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Philippine fast food giant Jollibee has ambitious plans to expand in US and China
- Jollibee is valued at US$4.8 billion and has 16 brands or franchises to its name
- It aims to have six brands each in the United States and China, just as it does in the Philippines
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Jollibee, the Philippine fast food specialist known for fried Chickenjoy and chopped hot dogs in sweet spaghetti sauce, is doubling down on expansion plans in the United States and China that are likely to include more mergers and acquisitions.
Helped by the purchase of California-based Coffee Bean & Tea Leaf in July and having taken full control of Denver-based Smashburger in 2018, it wants to earn 30 per cent of its revenue in the United States in a decade’s time, executives said.
It is also aiming to lift revenue in China to 30 per cent of overall sales, while the Philippines would fall to 30 per cent.
That would represent a major rejig of revenue streams for Jollibee, which ranks No. 4 among Asia’s listed quick service restaurant firms, and would build upon plans to cut its reliance on its domestic market to 50 per cent of sales in the “medium term”.
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Before its acquisition of Coffee Bean, the Philippines accounted for 73 per cent of sales while the United States represented 15 per cent and China 12 per cent.
“We want to spread our portfolio and risk,” Jollibee CEO Ernesto Tanmantiong said. “There’s huge opportunity out there.”
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