Jollibee eyes more stores abroad

The country’s biggest fast food chain plans to open more store openings abroad as it remains “cautious” in the second semester due to an expected slowdown in remittances of overseas Filipino workers (OFWs).

On the sidelines of the company’s stockholders meeting, Tony Tan Caktiong, Jollibee Foods Corp. (JFC) chairman and chief executive, told reporters that despite the global economic slowdown, “the fast-food business is quite resilient.”

He added that the company may maintain its first quarter sales growth throughout the year. For the first three months, JFC posted a net income of P562 million, higher by 17.2 percent compared with P480 million a year ago.

Despite the optimistic projections, Tan Caktiong said the company will be more cautious in the second half of this year as OFW remittances are expected to contract. On top of that, the rainy season traditionally dampens the company’s overall sales.

“We hope we can continue the first quarter numbers, but as a caution, we [would] like to see what happens if the crisis continues. The issue is [the expected slowdown of] OFW remittances,” he said.

This year, JFC plans to open the same number of stores as last year. Out of the 186 new stores, 76 of these were outside of the country.

The company plans to jack up the number of stores abroad as opportunities in foreign markets are “so huge,” Tan Caktiong said.

Foreign operations already account for 13.1 percent of system-wide sales last year, up from 11.5 percent in 2007. With that, JFC will continue to expand to markets where there are sizeable numbers of OFWs, the company executive said.

JFC will be opening its first Jollibee franchise and Chowking store in Qatar this year and will also roll out more stores in the US, Vietnam and other countries in the Middle East.

The company also plans to open its first Jollibee store in Europe, specifically in Milan, Italy.

As for possible acquisitions, Tan Caktiong said the company is “always on the lookout for opportunities, and if the valuation is right, [we will go for it].” He added that JFC looks at long-term prospects that will put it at the forefront when the global economy improves.

However, officials were mum on the details of possible acquisitions but Ysmael Baysa, JFC chief finance officer, said the company is awash with cash and that they will not need to raise funds in case a “very big” opportunity comes up.

JFC owns popular brands Jollibee, Chowking, Greenwich, Red Ribbon and Delifrance, also recently acquired the Hong Zhuang Yuan and Yonghe King chains in China. It has signed a joint-venture agreement for Lao Dong, a restaurant chain in Taiwan, and has shares in Chow Fun Holdings, a restaurant chain in the US that serves Asian cuisine. –Ben Arnold O. de Vera, Reporter, Manila Times