Why Jollibee Bought Mang Inasal? (6 Reasons)
Jollibe,fast food empire,bought Mang inasal in 2016 after acquiring 100% of its share.Apart from Mcdonald, KFC and others,Mang Inasal was the direct competitor of Jollibee.This was the potential business threat for Jollibee.
In order to solve the mystery, Tony Tan Caktiong decided to buy mang inasal.JFC,Jollibee Foods Corp, has now more stores and store networks across the Philippines than that of other brands. Let’s discover the top reasons.
Why Jollibee bought Mang Inasal?
There are multiple reasons which forced it to acquire mang inasal from MIPI,Mang Inasal Philippines inc.
Mang Inasal As a Potential Competitor
Mang inasal was started in 2003 by famous Filipino businessman Edgar Sia III. It became popular in the field of Fast Food, especially barbeque chicken.
Soon, it started offering grilled chicken along with unlimited rice. Moreover, plain rice was wrapped in banana leaves. This creativity was never seen before in the history of fast food. This attracted potential customers of Jollibee which was offering fried chicken to customers.
Resultantly, Jollibee perceives more threat from mang inasal unlike fast food giants like Mcdonald and KFC. This factor of competition led to the acquisition and merging of Mang inasal with Jollibee. This is why Jollibee bought mang inasal.
Growth of Mang Inasal
The progress, growth, and success of Mang inasal inspired people in the business world, including investors, stockbrokers, and business analysts. At the time of the merging of Mang Inasal, there were more than 330 stores of Mang inasal.
This factor was a challenge for Jollibee.Domestically speaking, Mang Inasal, the only fast food chain, had more footholds than that of Jollibee. This was the perfect reason why Jollibee Bought Mang Inasal.
Dominating Fast Food Industry
The JFC group of companies has a history of buying and selling especially fast food businesses. It owns and operates Jollibee, Chowking, Greenwich, Red Ribbon, and Burger King. This gave new life to the JFC group of companies. Thus, more money and sales for the brand.
This strategy was again replicated by the Jollibee while acquiring the mang inasal. This is how it maintains its existence in the food market while keeping a close eye on McDonald’s and KFC.
Profit
Profit, sales, and revenues are the core reasons for acquisitions and merging the businesses. This strategy is valid till now. Soon after the deal of mang inasal and Jollibee, the sales of Jollibee skyrocketed to 10%. This gives the answer to Why Jollibee Bought Mang Inasal.
Overlapping Products and customers
Mang inasal and Jollibee were competing in the fast food industry. Jollibee was attracting customers by offering fried chicken recipes and products. However, Mang Inasal was adept in charcoal-grilled chicken. This traditional touch was appealing to customers.
Potential buyers had more love and appreciation for Mang inasal rather than Jollibee. Thus, Jollibee was bearing the brunt of depleting business. This factor opened the window of opportunity to buy mang inasal.
If You can’t beat it, join them
It was an established fact that Jollibee could never beat off the mang inasal in the fast food industry. The progress, success, and growth of mang inasal were the potential signals of outranking brands.
Jollibee’s group of companies sensed this fact. Thus, it led to the merger of the mang inasal with Jollibee. This was why Jollibee bought Mang Inasal.
History Of Agreement Between Injap Investments Inc & Jollibee
In October 2010, a historic deal was concluded between Jollibee and Mang inasal Philippines Inc. Following this deal, 70% of the share was purchased by Jollibee Food Corporation. That deal was sealed for 3 pesos million($68.8 million).
After this successful venture, Jollibee decided to merge the remaining 30% of Mang inasal shares. As a result, in April 2016, the remaining stores and shares were acquired. That deal was sealed for P2 billion.
Jollibee revealed to the Philippines Stock Exchange that it is fully committed to beefing up the mang inasal stockholders and investors. It also promised to increase the network of mang inasal by establishing branches across the world.
Moreover, Jollibee established that it had more customer knowledge than anyone had. Anyhow, That venture of Mang inasal proved to be Surprising.
Additionally, Jollibee decided not to change Mang inasal business code conduct, and culture. Only the board of directors of Mang Inasal would be replaced by a Jollibee representative.
Following that deal, Mang inasal founder Edgar Sia III became the youngest billionaire. It is worth remembering that Edgar Sia and his family will play an active role. As Ferdinand Sia is the COO of the Mang inasal.
Why Did Edgar Sia Sell Mang Inasal
It is hard to conclude why Edgar Sia was sold Mang inasal. One should know that Mang inasal had more branches, stores, affordable prices, and raw materials than any other. This thing still creates mysteries and challenges for entrepreneurs and young business enthusiasts.
Here are the potential reasons that may be forced to sell mang inasal to Jollibee.
Focus on Other Ventures
Unique business ideas, creativity, and productivity are the top-notch characteristics of Edgar Sia III. Focusing on other business ventures like Double Dragon Properties and MeryMart Consumer Corporation. Under the head of Double Dragon Properties, Edgar Sia has been building residential and commercial properties while MeryMart consumer corporation business is related to the grocery. This business was started by Edgar’s grandfather in the 1950s.
So, focusing on the other businesses might be the contributive factor that led to the selling of Mang Inasal.
Risk Mitigation
It could be concluded that Edgar wanted to quell competitors of mang inasal. He might be more conscious and worried about the Mang inasal future and the future of its employees. Edgar Sia might feel secure after joining hands with the Jollibee fast food empire.
Financial Opportunities
Edgar became the youngest billionaire after selling the mang inasal to jollibee. It is the dream of every entrepreneur to see himself as financially free. This was done by Edgar Sia. Jollibee paid him what he had valued to the mang inasal.
Growth and Expansion
Worldwide growth of mang inasal may be another potential factor in selling mang inasal. There are more than 15000 employees, 1500 branches worldwide and others. Edgar Sia wanted to expand his business venture across the globe.
Now Mang inasal is establishing its foothold in the Middle East, USA, Vietnam, Malaysia, Canada, Korea, Saudi Arabia, and many more.
History Of Jollibee Food
The history of the Jollibee food corporation is very humble. This company was started in 1975 by Doctor Tony Tan Caktiong in Manila Philippines. This was the family business venture as it was participated by Tony Caktiong’s wife Grace, his family and in-laws.
At the start, Tony started an ice cream parlor. Soon He realized the importance and significance of fast food,hot food, and others. Thus, he decided to close the ice cream parlor and went to unmask the potential of fast food.
This venture and strategy worked. In a short period of time, the Jollibee brand became famous in the fast food industry.
The main goal of Jollibee Food Corporation is to expand business worldwide, preserve the taste, satisfy the consumers, and profit. This vision became true. Now the Jollibee brand has been active in more than 33 countries with 6800 business outlets and stores.
Current Status of Jollibee Brand
| Founded | 1975 |
| CEO/ Founder | Dr. Tony Tan Caktiong |
| Headquarter | Jollibee Plaza Building Manila |
| Total Stores | 6800 |
| Markets | South East Asia, Europe, Middle East, East Asia, Hong Kong, North America |
| Total Employees | 36,314 |
| Customer Service | 28987777 |
What Are Businesses Owned By Jollibee Food Corporation
Jollibee
Jollibee was the first business venture which was started as an ice cream parlor in 1978.
As per the latest reports, 1482 food stores are operating across the globe. 1185 stores are in the Philippines while 297 stores are operating in different parts of the world. These stores are in the USA, Canada, Vietnam, Saudi Arabia, UAE, Qatar and Kuwait.
Chowking
Chowking was founded in 1985 and acquired by Jollibee Food Corporation in 2000. The targeted audience of chowking is Chinese food lovers. It offers the best halo halo dish.There are 617 stores operating across the globe.
However, the Philippines 569 stores are working in the Philippines. There are 1200 employees working day and night to serve the people.
Greenwich
Greenwich brand was started in 1971. It was completely acquired by Jollibee in 2006. There are 272 different business outlets working in the world.
Red Ribbon
Jollibee took control of Red Ribbon in 2005. Since 1979, this business has been serving the masses. This brand is famous for pastries and cakes. More than 526 bakery shops are working.
Mang Inasal
Mang Inasal is famous for its chicken inasal secret recipe. Edgar Sia III was the founder of Mang Inasal. Jollibee took control of Mang inasal in 2016. 591 branches are operating across the world. Additionally, 15000 employees are working under Mang Inasal.
Highland Coffee
Highland Coffee was started by David Thai in 1998. This brand is providing products and services related to coffee. There are 488 branches in Vietnam and the Philippines.
FAQ’s
When Jollibee purchase Mang Inasal?
70% of shares were purchased in 2010 while the remaining 30% of shares were sold to Jollibee in April 2016.
What improvement was Brought By Jollibee after Buying Mang Inasal?
Jollibee revealed that it would protect the values, code, and conduct of mang inasal by expanding its network. Besides, Jollibee expanded the menu of mang inasal. Rice and sandwiches are added to the menu of mang inasal. Thus, appealing to the customer’s taste.
For How Much money, Jollibee purchased Mang Inasal?
70% of mang inasal shares were purchased for P3 billion($68.8 million) while 30% of shares were purchased for P2 billion.
Conclusion
In conclusion, Jollibee’s acquisition of Mang Inasal has proven to be a strategic move that benefits both brands. By ensuring the protection of investments for shareholders, investors, and franchisees, Jollibee has fostered a sense of security within the Mang Inasal community. The expansion into international markets, including the Middle East, North America, and Hong Kong, underscores the growing popularity of Mang Inasal’s offerings. This synergy enhances market dominance and strengthens Jollibee’s portfolio. Furthermore, the focus on maintaining Mang Inasal’s unique identity while leveraging Jollibee’s resources has positioned the brand for continued success.