Jollibee capital outlay set at P9B
Homegrown fast-food giant Jollibee Foods Corp. is spending at least P9 billion this year—more than double its capital outlay last year—to further grow its global store network and expand the production capacity of its commissaries in the Philippines and China.
In an interview at the sidelines of JFC’s stockholders meeting on Friday, company chief finance officer Ismael Baysa said the company would spend around P6.5 billion to open more stores this year.
“We are adding equipment to our Canlubang (Laguna) commissary, to Red Ribbon’s Libis and Santolan (facilities) near the Marikina bridge,” Baysa said, adding that the group would likewise increase production capacity in China.
A commissary is where food, containers and supplies are kept, handled, prepared and packaged. An increase in production capacity may suggest higher sales for JFC, which has breached the P100-billion mark in sales turnover and expects to become the largest Asian restaurant chain in terms of sales through 2014-2015.
To date, JFC is already the most valuable Asian restaurant in terms of market capitalization.
By expanding the capacity of its commissaries, Baysa said, the group would be investing for long-term growth.
This year, the group plans to open about 200 new stores in the Philippines and another 100 outside the country. Specifically, it will open 50 new stores for Jollibee, 70 for Red Ribbon, 30 stores for Chowking, and around 15 each for the other brands.
In China, where JFC has about 411 stores through its acquisition of local brands, there will be about 35 to 40 new stores to be opened. The group needs at least 500 stores to break even in China, Baysa said.
JFC also aspires for a greater play in the US market and is looking to acquire a US fast-food brand which it can grow. Doris C. Dumlao
