Business Insight Malaya — The country is importing 8 million kilos of chicken during the holiday season to augment supply and prevent prices from escalating.
If one looks around, restaurants specializing in chicken dishes – not even counting the franchise chicken and burger/chicken fast-food chains – are abuzz with activity. And yet, pork-loving as Filipinos are, per capita consumption is lower compared to, say, Hong Kong, whose residents eat four times as much as Filipinos do.
The likes of Max’s Restaurant and Mang Inasal, which do not rely on imports for their supply, are keeping the local poultry industry happy.
Gregorio San Diego Jr., chair of the United Broilers and Raisers Association, said chicken restaurants – which together with hotels and other institutional customers account for 10 to 15 percent of annual poultry production of more than 500 million chickens – are helping the poultry business not only as customers but also in raising awareness of chicken as a healthier and cheaper meat alternative.
Chicken is also easy to prepare and versatile.
In recent years, chicken consumption in the Philippines has increased as incomes improve. The biggest consumers are based in Mega Manila but the national average per capita consumption is about 8.25 kilos, against Hong Kong’s 36 kilos.
Per capita consumption of pork, for comparison, is 14 kilos.
Max’s Restaurant, the leader in the fried chicken market, buys its chicken from major consolidators and growers which have passed through its accreditation process.
Having been around the past 60 years, Max’s has seen consumer patterns evolve, from home-cooked food to take-out or dine-out.
"Filipinos love fried chicken. That is why we believe there is a growing demand. People’s lifestyles have changed and eating out is already part of their routine. With so many players in the market it is imperative that you not only provide convenience but good food as well," said Max’s officer-in-charge for marketing Rey Marc H. San Juan.
San Juan sees a huge potential for the chicken restaurant industry as population grows and incomes improve.
"With the growth (in the number) of overseas Filipino workers, many families now have more disposable incomes. Aside from this, as many families now have double income earners and given the fast pace of life, there is a demand to eat out. However, this does not mean that they are sacrificing the quality of food. That is why quality of food is always a priority in our industry," San Juan said.
Over the years, Max’s has been adding on to the menu dishes that complement its fried chicken.
Max’s Combo Meals are served with a quarter of Max’s fried chicken, rice, drink and combined with other Max’s favorites like pancit canton, chopsuey and lumpiang ubod.
San Juan said Max’s meals are competitive and provide value for money.
"This is the reason why we always update and ensure our service standards and food consistency. Customer satisfaction is top priority and we ensure that not only will the customer enjoy the food but the total dining experience when he enters a Max’s Restaurant," San Juan said.
At Max’s, a meal of one-piece chicken with rice and a side dish choice of ubod, luglog and canton plus drink is priced as low as P99.
Today Max’s has 114 branches in the Philippines and six in the United States. It has more than 3,000 employees nationwide.
Competition has been very strong in the chicken restaurant business but players, strong ones at least, manage to hold their own.
Take for instance Mang Inasal, one of the more aggressive entrants in the market. It recently mounted an advertising campaign through huge billboards to increase brand awareness.
Mang Inasal has a fast-food concept with barbecue or "inasal" – claimed to be healthier than fried -- as its main product. But compared to fast-food, Mang Inasal’s products are 20 percent cheaper.
To pump up competition, it serves unlimited rice.
Like Max’s, Mang Inasal also relies on local suppliers.
Mang Inasal plans to grow 100 stores per year and have a total of 500 stores by 2012. As of November 18, Mang Inasal had 183 branches nationwide and is gearing for 200 stores by yearend.
To date, Mang Inasal system-wide employs over 4,800 people.
Mang Inasal opened its very first outlet at Robinson’s Carpark in Iloilo City in December 2003.
A Mang Inasal branch costs around P6 to P7 million to put up.
Source:
Business Insight Malaya. "Chicken restaurants keeping poultry growers happy," http://www.malaya.com.ph/12172009/busi1.html; 17 Dec. 2009.
