Edgar Sia

It started in 2003 when small town lad Edgar Sia II,

then a 26-year-old college dropout, grabbed a tiny
spot in the parking lot of a mall, the site of an
upcoming food hall. As a frequent customer of
McDonalds and KFC, Sia knew what hed been
missing in the fast-food scene: Filipino-style street
fare served in a restaurant-type setting.
Before long customers were lining up outside Mang
Inasal as word spread quickly through Iloilo City
about Sias new eatery. Its charcoal-grilled chicken
served with rice wrapped in a banana leaf wasnt
like anything on the menus of McDonalds , KFC or
even Jollibee, the local burger chain. The flavors
were distinctively Filipino, as was the earthy dcor
with wooden tables, handmade paper lamps and walls painted in orange, green and yellow.
We really wanted to create a new category in this business, one that wasnt influenced by American
food, says Sia, 34, whos often referred to by his nickname, Injap. Its a winning recipe; Mang
Inasals affordable concoctions aimed at Filipino taste buds has made it the countrys third-largest
fastfood chain after Jollibee and Chowking, both owned by fellow lister Tony Tan Caktiong, whose
expanding food empire has made him a billionaire.
Sias eight-year-old barbecue chain, with 380 outlets, has even overtaken McDonalds. And it has
lately put him on the road to riches. Last October Jollibee, in a nod to its upstart rival, scooped up
70% of Mang Inasal for $68 million, valuing the outfit at nearly $100 million. The deal earned Sia a
spot among the Philippines wealthiest for the first time this year. With a net worth of $85 million,
hes the youngest of the top 40.
Sia isnt done yet. He retains a 30% stake in Mang Inasal through Injap Investment, a family holding
company in which his brother Ferdinand and sister Rizza also own shares. He and Ferdinand, who
heads operations, continue to run the chain and have agreed to a three-year noncompete contract.
As for Sia, he admits that butting heads with giant competitors wasnt conducive to his chains longterm future. How long can an 8-year-old win against a 30-year-old? he argues, referring to the older
Jollibee. He insists that being part of a bigger fold will boost Mang Inasals fortunes: Jollibees
operational know-how and our entrepreneurial energy is an unbeatable combination. Mang Inasal,
he claims, is on track to reach a total of 425 branches this year and increase revenues by 40% to
$186 million. Revenues from Mang Inasals owned stores contribute 5% to Jollibees revenues of $1.2
billion, which Sia hopes to double by the end of this year.
Born to second-generation Chinese- Japanese-Filipino parents, Sia grew up in Roxas City in Capiz, a
small town 280 miles south of Manila. His parents ran a grocery store where Sia worked on weekends
as a cashier from the age of 10. He went to the University of St. Agustin in nearby Iloilo City to study
architecture but dropped out one year short of graduating. My mind was always somewhere else,
he admits.
His wandering mind got fixated on starting his own venture. In quick succession, he opened an
express photo shop and a Laundromat. He then took a bank loan to set up a small budget hotel. But
broader ambitions of going beyond his provincial roots got him thinking again. Along came the offer
to rent a corner in an upcoming food hall. The overhead at the time was low so it wasnt that risky,
he says.

Mang Inasal, which means Mr. Barbecue in the local Ilonggo dialect of the western Visayas region,
from where Sia hails, almost missed out on its name. When he tapped his father for the $65,000
capital he needed, the elder Sia agreed to the loan but shot down the name, saying it had too many
letters. Jollibee and Chowking, the countrys biggest chains, had eight letters, an auspicious number,

while Mang Inasal had ten. Stumped, Sia hung up but quickly called his father back; Banco de Oro,
the Philippines largest bank, also had ten characters and was doing well.
With the help of his wife, Shella, his high school sweetheart, Sia concocted Mang Inasals distinctive
marinade, borrowing from different recipes. Im no cook, but I understand Filipino taste buds, he
says. Seven months later Mang Inasal was breaking even and hed even repaid his father. From Iloilo
he expanded into his hometown of Roxas City, opening the second outlet.
As Mang Inasal grew in the provinces, to 26 outlets, he enlisted Ferdinand, who had graduated from
law school, to take charge of operations. Sia focused on expanding the chains reach, notably into
Manila, which he refers to as the make-or-break city.
Mang Inasals 2006 debut in Manila was awkwardly timed as it was in the midst of a rice shortage in
the country. Sias response was to offer a value meal of grilled chicken and unlimited rice for the
equivalent of $2. This had already become an instant hit in Iloilo and Manilas budget-conscious
crowd took to it, too. The all-you-can-eat campaign, which was supposed to last two months, became
a permanent item on the menu. Today, Sia says, its their most popular product. Manila alone has
over 100 Mang Inasal outlets; 200,000 customers are served daily nationwide.
Aiming to make his chain a national brand, Sia hit the road. He spent a year visiting over 70 cities in
all. Today if we want to expand somewhere, I can say Ive been there, he says. (Mang Inasal is
present in 68 cities.)
To ramp up quickly, Mang Inasal took the less capital-intensive franchising route. Sia offered
franchisees a sweeter deal than his competitors, agreeing to a lower fee and being flexible on letting
franchisees use outside contractors for the dcor and fittings. Consequently, it cost $190,000 on
average to set up an outlet, half the cost of a Jollibee outlet, he claims. Unlike many fast-food chains,
where about half of all outlets are company owned, Mang Inasal owns only 8% of theirs.
By 2009 Mang Inasal was on a rapid rollout, adding 100 outlets a year. Today the Sia siblings are
aiming higher, with an eye on grabbing the No. 2 spot currently occupied by Jollibee-owned
Chowking. They plan to grow the chain to 500 outlets by next year.
Sia, a father of two, says that the family has put some of their newly acquired fortune to good use.
The Sias are building a church in Roxas City and recently donated $500,000 to a new public college in
Iloilo. Its our gift to the cities that embraced Mang Inasal and gave us the confidence to take it
places.