Jollibee Foods Corporation

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Jollibee Foods Corporation
Public
Traded asPSEJFC
IndustryRestaurants
FoundedQuezon City, Philippines (January 1978; 40 years ago (1978-01))[note 1]
FounderTony Tan Caktiong
HeadquartersJollibee Plaza, Ortigas Center, Pasig, Philippines
Key people
Tony Tan Caktiong
(Chairman)
Ernesto Tanmantiong
(President and CEO)
Products
  • hamburgers
  • chicken
  • fries
  • coffee
  • desserts
  • breakfast
  • dumplings
  • pizzas
  • cakes
  • pastries
RevenueIncrease₱113.91 billion (FY 2016)[3]
Increase₱3.90 billion (FY 2011)[3]
Increase₱3.25 billion (FY 2011)[3]
Total assetsIncrease₱38.90 billion (FY 2011)[3]
Total equityIncrease₱3.25 billion (FY 2011)[3]
Number of employees
13,133 (2012[4])
SubsidiariesFresh N' Famous Foods[5]
(Chowking, Greenwich)
Red Ribbon Bakeshop, Inc.
Mang Inasal Philippines
Perf Restaurants Inc.
Smashburger IP Holder
Superfoods Group
Websitejollibee.com.ph

Jollibee Foods Corporation (abbreviated as JFC; also known as Jollibee after its primary fast food brand) is a Filipino multinational company based in Pasig, Philippines. JFC is the owner of the fast food brand Jollibee.

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, and Mang Inasal.[6] As of January 2016, JFC had a total of more than 3,000 stores worldwide,[7] with system-wide retail sales totaling 82.1 billion pesos for the 2011 fiscal year.[8]

Background[edit]

An outlet of Jollibee, the company's primary fast food brand, in Trece Martires, Cavite.

In 1975, Tony Tan Caktiong and his family opened a Magnolia Ice Cream parlor in Cubao, Quezon City[9] which is credited as the first Jollibee outlet.[10] The Magnolia outlets operated by the Tan Caktiong clan began offering hotmeals and sandwiches upon request from the customers which the family found out to be more popular than the franchise's ice cream. In 1978, the family decided to cancel the Magnolia franchise and converted the ice cream parlors they operated into fast food outlets.[11] Management consultant Manuel C. Lumba advised the family of the move.[9]

The Jollibee Foods Corporation was incorporated on January 1978.[note 1] It opened its first store overseas in Taiwan which later closed.[12]

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.[7] On July 13, 1993, JFC was listed at the Philippine Stock Exchange.[13]

In 2011, JFC 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,[14] and sold Délifrance to CaféFrance.[15] Overseas, Jollibee opened 93 stores, led by Yonghe King in China (70) and Jollibee Vietnam (11). In 2013, Jollibee opened its first stores in Virginia Beach, Virginia, as well as in Houston, Texas.[16] Both locations were chosen for their strong Filipino presence. A location in the Chicago suburb of Skokie, Illinois opened up in July 2016.[17] One year later, Jollibee opened its first Florida restaurant on March 18, 2017, located in Jacksonville.[18][19] Jollibee expanded into Canada in November 2017 by opening two restaurants in the Toronto area.[20]

Acquisition history[edit]

Philippine brands[edit]

Chowking, one of the company's fast food chain brands.

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.[21] In 2000, the company acquired Chowking, a Chinese fast food restaurant, thus making Jollibee a part of the Asian quick service restaurant segment. In 2005, Jollibee acquired Red Ribbon, a bakeshop business in the Philippines.[22][citation needed]

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).[23][24][25]

JFC subsidiary Fresh N' Famous Foods, Inc. manages the Greenwhich and Chowking brands. The Red Ribbon brand is under Red Ribbon Bakeshop Inc. which in turn is managed by a holding company of the JFC, RRB Holdings, Inc. The firm has also stakes on Burger King's outlets in the Philippines through Perf Restaurants, Inc. which is 54 percent owned by JFC as of 2012.[1]

Foreign brands[edit]

Smash Burger, a food outlet chain owned by JFC based in the United States.

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.[26][27][28] 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).[29]

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 2010, 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.[30] On October 2011, Jollibee acquired a 54% stake in BK Titans, Inc., the sole franchisee of Burger King in the Philippines.[31]

Its restaurants in mainland China are responsible for about 12% of the company's total sales, mostly through chains it acquired.[7]

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 December 2018 Jollibee acquired 100 percent of the shares in Smashburger.[33]

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 [7]

The Yonghe King, Hongzhuangyuan, San Pin Wang chain are under JFC's SuperFoods Group.[1]

Pret a Manger, a UK coffee and sandwich chain planned to be acquired by JFC

In May 2018, Jollibee Food Corporation announced that it has acquired the master franchise of Tim Ho Wan, a Michelin-star dim sum restaurant chain in Asia Pacific,for SG$45 million (₱1.74 billion) from its private equity fund investment Titan Dining Partners Limited. Tim Ho Wan Private holds the exclusive long-term master franchise to run Tim Ho Wan within the Asia Pacific region, excluding ones in Hong Kong. Dim Sum Private, on the other hand, owns and operates Tim Ho Wan chains in Singapore.[34]

Planned[edit]

In September 2017, it was reported that JFC is considering to bid for the acquisition of British sandwich multinational chain Pret a Manger for at least $1 billion.[35]

Brands[edit]

  • Jollibee - Filipino-style fast food restaurant with American-influenced dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes.
  • Greenwich - The fast food restaurant features a variety of Italian main and side dishes specializing in pizzas and pastas.
  • Red Ribbon - The bakeshop offers a wide array of baked goods specializing in cakes.
  • Chowking - The fast food serve Chinese food menu predominantly selling noodle soups, dim sum and rice bowls with toppings.
  • Mang Inasal - Barbecue fast food restaurant chain.
  • Burger King Philippines - JFC is managing the operations of the American hamburger fast food chain in the Philippines.
  • Smashburger - American fast-casual hamburger restaurant chain.
  • Yonghe King - Chinese fast-food restaurant that specializes in noodles.
  • Lao Dong - Taiwanese restaurant.
  • Chun Shui Tang - Tea house.
  • Hongzhuangyuan - Chinese fast food chain.
  • Pret a Manger - A UK sandwich and coffee chain

Former brands[edit]

Jollibee Foods Corporation jointly opened a branch of Délifrance with master franchisee Delifrance Asia Ltd. The JFC became the sole franchise of the bakery chain in the Philippines in 2006 through its subsidiary Fresh N' Famous Foods. The franchise agreement between JFC and Delifrance Asia ended on December 31, 2011 and assets of Délifrance in the Philippines was sold to CafeFrance Corp.[36] CafeFrance Corp. intended to use all of the bought assets as its initial capital for a cafe chain under the a new brand name.[37]

The company also managed Manong Pepe, a food chain patterned after the carinderia until 2011. Initially named Tio Pepe's Karinderia, the now defunct chain was meant to cater to people from the lower classes, particularly those from the socioeconomic class D demographic.[38] JFC discontinued the Manong Pepe business on April 9, 2011.[39]

Joint ventures[edit]

Jollibee Foods Corporation and the Viet Thai International Joint Stock Company formed a joint venture named Superfoods Group, which owns and managed the Vietnamese coffee chain brand, Highlands Coffee. On November 2016, the two companies agreed to list Superfoods as a public company in a stock exchange by July 2019.[40]

In October 2016, Jollibee and Cargill formed a joint venture, C-Joy Poultry Meats Production, and broke ground on a new poultry processing facility at Santo Tomas, Batangas in the Philippines. The facility will be expected to process 45 million chickens per year.[41]

Labor policy[edit]

According to the Department of Labor and Employment (DOLE) in May 2018, the Jollibee Foods Corporation has the most number of workers who are employed under a labor-only contracting (LOC) program.[42]

Notes[edit]

  1. ^ a b The JFC states that its date of incorporation was on January 28, 1978[1] while the Philippine Stock Exchange list the date of incorporation as January 11, 1978.[2]

References[edit]

  1. ^ a b c "2012 Annual Report" (PDF). Jollibee Foods Corporation: 3. Retrieved 2 November 2017.
  2. ^ "Company Information - Jollibee Foods Corporation". Philippine Stock Exchange. Philippine Stock Exchange, Inc. Retrieved 1 November 2017.
  3. ^ a b c d e "Jollibee Foods Corporation 2015 annual report ( FORM 17-A)" (Press release). December 31, 2011.
  4. ^ "2012 Annual Report" (PDF). Jollibee Foods Corporation: 6. Retrieved 2 November 2017.
  5. ^ "Fresh N' Famous Foods Inc Company Profile". EMIS. Retrieved 1 November 2017. Fresh N' Famous Foods Inc, a subsidiary of Jollibee Foods Corporation (JFC) operates and franchises quick-service restaurants under the trade names "Chowking" and "Greenwich"; Red Ribbon Bakeshop, Inc.
  6. ^ "Jollibee's 2008 profits dip despite sales jump". Retrieved August 6, 2012.
  7. ^ a b c d "Acquired tastes". The Economist. Retrieved 12 January 2016.
  8. ^ "Jollibee Foods Corporation 2011 financial statements" (PDF) (Press release). March 2012. Retrieved August 6, 2012.
  9. ^ a b Go, Josiah (2001). Fundamentals of Marketing: In The Philippine Setting. Quezon road, Philippines: Design Plus. pp. 1–2. ISBN 971-91860-5-4.
  10. ^ Jollibee – About Us – Milestones-History
  11. ^ "From Ice Cream Parlor to Fast Food Empire: Tony Tan Caktiong's Story". WIPO. World Intellectual Property Organization. Retrieved 2 November 2017.
  12. ^ "Milestones & History". Jollibee Foods Corporation. Archived from the original on March 19, 2014. Retrieved 7 January 2015.
  13. ^ "Jollibee Foods Corporation - Milestones". Jollibee. Retrieved 1 November 2017.
  14. ^ "Jollibee closes Manong Pepe chain". Retrieved August 6, 2012.
  15. ^ "Jollibee completes sale Delifrance". Retrieved August 6, 2012.
  16. ^ "Mob scene in a monsoon at new Filipino fast-food spot. Houston Chronicle. Tuesday September 17, 2013. Retrieved on September 18, 2013.
  17. ^ Bureau, INQUIRER.net U.S. "Jollibee set to open outlet in Chicago-area mid-2016". business.inquirer.net. Retrieved 2016-05-07.
  18. ^ Financial News, Jacksonville Daily Record. "Philippines-based Jollibee opening in Kernan Village". www.jaxdailyrecord.com. Retrieved 2016-05-18.
  19. ^ "Jollibee welcomes 3,000 customers on first day in Jacksonville". Jacksonville Daily Record. March 18, 2017.
  20. ^ https://www.narcity.com/ca/on/toronto/news/jollibee-to-finally-open-in-mississauga-this-fall-2017
  21. ^ Ordinario, Cai U. (January 18, 2006). "Jollibee Foods buys out partner in Greenwich Pizza". BUSINESS. The Manila Times Internet Edition. Archived from the original on June 21, 2007. Retrieved March 12, 2007.
  22. ^ Peña, Zinnia B. Dela. "Jollibee acquires Red Ribbon". philstar.com. Retrieved 2017-12-15.
  23. ^ Zinnia B. Dela Peña (October 19, 2010). "Jollibee acquires Mang Inasal for P3B". The Philippine Star. p. B-1.
  24. ^ "Jollibee to buy Mang Inasal for P3 billion". BUSINESS. GMANews.tv. October 18, 2010. Retrieved October 20, 2010.
  25. ^ Jollibee Set to Acquire Mang Inasal Archived January 12, 2013, at the Wayback Machine. - Manila Times, October 19, 2010
  26. ^ "Jollibee-buys-Beijing-based-congee-chain Jollibee buys Beijing-based congee chain". GMA News and Public Affairs. Retrieved August 6, 2012.
  27. ^ "Jollibee buys out Beijing resto chain". tradingmarkets.com. Retrieved August 6, 2012.[permanent dead link]
  28. ^ "Fast-Food Giant Jollibee Foods Acquires Chinese Congee Chain". allheadlinenews.com. Archived from the original on November 16, 2011. Retrieved August 6, 2012.
  29. ^ Sanchez-Lacson, Elizabeth (November 8, 2007). "Jollibee buys Beijing fast-food chain". Philippine Daily Inquirer. Retrieved May 5, 2016.
  30. ^ Dumlao, Doris. (October 27, 2010). Jollibee buys fast-food chain in China Archived October 29, 2010, at the Wayback Machine.. Philippine Daily Inquirer.
  31. ^ Dumlao, Doris C. (October 1, 2011). "Jollibee Buys Burger King Franchise in the Philippines". Philippine Daily Inquirer/Yahoo! Philippines. Retrieved October 2, 2011.
  32. ^ "Jollibee Acquires a 40% Stake in Smashburger". October 2015.
  33. ^ https://www.qsrmagazine.com/news/jollibee-foods-corporation-now-100-percent-owner-smashburger
  34. ^ Loyola, James (9 May 2018). "Jollibee acquires 45% of Asia Pacific franchise of Tim Ho Wan". Manila Bulletin. Retrieved 20 June 2018.
  35. ^ Wu, Kane; Daga, Anshuman (18 September 2017). "Filipino fast food group Jollibee eyes bid for UK's Pret A Manger - sources". Reuters. Retrieved 1 November 2017.
  36. ^ Dela Pena, Zinnia (4 January 2011). "Jollibee completes sale of Delifrance to CafeFrance". The Philippine Star. Retrieved 1 November 2017.
  37. ^ "What happened to Delifrance?". Entreprenuer Philippines. Entreprenuer Philippines, Inc. 20 July 2011. Retrieved 1 November 2017.
  38. ^ Marbella, Winston (3 August 2012). "Strategy: targeting the poor". BusinessWorld. Retrieved 1 November 2017.
  39. ^ "Jollibee Foods Corporation and Subsidiaries" (PDF). SyCip Gorres Velayo & Co: 58. Retrieved 1 November 2017.
  40. ^ "Jollibee, Viet Thai to list Highlands Coffee in Vietnam Stock Exchange". ABS-CBN News. 21 November 2016. Retrieved 1 November 2017.
  41. ^ "Cargill, Jollibee break ground on the largest poultry processing plant in the Philippines | Cargill". www.cargill.com. Retrieved 2017-05-24.
  42. ^ Patinio, Ferdinand (28 May 2018). "Jollibee tops list of firms engaged in labor-only contracting: DOLE". Philippine News Agency. Retrieved 28 June 2018.