Jollibee to focus on China, India for next acquisition

Fastfood giant Jollibee Foods Corp. is focusing on China and India for its next acquisition, company officials said Tuesday. Ernersto Tanmantiong, JFC president, told reporters that the company sees China and India as countries with huge potential owing to their large population. “The acquisition is more on China and India…because of the huge potential of the market," Tanmantiong said on the sidelines of the company's launch of its latest product offering – the Jollibee Chicken Barbecue. On the other hand, JFC will also expand its stores in Vietnam. JFC's desire to acquire more restaurant or food chains abroad is borne out of its long-term goal of sourcing half of its revenues from overseas operations. For the first six months of the year, the company reported that its net income reached P1.308 billion or higher by 16.2 percent from P1.125 billion reported in the same period in 2008. System wide retail sales surged 12.4 percent to P30.956 billion. As of end-June, JFC runs 317 stores abroad. These are Yonghe King in China with 154 stores; Jollibee, 50; Red Ribbon, 33; Chowking, 31; CST, one; Hongzhuangyuan, 39: and Lao Dong (Taiwan), nine. Currently, overseas operations only contribute about 10 percent of JFC's revenues. “We still have a long way to go. Maybe in more than five years, we'll be able to achieve that goal," the JFC official said. Tanmantiong said the company expects sales to remain steady for the rest of the year. He said the company is excited with the launch of its latest offering. “We don't know yet (what the revenue contribution of this product is). Hopefully, this will replicate the success of Chicken Joy, but of course the fried chicken is still the preferred choice for many," he said. Its chicken barbecue is expected to be a hit among kids and those who stay away from fried food. “In the near future, we plan to offer this product abroad," Tanmantiong said. The Jollibee Chicken Barbecue is available as a one-piece solo meal for P69 and as a two-piece solo meal for P119. Value meals, which come with a regular drink are priced at P89 and P139 for the one-piece and two-piece sets, respectively. The Jollibee Chicken Barbecue is already available in Metro Manila and will soon be enjoyed in other parts of the country. JFC operates the Philippines' largest fast food network. As of end of the first half, the company has a total of 1,528 stores in the Philippines. These include 664 Jollibee outlets, 390 Chowking branches, 228 Greenwich stores, 210 Red Ribbon branches, 23 Delifrance restaurants, and 13 Manong Pepe’s outlets. - GMANews.TV