Jollibee keen on China expansion

MANILA, Philippines - Filipino-owned fastfood giant Jollibee Foods Corp. is bent on expanding its presence in China despite the heightened tensions brought about by an international arbitration committee’s ruling favoring the Philippines.

Jollbee CEO Ernestro Tanmantiong said the company was targeting to add 20 to 40 branches to its network of 400 stores in China.

“In China, we continue to target five to 10 percent growth in stores. We have more than 400 stores to date,” he said.

 Tanmantiong said the group was also looking at acquisitions in China.

“We are exploring acquisitions. Our focus is on food service,” he said.

He said the company had already acquired a commissary to support its food business.

Last January, JFC took full control of a food manufacturing facility in mainland China that services its Yonghe King, one of the well-known non-Western restaurants in China.

Yonghe King is the group’s largest business in China, with at least 321 stores and which contributes 10 percent of system-wide sales worldwide.

Tanmantiong said JFC is unfazed by the ongoing territorial dispute involving the West Philippine Sea.  In fact, the company does not see any negative impact on its operations in China.

“I think the move of the government to employ diplomacy is the best way to settle the differences. It is the best solution,” Tanmantiong said.

Over the long-term, the company sees its overseas business accounting for half of groupwide sales.  

“Our vision in the future is to achieve a 50-50 ratio of international versus Philippines. Today, it’s 80 percent Philippines and 20 percent international. We hope to achieve a 50-50 ratio but it doesn’t mean we are slowing down in the Philippines,” he said.

As of the end of April, JFC had 652 stores outside the country. It has a 50 percent interest in several joint ventures such as Highlands Coffee, Ph 24, Hotpot and a 40 percent interest in US burger giant Smashburger.

In the Philippines, it operates 2,506 restaurant outlets in the country or 930 Jollibee stores, 449 Chowking, 236 Greenwich, 373 Red Ribbon, 457 Mang Inasal and 61 Burger King stores.