Jollibee Foods Corp. (JFC), a homegrown fast food chain, is looking to expand to four continents from its current presence in Asia and North America.
“Currently, we are present in two, and in the next two years we will see Jollibee in four continents,” Dennis Flores, JFC vice president for international markets, said during a speech at the 17th Asia Pacific Retailers Convention and Exhibition late last week.
“We are doing our best to open our first stores in the UK and Italy next year, and soon in Australia and Japan. We will continue our journey with Jollibee as a truly global brand,” he added.
Flores said JFC now had over 3,000 stores across its restaurant brands. The Jollibee chain alone has 1,000 stores, of which 130 are outside the Philippines.
The company is targeting 300 store openings this year, 200 in the Philippines and 100 abroad ̶ mostly in China. As of end-June JFC had 3,001 stores – 2,374 in the Philippines and 627 overseas.
The core strategy of its international expansion to pick markets where there is a concentration of Filipinos.
“Knowing that Jollibee is well-loved by Filipinos, reaching out to them wherever they are is logical for us. We took a conscious decision to prioritize going into markets with significant Filipino populations,” Flores said.
“We see this deep love from them, from our customers wherever we may go, may it be Saudi Arabia, Qatar, the US or Kuwait. The markets I’ve talked about primarily cater to Filipino customers. But we have also ventured into non-Filipino markets or what we call mainstream markets. These are countries where a majority of our customers are non-Filipinos,” he added.
JFC has “three main pillars” where the group expects greater demand. These markets include the Philippines, China and the US.
JFC’s global expansion is in line with a five-year plan to grow its net income and revenues by double digits to place the company in among the world’s top five quick service restaurants (QSR).
Citing Bloomberg data, JFC said it is the largest in Asia and the 10th largest in the world in terms of market capitalization.
JFC Chief Financial Officer Ysmael Baysa has said the company’s target to hit the Top 5 QSR goal was doable in seven years due to the organic growth of new and existing stores as well as acquisitions of new businesses abroad.
JFC has capped two major deals this year, including a joint venture to franchise 1,459 Dunkin’ Donuts stores in China by 2020 and the acquisition of a 40 percent stake in US-based burger joint Smashburgers.
The firm’s capital expenditures amount to P9.1 billion this year, 68.5-percent higher than the P5.4 billion actual spending in 2014.
In the first six months of 2015, JFC grew its net income by 7.2 percent to P2.7 billion as revenues increased by 9.5 percent to P47.85 billion.