Jollibee_Foods_Corporation

Jollibee Foods Corporation

Jollibee Foods Corporation

Filipino multinational company

This article is about the company. For the fast food chain owned by the company, see Jollibee.

Jollibee Foods Corporation (abbreviated as JFC and Jollibee Group[6]; also known as Jollibee after its primary fast food brand) is a Filipino multinational company based in Pasig, Metro Manila, Philippines. JFC is the owner of the fast food brand Jollibee.

Quick Facts Company type, Traded as ...

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, Red Ribbon, and Mang Inasal.[7] As of September 2022, JFC operates more than 6,300 stores worldwide,[8] with system-wide retail sales totaling ₱210.9 billion.[8]

Background

Further information: Jollibee
An outlet of Jollibee, the company's primary fast food brand, in Santa Maria, Bulacan

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 hot meals 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 in 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.[13] On July 13, 1993, JFC was listed at the Philippine Stock Exchange.[14]

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,[15] and sold Délifrance to CaféFrance.[16] Overseas, Jollibee opened 93 stores, led by Yonghe King in China (70) and Jollibee Vietnam (11).[17]

“Jollibee is the second fastest-growing brand this year, with its brand value up 51 percent to $2.3 billion, while maintaining a strong brand position in its domestic market,” Brand Finance said. It has 1,668 locations across 17 countries as of January, 2024 with its recent opening in Canada, the brand’s 100th store in North America.[18]

Acquisition history

Philippine brands

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 ₱384 million in cash.[19] 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.[20][21]

On October 19, 2010, Jollibee acquired 70% share of Mang Inasal, a Filipino food chain specializing in barbecued chicken, for ₱3 billion ($68.8 million).[22][23][24]

JFC subsidiary Fresh N' Famous Foods, Inc. manages the Greenwich 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

Smashburger, a food outlet chain owned by JFC based in the United States

Jollibee Foods Corporation has stakes in restaurant chains based or originating outside the Philippines such as in Mainland China, Taiwan, Canada, and United States as well as the holder of the master franchise of Burger King in the Philippines.[citation needed]

In mainland China and Taiwan

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.[25][26][27] In 2006, Jollibee purchased 70% of Shanghai-based restaurant Lao Dong in June and Taichung-based Chun Shui Tang tea house. In 2007, Jollibee acquired the Chinese fast-food chain Hongzhuangyuan for $50.5 million (roughly ₱2 billion)[28] but divested its shares from Lao Dong and Chun Shui Tang, only a year after it purchase stakes in the two food chains.[29]

On August 26, 2008, Jollibee formally signed a ₱2.5 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. In 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]

Its restaurants in mainland China are responsible for about 12% of the company's total sales, mostly through chains it acquired.[13]

The Yonghe King, Hong Zhuang Yuan & San Pin Wang chains are under JFC's SuperFoods Group.[1] 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.[31]

In the United States

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, gaining a full control of the American hamburger chain.[33]

On September 7, 2018, Jollibee Foods Corporation announced its acquisition of 47% stake in US-based Mexican food restaurant, Tortas Frontera of Rick Bayless for $12.4 million.[34]

On July 24, 2019, Jollibee Foods Corporation purchased The Coffee Bean & Tea Leaf for $350 million.[35]

Foreign brands in the Philippines

A Burger King outlet in Baliwag, Bulacan

In October 2011, Jollibee acquired a 54% stake in BK Titans, Inc., the sole franchisee of Burger King in the Philippines.[36]

On September 27, 2018, JFC announced its 50-50 joint venture with Chinese-American restaurant chain, Panda Express to bring its stores to the Philippines.[37] On July 8, 2019, both JFC and Panda Express' parent company, Panda Restaurant Group formed their joint venture company, JBPX Foods, Inc. after its incorporation by Securities and Exchange Commission.[5]

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.[38] But it was acquired instead by JAB Holding Company, in 2018.[39]

On February 16, 2021, JFC announced that it has entered a joint venture with Arby's International Philippines (which is a unit subsidiary of Inspire Brands LLC/Arby's Restaurant Group Inc.) to establish a company that would serve as the franchisee of Arby's in the country after Century Pacific Food's franchise deal with the American fast food chain ended.[40][41] Under the new deal, there are plans to open 50 stores in the country in the long-term.[42] The company, which is named Arby's Jollibee Foods, Inc. was incorporated on June 22, 2021.[43][44]

Brands

  • 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.[45]
  • Red Ribbon - The bakeshop offers a wide array of baked goods specializing in cakes.[45]
  • Chowking - The fast food serve Chinese food menu predominantly selling noodle soups, dim sum and rice bowls with toppings.[45]
  • Mang Inasal - Barbecue fast food restaurant chain.[46][45]
  • Burger King Philippines - JFC is managing the operations of the American hamburger fast food chain in the Philippines.[47][45]
  • Highlands Coffee - top café chain in Vietnam [48]
  • Smashburger - American fast-casual hamburger restaurant chain.[49][50][45]
  • Yonghe King - Chinese fast-food restaurant that specializes in noodles.[51][45]
  • Hongzhuangyuan - Chinese fast food chain.[52][45]
  • Tortas Frontera - US-based Mexican food restaurant by chef Rick Bayless, owns 47% stake.[34]
  • Panda Express Philippines - Joint venture with a Chinese-American fast food restaurant's parent company, Panda Restaurant Group through JBPX Foods, Inc.[5] and operates its Philippine chain, owns 50% stake.[37]
  • PHO24 - Vietnamese style restaurant chain specializing in Pho that is owned by Jolibee subsidiary Superfoods Group and operates in Macau, Hong Kong, Vietnam, the Philippines and Indonesia.[53]
The Coffee Bean & Tea Leaf
  • The Coffee Bean & Tea Leaf - American coffee chain founded in 1963, purchased by JFC in 2019.[54][55]
  • Yoshinoya Philippines - Joint venture with a Japanese fast food chain, Yoshinoya through Yoshinoya Jollibee Foods, Inc. and operates its Philippine chain, owns 50% stake.[43][44]
  • Tim Ho Wan Asia-Pacific - JFC holds 85% stake in the Michelin-star restaurant.[56]
  • Milksha[57] - Jollibee Group acquired 51% of Milkshop International, operator of Taiwanese milk tea chain Milksha, in 2021.[58] Milksha is regarded as Taiwan's “best milk tea” brand.[59]

Former brands

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.[60] CafeFrance Corp. intended to use all of the bought assets as its initial capital for a cafe chain under the a new brand name.[61]

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.[62] JFC discontinued the Manong Pepe business on April 9, 2011.[63]

In Greater China, Jollibee Group formerly owned stakes of Shanghai-based Lao Dong and Taichung-based Chun Shui Tang until 2007.[29] In 2022, the company also announced that its subsidiary terminated the master franchise agreement for Dunkin' Donuts, which covers mainland China, Hong Kong, and Macau.[64]

Joint ventures

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. In November 2016, the two companies agreed to list Superfoods as a public company in a stock exchange by July 2019.[65]

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.[66]

On January 16, 2024 the Jollibee Group in joint venture with Food Collective, Pte. Ltd. opened the "The Common Man Coffee Roasters" at Ayala Triangle Gardens. On August, 2023, Jollibee also announced the opening of Tiong Bahru Bakery in the Philippines.[67][68]

Jollibee and Republic Cement on February, 2024 signed the Memorandum of understanding to support the Extended producer responsibility Law: on "recovering post-consumer plastic packaging waste, diverting it away from the landfills and waterways, and sending it to Republic Cement for co-processing. Republic Cement will use the collected packaging waste as alternative fuel in the cement manufacturing process."[69] Jollibee and First Gen Corporation also signed an agreement to "shift to renewable energy by operating 6,300 solar panels in its Canlubang Baking Facility.[70]

Labor policy

According to the Department of Labor and Employment (DOLE) in May 2018, the Jollibee Foods Corporation has the most workers who are employed under a labor-only contracting (LOC) program.[71]

Notes

  1. [N 1]
    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]

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