Balubal, Frances Lynne L.

BSIHM 4Y1-1

MANG INASAL PESTLE ANALYSIS

Mang Inasal is a Filipino fast-food chain, and while it's primarily a business enterprise, it
can be affected by various political factors that influence the business environment in the
Philippines. Some potential political factors include:

POLITICAL FACTORS

 Government regulations: Changes in regulations related to food safety, labor laws, or

taxes can impact Mang Inasal's operations and costs.
 Political stability: Political instability or changes in government can affect consumer
confidence and the overall business climate.
 Trade policies: International trade agreements and tariffs can affect the cost and
availability of certain ingredients or supplies used by Mang Inasal.
 Local government policies: Local zoning laws and licensing regulations can impact the
establishment and expansion of Mang Inasal outlets.
 Health and safety regulations: Changes in health and safety standards can impact the food
preparation and serving practices of the restaurant.

ECONOMICAL FACTORS

Economic factors play a significant role in the performance and operations of a restaurant
chain like Mang Inasal. Some of the economic factors that can impact Mang Inasal include:

 Inflation: Inflation can increase the cost of ingredients, labor, and operational expenses,
potentially leading to higher menu prices.
 Exchange rates: If Mang Inasal imports ingredients or equipment, fluctuations in
exchange rates can impact costs and profitability.
 Consumer income: The economic well-being of consumers can affect their dining out
habits. During economic downturns, people may reduce their restaurant spending.
 Competition: Economic conditions can influence the level of competition in the fast-food
industry, affecting market share and pricing strategies.
  5. Cost of supplies: The price and availability of essential supplies, like chicken or rice,
can be influenced by economic factors, especially in a fast-food business centered around
specific ingredients.

Mang Inasal, like any business, needs to monitor and adapt to these economic factors to
remain competitive and profitable in a dynamic economic environment.

SOCIAL FACTORS

Social factors also play a crucial role in the success and operations of Mang Inasal, as they affect
consumer behavior and preferences. Some social factors that can impact Mang Inasal include:

 Cultural preferences: Mang Inasal's menu and dining experience should align with
Filipino cultural tastes and traditions to attract and retain customers.
 Demographics: Understanding the age, gender, income levels, and family structures of
the target customer base is essential for tailoring marketing and menu offerings.
 Lifestyle changes: Evolving consumer lifestyles, such as a growing preference for
convenience or healthier eating, can influence menu choices and service options.
 Dietary trends: Awareness of dietary trends and food preferences, like vegetarian or
vegan options, is important to meet changing customer demands.
 Health and wellness trends: Consumer concerns about health, including issues like
obesity and diabetes, can affect the popularity of certain menu items and the demand for
nutritional information.

Understanding and adapting to these social factors is critical for Mang Inasal to stay in
tune with customer preferences and maintain its market relevance.

TECHNOLOGICAL FACTORS

Technological factors are increasingly influential in the restaurant industry, including

chains like Mang Inasal. Some technological factors that can impact Mang Inasal include:

 Point-of-Sale (POS) systems: The use of modern POS systems for order processing and
payment, as well as integrating them with online ordering platforms and delivery
services, can enhance operational efficiency.
 Online ordering and delivery apps: Embracing technology for online orders and food
delivery can expand Mang Inasal's customer reach and provide convenience to
consumers.
 Mobile apps and loyalty programs: Developing a mobile app with loyalty features can
help build a loyal customer base and provide a personalized experience.
  Digital marketing: Leveraging digital advertising, social media, and online promotions
can help Mang Inasal reach a broader audience and engage with customers.
 Automation and robotics: The use of automation in food preparation, such as grilling
machines or automated order fulfillment, can improve efficiency and consistency.

Mang Inasal can benefit from embracing these technological advancements to enhance its
operational efficiency, customer experience, and overall competitiveness in the fast-food
industry.

LEGAL FACTORS

Legal factors are crucial for Mang Inasal to ensure compliance with laws and regulations
that govern the restaurant industry in the Philippines. Some legal factors that can impact Mang
Inasal include:

 Food safety regulations: Compliance with food safety and sanitation standards is essential
to ensure the quality and safety of food served to customers.
 Labor laws: Adherence to labor laws, including minimum wage, working hours, and
employee benefits, is necessary to maintain a legally compliant workforce.
 Business permits and licenses: Mang Inasal must obtain and renew the necessary permits
and licenses to operate its restaurants legally.
 Intellectual property protection: Protecting trademarks, logos, and proprietary recipes
through legal means can safeguard Mang Inasal's brand and recipes.
 Franchise agreements: If Mang Inasal operates through a franchise model, legal
agreements with franchisees must be well-structured to protect the brand and business
interests.

Mang Inasal needs to stay informed about and compliant with these legal factors to avoid
legal issues, maintain a good reputation, and operate within the boundaries of the law.

ENVIRONMENTAL FACTORS

Environmental factors are important for businesses like Mang Inasal, as they impact
sustainability, resource usage, and consumer perceptions. Some environmental factors that can
affect Mang Inasal include:

 Sustainable sourcing: The procurement of sustainable ingredients, such as responsibly

sourced meats, can reduce the environmental footprint of the restaurant.
  Waste management: Efficient waste reduction and recycling programs can minimize the
environmental impact of food and packaging waste.
 Energy efficiency: Using energy-efficient appliances and practices can lower energy
consumption and reduce greenhouse gas emissions.
 Water conservation: Implementing water-saving technologies and practices can reduce
water consumption in the restaurant's operations.
 Eco-friendly packaging: The use of biodegradable or recyclable packaging materials can
contribute to reducing the environmental impact of disposable items.

Addressing these environmental factors can not only reduce the restaurant's impact on the
environment but also appeal to environmentally conscious consumers and meet regulatory
requirements related to sustainability.
PROPOSED PESTLE ANALYSIS

POLITICAL FACTORS

 Labor policies: Labor laws, such as minimum wage and employee benefits, can
influence Mang Inasal's labor costs and workforce management.
 Political events: Major political events, such as elections or protests, can influence
consumer behavior and economic stability, which can, in turn, affect the restaurant's
performance.
 Tax policies: Changes in tax rates or policies, such as sales tax or value-added tax
(VAT), can impact the cost structure and pricing strategies of Mang Inasal.
 Trade agreements: International trade agreements and trade relationships with other
countries can affect the availability and cost of imported ingredients and supplies.
 Political stability at a local level: Regional or local political instability can disrupt
business operations and supply chains, affecting Mang Inasal outlets in those areas.

ECONOMICAL FACTORS

 Interest rates: Changes in interest rates can impact borrowing costs, affecting expansion
and investment plans for Mang Inasal.
 Unemployment rates: Higher unemployment rates can lead to a decrease in consumer
spending, potentially affecting restaurant sales.
 GDP growth: The overall economic growth of the Philippines can influence consumer
sentiment and their willingness to dine out.
 Real estate costs: Economic conditions can impact the cost of renting or purchasing
restaurant locations.
 Income distribution: Economic inequality can affect the customer base and spending
patterns of Mang Inasal's target market.

SOCIAL FACTORS

 Social media and technology: Social media trends and technology influence how
customers discover and interact with restaurant brands, making an online presence and
digital marketing essential.
 Food culture: The Philippines' rich food culture and regional variations can influence
menu choices and marketing strategies.
  Environmental concerns: Increasing awareness of environmental issues may lead to
consumer demand for sustainable and eco-friendly practices in the restaurant industry.
 Eating habits: Social factors like the frequency of eating out, the preference for dining in
groups, or solo dining can impact Mang Inasal's service and seating arrangements.
 Food safety and hygiene: Customers' expectations for food safety and hygiene standards
are influenced by social factors and public health awareness.

TECHNOLOGY FACTORS

 Data analytics: Utilizing data analytics to understand customer preferences and market
trends can guide menu development and marketing strategies.
 Supply chain management software: Advanced software for supply chain and inventory
management can help ensure the availability of ingredients and reduce waste.
 Environmental sustainability: Embracing technology for sustainable practices, such as
energy-efficient appliances and waste reduction, can align with modern environmental
concerns.
 Food safety technology: Using technology for food safety monitoring and compliance
with food safety regulations is essential in the restaurant industry.
 Customer feedback platforms: Online feedback and review platforms can provide insights
into customer satisfaction and areas for improvement.

LEGAL FACTORS

 Contracts with suppliers: Legal contracts with suppliers ensure reliable and consistent
sources of ingredients and materials.
 Consumer protection laws: Compliance with consumer protection regulations, such as
accurate menu labeling and fair pricing, is essential to maintain customer trust.
 Health and safety regulations: Legal compliance with health and safety regulations is
necessary to protect employees and customers.
 Environmental regulations: Meeting environmental standards, including waste disposal
and energy consumption, is increasingly important in the restaurant industry.
 Advertising regulations: Legal requirements for advertising and marketing campaigns,
including truthful advertising and promotional practices, must be adhered to.
ENVIRONMENTAL FACTORS

 Eco-conscious building design: If constructing new outlets, adopting green building

practices can reduce energy consumption and waste.
 Sustainable practices in food preparation: Minimizing food waste through portion control
and efficient kitchen practices can lower environmental impact.
 Renewable energy sources: Exploring the use of renewable energy, such as solar panels,
can reduce the carbon footprint of the restaurant.
 Environmental certifications: Obtaining and promoting environmental certifications, such
as LEED or Green Restaurant Association certifications, can enhance the restaurant's
sustainability image.
 Consumer demand for eco-friendly options: Growing consumer awareness and demand
for environmentally responsible practices can influence Mang Inasal's menu and
operational decisions.