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By Likha C. Cuevas-Miel, Reporter
PRICES of Yum burger and Chicken Joy may rise
anew, as the bell weather for the average Filipino’s penchant for
fast-food plans another round of increases across all its brands to
cope with soaring raw material costs.
On the sidelines of First Gen Corp.’s
stockholders’ meeting, Tony Tan Caktiong, Jollibee Foods Corp. (JFC)
chairman and chief executive, told reporters that the fast-food
giant may match last year’s earnings despite pressure on margins
due to rising costs.
“We were trying to hold [back] as much as
possible but it looks like we may have to raise prices. And I think
we may have been raising prices a little bit if needed,” Tan
Caktiong said.
At Wednesday’s meeting of the National Price
Coordinating Council, Trade Undersecretary Zenaida C. Maglaya said
the price of chicken has increased from P110 to P120 per kilo, as
consumers shift demand away from the more expensive pork, which now
costs P160 per kilo.
Agriculture Assistant Secretary Salvador Salacup
said the buying price of palay at the farm gate has risen to P18.50
from 13.50, pushing commercial rice prices to P34 to P35.
JFC has been raising prices in small, staggered
amounts of about P1 to P2 in some products like burger, pasta and
rice meals, starting last month. Tan Caktiong said the company would
have to see what it can absorb before jacking up prices, especially
since oil breached $120 per barrel in the world market.
“So I think it will be here hopefully in the
next few months only but it looks like this commodity issue is
really an issue. I’m not sure if oil price at $120-plus if it’s
factored in the Philippines. [We don’t know yet] the impact of
fuel on our cost,” he said.
JFC began importing its rice requirements by
participating in state-run National Food Authority’s purchases
from abroad. “Right now we’re quite okay in terms of our
requirements, which is worth one month supply,” Tan Caktiong said.
While imports guarantee no price increases, the company expects to
ensure its supply during these uncertain times, he said.
Tan Caktiong said the company is minimizing the
squeeze on its bottom line by improving operating efficiencies and
managing prices better without having to resort to smaller serving
sizes.
JFC plans to open more branches this year to
generate more sales. Tan Caktiong said the company aims to match
last year’s branch openings of 173 stores here and abroad. This
includes the second Jollibee store in mainland China within the next
6 months in or around the Shenzhen area, the site of its first
branch.
It also plans to open a new restaurant in India,
by bringing in a Chinese brand or buying an Indian restaurant. Tan
Caktiong said the company’s first attempt in India fell through
when it lost to a foreign venture capitalist.
For this year, JFC has earmarked P6 billion in
capital expenditures, P4 billion of which is set aside for the
Philippines. The bulk of this amount will come from internally
generated funds, but Tan Caktiong said the company also plans to
lock-in rates this year by borrowing for next year’s requirements.
--With Katrina Mennen A. Valdez
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