Jollibee sets global expansion program
Fast-food giant Jollibee Foods Corp. is making a debut in more European cities, including Madrid and Rome, this year as part of a global expansion program.
The plan is to expand its store network in Europe to 50 in the next five years, mostly in the United Kingdom.
In populous China, a key overseas market, the goal is to breach 1,000 stores in five to seven years and possibly acquire more brands that will cater to the local market.
In Vietnam, the group is rethinking plans to list the business on the Vietnamese stock market as the strong performance in this part of the world has reduced the urgency of selling equity to raise funds.
Jollibee intends to open 100 new Highlands Coffee outlets yearly in the next five years while the Jollibee brand can open 20 to 30 stores a year. The group also plans to bring Vietnamese noodle store brand Pho24 to more markets outside Vietnam.
“The proportion of our foreign business to worldwide system-wide sales will increase from 20 percent to 30 percent. We will eventually achieve our goal of 50-50 [percent] revenue split between the Philippines and foreign businesses even as our Philippine business continues to expand strongly since our foreign business is growing even faster,” Jollibee founder and chair Tony Tan Caktiong said in a report to stockholders.
Jollibee chief financial officer Ysmael Baysa said the 50-50 split could be achieved in five to seven years.
This year, the company has set aside P17.2 billion for capital expenditures to support the opening of about 500 stores worldwide and the renovation of 90 stores.
Ernesto Tanmantiong, Jollibee president, said that after London and Milan, the homegrown brand would be brought to Madrid and Rome this year.
The group also plans to open its first Tim Ho Wan franchise store in Shanghai and its first Panda Express franchise store in Manila this year.
Asked how soon the operations of American hamburger chain Smashburger could be turned around, Tanmantiong said it would usually take a year or two for Jollibee to stabilize the operations of new acquisitions. —DORIS DUMLAO-ABADILLA
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