Jollibee to expand US chain, eyes 'certain acquisition'

Jollibee Foods Corp. is preparing for a wider presence in the US by using the business model it used in China – buy a quick-service restaurant – as the Philippine fast-food company is expecting a strong demand from American consumers.

 

The Philippines remains Jollibee's main market, but the company wants to grow its presence in the US, chairman and outgoing CEO Tony Tan Caktiong told reporters after the company's stockholders' meeting in Pasig City Friday.

 

"We'd like to have more play in the US market... We are looking at certain acquisition in the US market," he said. There are no specific targets as of yet, Tan Caktiong said, but noted they are on the lookout for a possible acquisition.

 

"Were open for things that will come up. If we do that, that can speed up the timetable," he said.

 

"We want to go into a brand that's already growing – not the one that needs turnaround – and still has room for future growth," he added.

 

At the same time, Jollibee is keeping on track the expansion of home-grown brands, particularly in the Philippines, to take advantage of a growing population and an expanding business process outsourcing (BPO) sector.

 

Tan Caktiong noted the company is keeping its eye on China, along with the US. "These two are the big consumer markets... That's why we want to focus on them," he said.

 

In China, Jollibee bought Yonghe King back in 2007, Hong Zhuang Yuan in 2008, San Pin Wang in 2010.

 

Two-thirds of the company's P6.3-billion capital expenditure this year will cover new store openings and renovations in the Philippines and the one-third will cover operations overseas, CFO Ysmael Baysa said in the same briefing.

 

"We're still behind spending. We are probably only at around 60 percent. Usually, capex is skewed toward the second half of the year," he said.

 

This year, 300 stores will be opened – 200 in the Philippines and 100 abroad.

 

The higher number of stores in the Philippines reflects favorable economic indicators, Tan Caktiong said.

 

"The local economy is strong so purchasing income is growing. Also, the population base is growing... Also, certain sectors that are there were not there before – like BPO," he added. – VS, GMA News