Case Study

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Main competitors of In-n-out in Philippines

Overall competitive situation, knowledge of industry, product in the new market and competitive advantage

Fast food or quick service restaurants have come a long way since 1921 when White Castle, the first fast food hamburger chain, sold burgers at five cents apiece and ended its first day with a US$3.75 profit. Arguably, A&W was the first fast food restaurant having sold the first frosty mug of A&W root beer for one nickel in 1919. In the Philippines, Tropical Hut Hamburger is reputedly the first hamburger chain dating back to 1965. After almost 90 years from the sale of the first hamburger and root beer, the global fast food market has grown to over US$201 billion in total revenues in 2009, with growth of 3.1 percent, according to Datamonitor. On the local front, total family expenditure for food consumed outside the home reached PhP196 billion, accounting for six percent of the total family expenditure, based on the 2009 Family Income and Expenditure Survey (FIES). Eating-out spending has accounted for a growing share of the expenditure pie over the past two decades from less than four percent in 1991. The amount has more than doubled since the start of the millennium in 2000 from PhP90 billion to PhP196 billion in nine years. As a share of food spending, it expanded from 11.5 percent to 14.2 percent. (“Datamonitor.com”)

McDonald’s is the first name that comes to your mind when someone asks about fast-food restaurants. However, if you ask the same question in the Philippines, the answer that you’ll get is Jollibee. Jollibee may not be a household name when it comes to the global market yet. But in the Philippines, it’s the undisputed king of the burger market. But in the Philippines, Jollibee has repeatedly humbled the global giant. This future darling of emerging market hedge funds and mutual funds has captured more than 75% share of the hamburger market in the Philippines....