222 views

Jollibee targets foreign expansion, acquisitions after COVID losses

CEO Ernesto Tanmantiong now expects half of sales to come from outside of the Philippines by 2025.

Jollibee Foods Corporation is looking toward foreign expansion and “opportunities” created by COVID-19 as it rebounds after its first annual loss in at least three decades.

In an interview with Bloomberg, Jollibee CEO Ernesto Tanmantiong said the Philippine conglomerate plans to open 450 restaurants around the world this year whilst looking for acquisitions that could be funded with the company’s 57.5 billion pesos (US$1.2 billion) in cash and short-term investments.

“There are opportunities coming out of the pandemic,” he said. “We are constantly assessing these opportunities.”

Around 80% of 2021’s new stores will be overseas and “equally split” amongst China, North America and Southeast Asia, Tanmantiong said. By 2025, he expects half of Jollibee’s sales will come from abroad — a goal the pandemic pushed back by a year or two.

58% of sales came from the Philippines at the end of 2020.

“We are now in expansion mode in preparation for the full recovery from the pandemic and this will continue in the next few years,” Tanmantiong said. “We are investing more in foreign markets especially in markets where they have recovered fast from the pandemic.”

Jollibee has spent P7 billion on what it calls a “business transformation” to counter the impact of the virus, including upgrades to its delivery and online sales platform. It posted a P11.5 billion net loss last year as dining out was impacted by movement restrictions.

Jollibee closed 486 stores in 2020, but also opened some new ones, and overall had 147 fewer open at the end of last year compared to the end of 2019. At the end of last year, Jollibee had more than 5,800 outlets in 33 markets globally.

Tanmantiong added he plans to bring back Jollibee’s earnings and growth to pre-pandemic levels by 2022, and double its organic business in four to five years.

Join QSR Media Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

2021: Year In Review
We look back at the highs and lows of the Asian multi-site restaurant industries these past twelve months.
Subway APAC president: regional growth can match U.S. foothold
In his first-ever interview with QSR Media, Eric Foo details the chain’s expansion targets and stressed their ongoing investment in digital engagement.
How EFG is rethinking its brand portfolio to turbocharge post-COVID growth
Managing director Martin Darby elaborates on the company’s omnichannel strategy and reveals key advantages of handling brands from various franchisors.