Jollibee Foods Corporation (JFC) expects a strong recovery post the COVID-19 pandemic with its businesses are now showing good signs of improvement while its business transformation is well underway.
During the firm’s annual stockholders’ meeting, JFC Chief Executive Ernesto Tanmantiong noted that, although the pandemic has brought times of unprecedented change, the company’s long-term growth strategies, vision, mission, and values remain the same, while cognizant of the need to adapt to changing consumer habits.
“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,” he said.
He added that, “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.”
As part of its P7 billion business transformation, the company will focus on building its off-premise channels such as delivery, drive-thru, and take-out.
JFC has likewise introduced new Family and Group Meals for takeout, delivery, and drive-thru.
The company also bared its plans to expand and open new stores on a highly selective basis as more prime locations become available at lower rental costs.
It will also continue running the business in more cost-efficient ways – streamlining its operational processes; consolidating commissaries and services that can be shared across its various brands; rationalizing non-performing stores, supply chain facilities, and organization structure; and shifting ad budgets to more digital media which allows better targeting at a lesser cost versus traditional media.
JFC said it is seeing encouraging signs of recovery and improvement across its portfolio of brands. Sales recovery has already started in the US, China, Vietnam, Singapore, Hong Kong, and Brunei.
In the US, delivery, drive-thru, and take-out have offset the loss in dine-in sales. It is also seeing significant improvements in sales in the Philippines, especially with 50 to 75 percent dine-in capacity now allowed.
Its two recent major acquisitions – Smashburger and Coffee Bean and Tea Leaf (CBTL) – are also on-track to profitability by 2021.
“The COVID-19 pandemic has significantly disrupted our business and our lives, but Jollibee Foods Corporation is adapting very quickly and decisively as reported to you. I am confident as ever about the bright future of our company.”” said Tanmantiong.