The move towards an ASEAN Single Aviation Market boosted infrastructure investment and aviation development plans in the region. Growth is also attributed to the proliferation...
Jollibee Foods Corporation
Jollibee Foods Corporation (JFC) surely knows the taste buds of ASEAN people.
JFC operates a total of 2,278 quick service restaurants in ASEAN. It is the Philippines’ largest food service business with a total of 2,090 stores spanning 6 brands –Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, and Burger King – and 16 Highlands Coffee Shops. Beyond its birth place, JFC reaches out to its ASEAN neighbors in Vietnam, Brunei, Cambodia, Indonesia, and Singapore through Jollibee, Highlands Coffee, Pho 24, and Chowking.
From an ice cream parlor to a fastfood empire
Jollibee traces its humble beginnings in 1975 to a two-branch ice cream parlor in Manila which later offered hot sandwiches and meals. Ten years later, Jollibee Foods Corporation joined the ranks of the country’s top 100 companies and ventured into foreign lands through its first Jollibee store in Brunei.The succeeding years saw JFC expanding its restaurant network as it began acquiring other quick service restaurants such as Greenwich in the pizza-pasta segment; Mang Inasal, a thriving barbeque fast food chain, cakes and breads store Red Ribbon; and Chinese fast food chain Chowking. It also acquired a majority stake in Burger King’s Philippine franchise.
Today, aside from its ASEAN presence, JFC is present globally through hundreds of stores in China, Hong Kong, Macau, United States, and the Middle East. It has secured foreign brands such as Yonghe King (its first in China), Hong Zhuang Yuan, San Pin Wan, and Taiwan’s 12 Sabu. JFC closed 2012 with US$ 2.2 billion sales.
Thriving in ASEAN
JFC’s first foray in ASEAN countries outside the Philippines started in 1987 with the opening of the first Jollibee store in Brunei which now hosts 13 Jollibee stores. JFC’s largest number of stores in ASEAN (outside the Philippines) is in Viet Nam where it owns 39 Jollibee stores, 57 Highlands Coffee Shops, and 41 Pho 24 restaurants.
Confident of the region’s potentials, JFC plans to further expand operations through a combination of organic growth and acquisitions. Annually, JFC’s growth in ASEAN (outside the Philippines) is at 23 percent. The company’s most recent venture was in Singapore where it partnered with Beeworks, Inc. in opening the first Jollibee store along Singapore’s Orchard Road. The pioneer branch, which opened in March 2013, was so successful that the company is thinking of opening up its second store in the country soon.
JFC largely benefits from ASEAN’s trade liberalisation efforts. It sources both processed and basic ingredients not only from suppliers in the Philippines but also from countries within the region. Jollibee’s coffee is imported directly from Viet Nam at zero tariffs. Some of the spices they use are sourced from Singapore, Malaysia, and Indonesia. It continues to import its beef requirements from Australia and New Zealand – two of ASEAN’s active trade partners.
JFC welcomes ASEAN economic integration efforts. “Efforts towards the AEC allow us to accelerate our growth in the region. It is an opportunity for us to deploy our staff in other countries and access raw materials and ingredients at competitive costs. We are hopeful that the integration will create a more efficient supply chain among our network. More importantly, we hope AEC will redound to the benefit of consumers, enabling us to share our good food to more ASEAN people at very affordable prices,” says Tony Tan Caktiong, JFC Chairman and CEO.
Celebrating its 35th anniversary this year, JFC looks back to its beginnings and reveals the secrets behind its success – the superior taste and affordability of Jollibee food, commitment to innovation and quality, and the passion and dedication of its people.
The company is pleased to note how its success has spilled over to other industries. JFC is one of the largest consumers of chicken, rice, and beverage in the Philippines. Annually, JFC consumes about 30,000 tons of rice and 83,000 tons of chicken. JFC’s US$ 2 billion business has also led to jobs creation. Today, at JFC, more than 60,000 people have been blessed with jobs.
Indeed, JFC has already gone a long way. But the road to success has only started. JFC’s vision to become one of the largest restaurant companies in the world rings loud and clear. It is meant to be accomplished.