Jollibee Foods Corporation, one of the largest Asian food service companies, is banking on franchisees to ramp up its global expansion into new areas, aiming to triple its net income in five years.
During the firm’s annual stockholders’ meeting, Jollibee President and CEO Ernesto Tanmantiong said, “in five years, we aim to triple the Jollibee group's value in terms of net income attributable to the equity holders of the parent company.”
He said the group’s growth strategy “includes scaling the business in four key areas for 2024 and beyond to achieve this. First, we will further expand the Jollibee brand internationally. Our reach now spans 17 countries across different regions.”
“Second, we will grow our coffee and tea business. Third, we will grow exponentially in China, especially in multiple lower-tier cities. Lastly, we will sustain our robust growth and market leadership in the Philippines,” he added.
To support the group’s global expansion, Tanmantiong said, “we will be ramping up franchising in key markets. We will also accelerate our digital transformation to increase operational efficiency, further improve customer service and revenue management.”
He explained that franchising allows Jollibee to expand its network and brand presence with minimum capital allocation.
“Our goal is to be a franchisor of choice in the QSR industry by attracting and nurturing top-tier franchisees. We aim to achieve this by partnering with financially strong, capable and culture-fit master franchisees that brings significant scale, access to capital, and deep local market expertise," said Tanmantiong.
“To support our franchising goal, we continue strengthening corporate capabilities for our franchisees in key areas such as quality management, digital technology, supply chain, network development and marketing,” he added.
The Jollibee Group will continue expanding its network where they already have a presence and this will be through a combination of company owned stores and partnering with franchisees.
These established areas include the United States of America, Canada, Middle East, UK, Italy, Spain, Singapore, Brunei, Malaysia, Vietnam, Hong Kong, Macau, and the Philippines.
“This will be data driven, focusing on key locations where consumer concentration allows for our brand to thrive based on superior taste, and strong box economics,” Tanmantiong said.
Meanwhile, Jollibee will also continue to evaluate new market entries, mainly with strong and trusted franchise partners who are aligned with its vision and values.