It made an unusual pitch for investors when businessman Edgar “Injap” Sia II’s MerryMart Consumer Corp. launched its initial public offering a few months ago.
In addition to significant growth prospects in its bid to become a top supermarket chain, investors have been asked to consider what its founder has achieved. It was in a completely different sector: fast food.
“Mr. Sia intends to leverage the MM (MerryMart) business model on his previous success. It was with the franchising model, through his brainchild, fast food favorite Mang Inasal Philippines Inc.,” according to the company’s prospectus.
It pointed to learning from growing Mang Inasal, which had over 300 outlets—most of which were franchised—by the time it was sold to Tony Tan Caktiong’s Jollibee Foods Corp. a decade ago.
While MerryMart pursues this franchise concept as the core of its approach, it is refurbishing other technologies from fast food and putting them at the forefront and centre.
MerryMart Goes to Launch the First Drive-Thru
Sia’s MerryMart Consumer Corp. last Friday confirmed plans to launch the first drive-thru store in Iloilo City in January 2021.
The move will cater to shifting consumer preferences amid the deadly COVID-19 pandemic.
“The MerryMart team is also deciphering. And also, recalibrating its growth plans as we push into the ‘current standard’ that customers are adapting to,” Sia said.
MerryMart’s first drive-thru will rise along Diversion Lane, next to the St. Joseph School.
But by the end of 2030, it expects to reach 1,200 outlets, generating total sales of P120 billion.
According to the company, it costs P12 to 15 million to franchise a single store. By 2030, it expects around 80 percent of its store network will be franchisees.
It is an aggressive strategy that carries its own risks and rewards.
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