Jfc Fooods

I. Industry Background

According to Euromonitor International, in 2008, the global economic crisis and accompanying high inflation had serious repercussions for the Philippine consumer food service market. In a country where consumers generally consider eating out a treat, the increase in the cost of fuel and consistent rise in commodity prices limited spending in consumer foodservice outlets. The high inflation rate was unable to lift current sales value to 2007 levels as it was outweighed by outlet closures and lower transactions in cafés/bars and full service restaurants. Fast food, 100% home delivery/take away, and street stall/kiosk remained the fastest growing sectors in 2008.

Amid the economic slowdown, industry players became more cautious in opening up outlets in new geographic locations, instead opting to maximize same store sales. Jollibee Foods Corp brands including Jollibee, Chowking, and Greenwich, saw less aggressive expansion as the company focused on menu improvement and pricing strategy in order to stimulate consumer demand. The Roasters Group’s brand Kenny Rogers focused on renovating its existing stores and revamping its menu in order to expound its healthier image thereby commanding higher prices. Full service restaurant’s major player, Max’s Inc, concentrated on improving day sales by launching more snack and breakfast meals.

Local companies showed resilience in 2008 as they continued to lead in terms of value sales. Jollibee Foods Corp’s flagship brand Jollibee continued to maintain its foothold in fast food even as competitors such as McDonalds’s and KFC slightly improve their value shares. The rapid expansion of Mang Inasal in Manila also fortified local brand share in 2008 and it now commands a higher share value than international brand Kenny Rogers and the company is among the top movers in consumer foodservice. The continued expansion of Pancake House’s brands including Pancake House, Gerry’s Grill and Teriyaki Boy...