Jollibee Food Corporation (JFC) is suggesting the development of balanced trade policies as a way for government to aid businesses as they continue to grapple with supply chain issues in the aftermath of the pandemic and ongoing conflicts worldwide.
During a plenary session at the Indo-Pacific Business Forum (IPBF) in Manila on May 21, JFC Chief Financial and Risk Officer Richard Chong Woo Shin said frameworks and the "right balance between key value chain cost efficiencies," pertaining to tariffs and duties may be considered for food and beverage companies like themselves.
"Ultimately, if we want to balance what the impact is to consumers, it's full in costs. It's energy costs, transport costs, and importation. Duties, tariffs, and the rest of it. So, this has been important to us as Jollibee because we do take pride in trying to serve food at a very reasonable value point to consumers because it is a basic necessity for many families in places like the Philippines and throughout the world," he explained.
Shin shared that 60 percent of JFC's raw material input comes from outside of the country, including protein, carbohydrates, dairy, fats, and oils. This has prompted lengthy domestic sourcing on their part.
He remarked that the firm is working closely with the public sector to enable better importation processes and other efficiencies to "make the whole system smoother and faster so that we can get food to table at a reasonable pace."
"We're absolutely plugged in to organizations like the USTDA (United States Trade and Development Agency)," he mentioned.
Despite the ongoing challenges, Shin said JFC sees an "optimistic positive growth trajectory" within the next five years, citing the Philippine's gross domestic product (GDP) and young population.
He also expressed JFC's interest in further expanding their brands abroad, specifically in strengthening its presence in the US and for the upcoming franchises.