Jollibee reverses strategy with Philippine launch of Compose Coffee
Jollibee Foods Corp. is reversing its initial strategy for its newest South Korean acquisition, announcing plans to launch Compose Coffee in the Philippines this year despite earlier pledges to keep the brand tethered to its home market for the medium term.
In a disclosure to the Philippine Stock Exchange, Jollibee said the restaurant giant’s subsidiary, Fresh N’ Famous Foods Inc., signed a master franchise agreement to introduce the coffee chain locally.
The move shifted from Jollibe in July 2024, following the company’s completion of acquiring a majority stake in the Seoul-based brand. At that point, Jollibee executives indicated that their focus would stay solely on South Korea, aiming to maximize shareholder returns by increasing market share domestically.
The integration of Compose Coffee into the domestic market is intended to bolster Jollibee’s standing in the fast-growing beverage sector, according to the company. The brand will join a domestic portfolio that already includes the Coffee Bean & Tea Leaf and Highlands Coffee, as the group seeks to capture a larger slice of the daily caffeine routines of Filipino consumers.
Joseph Tanbuntiong, Jollibee Group Philippines chief executive officer, said the 2026 launch aligns with a strategic pillar to scale the coffee and tea segment.
He noted that the company intends to leverage its existing infrastructure and “operational expertise” to scale the brand quickly.
The decision to fast-track the international expansion comes as Jollibee seeks more “repeatable” growth models. Richard Shin, Jollibee chief financial and risk officer, earlier stated that the company would focus on South Korea for at least five years because its roasting infrastructure and supply chain were concentrated there.
On Monday, however, Shin described the entry into the Philippines as reflection of the group’s commitment to scaling brands with global potential, citing the chain's disciplined operating model.
Compose Coffee was founded in 2014 and has grown to more than 3,000 locations in South Korea. The brand has gained significant cultural traction through high-profile marketing, including a partnership with BTS member V. It relies on a “smart roasting” system to maintain flavor consistency, a technology Jollibee likely intends to replicate or support through its own massive logistics network in the Philippines.
While Jollibee did not disclose specific capital expenditure figures for the Philippine rollout, the move underscores an aggressive push to dominate the affordable specialty coffee market.
The company is betting that the Filipino appetite for Korean culture and value-priced lattes will outweigh the complexities of managing a brand it originally intended to leave abroad.