Case Study Mang Inasal

2217 Words 9 Pages
Register to read the introduction… Suppliers’ threat of forward integration | Ten years ago, there was an estimated 50,000 restaurants in the country. The number of restaurants, bars, canteens, and other eating and drinking places has since grown to almost 92,000, based on the 2005 Annual Survey of Philippine Business and Industry. Fast food chains have been a large part of this growth not only in terms of the number of stores but also in the continuous development of variety and product offerings. One testament to the windows of opportunity and growth in the industry is the rise of Mang Inasal, the country's fastest growing barbecue fast food chain, which after only eight years, is already 390 stores strong as of July 2011. Despite the presence of industry giants and having been established first in the Visayas, Mang Inasal has shown that there is enough room for new players given the right product at the right price. (Senen Reyes, Senior Management Specialist UA&P) …show more content…
No. of buyers relative to sellers | Growth of population and changes in consumer behavior has facilitated the prosperity of fast food industry. In addition, influxes of population and changes in lifestyles – such as preferences for leisure, convenience, and food-away-from-home, women’s changing role in the society, and the urbanization of families – all contribute to the growth of fast food industry. Fast food industry builds upon two basic individual demands. From its model of franchise and product concepts, fast food industry will continue to grow. Being exposed to media advertisement, consumers’ dining habits have been changed. Furthermore, given the reasonable and affordable product prices, the increasing number of white-collar workers – particularly white-collar women, whether single or married, young or old – has boosted the demand for food service. Therefore, fast food industry can be said to develop upon the structural changes in working class and families. Statistics indicates that there are currently thirty-two thousand fast food restaurants in Metro Manila. However, the survey of consumer tendency in Metro Manila shows that profits of fast food franchises depend on product consumption frequencies. (Liu, Chu-Mei, Department of International Trade, Tamkang University, Taiwan) …show more content…
Industry growth rate | According to Euromonitor International, the fast food industry sustained its momentum and outperformed all other categories within the consumer food service industry in the Philippines in 2013. Fast food saw current value sales rise by 10% to reach Php 135 billion in 2013. Filipinos are increasing into fast food, as the rapid expansion of fast food restaurants in Metro Manila can prove that. As stated by Tim Roache of the DPI Agribusiness Group, Filipinos spend approximately 12% of total income eating out and the sector is valued at 3 billion USD, with a growth of 10-15% in the last decade. The modern food service market, driven by convenience and price, is increasing its presence with speed.

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