Jolibee buys Mang Inasal!!!

[ess]

Jollibee once had a roasted / grilled type of chicken house. Mary's alam ko panglaban nila sa Kenny's yun noon. if they price mang inasal at 149.00, then that's another Mary's Chicken. alam ko flop yun eh

Hey! I remember Mary's Chicken. It was bad... very sweet. I think they used a sack of sugar as the marinade. Iisa lang yung branch non diba? Sa greenbelt 1?

[homer jay]

Don't forget the rental, royalty, seasonings, tissue (MI customers use lots and lots of tissue), and free soup.

And if the store is inside malls, add again the percentage of gross sales that the mall will get from MI.

In my own assessment, P25.00 profit for every PM meal.

Medyo malaki itong P25 profit for a P97 or P99 peso meal. I read somewhere that best fast food chains usually earn about a net flowthrough of 10-15% only of the food they sell (and these are usually the big ones na with good margins and efficient commissary processes). Very tight itong margins ng mang inasal, imo. Hindi sila as efficient as the bigger competitors.

I would believe that the unlimited rice offering jacks up their cost of goods (each cup should cost the store a little more than P2), plus the fact that hindi as effecient sigurado yun kanilang operations vs the more established companies, I assume MI stores on the average earns only approx 7%-8% net profit vs total sales.

For franchisees, okay lang ito. Investment on equipment is not as high as say, franchising a Jollibee store. Tapos kung may sales kang P60k per day, kita ka ng approx P4.8k per day or about P1.75M a year, which in a couple of years' time, possible mo na mabawi ang equipment investment mo at franchising fees (mababa pa itong P60k per day, I would think -- depende sa location).

Pero ang pinaka-kumita dito ay si Mr. Sia. Halos laway ang pinuhunan nya to get that many franchisees. Kikita sya sa commissary nya because he sells the chickens to the 300 stores. Plus, counting the certain percentage of royalty that goes to him for every sale -- usually about 8% ata or 10% not sure kung ano sabi sa franchise agreement.

Galing nga ni Mr. Injap because yun mga franchisees naman nya nagkakanda-hirap (less than 10% lang naman ng stores ang kanya), sya naman, kikita sa royalties at sa pagbenta ng produkto ng ibang stores at sa kanyang commissary.

Tapos ngayon, nabenta na nya at P3B tapos may 30% pang ownership sa kanya, at may trabaho pa sya sa Jollibee. Nagkunwaring mag-IPO para bumango ang pangalan, tapos sinubukan din ibenta sa Pancake Group of companies para tumaas lalo ang presyo.

Magaling na businessman talaga si Mr. Sia. His company was living on the edge with a 90% franchisee model, kaso nabenta na nya bago tuluyang sumakit ang ulo nya sa mga franchisees nya.

[tidus1203]

Most fast food restos have a 50% margin... Some like KFC even more... Talagang they are there to make money, si MI muka talagang parang DOT COM company nung late 90's...

[homer jay]

Most fast food restos have a 50% margin... Some like KFC even more... Talagang they are there to make money, si MI muka talagang parang DOT COM company nung late 90's...

The 50% food margin is based on the cost of the goods alone. The ingredients, and the packaging only. Wala pa dito yung cost ng direct to store na sweldo, utilities, rent, yung main office support charges (w/c are part of the royalties), advertising charges (to which some are part of the royalties, and some being billed as a different account), etc. Overall, net profit just becomes 10-15% for a store. Very tight din ang kinikita sa fast food industry.

[chua_riwap]

Deco.....LaPaz batchoy naman, after MI.
Sino naka-try na? Masarap ba?


http://www.abs-cbnnews.com/-depth/10...ain-letting-go

Mang Inasal owner shares pain of letting go


MANILA, Philippines – The owner of Mang Inasal Philippines Inc., which was recently sold to giant Jollibee Foods Corp., said letting go of his chicken-based business was “painful.”

In a letter to his “Mang Inasal Family,” Edgar Injap Sia II expressed “deep sadness” like a “father parting with his child” as he hands over the care of the restaurant to the giant conglomerate.

Sia, who is in his 30’s, founded Mang Inasal on December 2003. In a 250-square meter space in the parking lot of Robinsons Place in Iloilo City, he started to offer the tasty vinegar-marinated chicken served in skewers and paired it with unlimited rice, an almost irresistible come-on. Innovating further, he began offering the menu in the familiar fast food dine-in concept. Business grew by leaps and bounds, conquering markets beyond Visayas, including Metro Manila, the make-it-or-break-it city.

For Mang Inasal's phenomenal growth—about 100 new stores a year—Sia was recognized this year as the Small Business Entrepreneur awardee in Ernst & Young's annual search for Entrepreneur Of The Year-Philippines. The same group named Jollibee founder Tony Tan Caktiong as its first awardee in 2004. Caktiong went on to win the World Entrepreneur of the Year title at an awards ceremony in Monte Carlo, Monaco.

Currently the 6th largest fastfood chain in the country, a local magazine had named Mang Inasal, almost prophetically, as "the new Jollibee."

Growth was fueled by franchising, which started only in 2005. Of the 303 Mang Inasal branches, only 24 are company owned. Franchise holders of the 279 stores paid P800,000, about the same amount as Sia’s seed money when he started the business 7 years ago.

That Jollibee will be paying P3 billion for a 70% stake in Mang Inasal has made Sia “a very successful businessman,” according to bloggers and online commentators. The buying price of Jollibee, which courted Sia for the transaction, values the entire Mang Inasal business at P4.3 billion. Not a bad deal for a business that has an estimated annual total revenues of P2.6 billion and system wide sales of P3.8 billion.

Since Sia’s holding company, Injap Investments, will continue to hold on to 30% of Mang Inasal, the Jollibee deal actually valued Sia’s remaining stake at a staggering P1.3 billion. By the way, Sia already received a P200 million downpayment.

Still involved

In his letter, however, Sia stressed that the deal will also benefit the intended readers--the employees, franchise holders, and loyal clients.

“I have full confidence that we will reap the benefits of cost improvement of supplies, greater operational efficiency, reliable and response-on-demand servicing, and well structured and professionally managed organization. This will mean increased revenue flow, better margins and limitless opportunities for you—not to mention better service, better quality and “mas sulit” food selection for our loyal patrons.”

He also assured them that, during the turnover process and beyond, their “voice will be heard every step of the way.”

He said two board seats in the new organization have been reserved for him and Ferdinand Sia, the current chief operations officer. Both will also be part of the management committee “for the coming years.”

Global brand

Sia stressed that the deal with Jollibee will strengthen the brand. As the business is on its way to becoming a “Global Mang Inasal,” Filipinos will be “proud,” he said.

“Mang Inasal will have the professional support and vast resource needed to steer the business to the next level,” Sia wrote. “Knowing that [Jollibee’s] Tony Tan Caktiong share the values and business principles I have, I know that my VISION of better quality lives for the Pinoy Diners and Pinoy Entrepreneur will live.”

Growing the business was part of Sia’s goal when he decided to offer the company to the public early next year. Since 2008, Sia has been ramping up interest in Mang Inasal’s success story in preparation for a planned Initial Public Offering. Fresh funds from the capital raising exercise were supposed to finance further store expansion. The aim was to have 500 outlets by 2012. Before the Jollibee deal, it just opened its 300th outlet at the SM Mall of Asia.

Thus, despite the pain and the deep sadness, Sia said he is “ecstatic and in high spirits” since the future of his “7-year old child…is secured and filled with great optimism.”

More "little Jollibee's"?

It is likely that keen watchers of entrepreneurship have not had the last of Sia's genius —or luck.

Aside from Sia's remaining 30% stake in Mang Inasal, Sia's Injap Investments also has a stake in Deco's, another up-and-coming food business that serves "batchoy", a soup made of meat stock, noodles, and garnished with local herbs and spices.

Batchoy was first started by a young butcher called Deco Guillergan Sr., in 1938 in a carinderia at the La Paz public market in Iloilo City. Sia's Mang Inasal also first flourished in the same city.

Just like how Jollibee has grown through brand extensions and numerous acquisitions, Sia has forged a partnership with Guillergan's children. Deco—and its "heavily guarded batchoy secret"—was eventually folded under Sia's Injap Investments.

Deco stores have been slowly expanding to neighboring provinces in Visayas and Metro Manila. Will it be Sia's new "little Jollibee"?

[niky]

Don't forget the rental, royalty, seasonings, tissue (MI customers use lots and lots of tissue), and free soup.

And if the store is inside malls, add again the percentage of gross sales that the mall will get from MI.

In my own assessment, P25.00 profit for every PM meal.

P25 maybe... but the profit goes up the more meals they sell, since other factors are not fixed costs but variable depending upon the number of sales. ;)

The only fixed cost is the cost of the ingredients. (Cost of cooking and washing plates and utensils also go down as volume goes up)

-

Mhmm... just ate at Pancit Malabon... 60 pesos lang, a full Pancit merienda with various toppings, including shrimp, squid, etcetera...

[Monseratto]

Dati dto sa Chinatown, may bumukas na Jollibee sa Ongpin. This is the first Jollibee franchise I saw that actually failed. Yung kapalit niya is one of the very first Mang Inasal franchise...

[CVT]

Mang Inasal owner shares pain of letting go

Tawa naman ako rito... Shares pain?.... With P3B? Painful?.... :twak::hysterical:

Dasalasanansens... :hysterical:

11.1K:transform:

[Wh1stl3r]

Tawa naman ako rito... Shares pain?.... With P3B? Painful?.... :twak::hysterical:

Dasalasanansens... :hysterical:

11.1K:

He still has 30% di ba? Anong letting go? Di ba worth 1B pa yun? Excruciating.

[vito corleone]

"pain of letting go"?. . .napakahipokritong tao