Jollibee Foods Corporation abbreviated as JFC and popularly known as Jollibee (PSE: JFC) is a Philippine multinational chain of fast food restaurants headquartered in Pasig City, Philippines. JFC is the parent company of Jollibee, the country’s answer to McDonald’s in the fast food burger business. With its success, the company have bought out their competitions in the fast food business like Chowking, Greenwich Pizza, Red Ribbon bakeshop, Mang Inasal grilled food restaurant and Burger King Philippines. In 2011, JFC has a total of 2,510 stores worldwide with a system wide retail sales totaling to 82.1 billion pesos for the fiscal year 2011.
History
The original owner Tony Tan and his family opened a Magnolia Ice Cream parlor in Cubao, Quezon city in 1975. Sometime in 1978, he and his siblings engaged the services of management consultant, Manuel C. Lumba, who shifted the business focus from ice cream to hot dogs after his studies showed where a much larger market was waiting to be served. Lumba was Tan’s last business and management mentor.
Throughout its three decade history, Jollibee became a success enjoying rapid growth. The chain opened successful milestone stores in the respective years: Its 100th branch in Davao on 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; its 700th store in Harrison Road, Baguio City in 2010; and its 800th branch in Malaybalay City, Bukidnon on October 18, 2013.
Expansion and acquisitions
To penetrate the pizza-pasta segment, the company acquired 80% of Greenwich Pizza in 1994. From a 50-branch operation, Greenwich has 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.
In 1996, Jollibee became the sole franchisee of Délifrance, a French-style bakery company in the Philippines, which would remain 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.
Jollibee purchased 70% of Taipei restaurant Lao Dong in June and Chun Shui Tang tea house in 2006.
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 will have a 12% stake for $950,000.
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 2007, Jollibee acquired the Chinese fast-food chain Hongzhuangyuan.
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). 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.
On October 1, 2011, Jollibee acquired a 54% stake in BK Titans, Inc., the sole franchisee of Burger King in the Philippines.
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 end December 2011. The same year, Jollibee closed Manong Pepe foodchain in favor of Mang Inasal, and sold Délifrance to CaféFrance.
Overseas, Jollibee opened 93 stores, led by Yonghe King in China (70) and Jollibee Vietnam (11).
Jollibee acquired Chowking stores in the US from their licensee, Burger King business in the Philippines and SuperFoods business in Vietnam and other Southeast Asian countries.
In 2013 the first store in Virginia, located in Virginia Beach opened as well as in Texas, located in Houston, opened.
The restaurant plans to expand to Toronto in Canada, Indonesia, as well as opening a location in Chicago. They also plan to expand throughout the Southern United States such as Atlanta, Charlotte, and Dallas.
Currently, aside from its flagship brand Jollibee, the group’s other brands are Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, Yonghe King (China) and Hong Zhuang Yuan (China).
Products and locations
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.
Starting from a mere five branches in 1978, Jollibee has grown to a strong network of 801 stores in the country, and 95 stores internationally. In total, Jollibee has 896 stores worldwide as of November 2013. It is the largest fast food chain in the country with international locations in the United States, Saudi Arabia, Hong Kong, Vietnam, Indonesia, Singapore, Qatar, Saudi Arabia, and Brunei. JFC is currently planning to expand Jollibee to other markets like Europe and India.
In Vietnam, the first Jollibee store was opened on October 1996 at Super Bowl in Ho Chi Minh City.
To date, Jollibee has more than 30 stores in Vietnam: in the cities of Ho Chi Minh, Hanoi, Da Nang, Nha Trang, in the provinces of Vinh Phuc, Dong Nai and all provinces in Mekong Delta Region. It is this commitment to serving value for money and quality food attuned to local palate, friendly and efficient service, and a clean in-store environment – these operational basics – and the universal appeal of the family values that the brand represents that are driving the expansion of Jollibee in Vietnam in the years to come.
In Hong Kong, there is currently one branch located in Central. At present, it is in the process of being renovated, while the opening of a second branch in the country is currently under consideration.
As of end-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.
Jollifriends/Mascots
Jollibee, the 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. Mascots Yum, Hetty, Popo, Twirlie changed their appearance since 2009.
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. 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.
The show has been running for 5 years (2008–present)
Awards
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 Asian Wall Street Journal 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.
Corporate social responsibility
In December 2004 as the corporate social responsibility (CSR) initiative, 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 people and help them succeed in the way Jollibee knows how. This means taking the values, the system, the tools, and the years of experience that has made Jollibee what it is today and sharing it with the people they most ascribe their success to: the everyday Filipino.
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 nutritious daily Champ burgers and a lot of their freshly fried fries. 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.
