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Jollibee's Global Expansion and Strategy

Jollibee is a large Filipino fast food chain with over 1,200 locations worldwide. It was founded in 1978 in the Philippines and is known for its fried chicken, burgers, and spaghetti. Jollibee has experienced rapid growth both domestically and internationally through focusing on Filipino tastes and adapting to local cultures. It remains the largest and most popular fast food chain in the Philippines.
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0% found this document useful (0 votes)
4K views6 pages

Jollibee's Global Expansion and Strategy

Jollibee is a large Filipino fast food chain with over 1,200 locations worldwide. It was founded in 1978 in the Philippines and is known for its fried chicken, burgers, and spaghetti. Jollibee has experienced rapid growth both domestically and internationally through focusing on Filipino tastes and adapting to local cultures. It remains the largest and most popular fast food chain in the Philippines.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Jollibee is a Filipino multinational chain of fast food

restaurants owned by Jollibee Foods Corporation (JFC). As of


April 2018, JFC had a total of about 1,200 Jollibee outlets
worldwide. with presence in Southeast Asia, the Middle East,
Hong Kong, North America, Italy, and the UK in London.

HISTORY

In 1975, Tony Tan Caktiong and his family opened a Magnolia Ice Cream parlor in Cubao,
Quezon City which is credited as the first Jollibee outlet. The Magnolia outlets operated by Tan's
family began offering hot meals and sandwiches upon request from the customers which the family
found out to be more popular than the franchise's ice cream. In 1978, the family decided to cancel
the Magnolia franchise and converted the ice cream parlors they operated into fast food outlets.
Management consultant Manuel C. Lumba advised the family of the move.

The company that would be managing the chain of fast food, Jollibee Foods Corporation,
was incorporated on January 1978. By the end of that year, there were 7 branches in Metro Manila.
The first franchised outlet of Jollibee opened in Santa Cruz, Manila in 1979.

Jollibee experienced rapid growth. It was able to withstand the entry of McDonald's in the
Philippines in 1981 by focusing on the specific tastes of the Filipino market, which differed from
the American fast food company. The first Jollibee store overseas opened in Taiwan in 1986 which
is now closed. Jollibee continued to expand and set up outlets both within the country and abroad.

 BRANCH LOCATIONS
 Jollibee started with five branches in 1978. The JFC has Jollibee branches outside the
Philippines in locations in other countries in Southeast Asia, Hong Kong, the Middle
East, North America, and Italy.
 As of December 2016, Jollibee operates 1,100 stores, 950 of which are in the
Philippines, its country of origin, and 150 are situated in foreign markets.
 Jollibee's first outlet in North America opened in the United States in Daly City,
California in June 1998.
 They expanded to Canada and have two locations in Winnipeg, one in Toronto and one
in Mississauga with plans to open 100 Canadian stores by 2023.
 Jollibee first entered the European market in 2018 with the opening of a branch in
Milan, Italy. London, United Kingdom will become the second in Europe, it will open
its doors on October 20, 2018.
 They also had branches in Taiwan, and Mainland China. The first branch in Taiwan
opened in 1986 it was the first branch overseas. Jollibee launched its first branch in
Dubai in 1995 but it was later closed. Jollibee also previously had branches in Malaysia
and Indonesia but were later closed down due to the 1997 Asian financial crisis.
 It also had former presence in Oceania, although one is set to open in Australia in 2017.
It had branches in the US territories of the Northern Mariana Islands and Guam as well
as in Papua New Guinea.
 Plans to enter the Australia and Japan markets were also entertained by the company.
 The acronym FSC represented its commitment towards these three areas:

Every FOOD item served to the public must meet the company’s excellent standards or it will
not be served at all.

SERVICE must be fast and courteous.

CLEANLINESS from the sidewalk to kitchen, from uniforms to utensils must be maintained
at all times.

RESOURCES

To have a high quality products, JFC has their own Commissary System, ensuring the
manufacture and distribution of safe and high-quality food in the most cost-efficient manner. The
company can provide their own supplies for their entire operations having the three big
commissaries in the entire Philippines, which operates 24/7, manages Jollibee’s total supply chain
process namely:

 Santolan, Pasig City


 Mandaue City, Cebu
 Canlubang, Laguna

The Pasig City commissary has production lines for the breads and sauces, and is the
distribution center for North Manila and North Luzon. In 1996, Jollibee opened the Vismin Food
Corporation (VFC).

Mandaue City, Cebu to service the Visayas and Mindanao areas. VFC has its own bread, pie,
sauce and frozen patty lines.

Laguna commissary is the biggest and most advances in the country and among Asia’s best.
Operated by Zenith Foods Corporation (ZFC), a full subsidiary of Jollibee, the newest commissary
is on a 6-hectare property in the Calmelray Industrial Park. Aided by custom-made mechanized
equipment, the production lines are for the marinated Chicken Joy, frozen patties and pies, breads,
sauces, hotdogs and other meat products, and dry blended goods. ZFC can service over 800 Jollibee
and Greenwich stores.

 PRODUCTS

Two pieces of Chicken Joy, the chain's core product, along with a serving of rice.

Jollibee is a fast food restaurant with American-influenced items, as well as casual Filipino
fare. Among the establishment's best sellers are its Yumburger, the house hamburger first
introduced during their early days of operation; Chicken Joy, a fried chicken meal introduced in
the 1980s; and Jolly Spaghetti, their sweet-style interpretation of spaghetti, which is being
advertised as "the meatiest, cheesiest spaghetti". In the Philippines, Jollibee serves Coca-Cola
products for its beverages; in overseas markets, the chain serves Pepsi products.

KNOWLEDGE (TECHNOLOGY)

The Philippines’ no. 1 fast food chain is also no. 1 in digital engagement. For decades,
Jollibee has been capturing the taste buds of Filipinos with its Langhap-sarap treats. Lately, the
brand has been winning over the hearts of millions online with hit-after-hit digital content.

Community Plus, a Mediacom social media listening tool that is used widely amongst
various global brands, reports that from January to June 2017, Jollibee outranked all other brands
in the quick service restaurant category, particularly in Facebook where it garnered a majority 37%
share of engagement, twice greater than its biggest foreign competitor. Jollibee’s stellar digital
success has been key to sustaining their market leadership in the country, across all their major
target markets. They are engaging into a world-class, highly engaging online content and digital
innovations to break the internet to reinforce their position as the Philippines’ most loved, most
talked about brand. They are capturing the hearts of Filipinos online (even offline) is the ultimate
reward.

RELATIONSHIP

 OWNERSHIP AND MANAGEMENT

Jollibee, the fast food chain brand is owned by the Jollibee Foods Corporation which is
based in Pasig, Philippines. JFC has been open to franchising since 1979 with over 1000 Jollibee
outlets being operating by franchisees. JFC also owns other fast food brands in the Philippines
such as Chowking, Greenwich Pizza, Red Ribbon Bakeshop, Mang Inasal, and Burger King
Philippines.

The JFC is a franchise company, with 686 outlets in the Philippines and 57 stores in the
international market. The company are divided into different divisions. From the Presidents of the
company, Director, Corporate Strategy division, Engineering, Human Resources, Information
Management, Procurement, Real Estate, Audit and Commissioner. There are different Brach
manager that manages the entire staff in every Jollibee outlet.

SWOT ANALYSIS

 STRENGTH
- Jollibee have a low cost operation system.
- Superior menu line-up.
- Efficient manufacturing and logistics facilities.
- Provides high quality service and best tasting food
- Adaptability to change and technological advancements
 WEAKNESSES
- The existence of other competitors.
- Since it is a franchised store, the service will vary from store to store.
- Delicious yet unhealthy meals.
 OPPORTUNITIES
- Became the first food service company listed in the Philippine Stock Exchange.
- Adaptation on products and services to culture and tradition.
- Employees received extensive training so that they could learn the corporate values of
integrity and humility.
 THREATS
- The rivalry between Jollibee and McDonald.
- The threat of the new entrants.
- Issues concerning their products and services
- Changing needs and demands of the market
- Unstable economy

RECOMMENDATION

Tony Tan Caktiong provided joy to the Filipino community through the foods offered by
his company. JFC must continue to understand Filipino community and the foreign customers in
order to respond with the changing needs of the market. They should also consider to do a survey
to their customers for them to better understand how the customer wants to be satisfied, to know
their concerns and suggestions about the service of the crew.

Lastly, it is also better if they provide a wider facility that can accommodate a bulk of
customers.
BATANGAS EASTERN COLLEGES

San Juan, Batangas

JOLLIBEE FOODS CORPORATION

SUBMMITED BY:

Bagnes, Babyleth B.

Gamboa, Vincent M.

Pablo, Joana Marie M.

Pasia, Beverely B.

Rivera, John Christian A.

SUBMITTED TO:

Euneil A. Castillo

Instructor

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