Homegrown fast-food giant Jollibee Foods Corp. plans to expand its footprint in the Middle East by setting up stores in one or two new markets in the region known for its large concentration of overseas Filipino workers.
JFC chief finance officer Ysmael Baysa told reporters at the sidelines of a recent Chartered Financial Analyst (CFA) Summit that the group was working on potential deals to enter more markets in the Middle East, most likely using the franchising route.
Also, Baysa said the company’s third quarter results were “okay” despite some margin pressure arising from the uptick in input prices this year.
In October, he said, JFC implemented an average increase in selling price of about 3 percent, which is expected to shore up margins in the fourth quarter.
This year, JFC is spending about P9.3 billion—double its capital outlay of last year—to boost its store network as well as to upgrade its commissaries or central food production hubs.
JFC plans to open a total of 200 stores in the Philippines and 100 overseas this year. The same kind of expansion is expected next year, Baysa said.
Same store sales were “very strong,” Baysa said, encouraging more franchisees to open more stores.
Same-store sales refer to sales from restaurants that were already open for at least a year. It excludes sales growth from newly opened stores.
In the first semester, JFC opened a total of 108 new stores, 84 in the Philippines and 24 abroad, bringing its total network to 2,833 worldwide (of which 2,244 are in the Philippines).
Its business in the United States grew by 15.3 percent. In Southeast Asia and the Middle East, it rose by 26.5 percent. In China, it grew by 6 percent.
Baysa said that after addressing the shortfall of popular friend chicken product “Chickenjoy,” JFC would do its best not to fall into the same situation.
The upgrade of its IT system has been completed, but it may take a few months to feel the impact, he added.
“The economy has grown faster than what the infrastructure can bear,” he said, noting that the logistical problems had become evident since November last year. “It’s possible many businesses will continue to experience logistics challenge, not just in Metro Manila but even in the provinces.”