Saturday, 27 June 2009

"Teetering on recession"? Philippines' Jollibee on track to open 186 new outlets this year

Kristine Jane R. Liu

Homegrown fastfood giant Jollibee Foods Corp. has set aside a higher budget this year and will continue to open new branches despite a global economic downturn that has forced companies to adopt a wait-and-see stance.

At the sidelines of the company’s stockholders’ meeting on Friday, Jollibee Foods Chairman Tony Tan Caktiong said the fastfood chain would spend around P4 billion this year, up from last year’s P2.9 billion. A total of 186 new stores would be opened by the end of the year, the same number as last year’s.

"The fastfood business does quite well even in difficult times. Our best-case scenario is sustaining our first quarter growth for the rest of the year," Mr. Tan Caktiong said, adding however that Jollibee Foods would continue to monitor economic developments in the second half, especially the growth of overseas Filipino remittances.

Profits went up by 17% to P562 million from January to March, while revenues rose by 13.5% to P11.3 billion. Jollibee has already opened 37 new stores.

"We will continue to expand to countries that have a high overseas Filipino population," Mr. Tan Caktiong said, adding that Jollibee and Chowking stores would soon be opened in Qatar, Jollibee Food’s third Middle East market after the United Arab Emirates and Saudi Arabia.

Of the 186 new stores this year, 110 will be opened in the country while the rest will be overseas.

"The potential in other countries is still high. The fastfood business is just a population game," he said.

Jollibee Foods now has 651 branches nationwide and 49 overseas, and aims to have 4,000 stores all over the world by 2020.

Aside from the Jollibee brand, the fastfood giant also owns the Chowking Chinese fastfood chain, Red Ribbon bakeshop, Greenwich Pizza, the local Delifrance franchise, and the lower-end Manong Pepe’s restaurant.

The company has acquired a number of foreign restaurants in the past five years — Taiwanese noodle house Lao Dong, Beijing’s congee restaurant Hong Zhuang Yuan, Chinese fastfood chain Yonghe King, and the Chun Shui Tang tea house.

Last year, the company entered into a joint venture deal with US-based Chow Fun Holdings, LLC, giving Jollibee Foods a 12% stake in the US-based Asian restaurant for $950,000. Shares in the company rose by 4.25% or P2 to close at P49 per share on Friday.

1 comment:

  1. wow! jolibee is great! investing in jolibee seems good and also you can see that jolibee helps community too