Jollibee

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Jollibee Foods Corporation
Type Public (PSE: JFC)
Founded 1978 in Quezon City, Philippines
Headquarters Flag of the Philippines5th Floor, Jollibee Plaza, Emerald Ave. Ortigas Center, Pasig City, Metro Manila, Philippines
Key people Tony Tan Caktiong, Founder, President & CEO
Industry Restaurants
Products Fast food
Revenue ▲ PhP 51.55 billion (2007)
Net income ▲ PhP 2.363 billion (2007)
Website www.jollibee.com.ph

Jollibee Foods Corporation (PSE: JFC) widely known as Jollibee is a fast-food restaurant chain based in the Philippines. It is an American-style fast-food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes. Currently the biggest fast-food chain in the country, it also has locations in the United States, Saudi Arabia, Hong Kong, Vietnam, Indonesia, Dubai and Brunei. Jollibee is also the name of their mascot, a large bee in a blazer, shirt and chef's hat.

As of December 2007, Jollibee has become one of the biggest fast-food chains in the world with 1,655 stores worldwide and total sales of more than $1 billion. [1] As of March, 2008, JFC has 1,464 stores in the Philippines namely, Jollibee (627), Chowking (377), Greenwich Pizza (236), Red Ribbon Bakeshop (194), Délifrance (28) and Tio Pepe (2). It had 191 stores overseas.[2]

Contents

[edit] History

Jollibee mascot
Jollibee mascot

Tony Tan Caktiong and his family opened a Magnolia Ice Cream parlor[3] at Cubao in 1975 with Jolibe as the original name. Sometime in 1978, Tony Tan and his brothers and sisters, being partners, engaged the services of a management consultant in the person of Manuel C. Lumba. Consultant Lumba shifted the business focus from ice cream to hamburgers,[3] after his studies showed that a much larger market was waiting to be exploited. Lumba became Tony Tan's first business and management mentor. Lumba next re-formed the name Jolibe to Jolly Bee and made the two words form a single name Jollibee, but changed the "y" to an "i". The Jollibee mascot was conceptualized by Lumba inspired by local and foreign children's books. Lumba next created the product name "Yumburger" as well as the name "Chickenjoy". He had the company incorporated in order to benefit from incorporation and leased a house on Main St. in Cubao, Quezon City as the first headquarters. Lumba also formulated a long-term marketing strategy, listing up a number of consumer promotions and traffic building schemes. Tony Tan stressed that developing internal strengths was critical. The stores were re-designed, the service transformed into a full self-service, fast-food operation with drive thrus. Not long after, Tony Tan and Manny Lumba went on an observation tour in the United States, attended food service and equipment conventions. Tony Tan placed Manny Lumba in charge of franchise development.[citation needed]

[edit] Expansion and Acquisitions

A Jollibee restaurant in Dumaguete City.
A Jollibee restaurant in Dumaguete City.

The company acquired 80 percent of Greenwich Pizza[3]

In 2000, the company acquired Chowking, allowing Jollibee to be part of the oriental quick service restaurant segment.[4] Similarly, Jollibee also acquired Red Ribbon Bakeshop on 2005, another popular fast-food restaurant in the Philippines.[5]

In 2006, the company acquired the franchise of Délifrance. This further expanded its penetration in the food service industry particularly in the French cafe-bakery, a growing segment of the Philippine food market. In September of 2006, the company acquired the remaining 50% stake of Delifrance Asia Ltd. in Baker Fresh Foods Phils., Inc. (BFFPI). This means BFFPI is now a wholly owned subsidiary of Jollibee and that the listed food giant has the exclusive rights to operate Delifrance outlets in the country. "The acquisition involved a restructuring of all advances by Jollibee and Delifrance Asia amounting to P130 million into equity," a public statement said. Jollibee added that the strong sales posted by Delifrance encouraged it to buy out its partner.[6]

The corporate actions in buying out the minority shareholders in Greenwich Pizza (20%) and Delifrance (50%) were the prelude to a plan to integrate Greenwich Pizza, Chowking and Delifrance brands under one corporate entity.[7] Under this plan, merging of the subsidiaries will be implemented by having Greenwich Pizza Corp. and BFFPI folded into Chowking Food Corp. The surviving entity will be renamed Fresh N' Famous Foods, Inc. No new shares will be issued as the assets of Greenwich and BFFPI will be injected into Fresh 'N Famous as additional paid-in capital.[8]

A Jollibee restaurant at World Wide Lane (next to World Wide House), Central, Hong Kong
A Jollibee restaurant at World Wide Lane (next to World Wide House), Central, Hong Kong

Along with its Philippine brands, the company also runs a Chinese fast food chain, Yonghe King, in mainland China, and a popular teahouse chain from Taiwan called Chun Shui Tang (Spring Water Hall). Chun Shui Tang teahouse opened a branch on Shanghai's Huaihai Road on June 30, 2006.[9] On July 25, 2007, Jollibee launched its pilot restaurant "Tio Pepe's Karinderia" in Edsa Central in Mandaluyong, to professionalize the Philippine carinderia business. "Tio Pepe's image is Bulakeño," said John Victor Tence, vice president for corporate and human resources at Jollibee.[10]

On September 21, 2007, Jollibee CEO Tony Tan Caktiong announced that it bought the Chinese restaurant chain Hongzhuangyuan (which has 33 branches in Beijing) for US $50.5 million. Jollibee has also acquired Shanghai-based Yonghe King chain on 2004 for $ 22.5 million and now operates 1,385 hamburger, pizza, baked goods and Chinese food restaurants in the Philippines with over 200 branches in other countries.[11] Meanwhile, the Philippine Stock Exchange stated that trading in Jollibee shares were suspended pending disclosure of the complete terms and conditions of the transaction.[12]

On March 26, 2008, Jollibee opened a new outlet in G-8, G-9 Jia Ning Na Mall, Shenzhen City, China, owned and operated by Kuai Le Feng, a wholly owned subsidiary of JFC. It earlier operated a franchised store in Xiamen from 1998 to 2002.[13]

[edit] BIR Closure of outlet

On December 4, 2007, the Bureau of Internal Revenue on Tuesday announced that it padlocked an outlet (a franchise owned by Quest Food Corp.) of Jollibee Foods Corp. at Farmer’s Plaza, Cubao, for paying incorrect taxes. BIR Deputy Commissioner Nelson Aspe said that "evaluation done on the fastfood chain outlet's cash register showed that the operator of the fastfood outlet was "culpable of underdeclaring the taxable sales for Calendar Year 2006 by as much as 51%." [14]

[edit] 30th Anniversary, "Jollitown"

Jollibee mascot in one of the kiddie parties
Jollibee mascot in one of the kiddie parties

On March 26, 2008, the launch of "Jollitown" at Rockwell Tent, Makati highlighted Jollibee’s 30th anniversary celebration. Jollibee and mascots or chums Yum, Hetty, Popo and Twirlie (mere party attractions and food chain icons), became television stars in children’s TV show, Jollitown, the first TV program by Jollibee, airing Sundays, 9:30 to 10 a.m., on GMA-7.[15]

[edit] References

  1. ^ http://www.gmanews.tv/story/80557/Jollibee-2007-profit-up-94-at-P236B
  2. ^ [1]
  3. ^ a b c Go, Josiah (2001). Fundamentals of Marketing: In The Philippine Setting. Quezon City, Philippines: Design Plus, 1-2. ISBN 971-91860-5-4. 
  4. ^ "Sun.Star Restaurant chain trains staff, bags corporate social responsibility award", Cebu, Sun.Star Publishing, Inc., 2006-11-04. Retrieved on 2007-03-12. (English) 
  5. ^ Austria, Jenniffer B.. "Jollibee buys Red Ribbon", Manila Standard Today, 2005-08-25. Retrieved on 2007-03-12. (English) 
  6. ^ Arcibal, Cheryl M.. "Jollibee group buys out partner in Delifrance", BUSINESS, The Manila Times Internet Edition, 2006-10-02. Retrieved on 2007-03-12. (English) 
  7. ^ BusinessWorld Research: Stock Picks — Jollibee Foods Corp. (JFC)
  8. ^ Arcibal, Cheryl M.. "Jollibee spins off units to form separate company", BUSINESS, The Manila Times Internet Edition, 2006-11-11. Retrieved on 2007-03-12. (English) 
  9. ^ Arcibal, Cheryl M.. "Jollibee opens teahouse in China", BUSINESS, The Manila Times Internet Edition, 2006-05-25. Retrieved on 2007-03-12. (English) 
  10. ^ "Jollibee invades carinderia industry, launches Tio Pepe", BUSINESS, ABC-CBN Interactive, 2006-05-25. Retrieved on 2007-07-25. (English) 
  11. ^ Philippine fast-food giant acquires China chain
  12. ^ Inquirer.net, Jollibee to buy China food chain for $50.5M; trade halted
  13. ^ Abs-Cbn Interactive, Jollibee opens new store in China
  14. ^ GmaNews.tv, BIR padlocks Jollibee outlet for tax deficiencies
  15. ^ manilastandardtoday.com, From mascots to TV stars

[edit] External links


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