially through higher overall collections. However, once
street food vendors become legitimate business operations, various other
opportunities must be afforded to them.
While sidewalk vendors cannot be given permanent locations on the
sidewalk, they can be legally recognized. This would remove a large element
of fear and uncertainty from their lives. Of course, they would still have to
be controlled to prevent sidewalk and street obstructions, and to enforce certain
sanitary procedures. This would represent only a slight change from the existing
situation, but would lead to increased security for s~<ilewalk vendors. It may
also enable them to gain access to various sources of credit.
Conclusions and Recommendations 103
The legal ramifications of certain licensing procedures may preclude their
use. All I am advocating is the need for more flexible licensing procedures.
People will attempt to operate street food businesses whether they are licensed
or not, as long as they can obtain adequate earnings. Since the present structure
keeps many street foods sellers outside the legal system, changes need !obe
made to enable these people to participate more fully in their society.
Hopefully, steps could even be taken to allow squatters to purchase the land
upon which they are operating their businesses and to allow stallkeepers to
register stalls in their own names.

Financial Policies

The most commonly voiced need of respondents was the need for credit
for working capital. Many people were willing to borrow using the 5-6 credit
scheme in which six pesos were repaid for every five pesos that were borrowed.
Since the length of these loans was usually short, interest rates were very high.
If these loans were actually used for business purposes, the potential rate of
return for the business must be greater than the interest charges (Davis 1968 :7).
However, if the money was borrowed to meet a family emergency that required
money which could not be obtained elsewhere, people were willing to pay higher
interest rates.
The lack of health insurance and other sources of money for emergencies
forces many people to utilize the operating capital from these predominately
family-run businesses for these expenses. Unfortunately, taking money out of
their businesses impairs their ability to repay the loan. The most favorable
alternative is to borrow for the emergency expenses while maintaining the
necessary level of operating capital in the business. Yet this prevents business
expansion since the level of capital accumulation is reduced.
Any programs to provide credit to street food sellers, and also many other
businesses on the informal sector, must recognize that this situation exists for
borrowers. Therefore,. loans must be given with a good deal of caution and with
realistic expectations of repayment. Interest rates must therefore be high enough
to cover· expected losses, and attempts should be made to see that most of the
money is spent for business purposes. However, even if loans which cannot be
repaid go toward the medical expenses of sick children, the social benefits may
outweigh the economic costs. But care must be taken to 'insure that the loans
do not just go· to a few fmnsthat will expand at the expense of others. The
nature of the demand for street foods should help to prevent this.
T~ street foods project was undertaken in thebellef that it is important
to encourage existing street food enterprises and to foster existing skills. I agree
with this policy and do not believe that loans should be given to inexperienced
people to start new businesses. Yet people with demonstrated business skills
104 Street Foods
may be provided with loans to start other businesses. I have previously
mentioned that low capital requirements allow people to become street food
sellers. If starting capital:is made available to many people, the large increase
in the number of sellers may reduce earnings for those presently in business.
More people will begin street food operations if chances of purchasing selling
locations are available, if the opportunity to obtain operating capital once they
have proven their business acumen is available, and if they can be legally
recognized. It should not therefore be necessary to also supply initial capital to
these people. .
No credit program will be successful if loans are given to everyone that
requests a loan, and the effect of these loans could disrupt· the present system
of street food operators. The people administering these loans need to possess
the skills to make intelligent decisions on which loan requests to accept and
which to reject. The results from the general linear models procedure indicate
that older business establishments have higher sales. This could be· used' as an
initial guideline, but loan administers, need to develop skills which will enhance
the chances of repayment of loans which are provided.
Most credit is presently obtain.ed· from people with whom the food sellers
have personal contact - relatives, friends, moneylenders, and suppliers~ Few
receive any loans from banks, government agencies,. or through associations
that they themselves have formed. This may indicate that these groups should
be more actively drawn into the activities of street food sellers. Government
agencies can make loans with more emphasis on social considerations.
Cooperatives and other types of associations may be able to pool the resources
of members for the use of those who need them. Nonetheless, I believe' that
most credit should be made available through the banking system.
Two banks presently have experience in administering loans to market
vendors. These programs could possibly be expanded to include other
enterprises, or new programs can be set up with other banks. Since loans to
groups have seldom been effective in the Philippines (Brown 1981: 329), I would
suggest that loans be made directly to the owners of businesses. If street food
vendors, and the hundreds of other types of small-scale business' operations
similar to them, are going to be included in the mainstream of the society, the
owners of these businesses must have a chance to develop a reputation as good
credit risks in order to obtain access to the banking system as the need arises.
Banks should be willing to send e~ployees out into the city to view
business operations and to collect loans on a daily basis, in accordance with the
operating procedures of street food businesses. The rust loan should be for a
relatively short period of time for businesses without experience with bank
loans. Mter repayments are made, additional loans can be provided. The large
differences in sales among street food vendors indicate that the capacity for
repayment is quite varied. Larger loans for longer periods of time can be made
Conclusions and Recommendations lOS
to larger-scale operators. Interest rates may also be lower for these people. The
primary· idea is to supplement existing sources of credit, and interest rates
should be higher than those normally charged in the banking system, but
considerably lower than the rates charged by moneylenders. This would provide
lower-cost loans to food sellers, while allowing banks to make a profit even with
higher administrative costs.

Improved Hygiene

While many of the practices of street food vendors were unsanitary, they
must be viewed as part of the general conditions existing in Iloilo City. More
water treatment. and delivery facilities are needed, improved waste disposal is
necessary, and improved drainage would lead to the betterment of general
overall conditions. Nevertheless, individual street food vendors need to learn
procedures that could improve the quality oftheir food, and the government has
to establish and enforce standards to insure the safety of these foods.
Foods need to be protected after they are prepared, and the increased use
of plastic packaging may lead to improvements, but will only cause additional
problems jf contaminated food is simply placed inside a plastic container that
the consumer believes to be sanitary. For example, the use of contaminated
water sources to make ice for snacks will only perpetuate the cycle of infection
and malnutrition. As general conditions in Iloilo City improve, more facilities
can be made available to street food sellers. In Taiwan, many sidewalk vendors
have access to piped water within a few feet of their operating locations that
enables them to wash utensils more carefully and to cook with potable water.
While this is not a possibility in Iloilo City at present, it should be considered
when the capacity of the water system is increased.
In lieu of general improvements in the area, health education can lead to
an increased awareness of potential health problems by both food sellers and
consumers. This process is presently taking place, and the results should take
effect over· a period of time. Most programs are now correctly emphasizing
conditions in households, but more consideration needs to be given to the 30
percent of the household budget spent on food that is not purchased· for
household preparation. One possibility is to have students from local universities
work with street food sellers to become aware of the sanitary problems faced by
food sellers and to provide ideas on what improvements can be accomplished
without increasing costs.
A tremendous potential exists for the use of appropriate, low-cost
technology to improve food handling and preparation techniques. Lower-cost,
more fra]uent cooking, and the· boiling of water are just the starting point.
Existing processing technologies may be able to be modified to make lower-cost,
more sanitary, and more nutritious products for local consumption. The
 106 Street Food.
technological support for these various projects could easily come from existing
private voluntary organizations, government agencies, and universities. Many
of the technologies developed may be appropriate for both business and
household applications and could assist a large number of people.

Nutritional Policies

Based on data obtained from numerous areas of the Philippines, the

primary obstacle to improving the nutritional status of people is the dire
economic circumstances in which a large segment~of the population finds
itself. Nevertheless, ther~ are ~pp~ft1!1lities which offer the use of existing
technologies to bring the price of prepared food ~closer to the purchasing
capacity of low-income consumers. In this regard, nutrition education can help
people select more nutritious food without incurring higher food costs. This
could benefit both food sellers and their consumers.
Another fruitful approach is to develop the utilization of locally-grown
foods. This could lead to increased production for the local market. Household
food production for household consumption also should be encouraged since it
will increase the food available while decreasing food expenditures, if the food
can .be economically grown. Programs on backyard production of nutritious
foods, such as legumes, root crops, and various vegetables could be nutritionally
very beneficial.
Different viand combinations may also increase the nutrient content per
pe$O of expenditure.. This could be accomplished by the' substitution of various
vegetables for more expensive sources of nutrition. The nutrient content of
snacks could also be improved considerably through various ways to increase
'their caloric and protein content. Since street food consumers were only obtain-
ing 11 percent of the Recommended Daily Allowance of calories and 10 percent
of the RDA for proteins per single snack purchase, inexpensive improvements in
the calorie and protein content may be warranted. Improvements in the
nutrient content of both meals and snacks would provide low-income people
with more nutritious food fot the same small food budget.
Another important. role that street foods may play in local diets is in the
introduction of new foods. One of our case study respondents had very good
results introducing new items to customers. People may want to taste various
items while they are away from the home before introducing them to the
entire household. Students may also be more adventurous than older family
members, and people may also seek more variety when making purchases away
from their homes. This may indicate that low-cost fruit and vegetable juice could
be introduced to replace some of the dependence on bottled soft drinks.

"
Conclusions and Recommendations 107

Some Concluding Remarks

This study originated as part of an international project with one of its

objectives being a focus upon interventions that would lead to increasing the
income of women. Since most of the street food enterprises were family-run
'businesses, and since women were involved in the control' of income at over
86 percent of the firms, recommendations were not made specifically for
women. Case study respondents were also not isolated as part of the
recommendations because they were very representative of street food sellers
in general, and over 60 percent of the respondents were involved in the same
activities as case study respondents.
General recommendations that could benefit various categories of sellers
were therefore made. The most important distinction for street food sellers
was not based on the commodity sold, but rather upon whether the firm
operated from a permanent structure or not. This affected such things as the
potential use of new technologies, the accessibility of credit, recognition by the
government, and the source and size of purchases. The perishability of many
products precluded individual bulk purchases, but sales volumes and capital
equipment, such as refrigerators, allowed sellers with permanent structures
to make larger purchases.
The sellers also viewed themselves more in terms of being store owners,
market vendors, sidewalk vendors, or ambulant vendors. Since many sellers
changed their products at various times, these distinctions seem valid. Yet all
were operating as part of the same marketing system and faced similar
circumstances, so the recommendations should apply to all respondents. I also
hope that the recommendations have wider applicability than to only street food
sellers since small-scale businesses are extremely common throughout the
Philippines. Possibly the recognition of the importance of street food sellers will
increase interest in numerous aspects' of the exi~ling system that are sometimes
overlooked in development planning. ',.-
One rewarding aspect of the research was the change in the ideas of many
of the people who were involved in the project. Once the results started to
indicate the number of people involved in street food activities and their above
average incomes, people began to seriously consider the potential for economic
development that street food sellers represented. They also began to envision
their role in the overall system. It is exactly this type <.>fawareness that I hope
this report will instill in those who read it. '
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 APPENDIX

POPULAR STREET FOODS

Meals (viands) Ingredien ts

Adobo nga amargoso ampalaya (bitter melon), shrimp, pork, eggs,
(Ampalaya adobo) tomatoes, onions, garlic, oil, salt
Adobo nga baboy pork, onions, garlic, salt, vinegar, oil
(pork adobo)
Adobo nga lokus fresh squid, onions, garlic, vinegar, oil, salt
(Squid adobo)
Adobo nga manok chicken, onions, garlic, vinegar, oil, salt, soy
(Chicken adobo) sauce
Adobo nga ombok quail, onions, garlic, vinegar, oil, salt
(Quail adobo)
Alimango crab, salt
(Roasted crab)
Alimango nga torta crab meat, eggs, onions, tomatoes, flour
(Crab torta in shell)
Apretada liver, potatoes, carrots, sweet peppers, tomatoes,
(Liver with sauce) onions, garlic, com starch
Apan-apan kangkong (swamp cabbage), oil, bagoong
(Kangkong adobo) (fermented small shrimp), vinegar, onions
Balatong nga may baboy string beans, pork, shrimp, onions, garlic, salt
(String beans with pork)
Bola-bola ground beef, onions, garlic, salt, oil, flour
(Meat balls)
Caldereta goat's meat, potatoes, onions, garlic, pepper
Appendix 115
Camaron rebusado large shrimp, eggs, salt, oil, com starch, garlic,
(Fried shrimp) vinegar, soy sauce
Chopsuey pork, shrimp, liver, carrots, chayote, baguio
beans, tomatoes, onions, garlic, com starch,
salt, oil
Chorizo pork, garlic, salt
(pork sausage)
Dinugu-an pork, intestines, stomach, lungs, blood, onions,
garlic, lemon grass, pepper, vinegar, oil, salt
Escabeche nga isda fish, carrots, ginger, vinegar, onions, sweet
(Fish escabeche) peppers, sugar, tomatoes, oil
Estofado nga dila cow's tongue, onions, garlic, vinegar, salt,sugar,
(Ox tongue) oil
Estrellado nga isda fish, eggs, onions, garlic, tomatoes, oil,salt
(Fish cardillo)
Ginaling nga kame nga may ground beef, potatoes, green peas, onions,
PQtatas (Ground beef with garlic, oil, salt
potatoes)
Ginaling nga karne nga may ground beef, chayote or string beans, tomatoes,
sayote ukon balatong onions, garlic, salt, oil
(Ground beef with either
chayote or stringbeans)
Guinisa nga talong eggplant, garlic, onions, tomatoes, eggs, oil
(Sauteed eggplant)
Guinisa nga tauge mungbean sprouts, chayote, shrimp, pork,
(Fried mungbean sprouts) onions,garlic, tomatoes,oil
lsda nga tinawsiohan fish, salted black beans, onions, garlic, oil
(Fish taosio)
ltlog sang ombok nga salad boiled quail eggs, tomatoes, onions, salt, sugar,
(Quail eggs salad) vine~r \
Kadyos nga may baboy kadyos (pigeon peas), pork, tomatoes, jackfruit,
(pigeon peas with pork) onio~ garlic,oil, salt
Kadyosnga may igi kadyos, rice snails, tomatoes, jackfruit
(Pigeon peas with rice
snails)
Kalo-kalo bihon bihon' (rice noodles), pork, shrimp, cabbage,
(Bihon guisado) chayote, onions, garlic, soy sauce, carrots,
tomatoes, oil, salt
116 Street Foods
Kalo-kalo pancit pancit (wheat noodles), pork, beef, shrimp,
(pancitguisado) carrots, chayote, onions, garlic, soy sauce,
oil, salt
Kame prita beef, onions, garlic, soy sauce, oil, calamansi
(philippine lemon) juice
Kilawin pig's ear, vinegar, onions, salt
Kinilaw nga amargoso ampalaya, onions, tomatoes, vinegar, salt, sugar
(Ampalaya salad)
K inilaw nga gulaman gulaman (seaweed), green mangoes, vinegar,
(Seaweed salad) onions, tomatoes, salt
Kinilaw nga rabanos rabanos (radish), tomatoes, onions, vinegar,
salt, sugar
Laswa squash, alogbati (malabar nightshade), string
(Vegetable mixture) beans, tugabang Qute), ampalaya, green papaya,
shrimp or dried fish or bagoong, tomatoes,
okra
Linaga nga balatong dried beans, pork, jackfruit, tomatoes
(Boiled dried beans)
Linaga nga kame nga may beef or .pork, jackfruit, petchay (Chinese
langka (Boiled meat cabbage), tomatoes
with jackfruit)
Linaga nga manok chicken, green papaya, malunggay (horse
(Boiled chicken) radish), tomatoes, petchay
Linaga nga manok nga may chicken, ubad sang saging (banana stems),
ubad (Boiled chicken with tomatoes
banana stems)
Litson kawaU pork, soy sauce, calamansi juice, salt, oil
(Fried pork)
Menudensia chicken gizzard and liver, potatoes, onions,
garlic
Miswa miswa (rice noodles), shrimp, pork, patola
(Rice noodles) (sponge gourd), onions, garlic, tomatoes, salt,
-- oil, water
Monggo guisado mungbeans, jackfruit or alugbati, beef or pork,
onions, garlic, tomatoes, oil, salt
Monggo nga may gata mungbeans, jackfruit, shrimp or dried fish,
(M ungbeans with coconut tomatoes, coconut milk
milk)
Appendix 117
Pata leg of pork, tomatoes or batwan, onions, garlic,
(Boiled leg of pork) ginger
Pinaksiw nga isda fish, vinegar, onions, garlic, ginger, oil, salt
(Fish paksiw)
Pinerito nga isda fish, salt, oil
(Fried fish)
Pinerito nga manok chicken, soy sauce, calamansi juice, onions,
(Fried chicken) garlic, corn starch or flour, salt
Pork chop pork (spare ribs), soy sauce, calamansi juice,
salt, flour, oil
Puso nga salad puso (banana hearts), tomatoes, onions, hot
(Banana heart salad) peppers, vinegar, salt
Salted egg salted egg, tomatoes, onions
Sarciado nga isda fish, sweet peppers, peas, tomatoes, onions,
(Fish with sauce) garlic, oil, corn starch
Sarciado nga kame beef, potatoes, sweet peppers, peas, green
(Beef with sauce) onions, tomatoes, onions, garlic, com starch,
oil, salt
Sarciado nga manok chicken, potatoes, sweet peppers, peas, green
(Chicken with sauce) onions, tomatoes, onions, garlic, corn starch,
oil, salt
Sinugba nga isda fresh fish, salt
(Broiled fish)
Sotanghon nga may manok sotanghon (mungbean noodles), chicken,
tomatoes, onions, garlic, seasoning, salt, oil
Sweet and sour fish fish, onions, sweet peppers, tomatoes, garlic,
vinegar, sugar, oil
Tambo tambo (bamboo shoots), jute or okra, shrimp or
(Bamboo shoots) crab or bagoong
Tambo nga may gata bamboo shoots, jute or okra, shrimp or crabs,
(Bamboo shoots with coconut milk, salt
coconut milk)
Tinola nga isda fish, onions, tomatoes, kangkong or camote
(Boiled fish) tops or pepper leaves or eggplant
Tinola nga monggo mungbeans, kalubay (bottle gourd), malunggay,
(Boiled mungbeans with alogbati, jackfruit, tomatoes, meat or shrimp or
other vegetables) dried fish
118 Street Foods

Tongol pork stomach, vinegar, onions, coloring

Torta nga talong eggplant, eggs, salt, oil
(Eggpalnt with eggs)
Torta nga talong nga may eggplant, ground beef, onions, garlic, eggs,
ginaling nga karne (Eggplant flour, salt, oil
torta with ground beef)
Ubod nga may pasayan coconut hearts, pork, shrimp, onions, garlic,
(Coconut hearts with shrimp) tomatoes, oil, salt, seasoning
Utan nga monggo mungbeans, eggplant, malunggay, ampalaya,
shrimp, onions, garlic

Fried Snacks

Banana burger banana, ground beef, potatoes, onions, garlic,

oil
Banana cue banana, sugar, sesame seeds, vanilla, oil
Banana cracker raw bananas, sugar, oil
Bitsokoy flour, eggs, milk, sugar, baking powder, oil
Buti dried cooked rice, sugar, oil
(Popped rice)
Camote chips sweet potatoes, sugar, oil
Chicharon pork skin and small intestines, salt
(Roasted pork rind)
Doughnuts flour, eggs, milk, sugar, baking powder, oil
Fish balls boneless fish, flour, salt, oil
Kasoy cashews, garlic, salt, oil
(Cashew nuts)
Kombo, banana bananas, flour, sugar, oil
Kombo, camote sweet potatoes,flour, sugar, oil
Lumpia prito coconut hearts, onions, garlic, shrimp, pork,
(Fried lumpia) lumpia wrapper, oil
Mani mani (peanuts), garlic, salt, oil
Panara pork, chayote, mungbean sprouts, flour, oil
Popcorn popcorn, salt, oil
Ukoy shrimp, flour, salt, oil
Appendix 119
Beverages

Butong coconut meat and water, sugar

(Young coconut meat and
water)
Gatas milk, sugar, water
(Milk)
Kape coffee, sugar, water, milk (optional)
(Coffee)

o~elon juice shredded melon, sugar, coloring, ice

Pineapple juice canned pineapple juice, milk, sugar, coloring,
water, ice
Pineapple-orange juice canned pineapple-orange juice, milk, sugar,
coloring, water, ice .
Sansaw boiled sagu (sago palm starch), sliced gelatin,
(Gelatin with sugar) sugar, coconut milk, water
Tahu ginger boiled in water, sugar
(Ginger tea)
Tsokolate chocolate, milk, sugar
(Chocolate drinks)
Tuba coconut palm sap, baluk (red bark)
(Fermented palm sap)
Serbesa (Beer) - Beer Hausen, Cerveza Negra, Gold Eagle, Lagerlite, Max, Red
Horse, San Miguel
Soft drinks - Coke, Mello-yello, Mirinda Orange, Mountain Dew, Pepsi, Royal
Tru-orange, 7-up, Sprite

Package8 Snacks

Locally produced:
Bandi nga kasoy roasted cashews, brown sugar
(Cashew brittle)
Bandi nga mani roasted peanuts, brown sugar
(Peanut brittle)
Barquillos flour, eggs, sugar

Bukayo grated or shredded coconut, brown sugar

(Sweetened grated coconut)
120 Street Food,

Butong-butong coconut milk, sugar

Camote paste sweet potatoes, sugar
Pinasugbo raw cooking bananas, sugar; sesame seeds
(Banana brittle) (optional)
Polboron flour, powdered milk, sugar
Tamarindo tamarind, brown sugar
(Tamarind preserve)
Products of Manila-based corporations:
Barbecue curls, beef curry curls, butter corn, candies, cheese balls, chippy,
chiz curls, choco creams, corn flakes, crackers, cracker nuts, kroepeck,
macapuno, orange creams, orange twist,potato chips, prawn crackers~ squid
crackers, tort~as

Soups

Arroz con caldo rice, chicken, fried garlic, vetsin (monosodium

(Rice with chicken soup) glutamate), salt
Batchoy pancit, boiled pork, intestines, beef, liver,
roasted garlic, green onions, black pepper,
vetsin, soy sauce
Makie meat, corn starch, garlic
Pancit caldo pancit, pork, shrimp, garlic, salt, vetsin
(pancit with soup)
PancitMolo pork, onions, garlic, molo wrapper (wheat
(Wanton soup) flour), salt, black pepper
So tanghon caldo sotanghon, pork, shrimp, chicken onions,
(Mungbean noodle soup) garlic, salt

Ices
Fruit shake fruits, such as avocado, coconut,. guayabano,
or mango blended with sugar and ground ice
Halo-halo ice, young coconut, boiled banana, boiled
camote, sago, kaong (sugar palm), fruits, sugar,
milk
Ice candy sugar, water, milk, flavoring such as avocado,
coconut, chocolate, pineapple juice, mango,
or canned juices
Appendix 121
Ice scramble ground ice, sugar, coloring
Leche con yelo ground ice, milk, sugar
(Milk with ice)
Mais con yelo sweet com, ground ice, sugar, milk
(Iced com)
Sorbete milk., sugar, eggs, fruits or other flavoring
(Ice cream)

Native Cakes

Alupi glutinous rice or cassava, sugar, shredded

young coconut
Baye-baye roasted glutinous rice, sugar, shredded young
coconut, water
Bibingka ground rice, sugar, shredded young coconut,
water
Bitso-bitso glutinous rice, sugar, oil
Cassava cake grated cassava, butter or margarine, sugar,
shredded young coconut
Cassava delight boiled cassava (mashed), sugar, powdered
milk
Ibos glutinous rice, coconut milk
I nday-inday ground glutinous rice, sugar
Kalamay hati ground glutinous rice, sugar, coconut milk
Kwakoy ground rice, sugar
(Rice cookies)
Maja blanca com starch, sugar, water
Mohasi or Palutaw ground glutinous rice, sugar, grated coconut,
roasted sesame seeds
Puto ground rice, sugar, coconut milk
Puto kutsinta ground rice or com starch, sugar, grated
coconut
Puto lanson grated cassava, brown sugar, margarine
Puto maya glutinous rice, sugar, grated coconut
Puto tikoy ground glutinous rice, sugar, shredded young
coconut
122 Street Foods
Suman glutinous rice, coconut milk, sugar
Suman latik glutinous rice, bukayo

Barbecue

Barbecue nga atay liver, calamansi juice, soy sauce, sugar, vinegar,
(Liver barbecue) salt, garlic
Barbecue nga baboy pork, calamansi juice, sugar, soy sauce, vinegar,
(pork barbecue) garlic, salt
Barbecue nga manok chicken, calamansi juice, sugar, soy sauce,
(Chicken barbecue) vinegar, salt, garlic
Lokus dried squid
(Squid)
Sinugba nga bangrus fresh milkfish
(Broiled milkfish)
Sinugba nga mais corn
(Broiled corn)
Sinugba nga sisi small oysters
(Broiled oysters)
Sinugba nga talaba large oysters
.(Broiled oysters)

Sandwiches and Siopao

Cheese sandwich bread, cheese

Cheeseburger sandwich bun, cheese, ground beef
Chicken sandwich bread, chicken, mayonnaise, onions
Corned beef sandwich bread, corned beef
Egg sandwich bread, eggs
Ham sandwich bread, ham
Ham and egg sandwich bread, ham, eggs
Hamburger sandwich bun, ground beef
Hot dog sandwich long roll, sausage, cheese
Siopao, baboy dough, pork, eggs
(pork siopao)
Siopao, manok dough, chicken, eggs
(Chicken siopao)
Appendix 123
Tuna sandwich bread, tuna sandwich spread

Meat and Eggs

Balut fertilized duck egg

(Boiled fertilized egg)
Dinugu-an pork, intestines, stomach, lungs, blood, onions,
garlic, lemon grass, pepper, vinegar, oil, salt
Lechon whole pig
(Roasted pig)
Linaga nga itlog chicken egg
(Boiled egg)
L inaga nga kame beef, petchay, tomatoes, salt
(Boiled beeD
Penoy duck egg
(Boiled infertile duck egg)

Fruits and Vegetables

Kabugaw (pomelo), kapayas (papaya), langka Gackfruit), pahu nga hilaw (green
mangoes), pinya (pineapple), sandiya (watermelon), singkamas (yam bean)

Bakery Goods

Biscocho, bread, cakes, cookies, crackers, ensaymada, hopia, muffms, pan de sal,
pies, rolls

Boiled Snacks

Coated peanuts . peanuts, sugar

Linugaw ground glutinous rice, sago, cooking bananas,
(Rice gruel) sweet potatoes, coconut milk, sugar
Tinanok nga balinghoy cassava
(Boiled cassava)
Tinanok nga kamote sweet potatoes
(Boiled sweet potatoes)
Tinanok nga mais corn
(Boiled corn)
Tinanok nga saging cooking bananas
(Boiled bananas)
124 Street Foods

Others

Bihon guisado bihon, shrimp, pork, chicken, cabbage, carrots,

onions, garlic
Bihon Malabon bihon, Soy sauce, corn starch, egg, shrimp
Cotton candy colored sugar
Fresh lumpia coconut hearts, pork, shrimp, onions, garlic
Fruit salad pineapple, fruit cocktail, mangoes, bananas,
avocado
Hot cake flour, eggs, sugar, water, margarine
(pancake)
Lubid~lubid flour, sugar
Pancit guisado pancit, shrimp, pork, onion, chayote, carrots,
garlic
Pilipig roasted pounded rice
.Pulot sugar cane juice
(Sugar cane syrup)

Sinanlag nga mani peanuts with shells

(Roasted peanuts)
Spaghetti spaghetti noodles, meat balls, tomato sauce,
onions, garlic
Valenciana glutinous rice, pork, chicken, shrimp, liver,
raisins, peas, boiled eggs, green onions, kalawag
(yellow coloring)
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