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Review of the Mang Inasal Franchise Opp and Startup Costs

Are you looking for an investment opportunity in the Philippines? One of the fastest growing markets in the world today is this island nation and now is the time to get involved if you’re looking for a little diversity in your portfolio. Although the food industry can be difficult to enter because of its lower margins and high inventory demands, there are also many great success stories that can be found! One of those success stories is the Mang Inasal franchise.

Imagine being able to provide traditional charcoal grilling methods that create intense aromas around your location, bringing people in to experience chicken and pork dishes that include other local favorites like merienda. Add in some herbs and spices to the rice wraps that are enjoyed daily and you’ll have a recipe that could provide you with great success!

What Are the Initial Start-up Costs?

The journey of your investment into Mang Inasal begins with your franchise fee of 1.2 million pesos. The exchange rate dictates how much that would be for current currencies as a foreign investor, but at the time of this writing the amount equates to about $27,000 per franchise. In return for this initial fee, you’ll receive the ability to use the trade name and you’ll receive assistance in the areas of employee training and marketing support.

You’ll also have a 5% royalty that is required from the gross sales that each location generates. On top of this royalty is a 2% fee which will cover advertising costs. One of the unique aspects of this franchise opportunity is that the products for your business are directly provided to you and requires a security deposit of about $9,000 depending on the current exchange rate for their use. Damage above the security deposit during operations is paid directly out of pocket according to the franchising terms.

In total, the typical investment required to get a Mang Inasal franchise location opened is about $150k to $250k, or 7 to 9 million pesos. There are minimum size locations that are required for this business, but the space is very minimal at just 200 square meters or so, depending on what your specific community needs happen to be. You’ll receive a 7 year initial term for the franchise, which is renewable at the end of the agreement.

There are no absolute minimums required when considering what net worth or liquidity you may have. The application process is essentially a 1-on-1 interview and a greater emphasis is placed on business management and growth experiences over extensive financial stability. You’ll need to pass a credit check and potentially qualify as an investor, but these requirements are much smaller than comparative investments either foreign or domestic that you could make.

In a recent survey of franchisees, each business was pulling in PHP150,000 per month of profitability, or about $3,000 at the time of this writing. Although those margins are smaller than other opportunities that may exist, an investment here does open up new markets and can diversify a portfolio and that fact alone can make it a worthy investment.

What Kind of Support Do You Receive For Your Investment

The support you receive begins with the training needed to grill the food you’ll be serving in the Mang Inasal way. This franchise is the first to offer quick serve options for authentically grilled food, so the process of wrapping the items, getting the visually attractive grill marks, and getting slow-cooked flavors into quickly made items is a very important part of the initial investment process.

You’ll also get to take advantage of one of the most successful business models that exists in the Philippines today. The growth of this brand has exploded because of their commitment to authentic cuisine at fair, affordable prices. You’ll get 1-on-1 support from the home organization to establish your new business, find good locations with a major city, and become established within the local community. It will require your presence through a least a portion of the process if you are planning on a foreign investment and you may also need to apply for specific permits based on your unique circumstances before the franchising process can be completed.

A higher priority is given to franchisees who already have a location that is either leases or owned. Even though this investment opportunity has only been around for about a decade, many of the franchisees in this organization are receiving a return on their investment in less than 5 year’s time. That’s why it is such an enticing opportunity!

What Is the Primary Focus of This Business Opportunity?

Believe it or not, the greatest emphasis is placed on the evidence of humility that is seen in the investor. The current majority stakeholder, it is said, would often mop the floors of his restaurants in order to be hands-on and show that no one in the organization is above even the most menial of tasks. This emphasis is placed on all aspects of the business, including investor-employee interactions. It is said that current ownerships requests not to even be acknowledged when they enter a franchise and this request is filtered through the entire chain-of-command.

In addition, the success of this business is reliant on the customer and so the greatest emphasis of this brand is in providing the best service possible every single day. Whether that means adjusting seating patterns to accommodate customers better of finding a way to expand the business, Mang Inasal will help each franchisee find a way to make their guest experiences be the best they’ve ever had in a quick service environment.

Are you looking for a unique investment opportunity in the Philippines? If so, then Mang Inasal could be the right decision to make. Although profitability may be smaller than in other investment opportunities, the initial requirements are lower as well and this can help more franchisees get involved. Start the process today and find out for yourself if this is the right investment to make!

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