How Jollibee plans to expand beyond Philippines and become a major player in Asia’s fast food market
- The company, which has a market value of more than US$5 billion, already has 4300 stores under 14 brands in 20 countries
- There are currently no Jollibee restaurants in mainland China but outlets in Hong Kong and Macau may be a gateway
Jollibee Foods, a major Asian fast-food operator, hopes to generate half its sales outside its home market of the Philippines within five to seven years, up from 30 per cent now, its chief executive told Reuters.
It also hopes to double its revenue in five years, as it expands its own chains and buys others, at a time when deal making in the restaurant sector is heating up as increasing competition and costs fuel consolidation.
Earlier this year, Coca-Cola agreed to buy Costa Coffee and JAB Holdings bought Pret a Manger, which Jollibee also considered.
More recently, Restaurant Brands New Zealand said it was in takeover talks, TGI Friday’s UK went on the block and sources said Bojangles was exploring a possible sale.
“There are a lot of discussions going on, but only a few end up with final negotiations,” CEO Ernesto Tanmantiong said in an interview on Thursday, ahead of the weekend opening of its first British Jollibee fried chicken restaurant in London.
Tanmantiong said he was open to strategic acquisitions, adding the size didn’t matter, as long as targets were fast-food or fast-casual restaurants, offered a superior product and had scope to scale up.
The company, which has a market value of more than US$5 billion, already has 4300 stores under 14 brands in 20 countries. It operates Burger King stores in the Philippines, Dunkin Donuts in China and Highlands Coffee in Vietnam and is the majority owner of Smashburger in the US. Growth in China and the United States is key, Tanmantiong said.
