Jollibee bullish on bounceback

Asian food conglomerate Jollibee Foods Corp. (JFC) expects a strong recovery despite a difficult business environment brought about by the COVID-19 pandemic.

JFC chief executive officer Ernesto Tanmantiong said the group is already seeing recovery in the US, China and other countries.

He said the company has embarked on a major business transformation to address the changing business environment.
   
“We do recognize that the COVID-19 pandemic has brought shifts and lasting changes to consumer behavior, such as the greater use of digital, work from home, and more reliance on delivery and takeout. That is why JFC has embarked on a business transformation to address the changing economics of our business across the globe, especially in our largest markets – the Philippines, North America, and China,” Tanmantiong said.

In the Philippines alone, JFC is already seeing improvements in the business with dine-in now allowed at 50 to 75 percent capacity.

JFC has allotted P7 billion for its business transformation program. The company will focus on building its off-premise channels such as delivery, drive-thru, and take-out.

Its two recent major acquisitions – Smashburger and Coffee Bean and Tea Leaf © (CBTL) – are also on-track to profitability by 2021, said JFC chairman Tony Tan Caktiong.

Tanmantiong said JFC is adapting very quickly and decisively.

“The COVID-19 pandemic has significantly disrupted our business and our lives, but Jollibee is adapting very quickly and decisively as reported to you. I am confident as ever about the bright future of our company,” he said.

The Jollibee Group operates in 35 countries, with over 5,800 stores globally with branches in the Philippines, United States, Canada, People’s Republic of China (including Hong Kong and Macau), United Kingdom, Italy, Vietnam, Brunei, Singapore, Saudi Arabia, United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, El Salvador, Panama, and Malaysia.

It has eight wholly-owned brands namely Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Yonghe King, Hong Zhuang Yuan, Smashburger; three franchised brands Burger King and Panda Express in the Philippines, Dunkin’ Donuts in certain territories in China and has 80 percent ownership of The Coffee Bean and Tea Leaf,and 60 percent ownership in the SuperFoods Group that owns Highlands Coffee and PHO24 brands.

Source: Iris Gonzales (The Philippine Star )

Source: Peso Economics