top-rated free essay

Jollibee acquire mang inasal

By Bernadette-Acuña Dec 03, 2013 388 Words


Jollibee acquires Mang Inasal
The country’s biggest food retailer is acquiring majority control of a fast-growing barbeque fastfood chain in a continuing bid to beef up its business portfolio. Jollibee Foods Corporation (JFC) disclosed to the Philippine Stock Exchange that it is acquiring 70% of the shares of Mang Inasal for Php3 billion. This came as a surprise to many people, which stockbrokers, analysts, investors, and ordinary consumers.

Mang Inasal found success as a fastfood chain offering barbecue chicken. Started in 2003, the company now has 303 stores in the Philippines, all but 24 of which are franchised outlets. It has revenues of P2.6 billion and system-wide sales of P3.8 billion a year.

Jollibee said it would pay P200 million in downpayment to the owner of Mang Inasal Philippines, Injap Investments, led by Edgar Sia III. Around 90% of the balance will be paid upon closing of the agreement, with the remaining 10% to be paid three years onward after the deal is reached. The parent company will continue to hold 30% of Mang Inasal.

The news comes in the heels of a recent announcement from Jollibee that it will terminate its Delifrance franchise unitin 2011 and news that Mang Inasal will go public (Initial Public Offering) also next year. Jollibee Foods Corporation, as of July 31, 2010, has a total number of 1,582 store branches in the Philippines: Jollibee (702); Chowking (406); Greenwich (221); Red Ribbon (215); Delifrance (23); and Manong Pepe’s (15).

Reasons why Jollibee acquires / Bought Manq Inasal :

Jollibee considered Mang Inasal more of a threat than Mcdonald’s. This is mainly because Mang Inasal was one of the few restaurant chains that would put up a branch anywhere there was a Jollibee. If you think about it there’s definitely an overlap between the customers of Jollibee and Mang Inasal. These are the people who want value for their money and nothing beats Mang Inasal’s Unlimited Rice (especially for Filipinos).

In order to strengthen their market in the fast food industry, Jollibee started to veer their focus. Instead of focusing on how to satisfy their customers more and improving their products, they increased their profits abundantly by purchasing other food companies.

Merging and acquisitions seemed to have been an effective strategy for Jollibee not only because of its dominance but also because of numerous other reasons . Merging and acquisitions increases revenue through decreased manufacturing and human labor cost.

Cite This Document

Related Documents

  • MANG INASAL

    ...THE MAN BEHIND ‘MANG INASAL’ 2 Comments 26 NOVEMBER 2010 Jollibee Foods Corp. (JFC), the country’s largest fast food chain, has taken over control of Mang Inasal, a highly successful Visayas-based restaurant chain specializing in grilled chicken, in a deal worth P3 billion. In its disclosure to the Philippine Stock Exchange on Oct...

    Read More
  • Mang Inasal

    ...MANG INASAL PHILIPPINES INC. COMPANY PROFILE MANG INASAL - Philippine's fastest growing barbeque fast food chain, serving chicken, pork barbeque and other Filipino favorites, was first established on December12,2003 in Iloilo City. Currently, there are 445 branches nationwide and with over 10,000 employees system wide. MANG INASAL is doin...

    Read More
  • Mang Inasal

    ...BACKGROUND | Edgar "Injap" Sia II is the man behind Mang Inasal, one of the fastest growing food companies in the Philippines, which has become amodern icon of the Ilonggo culinary yculture. His parents gave him the nickname “INJAP” because “Sia” is originally from China while “Jaruda”, his mothers name, is originally from Japan. ...

    Read More
  • Mang Inasal

    ...Pre-Mang Inasal At age 10, Sia already helps out in the family business, stacking merchandise, taking inventories or manning the counter after school. It was with the family business that Sia developed the sixth sense for business. By age 20, he was already running multiple businesses which include a photo developing store (Injap Color Express)...

    Read More
  • Mang Inasal

    ...The Man Behind Mang Inasal Sia's first taste of running a business was when he was 20 years old. It was at the Four-Season Hotel, followed by Mister Labada, a Laundromat, then Injap Color Express, a photo developing shop. All these are based in Iloilo. Then he cooked up the idea of operating Mang Inasal, the specialty of which is grilled chic...

    Read More
  • Mang Inasal Research Paper

    ...MANG INASAL- “MR. BARBECUE” I. INTRODUCTION A. COMPANY PROFILE Edgar "Injap" Sia II is the man behind Mang Inasal, one of the fastest growing food companies in the Philippines, which has become a modern icon of the Ilonggo culinary culture. His parents gave his the nickname Injap because Sia is originally from China while Jaruda, his mot...

    Read More
  • Mang Inasal

    ...I. Executive summary Mang Inasal is a locally owned fast food restaurant in the Philippines that will be soon, positioned as an international franchise through our creative approach to the company's image and detail presentation. Mang Inasal will provide a combination of excellent food at value pricing, with fun packagi...

    Read More
  • Mang Inasal

    ...How can Mang Inasal sustain its success?  Your column on Mang Inasal?s success secret is still the continuing topic of our group?s conversations. We?re a foursome of Asian Institute of Management (AIM) Master in Entrepreneurship (ME) graduates and you taught our batch. There?s one question raised during our past two weekly gatherings that we...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.