Gweilo posts 25% profit hike

MANILA, Philippines - Gweilo Corp. reported a 25-percent increase in profit in 2012, propelled by the stable operations of its Gweilos and Mario’s Kitchen franchises. It is priming up for expansion and currently works with Francorp Philippines, the country’s leading franchise developer, to open up Mario’s Kitchen for franchising during the Franchise Asia Philippines 2013, Asia’s biggest franchise show, in July.

Established in 2001 by Raul, Ruby and Mario de Castro as a bar and restaurant operator, Gweilo Corp. runs the Gweilos bar and Mario’s Kitchen restaurant chains in Metro Manila.  Gweilos has become one of the more popular after-work watering holes in Makati since it opened in Palanca Street in 2001. 

In 2004, together with another De Castro sibling, Caress, and some friends, Gweilo Corp. opened Gweilos in Eastwood City, Libis in 2004.  Another branch was opened in SM Mall of Asia in 2007.

Also in 2007, Gweilo Corp. acquired the Mario’s Kitchen franchise from the Benitez family.  Mario’s Kitchen is an offshoot of the popular Mario’s restaurant chain famed for its traditional Spanish cuisine. After its acquisition, Mario’s Kitchen underwent some restructuring that resulted to the closure of all its branches.  In 2010, Gweilo Corp. reopened Mario’s Kitchen together with the then newly-renovated Gweilos in Makati. With the help of culinary experts, Gweilo Corp. has enhanced and developed Mario’s Kitchen’s menu offerings, which is now a fusion of Spanish-Filipino cuisine.

Mario’s Kitchen started picking up by 2011, and together with the Gweilos franchise, earned Gweilo Corp. P5M worth of profit by the end of the year.  During this year, Gweilo Corp. was also able to sell one franchise of Gweilos Bar and Restaurant slated to be in operation by end of 2013.  These developments prompted the company to apply for an increase of capitalization of P 100M from the Securities and Exchange Commission (SEC), which was later approved.

Gweilo Corp. continued to attract investors to Mario’s Kitchen in 2012 and successfully sold two more franchises. With franchising becoming more and more preferred by entrepreneurs in the Philippines, Gweilo Corp. sought to change its main purpose from just operating bars and restaurants to include franchising as approved by the SEC in November 2012.

“As the Philippine economy continues to be on the upswing, business is also doing better.  We have continuously grown over the past couple of years, which demonstrates that we have a strong set-up.  We intend to grow further, optimize our capital more efficiently and more profitably and boost revenues through franchising and developing strategic partnerships,” the company stated.

Following the success of its Makati branch, Gweilo Corp. opened the second branch of Mario’s Kitchen in Ortigas, Pasig City earlier this year. The company is looking at opening one more Mario’s Kitchen outlet and a commissary in Bonifacio Global City by December 2013.

“Filipinos love Spanish cuisine, given its rich influence and close resemblance to our very own local cuisine. Mario’s Kitchen is all about offering the best of both worlds, and at the same time, preserving culture and heritage.  We aim to bring our highly-regarded fare closer to consumers through the establishment of more branches across the country,” the company said.

“The success of Mario’s Kitchen over the years proves that the business model works. As we roll out expansion plans, we deem that the brand is ready for franchising.  The food industry is more lucrative than any other industry, and as we aim to make Mario’s Kitchen more accessible across the country, we would also like to share the opportunity to Filipino entrepreneurs, whether budding or experienced, through franchising,” the company added.