To open 5 Dunkin’ Donuts stores in China this year
HOMEGROWN fast food chain Jollibee Foods Corp. (JFC) is looking to open stores in new markets beginning this year as part of its global expansion program.
The country’s largest fast food chain plans to bring its flagship Jollibee brand to Canada and other countries in the Middle East and Japan, Ysmael Baysa, JFC chief finance officer, said at the sidelines of Euromoney’s Philippine Investment Forum on Tuesday.
“We are looking at [expanding]in Canada and also to more places in the Middle East and possibly, in the longer term, Japan,” Baysa said.
Asked if the expansion into the new markets will start this year, Baysa told reporters: “We hope so.”
He added: “In everything we do, we want to choose the best locations because you have to be where your target customers are. And you have to wait and look for the right time to enter.”
At the forum, Baysa explained that within JFC they still see Jollibee as a small company. “In that way, we continue to grow,” he said.
Baysa said JFC is set to open an initial five Dunkin’ Donuts outlets in China this year at an estimated cost of P75 million.
Funding will come from normal capital expenditures and “the range is about P12 million to P15 million per store,” he said.
Jollibee formed a joint venture agreement with Jasmine Asset Holdings Ltd. in December last year to operate Dunkin’ Donuts restaurants in selected territories in China. Golden Cup Pte. Ltd., the joint venture they formed, sealed the master franchising agreement with Dunkin’ Donuts Franchising LLC in January to open more than 1,400 Dunkin’ Donuts stores in China over the next 20 years.
To support its global expansion, the company has programmed capital expenditure of P9.1 billion this year, which is 68.5-percent higher than its actual capital spending of P5.4 billion in 2014.
Of the total capex for the year, P6.7 billion will be used to strengthen its Philippine operations, P1.7 billion will go to its China expansion, and the remaining P700 million will be used to open new stores in the US and Southeast Asia as well as in the Middle East.
In 2014, JFC’s net profit grew 6 percent to P1.68 billion from P1.58 billion a year earlier, while revenue climbed 12.3 percent to P32.42 billion from P28.86 billion previously.
Other than its flagship brand Jollibee, JFC’s other brands include Chowking, Greenwich, Red Ribbon, Mang Inasal, and Burger King Philippines.
JFC also has three more joint ventures in China aside from the Dunkin’ Donuts franchise, and these include a commissary in Anhui Province and the operations of San Pin Wang and 12 Sabu.