Jolibee buys Mang Inasal!!!

[awing]

But P3B in itself is I am sure enough for your successor, wala pang sakit ng ulo and succession problems... What if Edgar Sia's descendants suck or are not interested in Mang Inasal. Pero P3B cash, anyone would like that as an inheritance hehehe

I agree.

What I am trying to point out is the 'name of the game' and for a SIA's new generation to come. For 3B now, kung magaling siya maghawak ng pera matagal at di mauubos ito or maybe invest in a new business otherwise a happy-go-lucky in his mind madaling mawala ito. Or the future ang 3B niya could be double, triple or more than that.

Anyway, it's a personal choice. Just my opinion.

[uls]

it's just timing and luck.


after the oil price bubble/global financial meltdown, fast food price bubble and pinag-experimentuhan.

kaya kita nyo pre oil-price hike days, average of P95 per 2 pc chicken si Mcdo, Jollibee, KFC

Mang Inasal hindi sya nagtaas kasi original branches naman ng Mang Inasal's walang aircon ( a very big overhead cost). he maintained the price and went to marketing, franchising + the Unlimited rice promo. at times of crisis, san ka pa eh di dun sa mura na sulit pa

i have been monitoring Mang Inasal branches in our location since last year, and I tell you it's not sustainable. patay din sya sa oras na 2pm to 6pm even with the unli rice promo

kaya nga binenta na nyan, bec. the owner himself feels that he cant pretend so long. i was giving it another more year to fold but then this news came along.

there was this one time a year ago, and we went for Mang Inasal Timog. this Injap Sia guy went in, asked the sales, kumusta na ang quota, cashier answered: sir 47K pa lang. that was closing already and so he ordered the cashier to accomodate our group and others coming in para maka-quota.

47k and still not quota and without aircon. his overhead must be really over 70%, liit profit nya

even if MI's margin is razor thin, Sia only had to keep the show going long enough for someone to buy MI

he probably knew MI was already on Jollibee's radar

konting tiis lang, he'll get a windfall

and he did

[jimnyeatworld]

^ yeah i agree *uls. actually, in sights nya talaga ang Jollibee foods.

kasi last summer, binanatan din nya ang chowking halo-halo. i think he offered it only at P49.00 take note yun pinakamalaki ha, with 3 ice creams at the top. sobrang nagtataka nga ako eh pero sige order kami P49 pero hati na kami.

Sia's inasal is nowhere near the taste of JT's or even Bacolod Inasal (these 2 ang authentic inasal talaga). Inasal is a filipino native delicacy. Sia is fil-chinese who just so happened to live in Iloilo.

so what he did, was market an Iloilo street food, made a fastfood out of it, franchised it, used it as leverage to cutthroat compete now Fastfood giant Jollibee (while Jollibee was very busy competing with McDo, KFC etc.)


in other words, Sia went under the radar. dumating na sa point na Jollibee can't stop his 'success' and needed to buy him out.

if the current market price of 2 pc. chicken is in the P130 to P140 range, that gives so many speculators / wannabe fastfoods a window of prices P75, P85, P95 + unlimited rice.

so for any aspiring Mang Inasal out there, puwede pa heheh! Bugong is good, mura din bigay nila ah, yun nasa Market market. i hope bank investment fund managers take notice of it. and who knows, one day, Jollibee buys 'em too.


Moral Lesson: that's the price for having too expensive 2 pc. chicken meal, madali ma-cutthroat. but it takes time, patience and money, but it will work. Look at Mang Inasal

[br733]

everyone kept saying mang inasal cannot sustain the unlimited rice promo. but he has sustained it for like 2 or more years and at a time when rice prices were at their all time high.

my questions are these:

why are franchisees still lining up to open more mang inasal if the economics does not make sense? does the franchisor subsidize the cost of rice? the franchisor has to subsidize the cost of rice to hide the 'losses,' otherwise the franchisees will figure it out it does not make sense to offer the unli rice.

if mang inasal were indeed a losing proposition, jfc will not buy it. the fact that jfc bought it just means that this is a credible threat and they are unwilling to sit it out and let mang inasal cannibalize their market further. if mang inasal was all for show and bleeding, jfc will let mang inasal self destruct. why spend 3bio to get rid of competition if it will self destruct in a matter of time.

it seems jollibee and mcdo have grown too big and have become less efficient? or more greedy? look at yellow cab, 4 or 5 years ago, their 18 inch pizza was going for around 500 pesos. right now, their 18 inch pizza is about 750 which is like 50% more. at those prices, an upstart pizza company can compete head on with yellow cab and pocket a decent margin. ideally, the bigger you are the more economies of scale you enjoy and are able to offer your products at more competitive prices. but here in the philippines, the bigger you get, the more overhead cost you incur and the more you have to increase your selling prices.

[jut703]

I really am gonna miss their service now.

The best Mang Inasal out of over a dozen branches I've tried was in Starmall. Their crew is very, very accomodating. The serving time of the food is reasonably quick. The chicken is well cooked and isn't small (some branches I've tried have significantly smaller Pechos). The area doesn't smell bad and is spacious.

In fact, I had my record 6 cups of rice there, plus 2 bowls of soup. I couldn't walk afterwards, but Mang Inasal Starmall provided really great service, nakakagana talaga kumain. Kumbinsing!

I wish that chicken size does not change, and that the hospitality displayed by their staff is maintained. Surely the unli rice will stay, as that is the company's most striking feature. Hopefully though, price doesn't increase. Or if it does, I hope it doesn't reach 110 pesos. Mang Inasal has saved me countless times during moments where I'm starving as hell and want to get the most bang for my buck.

[uls]

why are franchisees still lining up to open more mang inasal if the economics does not make sense? does the franchisor subsidize the cost of rice? the franchisor has to subsidize the cost of rice to hide the 'losses,' otherwise the franchisees will figure it out it does not make sense to offer the unli rice.

i don't know if MI subsidizes the rice

if mang inasal were indeed a losing proposition, jfc will not buy it. the fact that jfc bought it just means that this is a credible threat and they are unwilling to sit it out and let mang inasal cannibalize their market further. if mang inasal was all for show and bleeding, jfc will let mang inasal self destruct. why spend 3bio to get rid of competition if it will self destruct in a matter of time.

JFC spent 3B for the brand (which is what pulls in customers)

JFC can always fix the margin

if JFC waited for MI to self destruct, someone else could buy MI before it self destructed, which would be a problem for JFC

and besides, it would be a waste to pass up the opportunity to acquire such a good brand

of all companies, JFC should know how valuable a brand is

[niwde11]

yep, almost similar to Cosmos.:D

[uls]

yep, almost similar to Cosmos.:D

i like sarsi

hehe

[leonleon]

Daig pa niya nanalo sa lotto niyan.

For sure naman sakit ulo rin magpatakbo ng ganyang business. If I remember correctly, there was a period hininto rin nila mag unli rice. Binalik lang rin ulit.

Good for Mr. Sia, bad for the loyal customers, I guess.

[leonleon]

i was talking about the goal of the people who made Mang Inasal

their goal was to build a brand

Is that a fact? I mean yan ba ang goal ni Edgar as he himself explained it?

No disrespect, but ang alam ko kasing usual goal ng mga businessmen in starting a business is to earn money for oneself, not to build a brand and cross your fingers that some monster in the industry at a future date (after 7 long years) will come and gobble (buy) you up so that you can retire for life.

Simply put:

Primary Goal: Start a business to make money.

Icing on the cake (if -- BIG IF -- it happens): Sell business to competitor so I can retire before 30 years old.