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Jollibee Expansion Plans in the U.S. & China

Jollibee Foods Corporation plans to double down in expanding in the United States and China, including more M&A. The Philippine fast-food specialist is famous for its Chikenjoy and chopped hotdogs in sweet spaghetti sauce.

Aside from that, it acquired California-based Coffee Bean & Tea Leaf in July and took full control of Denver-based Smashburger in 2018. And this will help in its goal to earn 30% of its revenue in the United States in a decade. Also, while the Philippines might fall 30%, it wants to push revenue in China to 30% of overall sales.

As a result, this would mean a major rejig of revenue streams for Jollibee. The fast-food giant ranks No. 4 in Asia’s listed quick service restaurant firms. And this would build upon plans to cut its reliance on the domestic market to 50% of sales in the medium term.

Before its acquisition of Coffee Bean, the Philippines accounted for 73% od sales. On the other hand, the United States represented 15% and China 12%.

Ernesto Tanmantiong, CEO of Jollibee, stated, “We want to spread our portfolio and risk.” He also said that the opportunity in these countries is enormous.

Jollibee in the Market

Jollibee, currently, values at $4.8 billion and has 16 brands or franchises to its name. And now, it aims to own at least six brands in the United States and China, similar to what it has in the Philippines.

Moreover, it has five in the U.S. market. Including its namesake Jollibee restaurant chain and a minority investment in Tortas Frontera. And Michelin-starred chef Rick Bayless, who offers Mexican-inspired sandwiches in three outlets in Chicago’s O’Hare airport, operated this.

Then, in China, it has three brands. And these are the Dunkin Donuts franchise, Yonghe King noodle, and Hong Zhuan Yuan congee restaurant chains.



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