Jollibee to open seven new stores this year

Despite a weak economy, fastfood giant Jollibee Foods Corp. (JFC) plans to set up seven new stores this year both here and abroad to improve its profitability and further strengthen its dominance in the Philippine quick service restaurant market.

In a press briefing yesterday, JFC vice-president for finance Miguel Navarrete said two new stores (one Jollibee and one Tomi’s Teriyaki) are expected to open in California, United States next month. For the second half this year, three to five more fastfood stores will open in and outside the country, he said.

It will be recalled that in 2001 JFC acquired 90 percent of Tokyo Teriyaki House, a Japanese restaurant based in California.

Navarette said the move is in line with Jollibee’s efforts to serve new or underserved areas as well as to widen its lead over competition.

He said the US store network is slowly but surely attracting more Filipino communities and mainstream American consumers as well. With seven Jollibee stores in California, sales for Jollibee USA have grown significantly, allowing the group to position for increased business contribution in the near term.

With the continuing slowdown in the world economy, Navarrete said international expansion strategy remains focused on markets where the company believes it can successfully develop the Jollibee brand.

"JFC continues to find opportunities for expansion, albeit at a more modest pace given current economic conditions," Navarrete said.

As of end-March this year, JFC had a total 30 restaurants overseas (20 Jollibee stores, eight Chowking, and two Tomi’s Teriyaki). Apart from the US, the group has a presence in Hong Kong and Dubai.

As of the end of the first quarter, a total of 13 new stores have been opened, all of which are in and outside Metro Manila. "We usually start the year slow and kind of catch up in the latter part when we feel there’s stronger economic activity," Navarrete said.

JFC has earmarked P1.7 billion for its capital expenditures this year.

The group reported a 32-percent growth in its net income for the first quarter of the year to P269.81 million from P204.05 million in the same period the previous year. Systemwide retail sales increased 10 percent to P6.7 billion. Jollibee contributed 68 percent of the total, followed by Chowking (17 percent), Greenwich (11 percent), and smaller business units (four percent).

Consolidated total revenues amounted to P5.02 billion or 7.9 percent higher than the previous level of P4.65 billion. Operating income also rose 20 percent to P352.65 million as against P293.57 million last year.

Navarrete said the company expects to sustain its gains for the rest of the year and is maintaining its 10 to 15-percent income growth forecast this year.