| "We have to make priorities because we are not yet even present in Indonesia with a big population. We're not even present in Malaysia. Asia is growing faster than Europe. The development potential is actually, the rate is faster,” Baysa said. |
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MANILA – Jollibee Foods Corp (JFC) is angling to become Asia's biggest restaurant chain in the next two years, as it ramps up the expansion of Burger King amid growing competition in the premium hamburger segment.
On the sidelines of the Asia CEO Awards last week, JFC chief financial officer Ysmael Baysa said the homegrown fastfood giant is "growing practically everywhere" at double-digit rates. "Among all Asian, not just fast-food but restaurant companies including fast-food, Jollibee can be the biggest," Baysa said. JFC earlier said it could become Asia’s biggest restaurant chain by 2020. At end-September, JFC operated the largest food service network in the Philippines with 2,121 stores across the flagship Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King brands. It had 575 stores abroad, including Yonghe King, Hong Zhuang Yuan and San Pin Wang. JFC also has a 50 percent interest in joint ventures for Highlands Coffee (Vietnam, Philippines) at 77, Pho 24 (Vietnam, Indonesia, Philippines, Japan) at 60 and Sabu (China) at 6. "It's possible that we can achieve that without entering a new market. If we enter a new market and if we make another acquisition, then our chances are even bigger," Baysa said. So far, a Japanese firm dominates the Asian market with more than 2,000 outlets in the world's third largest economy. However, JFC's sales are bigger than that of the Japanese company, Ysmael said, citing data from market research firm Euromonitor. JFC is present in China, the United States, the Middle East and Southeast Asian markets such as Vietnam, Brunei and Singapore. It has yet to enter Europe, considered a "very attractive market." "We have to make priorities because we are not yet even present in Indonesia with a big population. We're not even present in Malaysia. Asia is growing faster than Europe. The development potential is actually, the rate is faster,” Baysa said. JFC is already in the largest categories in the Philippines and acquisitions “will not be as frequent as before” because it has already established its foundation in China, he said. Known for its brands in the mass market segment, Jollibee is stepping up the expansion of Burger King, adding 10-15 stores to its network next year after opening 9-10 branches in 2013. This is part of the company's plan to roll out more stores next year. The Jollibee group opened 137 stores across all brands in the first nine months of the year. “We are actually expanding Burger King, but Burger King is geared for the AB market. This market by definition is smaller compared with mass market like Jollibee. We are expanding it but we don’t open as many stores as in other brands," Baysa said. He said Burger King has been posting "very good" sales as it faces a growing number of competitors in the premium hamburger segment amid the expansion of T.G.I. Fridays and Army Navy. "The upper income segment is growing in the Philippines so more and more people are able to afford the premium products," Baysa said. JFC gained a foothold in the high-end segment of the hamburger category in the Philippines in 2011 with the acquisition of a 54 percent stake in BK Titans Inc for P65.50 million. BK Titans owns PERF Restaurants Inc., which operates the Burger King franchise in the Philippines. "We'll see the opportunities but what's important for now is for us to see closely how we are doing in Burger King, whether we will be able to compete and grow that very well," Baysa said. |
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