Bee That Could

STRATEGIC BUSINESS UNITS AND EXPANSION

Jollibee Foods Corporation (JFC) consists of a number of SBUs that cut across different

food groups. Its system-wide retail sales for 2010 were 70.3 billion PHP ($1.6 billion USD),

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Journal of the International Academy for Case Studies, Volume 18, Number 3, 2012

representing a 10.2% increase over 2009. Net income in 2010 was 3.1 billion PHP ($70.6 million

USD), which grew by 16.3% over 2009 income.

At the core of JFC is Jollibee, the McDonald's-like hamburger restaurant. The unit sells a

standard fare of lunch and breakfast items, but adds a local touch with products such as the

Amazing Aloha Burger (slice of pineapple on top of a burger), the Jolly Hotdog Taco Style,

Chickjoy with Rice, and Palabok (noodles with a spicy sauce, boiled egg, shrimp, and ground

pork). Jollibee competes with McDonald's on the basis of price, local product offerings, and

national identity. JFC also owns Chow King, a Chinese fast food restaurant chain with operations

in a number of countries. The firm has a pizza restaurant chain called Greenwich and a bakery

chain called Red Ribbon.

Source: Jollibee Annual Report, 2009, page 34 and Jollibee 4th quarter 2010 report.

JFC is looking internationally to increase sales and recently acquired Yonghe King, a

"contemporary Chinese fast food" restaurant chain in China. It operates restaurants in the

Philippines, China, Brunei, Vietnam, Saipan, Indonesia, Dubai, and the United States. The units

in the U.S. are located in areas with large Filipino-American populations. JFC feels that

Table 1

Financial Summary 2007 - 2010

J ollibee Foods Co rporation

200 7 2 00 8 2 00 9 20 10

Gross reven ue 3 8, 69 3,6 62 43, 891 ,55 9 4 7,957 ,69 3 5 3,3 52 ,87 0

Net income 2, 38 8,3 58 2, 321,817 2,666,900 3,100,629

Retu rn on eq uity 1 8.9% 1 6.4% 1 6.4% 18 .1%

(Above amounts are in PHP 000, except for return on equity)