Mang Inasal Feasibility Study

THE SUCCES BEHIND THE FAST GROWING MANG INASAL RESTAURANT SCHOOL YEAR 2012-2013

A BUSINESS PROPOSAL PRESENTED TO THE COLLEGE OF BUSINESS ADMINISTRATION

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE SUBJECT INTRODUCTION TO RESEARCH

MEMBERS Icaro, Leonardo E. . Galisim, Maricris M. Magsino, Maxima A. Simplina, Maryannn R. March 2013

I. Executive Summary

The GLIMS team composed of Leonardo Icaro, Maricris Galisim, , Maxima Magsino and Mary Ann Simplina has formalized a thesis paper for answering the question: How does Mang Inasal’s from a small food cart into a successful fastest growing restaurant. The paper was created to pass the subject in RES 1 or Introduction to Research. As in the field of Business, this research has a big contribution to us because during the entire research, the team has observed and seen some tips on how to become a successful fastest growing company.

Mang Inasal Philippines Incorporation was the chosen company of our team as we could see more potential for the restaurant to be one of the successful franchise phenomena in the Philippines. Mang Inasal became the best choice for our research to know more the success behind the restaurant. The team became more eager to accomplish the said project as we became more familiar to the victory of Mang Inasal. However, some business profession may find the solution but not necessary for all, that’s why we, the GLIMS team came up for the formalization of the project.

In the entire duration of the research, we have seen the success behind the fast growing Mang Inasal Restaurant. We’ve done this through searching in the internet all about the said restaurant and through the interviewed of one of the manager in Mang Inasal restaurasnt, Mr. Orly Fabito, who cooperate and patiently answer our questions about their restaurant.

Usage of this research will help us to know the important things on how to become successful growing company.

Mang Inasal Philippines Incorporation is Philippine’s fastest growing barbeque fast food chain. It serves chicken, pork barbeque and other Pinoy products. It specializes in Chicken Inasal. It was first establish on December 12, 2003 in Iloilo City. It has additional offices in Luzon, Visayas and Mindanao. Currently, there are 445 branches nationwide and with over 10,000 employees system wide. Mang Inasal is doing its share in alleviating the unemployment burden of the country. The presence of every Mang Inasal in a certain area provides not only employment but also opportunities to community members including suppliers of kalamansi, charcoal, banana leaves, vegetables, bamboo sticks, and other ingredients. It also indirectly gives income- generating too many. As of November 22, 2010, Mang Inasal Philippines, Inc. operates as a subsidiary of Jollibee Foods Corp.

The team has formalized a thesis paper to answer the following questions: 1. How did Mang Inasal’s became a successful, fastest growing restaurant? 2. What makes Mang Inasal different from other fast foods? 3. What is the difference of GLIMS branch from the other Mang Inasal branches? 4. Is the location suitable? 5 What strategies do they use to reach this far?

Phone: 63 33 508 9000

Fax: 63 33 508 5111

www.manginasal.com

Company profile Mang Inasal is the fastest growing barbeque fast food chain. It was first established on December 12, 2003 in Iloilo City. Mang Inasal is gearing towards 500 strong store networks by 2012. Apart from the usual food presentations of multinational food company copycats, Mang Inasal endeavors to adhere to elements that bear a distinctively Pinoy stamp-grilling with charcoal, rice wrapped in banana leaves, a marinade concocted out of local spices and herbs, bamboo sticks for skewers, and the ambiance that encourages kinamot (the ilonggo term in eating with the hands) whenever chicken inasal is served. All these evoke a rush of nostalgia for tradition, culture, and most of all, Home. Mang Inasal has steadily grown since it offered franchising. It has branches in Bacolod, Iloilo, Roxas, Metro Manila, Cebu, Davao, Kalibo, Tarlac, Boracay, Antique, Mindoro, Batangas, Pampanga, General Santos, Tuguegarao, Iligan, Bulacan, Cavite, Baguio, Laguna, Panabo, Cagayan De Oro, Lucena Surigao, Palawan, Agusan Del Sur, Malabon, Zamboanga Pagadian, Koronadal, Rizal, Pangasinan, Dipolog, La Union, Ozamiz, Kabankalan. Currently, there are 445 branches nationwide and with over 10,000 employees system wide. Mang Inasal is doing its share in alleviating the unemployment burden of the country. The presence of every Mang Inasal in a certain area provides not only employment but also opportunities to community members including suppliers of kalamansi, charcoal, banana leaves, vegetables, bamboo sticks, and other ingredients. It also indirectly gives income - generating activities to many. In Mang Inasal, "Pinagsikapan naming laging mabilis, laging masarap, at laging abotkaya" so that the Pinoy can truly say, "Kumbinsing!”

History Edgar Sia II engaged in business at twenty years of age. He opened the first branch in December 2003 at the Robinson's Mall Carpark-Iloilo. The restaurant was instantly successful that it spread throughout most of the Visayas, to Mindanao, and then Metro Manila. It applied for franchise a couple of years later. By 2009, Mang Inasal opened one hundred stores. In October 2010, 70% of Mang Inasal was acquired by Jollibee Foods Corporation for P3 billion ($68.8 million).

Vision To be the preferred quick service restaurant of every pinoy everywhere! Mission To consistently provide a great pinoy dining experience.

II. PRODUCT AND SERVICES

Other than reasonable prices and unlimited rice. Mang Inasal best known for their chicken barbeque or chicken inasal and other Filipino specialties. The tender grilled chicken barbecue is so juicy that it leaves wonderful concoctions of flavors in the mouth. Chicken inasal is best enjoyed when dipped in a special blend of vinegar, soy sauce, calamansi, and chili. Mang inasal just recently introduced a well-known and favorite Filipino food. The famous “Pansit” Bihon is the one of the specialty of mang inasal. A delicious Pansit Bihon is just 49 pesos only.

GLIMS’ NEW MENU

Beef bulalo

Bulalo steak

GLIMS offer a new product that Filipino will love it. Bulalo is considered to be one of the most favorite main dishes in the Philippines so that, GLIMS offer a new specialty of bulalo because it’s easy to get an attention in the customer. Bulalo Steak is a dish made out of beef shanks which is tenderized by boiling together with herbs and spices then placed on a sizzling plate together with rich brown gravy. Beef Bulalo is ranked as one of the top Nilaga (boiled) dishes in the Philippines due to its rich taste and very satisfying broth. Unlike others, like Nilagang Baka of Beef Soup Bones, which are either too bony with not enough meat or too meaty with not enough bone. The price of our Bulalo is very affordable. Beef Bulalo is just fifty pesos (Php 150) and the Bulalo steak is seventy five pesos (Php 120).

Services

Mang Inasal allows Bulk orders, delivery and gift certificate that will satisfy customer needs.

PRICE

Product of Mang inasal priced in a way that highlights value the same time will affordable to its customers. Mang inasal creatively compares the price of their products to the competitors to be able to derive the affordability of the products. The strategy of Mang Inasal’s unlimited rice gives the consumer to think the “sulit” meal or getting more for what they pay for.

III. Target Market

Barangay Comembo

14,433

Pembo

44,000

West Rembo

28,406

East Rembo

26,433

Rizal

4,443

TOTAL

124,715 Population

Normal percentage of approximate potential customer 124,175 at 1.5% = 1,870.275 - Highest 124,715 at .5% = 623.575 - Lowest

Generally, customers who are near in target location are the target customers of the business. Target customers are a group of customers that the business has decided to aim its marketing efforts and efforts and ultimately its merchandise to wards. The target customers of the business in terms of location are households, students, those people who visit and people that also live in Comembo. Based from the researchers’ initial assumption, Mang Inasal would be one of the top dining choices of the customers because of its availability of Pinoy meals that set it apart from most of its existing competitors at affordable prices.

The target customers of Mang Inasal referring to the Head of the family and breadwinner average income; of 13,000 – 20,000 25-45 years old, middle class, both male and female with an average income that has an active lifestyle.

124 average bulalo + steaks at (120 + 150/2) = 135 php + 499 average Barbeque Chicken at 99 623 135 x 124 potential customer =

16,740

99 x 499 potential customer = + 49, 401 Gross sales 66,141 Php

IV. Market Research and Analysis

Why Comembo, Makati? Putting up a business at Comembo is an opportunity for the business its continuous sales growth since the target location is continuously expanding in every business industry and one of those is food industry. There is a continuous demand because Comembo is prepared to provide an environment where residences, offices, schools are within walking distance of one another. The master plan of Comembo resulted to more efficient traffic flows for vehicles. This

advantage will allow residents and other locators to spend quality time with their family, on the various interest and hobbies and life.

The barangay promotes people oriented governance through education and constant interaction with all sectors of the community, thus achieving a progressive and well balanced environment suited for business and living.

Makati City Makati City is a highly urbanized city located in the northeast section of Metro Manila; it is now an important residential, commercial, industrial and business center. The total land area is 27.36 sq.km., it constitutes 4.3 % of Metro Manila's total land area. To date it has a total of 62,878 commercial and industrial establishments which include 46 head offices of banks, 10 major IT companies, 27 contact centers, 54 embassies, 35 consulates, 2901 restaurants, 6 fivestar hotels and eight shopping malls in the city, thus strengthened its bid to become the “Urban Tourism Capital” of the Philippines.

The total population of Makati is 529,039 residents based on the 2010 census, ranks ninth in population size within Metro Manila Municipalities. There are 2 congressional District with 33 barangays. The estimated daytime population is 3.7 million during work days, as people from other parts of Metro Manila and nearby provinces go and pass Makati to work, do business or shop. The population by Age of Makati City is 34% younger and 64% older, well educated and more likely to be employed in skilled or daily-wage jobs than the Metro Manila average.

Most people who live in Barangay Comembo are mostly the target market of the business. Since Barangay Comembo has the 13th highest population out of 33 barangays, it is good to put up a business where the target market is near. It is a good opportunity to the business to be surrounded with a big population in the target location.

J.P. Rizal Extension Comembo, Makati City

Barangay Comembo is located at the northeastern part of Fort Bonifacio. The name COMEMBO is an acronym of the Combat Enlisted Men’s Barrio, historically derived from the pioneering unit, the 501st Combat Engineers Group of the Philippine Army that develop the area in 1957 when it was constituted into a barrio. The total Land area is 61 hectares. The Predominant Economic Activities of Comembo are construction supplies and hardware, video shops, banks and lending institution, sari-sari stores, barber shops, aluminum and glass fabrication, bakeries, pawnshops, drugstore and Restaurants. Major Business Establishments are Chowking, KFC, Mister Donut and Goldilocks.

Barangay Comembo is intended to capitalize on the strong growth consumer spending that is being driven by the expansion of the middle-class and growing population with demographics getting younger as well as the area nearby like Pateros. This target market includes 3 storey building Barangay Hall, households, high school and college students

(particularly from Benigno “Ninoy” Aquino High School and Infotech Computer Learning Center) and employees from BPI and Insular Savings Banks whose working area is around from the vicinity.

Based on the study, there is no Mang Inasal in Barangay Comembo. The researchers came up with the study to have Mang Inasal in the said place. Since most of the middle class visits Comembo wet and dry market and Unimec Supermarket. It is affordable for them to eat at Mang Inasal, especially the non residents that are passing by at J.P Rizal Extension.

MAIN COMPETITORS Our main competitors in this segment are any fast food chain within the 50 meter along the J.P. Rizal Extension. In our location there are KFC and Chowking. KFC

Location: J. P. Rizal Extention Comembo, Makati City About this Restaurant: Is a fast food restaurant chain headquartered in Louisville, Kentucky, United States, which specializes in fried chicken. It is the world's largest fried chicken chain and the second largest restaurant chain overall after McDonald's, with over 17,000 outlets in 105 countries and territories as of December 2011. Signature Dishes: Chicken Strips, Colonel Burger, Hot and Crispy, Hot Shots, Original Recipe Kentucky Fried Chicken, Zinger CHOWKING

Loacation: Uni-MEC Sampaguita St. Comembo Makati City

About this Restaurant: Chowking pioneered the quick-service Oriental restaurant concept in the Philippines which combines the Western fast-food service and the delicious taste of Chinese food in Oriental restaurants. Signature Dishes: Beef Wanton, Fried Dumplings, Halo-halo, King's Congee, Lumpiang Shanghai, Shanghai Lauriat

MARKET TRENDS

Philippine fast food outlets enjoyed growth of 9% in 2010, with consumer’s demand for value-for-money driving sales.Within this segment, chicken fast food saw the greatest growth in value sales, with an impressive 23%increase in sales for 2010. The domestic chain “Mang Inasal” was the segment driver, due to its aggressive expansions. Euromonitor forecasts the greatest growth in this segment to be chained, chicken fast food outlets, which are expected to experience 46.9% value growth from 2010 to 2015. Chained convenience store fast food will have the next largest value growth over the same period, with 27.6%. Vicinity Map

V. Marketing Strategy

The purpose of putting this kind of business is to serve a variety of food for the customers. It will primarily answer their undying needs, by means of providing them selection of Filipino dishes made by the company.

Service Differentiation

The main food that the company offers is grilled chicken. They also have Grilled Pork, Bangus, Chicken Feet, Wings, Pecho, Liver and Baticulon, Fish and Pork Sinigang, Batchoy, Bihon, Pancit Molo, Pinoy Burger, Pinoy Mirienda, Pinoy Panamis, Pinoy Pampagana, and more. Since we all know that there are lots of companies that offer the same product, we will strive hard in improving, adding or developing products that will surely satisfy the needs and wants of the target customers with different taste and preferences. Mang Inasal is a nationwide fast food serves Malls, near LRT and MRT stations, nearby offices and schools of Luzon, Visayas and Mindanao. Nationwide food delivery service to your home, school and offices, and phone orders Cash transaction.

Positioning Strategy

Mang Inasal offer new dish that will surely target the Filipino taste, Bulalo Steak and Beef Bulalo. It has a great taste that you will never forget. It also serves in a large size and affordable price with unlimited rice and soup. We provide and services that our valued customers are waiting for.

Advertisement and Sales Promotions

To introduce product to target market, different marketing strategies and promotions should be considered. It plays a very important role in everyone’s business. Leaflets, distributed to various business establishments and offices will talk about the ongoing promotion so that the expected customer become aware of it. We will offer promos to attract customers through posters or tarpaulins, displayed on the store.

Mang Inasal is barbeque fast foods that have Paborito Meals, Sulit Meals and Merienda Meals Ranges from 49-99 pesos. All ages can afford the price of the meal with unlimited rice and unlimited soup. One can treat all barkada and family in the price of value meal.

VI: Organization and Staffing

Organizational Chart

Mang Inasal Philippines Incorporation

GLIMS FOOD CORPORATIO N AREA MANAGE R STORE MANAGE R

MANAGERS SHIFT MANAG ER

ADMINISTRATION ASSISTANT

SECURIT Y GUARD

STORE CREW DINNING CREW GRILL CREW

BOARD KITCHEN OF DIRECTORS CREW

COUNTER UTILITY CREW DISPATCH CREW/QUALIT Y CONTROL

JUNIOR MANAG ER

President

Simplina, Mary R. ViceAnn President Board of Directors

Icaro, Leonardo E. Magsino, Maxima A.

Organizational Structure

FUNCTION

NO. OF EMPLOYEE

Area Manger

Has overall responsibility for all company’s stores in a large area. These includes delivering growth, maximizing sales and profitability, providing team with a stimulating and supportive environment, maintaining and increasing standards of customer service and other areas across the shops, driving team performance and controlling training and development of staff.

1

Store Manager

Responsible for ensuring the products and services satisfy the needs and desires of the customer.

1

Manager

Responsible for planning and directing the work of a group of individuals, monitoring their work and taking corrective action when necessary.

Administration Assistant

Responsible of paper works like permits and payrolls or the branch.

1

Counter Crew

Assist their customers’ orders and handle payment

3

STAFF

1

Dinning Crew

Gives order to the customer, collect and taking back dirty dishes to the kitchen.

5

Grill Crew

Responsible in the grill station to grill cook work.

3

Dispatch/ Quality Control

Verifies that the food met the requirements for quality and quantity.

3

Kitchen Crew

Responsible for preparing foods to the customer

4

Utility Crew

Responsible for cleaning the floor by sweeping, mapping, vacuuming or scrubbing and always make sure that the restrooms are clean.

2

VIII. FINANCIAL PLAN

GLIMS CORPORATION Income Statement PROJECTED YEAR

2013 Sales Food Purchases Restauran t Supplies Store Supplies Cost of Goods Sold Gross Profit

2014

2015

2016

2017

24,141,465.00

28,969,758.00

34,763,709.60

43,454,637.00

56,491,028.10

10,889,434.82

13,067,321.78

15,680,786.14

19,600,982.68

25,481,277.48

732,931.49

879,517.79

1,055,421.35

1,319,276.68

1,715,059.69

135,776.89

162,932.27

195,518.72

244,398.40

317,717.92

11,758,143.20

14,109,771.84

16,931,726.21

21,164,657.76

27,514,055.09

12,383,321.80

14,859,986.16

17,831,983.39

22,289,979.24

28,976,973.01

Operating Expenses: Rent Depreciation Amortization Light and Water Salaries and Wages Employees Benefits Transportatio n Office Supplies SSS, Philhealth & Pag-ibig Contributions Communicati on Repairs and maintenance Taxes and licenses Insurance Miscellaneous Total Operating Expenses Operating (Loss) Income Interest Expense

2,643,966.00 550,517.60 157,142.86

2,643,966.00 550,517.60 157,142.86

2,643,966.00 550,517.60 157,142.86

2,829,043.62 550,517.60 157,142.86

3,027,076.67 550,517.60 157,142.86

1,811,472.00

1,992,619.20

2,191,881.12

2,630,257.34

3,156,308.81

4,951,500.00

5,941,800.00

7,130,160.00

8,912,700.00

11,586,510.00

412,625.00

495,150.00

594,180.00

742,725.00

965,542.50

9,117.75

9,573.64

10,052.32

11,057.55

12,163.31

68,178.00

71,586.90

75,166.25

82,682.87

90,951.16

409,356.00

429,823.80

451,314.99

496,446.49

546,091.14

41,510.00

43,585.50

45,764.78

50,341.25

55,375.38

220,207.04

264,248.45

317,098.14

396,372.67

515,284.48

181,060.99

217,273.19

260,727.82

325,909.78

423,682.71

24,394.00 53,169.00

29,272.80 55,827.45

35,127.36 58,618.82

43,909.20 64,480.70

57,081.96 70,928.78

11,534,216.24

12,902,387.3 8

14,521,718.0 5

17,293,586.9 4

21,214,657.35

849,105.56

1,957,598.78

3,310,265.34

4,996,392.30

7,762,315.67

240,000.00

192,000.00

144,000.00

96,000.00

48,000.00

Taxable Income Provision for Income Tax Net (Loss) Income

609,105.56

1,765,598.78

3,166,265.34

4,900,392.30

7,714,315.67

-

529,679.63

949,879.60

1,470,117.69

2,314,294.70

609,105.56

1,235,919.14

2,216,385.74

3,430,274.61

5,400,020.97

124 average bulalo + steaks at (120 + 150/2) = 135 php + 499 average Barbeque Chicken at 99 623 135 x 124 potential customer =

16,740

99 x 499 potential customer = + 49, 401 Gross sales 66,141 Php 66,141 x 365 days = 24,141,465.00Php

2013

2014

2015

2016

Sales 24,141,465.00 28,969,758.00 34,763,709.60 43,454,637.00

2017 56,491,028.10

Straight Line Method YEAR 2013 2014

ANNUAL CASH

CUMULATIVE

910,999.74

910,999.74

997,496.45

1,908,496.20

2015

1,788,490.57

3,696,986.77

2016

2,774,227.53

6,471,214.30

2017

4,399,167.09

10,870,381.39

Paybac k period is betwee n year 2015

Payback Period = 3 years + ((6,094,284.22 - 3,696,986.77)/6,094,284.22) 3.39 years

Bibliography Mr. Orly Fabito, Manager of Mang Inasal Gaudalupe branch Internet sites

Ramos, J. L (2010) how to franchise mang inasal http: /www.helium.com/items/1372125 how to franchise mang inasal http://en.wikipedia.org/wiki/Mang_Inasal http://www.manginasal.com/index.php/about-us.html http://www.makaticity.com/about/ http://www.makati.gov.ph/portal/main/index.jsp?main=38&content=0&menu=0 http://www.bplans.com http:// wikimapia. org/1090259/Comembo http://www. Facebook.com/pages/comembo-ville/139731759402800?sk=info http://www.street directory.com/Philippines/metromanila http.//www.forbes.com http://en.academic.ru/dic.nsf/enwiki/9873733 http://en.wikipedia.org/wiki/Kfc http://en.wikipedia.org/wiki/Chowking Euromonitor, January 2012. http://www.scribd.com/doc/64568286/MANG-INASAL