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 abot-

kaya" 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 five-

star 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 JUNIOR
MANAG ADMINISTRATION MANAG
ER ASSISTANT ER

STORE SECURIT
CREW Y
GUARD

DINNING COUNTER
CREW
UTILITY CREW
GRILL CREW
DISPATCH
CREW/QUALIT
BOARD KITCHEN
OF DIRECTORS Y CONTROL
CREW
 President

Simplina, Mary
ViceAnn R.
President

Board of
Directors

Icaro, Leonardo
E.
Magsino, Maxima
A.

Organizational Structure
 NO. OF
STAFF FUNCTION
EMPLOYEE
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
Area Manger 1
environment, maintaining and
increasing standards of
customer service and other
areas across the shops,
driving team performance and
controlling training and
development of staff.

Responsible for ensuring the

products and services satisfy
Store Manager 1
the needs and desires of the
customer.

Responsible for planning and

directing the work of a group
1
Manager of individuals, monitoring their
work and taking corrective
action when necessary.

Responsible of paper works

Administration
like permits and payrolls or the 1
Assistant
branch.

Assist their customers’ orders

Counter Crew 3
and handle payment
 Gives order to the customer,
Dinning Crew collect and taking back dirty 5
dishes to the kitchen.

Responsible in the grill station

Grill Crew 3
to grill cook work.

Verifies that the food met the

Dispatch/ Quality
requirements for quality and 3
Control
quantity.

Responsible for preparing

Kitchen Crew 4
foods to the customer

Responsible for cleaning the

floor by sweeping, mapping,
Utility Crew vacuuming or scrubbing and 2
always make sure that the
restrooms are clean.

VIII. FINANCIAL PLAN

GLIMS CORPORATION
Income Statement
PROJECTED YEAR
 2013 2014 2015 2016 2017
Sales 24,141,465.00 28,969,758.00 34,763,709.60 43,454,637.00 56,491,028.10

Food
10,889,434.82 13,067,321.78 15,680,786.14 19,600,982.68 25,481,277.48
Purchases
Restauran
732,931.49 879,517.79 1,055,421.35 1,319,276.68 1,715,059.69
t Supplies
Store
135,776.89 162,932.27 195,518.72 244,398.40 317,717.92
Supplies
Cost of
Goods 11,758,143.20 14,109,771.84 16,931,726.21 21,164,657.76 27,514,055.09
Sold
Gross
12,383,321.80 14,859,986.16 17,831,983.39 22,289,979.24 28,976,973.01
Profit

Operating Expenses:
Rent 2,643,966.00 2,643,966.00 2,643,966.00 2,829,043.62 3,027,076.67
Depreciation 550,517.60 550,517.60 550,517.60 550,517.60 550,517.60
Amortization 157,142.86 157,142.86 157,142.86 157,142.86 157,142.86
Light and
1,811,472.00 1,992,619.20 2,191,881.12 2,630,257.34 3,156,308.81
Water
Salaries and
4,951,500.00 5,941,800.00 7,130,160.00 8,912,700.00 11,586,510.00
Wages
Employees
412,625.00 495,150.00 594,180.00 742,725.00 965,542.50
Benefits
Transportatio
9,117.75 9,573.64 10,052.32 11,057.55 12,163.31
n
Office
68,178.00 71,586.90 75,166.25 82,682.87 90,951.16
Supplies
SSS,
Philhealth &
409,356.00 429,823.80 451,314.99 496,446.49 546,091.14
Pag-ibig
Contributions
Communicati
41,510.00 43,585.50 45,764.78 50,341.25 55,375.38
on
Repairs and
220,207.04 264,248.45 317,098.14 396,372.67 515,284.48
maintenance
Taxes and
181,060.99 217,273.19 260,727.82 325,909.78 423,682.71
licenses
Insurance 24,394.00 29,272.80 35,127.36 43,909.20 57,081.96
Miscellaneous 53,169.00 55,827.45 58,618.82 64,480.70 70,928.78
Total
12,902,387.3 14,521,718.0 17,293,586.9
Operating 11,534,216.24 21,214,657.35
8 5 4
Expenses

Operating
849,105.56 1,957,598.78 3,310,265.34 4,996,392.30 7,762,315.67
(Loss) Income
Interest
240,000.00 192,000.00 144,000.00 96,000.00 48,000.00
Expense
Taxable
609,105.56 1,765,598.78 3,166,265.34 4,900,392.30 7,714,315.67
Income
Provision for - 529,679.63 949,879.60 1,470,117.69 2,314,294.70
Income Tax

Net (Loss) 609,105.56 1,235,919.14 2,216,385.74 3,430,274.61 5,400,020.97

Income

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 2017

Sales 24,141,465.00 28,969,758.00 34,763,709.60 43,454,637.00 56,491,028.10

 Straight Line Method

YEAR ANNUAL CASH CUMULATIVE

2013 910,999.74 910,999.74

2014 1,908,496.20 Paybac

997,496.45
k period
2015
is
1,788,490.57 3,696,986.77
betwee
2016
n year
2,774,227.53 6,471,214.30
2015
2017 4,399,167.09 10,870,381.39

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