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Friday, March 29, 2024

Jollibee focuses expansion on four segments

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Jollibee Foods Corp. said Wednesday it remains focused on expanding in four segments of the food market including chicken, coffee and tea, burger and Chinese cuisine to grow its domestic and international operations.

“We believe at least for the next three years, the segments we have chosen collectively provide somewhere between $1.5 trillion to $2 trillion US dollar of value,” Jollibee chief finance officer Richard Shin said in a virtual media briefing.

Shin said despite the group’s strategy to venture into fast casual and casual dining with the acquisition of Smashburger and Tim Ho Wan, it remained focused on quick service restaurant segment because of its scalability.

These recent acquisitions will also help Jollibee accelerate its growth in the US and China and achieve its 50:50 target revenue sharing between domestic and international business, he said.

Domestic business still accounts for 60 percent of Jollibee’s revenues, while the remaining 40 percent comes from international operations.

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Shin said international operations should grow faster because the Philippines is growing extremely fast. Jollibee will have to focus on expanding its brands in China and the United States while continuing to invest in other markets like Vietnam and other countries in Southeast Asia, he said.

“I don’t think we will get to 50:50 this year. But I think what will happen is when we get to 50:50 the momentum will shift. With that momentum, I think we can get to 40:60 and 30:70 very quickly. I think that is how the curve will shift,” Shin said.

Shin said the company has enough solid brands.

“We believe that these brands have not reached their peak yet so we have quite a bit of work to do ahead of us to really swept these assets as we say in finance but really to you know scale them and to build them and to make them operationally consistent and profitable,” he said.

The group’s largest brands by store outlets worldwide are Jollibee, Coffee Bean &Tea Leaf, Chowking, Mang Inasal and Highlands Coffee.

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