Jollibee

Jollibee Foods Corporation
Public
Traded as PSE: JFC
Industry Restaurants
Founded Quezon City, Philippines (January 28, 1978 (1978-01-28))
Headquarters Jollibee Plaza, Ortigas Center, Pasig, Philippines
Key people
 Tony Tan Caktiong
(Chairman)
Ernesto Tanmantiong
(President and CEO)
Products hamburgers • chicken • french fries • soft drinks • coffee • brunch • salads • desserts • breakfast
Revenue Increase₱100.78 billion (FY 2015)[1]
Increase₱3.90 billion (FY 2011)[1]
Profit Increase₱3.25 billion (FY 2011)[1]
Total assets Increase₱38.90 billion (FY 2011)[1]
Total equity Increase₱3.25 billion (FY 2011)[1]
Number of employees
 14,635 (FY 2011)[1]
Subsidiaries Chowking
Greenwich Pizza
Red Ribbon
Mang Inasal
Website Jollibee brand website

Jollibee Foods Corporation (also called JFC, and popularly known as Jollibee) is a Filipino multinational chain of fast food restaurants headquartered in Pasig, Philippines. JFC is the owner of the popular fast food brand Jollibee, dubbed as Asia's answer to McDonald's in the fast food burger business.[2]

With the success of its flagship brand, JFC acquired some of its competitors in the fast food business in the Philippines and abroad such as Chowking, Greenwich Pizza, Red Ribbon, Mang Inasal, and Burger King Philippines.[3] As of January 2015, JFC had a total of more than 3,000 stores worldwide,[4] with system-wide retail sales totaling 82.1 billion pesos for the fiscal year 2011.[5]

History

In 1975, Tony Tan Caktiong and his family opened a Magnolia Ice Cream parlor in Cubao, Quezon City.[6][7] In 1978, he and his siblings engaged the services of a management consultant, Manuel C. Lumba, who shifted the business focus from ice cream to hot dogs after his studies showed a much larger market waiting to be served.[6] Lumba was Tan's last business and management mentor.

Jollibee experienced rapid growth. It was able to withstand the entry of McDonald's in the Philippines in 1981 by focusing on the specific tastes of the Filipino market, which differed from the American fast food company.[4]

The chain opened successful milestone stores in the following years: its 100th branch in Davao in 1991; its 200th store in Malolos, Bulacan in 1996; its 300th store in Balagtas, Bulacan in 1998; its 400th store in Intramuros, Manila in 2001; its 500th store in Basilan in 2004; its 600th store in Aparri in 2007;[7][8] its 700th store in Harrison Road, Baguio City in 2010;[9] its 800th store in Malaybalay City, Bukidnon on October 18, 2013;[10] and its 900th store in Palo, Leyte on September 30, 2015.

Expansion and acquisitions

A Jollibee restaurant at Central, Hong Kong

The company acquired 80% of Greenwich Pizza in 1994. From a 50-branch operation, Greenwich gradually established a strong presence in the food service industry. In early 2006, Jollibee Foods Corp. bought out the remaining shares of its partners in Greenwich Pizza Corp., equivalent to a 20% stake, for P384 million in cash.[11] In 1996, Jollibee became the sole franchisee of Délifrance for Philippines, staying in operation in the country until late 2010. In 2000, the company acquired Chowking, a Chinese fast food restaurant, thus making Jollibee a part of the Asian quick service restaurant segment.[12][13]

In 2004, Jollibee acquired Chinese fast food chain Yonghe Dawang for $22.5 million. Jollibee entered into a joint-venture contract with US-based Chow Fun Holdings LLC, the developer and owner of Jinja Bar Bistro in New Mexico, in which Jollibee acquired a 12% stake for $950,000.[14][15][16] In 2005, Jollibee acquired Red Ribbon, a bakeshop business in the Philippines. In less than 5 years, Jollibee managed to nurture the business and transform it into a popular and rapidly growing bakeshop chain. In 2006, Jollibee purchased 70% of Taipei restaurant Lao Dong in June and Chun Shui Tang tea house. In 2007, Jollibee acquired the Chinese fast-food chain Hongzhuangyuan for $50.5 million (roughly P2 billion).[17]

Jollibee's 900th store in Palo, Leyte
A colonial-themed Jollibee branch in Agoo, La Union.

On August 26, 2008, Jollibee formally signed a P2.5 billion ($55.5 million) deal with Beijing-based Hong Zhuang Yuan through its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. The sale is subject to the approval of China's Ministry of Commerce. On October 19, 2010, Jollibee acquired 70% share of Mang Inasal, a Filipino food chain specializing in barbecued chicken, for P3 billion ($68.8 million).[18][19][20] The same month, Jollibee signed a deal to acquire 55 percent of China's Guangxi San Ping Wang Food and Beverage Management Co. Ltd., operators of the San Pin Wang beef noodle business for 30 million RMB.[21] On October 2011, Jollibee acquired a 54% stake in BK Titans, Inc., the sole franchisee of Burger King in the Philippines.[22]

In 2011, Jollibee opened 260 new stores, of which 167 were in the Philippines led by Mang Inasal (86) and Jollibee (40). This brought the company's total number of stores to 2,001 as of the end of December 2011. The same year, Jollibee closed Manong Pepe foodchain in favor of Mang Inasal,[23] and sold Délifrance to CaféFrance.[24] Overseas, Jollibee opened 93 stores, led by Yonghe King in China (70) and Jollibee Vietnam (11). In 2013, Jollibee opened its first store in Virginia Beach, Virginia, as well as in Houston, Texas.[25] Both locations were chosen for their strong Filipino presence. A Chicago suburb, Skokie, Illinois, will have their opening sometime in July 2016.[26] Jollibee is also slated to open a restaurant in Jacksonville, Florida sometime in September 2016.[27]

Its restaurants in mainland China are responsible for about 12% of the company's total sales, mostly through chains it acquired.[4]

The restaurant plans to expand to Toronto in Canada,[28] Malaysia and Indonesia.[29] It also plans to expand throughout the Southern United States such as Atlanta, Charlotte, and Dallas, and Midwestern United States starting with Chicago.[28] Currently, aside from its flagship brand Jollibee, the group's other brands and acquisitions are Chowking, Greenwich, Red Ribbon, Mang Inasal, Yonghe King (China) and Hong Zhuang Yuan (China), as well as a majority stake in the firm that controls the Burger King franchise in the Philippines.[30][31]

In October 2015, Jollibee announced that it has acquired a 40-percent stake in Smashburger in a deal that values the American fast-casual burger chain at $335 million.[32]

In January 2016, the company announced it was participating in a joint venture to bring 1,400 Dunkin' Donuts stores to China over the next 20 years [4]

Products

Jollibee is an American-style fast food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes. In the Philippines, Jollibee serves Coca-Cola products for its beverages; in overseas markets, the chain serves Pepsi products.

Jollibee's flagship product is its fried chicken, which is branded as Chickenjoy.[33]

Branch locations

International presence of Jollibee stores

Jollibee started with five branches in 1978 and has grown to a strong network of a total of 890 stores in the country, and 133 stores internationally. It is the largest fast food chain in the country with international locations in Brunei, Hong Kong, Kuwait, Qatar, Saudi Arabia, Singapore, Vietnam, the United Arab Emirates, and the United States.[34]

In 2013, Jollibee president and CEO Tony Tan Caktiong stated that Jollibee was open to plans to open a branch in Europe due to popular demand, but that such plans were not then prioritized.[35][36][37] However, it was later reported in March 2015 that Jollibee planned to expand to Europe through an unspecified country in 2017-2018.[38] In a forum on October 29, 2015, Tan announced that Jollibee plans to open its first branches in Italy[33] and the United Kingdom[33] in 2016 and in Australia[39] and Japan[39] in 2017. It was also announced that Jollibee would open its first branches in Canada,[39] Malaysia,[39] and Oman[39] in 2016.

As of the end of September 2012, Jollibee was operating 2,040 stores in the Philippines for all of its brands: 765 for Jollibee, 383 for Chowking, 201 for Greenwich, 209 for Red Ribbon, 457 for Mang Inasal and 25 for Burger King.

Jollibee has also considered returning to the Indonesian market.[29]

International presence of Jollibee stores

Asia
North America
Middle East
Europe
Planned Locations
Former locations

(*) First introduction in the United Arab Emirates and Kuwait, later closed. Both reintroduced in 2015.[2]

By country and territory

Hong Kong

In Hong Kong, there are currently 2 branches located in Central (#13 Connaught Road Central and #61 Connaught Road Central). The first one at #13 Connaught Road Central was renovated in 2013. The second one at #61 Connaught Road Central was opened in 2016.

United States

Jollibee in Houston, Texas

In the United States, Jollibee has locations in California, Hawaii, Nevada, New Jersey, New York, Texas, Illinois, Washington, Virginia.[40]

The first location in the United States was opened in Daly City, California in June 1998.[41]

The first location in the state of Nevada, and the first U.S. location outside of California an the 12th in the United States, was opened in the Las Vegas in May 2007.[42][43]

Moving east, the first location in the state of New York was opened in Queens in New York City in February 2009.[44][45] This was the first location east of the Rockies.

The first location in the state of Washington was opened in Tukwila in September 2010.[46]

The first location in the state of Hawaii, and the 27th in the United States, was opened in Waipahu in December 2010.[47]

The first location in the state of New Jersey, and the second location on the East Coast, was opened in Jersey City in June 2012.[48][49][50] The following year, the first location in the state of Virginia, and the third location on the East Coast, was opened in Virginia Beach in April 2013.[51]

The first location in the state of Texas, and the 26th in the United States, was opened in Houston in September 2013.[52]

The first location in the state of Illinois, and the 34th in the United States, was opened in Skokie in July 2016.[53]

In September 2016, Jollibee announced the construction of their first location in the state of Florida and expects that the location in Jacksonville to be opened toward the end of the year. At the time of the announcement, Jollibee had approximately 35 locations within the United States.[54]

Canada

The first Canadian Jollibee location will open 15 Dec 2016 in Winnipeg, Manitoba.

United Arab Emirates

Jollibee opened its first store in the United Arab Emirates in April 1995 in Dubai[55] but later closed.[56] In 2015, Jollibee returned to the Emirati market by opening a store in Dubai,[2][57] plus a second one in February 2016. A third store in Al Ghurair Center opened in August 2016

Vietnam

The first Jollibee branch in Vietnam was opened in October 1996 at the Super Bowl in Ho Chi Minh City. Jollibee has no less than 20 stores in Vietnam as of 2012, with branches in the cities of Ho Chi Minh City, Hanoi, Da Nang, Nha Trang, in the provinces of Vinh Phuc, Dong Nai and in the Mekong Delta Region.[58]

Former branches

Jollibee had former branches in Taiwan, China and the United Arab Emirates. Jollibee launched its first branch in Taiwan in 1986, also its first branch outside the Philippines.[59] Jollibee launched its first mainland China branch in Xiamen in 1998 but later closed in 2001. Jollibee focused on acquiring already popular restaurant chains in China.[35] Jollibee launched its first branch in Dubai in 1995 but it was later closed.[2] Jollibee previously had branches in Malaysia and Indonesia but were later closed down due to the 1997 Asian financial crisis.[29][60]

Jollibee had two branches on the island of Saipan in the Northern Mariana Islands, a U.S. territory. The first location was opened in the village of Garapan in late 1999.[61] A second location was opened in the village of Chalan Kanoa in January 2000.[62] The Chalan Kanoa branch was closed in 2004[63] and the main Garapan branch closed in February 2009 due to declining sales.[64]

On the island of Guam, another U.S. territory, Jollibee had open a location there in 1996[65] but later closed the branch sometime before 2009.[64]

Jollibee also had a branch in Papua New Guinea.[66]

Mascots

Jollibee, a large bee mascot dressed in a blazer, shirt, and chef's hat introduced by the brand in 1980, is probably the most widely recognized character in the Philippines.[67]

The mascot Jollibee was designed to epitomize Filipino optimism. "The bee hops around and produces sweet things for life, and is happy even though it is busy," Tony Tan explains, comparing the mascot's character to the Filipino working folk.[68]

Statue of Jollibee at the main entrance of a Jollibee store in Trece Martires, Cavite
Name Year introduced Represents
Jollibee 1980 Main franchise mascot
Chickee 1987, 1993 (discontinued) Chickenjoy
Lady Moo 1993 (discontinued) Milkshakes
Mico 1985 (discontinued) Milkshakes
Champ 1984 (discontinued) Champ Premium hamburger
Yum/Mr. Yum 1989 (Mr. Yum), 2008 (Yum) Burgers
Twirlie 1988, 2008 Desserts
Popo 1985, 2008 French fries
Hetty 1984, 2008 Spaghetti

Source:[69]

Jollitown

Main article: Jollitown

On April 13, 2008, a children's television program called Jollitown was launched by Jollibee and friends. The timing was chosen to highlight Jollibee's 30th anniversary. Jollibee and his friends Yum the scientist, Twirlie the star performer, Hetty The chearleader and Popo the gym coach are the stars of the show, which airs Sundays, 9:30 a.m. or 8:00 on GMA Network.[70] On July 17, 2011, Jollitown moved to ABS-CBN for its 4th and 5th season every Sunday at 9 am (every Sunday). On July 20, 2013, the show moved back to GMA for The Jollitown Kids Show or Jollitown Season 6 until it ended on October 12, which spanned for almost 5 years.

Reception

Jollibee has won many accolades. It has consistently been mentioned as one of the Philippines' and Asia's most admired companies in surveys conducted by publications such as Asian Business Magazine and The Wall Street Journal Asia and has received other plaudits from Euromoney and Asia Money. In 2008, it was also the recipient of the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Awards.[7][71][72]

Jollibee Foundation

In December 2004, as part of a corporate social responsibility initiative, the Jollibee Group Foundation, also known as the Jollibee Foundation, was established by Jollibee Foods Corporation (JFC) to make giving back an organized corporate commitment. The Foundation aims to invest in local people and help them succeed.

Busog, Lusog, Talino (BLT)

Busog, Lusog, Talino (BLT) is a school feeding program that addresses hunger among Grades 1 and 2 pupils and helps them to stay in school by keeping them fit and healthy. With nationwide operations, Jollibee store employees visit nearby schools and conduct orientation to teachers and parents on proper food preparation and food safety. They also work with the local government units, the Department of Education and private sector partners in monitoring the feeding activity and ensuring program sustainability. The presence of Jollibee stores all over the country and other partnerships enabled the Foundation to expand the program to 450 schools in school year 2011-2012, feeding more than 25,000 pupils since BLT started in 2007.

References

  1. 1 2 3 4 5 6 "Jollibee Foods Corporation 2015 annual report (SEC FORM 17-A)" (Press release). December 31, 2011.
  2. 1 2 3 4 Johnson, Stacie Overton (3 March 2015). "Popular Filipino fast food chain Jollibee comes to Dubai". The National. Retrieved 25 March 2015.
  3. ↑ "Jollibee's 2008 profits dip despite sales jump". Retrieved August 6, 2012.
  4. 1 2 3 4 "Acquired tastes". The Economist. Retrieved 12 January 2016.
  5. ↑ "Jollibee Foods Corporation 2011 financial statements" (PDF) (Press release). March 2012. Retrieved August 6, 2012.
  6. 1 2 Go, Josiah (2001). Fundamentals of Marketing: In The Philippine Setting. Quezon road, Philippines: Design Plus. pp. 1–2. ISBN 971-91860-5-4.
  7. 1 2 3 Jollibee – About Us – Milestones-History
  8. ↑ "Jollibee opens 600th store in RP". BUSINESS. GoodNews Pilipinas. March 17, 2008. Retrieved October 28, 2013.
  9. ↑ Roa, Ana Mae G. (November 27, 2010). "Jollibee opens 700th store in Baguio". BUSINESS. ABS-CBN News.com. Retrieved October 28, 2013.
  10. ↑ Deveza, JB R. (October 26, 2013). "Jollibee opens 800th store". BUSINESS. Inquirer.net. Retrieved October 28, 2013.
  11. ↑ Ordinario, Cai U. (January 18, 2006). "Jollibee Foods buys out partner in Greenwich Pizza". BUSINESS. The Manila Times Internet Edition. Retrieved March 12, 2007.
  12. ↑ "Restaurant chain trains staff, bags corporate social responsibility award". Cebu. Sun.Star Publishing, Inc. ...the listed food giant has the exclusive rights to operate Délifrance outlets in the country. "The acquisition involved a restructuring of all advances by Jollibee and Délifrance Asia amounting to P130 million into equity," a public statement said. Jollibee added that the strong sales posted by Délifrance encouraged it to buy out its partner.
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  43. ↑ "Jollibee to feed U.S. and Guam outlets". Marianas Business Journal. May 28, 2007. Jollibee USA plans to open five new stores in 2007 — Jollibee Las Vegas [opened May 2] Jollibee San Bruno and Vallejo California will open around September or October and Jollibee Sacramento and in the Panorama Mall [in Panorama City Calif.] by December. Jollibee Las Vegas is the 12th store of the fast-food outlet in U.S. mainland.
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  48. ↑ Haddon, Heather (June 11, 2012). "Sweet Spaghetti, And a Bit of Pride". Wall Street Journal. p. A15. (subscription required (help)). Jersey City's Filipinos turned out in droves on Sunday for the opening of the East Coast's second Jollibee Alternate Link via ProQuest.
  49. ↑ "Throngs flock to Jollibee, Filipino fast-food eatery now open in Jersey City". NJ.com. June 10, 2012.
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  51. ↑ Matray, Margaret (April 7, 2013). "Filipino-food fans, the wait is over ...". Virginian-Pilot. p. B1. (subscription required (help)). The restaurant opens its doors at 7 a.m. today at Brenneman Farm Marketplace at South Plaza Trail and Princess Anne Road. It will be the first Jollibee to open in the mid-Atlantic region and the third on the East Coast. Based in the Philippines, the chain has about two dozen restaurants open in the United States, including one in Queens, N.Y., and another in Jersey City, N.J.
  52. ↑ Cook, Alison (September 25, 2013). "At Jollibee, it's fast food with Filipino twist". Houston Chronicle. grand opening last Thursday... 26 locations in the United States
  53. ↑ Selvam, Ashok (July 29, 2016). "Jollibee's Long-Awaited Unveiling Brings the Philippines to Chicagoland: Folks are waiting hours on opening day". Eater Chicago. The restaurant officially swung open its doors at 7 a.m. today, introducing suburban Skokie to fried chicken, burgers and Filipino spaghetti.
  54. ↑ "Jollibee expects to open first Jacksonville store in mid-December". Jacksonville Daily Record. September 20, 2016. With construction underway, Jollibee is expected to open its first Jacksonville location in mid-December at southwest Atlantic and Kernan boulevards in Southside... Its more than 30 U.S. locations comprise more than 20 in California along with stores in Hawaii, Illinois, Nevada, New Jersey, New York, Texas, Washington and Virginia.
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  66. ↑ Martin, John L. Thompson ; with Frank (2005). Strategic management : awareness and change (5th ed.). London [u.a.]: Thomson Learning. p. 769. ISBN 1844800830.
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