Jollibee sets P7 billion budget for ‘new normal’

MANILA, Philippines — Jollibee Foods Corp, the listed Asian food conglomerate, is pouring in P7 billion to implement a new business blueprint in light of the “new normal” brought about by the coronavirus disease 2019 or COVID-19 pandemic.

Part of the new business plan is to close stores that aren’t making money, rationalize its supply chain facilities and build new drivers of revenue growth such as food delivery-to-home and offices and take out and drive-thru.

The expense provision for this transformation will be set up in the 2nd quarter of 2020 and will be incurred mostly within the year.

JFC chairman and founder Tony Tan Caktiong said 2020 is an extremely challenging year for JFC as for most other businesses.

“But out of this transformation, we aim to emerge in 2021 as an even stronger business and organization,” he said, noting that the JFC still aims to be one of the top five restaurant companies in the world,” he said.

JFC chief executive officer Ernesto Tanmantiong said the company is embarking on another business and organization transformation in response to changing consumer behavior caused by the COVID-19 pandemic.

The planned changes will take place in JFC’s businesses around the world particularly in its strong markets such as the Philippines, China and North America.

“These changes will be made with the assumption that consumers around the world will not quickly revert to pre-COVID 19 behavior once lockdowns and other forms of restrictions are lifted in different countries,” JFC said.

As part of the plan, JFC will rationalize the number of restaurants within certain geography or area, rationalize resources deployed in the restaurants and implement safety and social distancing protocol in the dining area.

The company will also invest in digital commerce and technology, increase in the capacity for delivery-to-home and office, take out and drive thru, install mobile applications to facilitate food ordering and payment and establish delivery outlets with no dine-in facility located in discreet, low rent sites.