Jollibee to open 2 outlets in Qatar

MANILA, Philippines - Local fastfood giant Jollibee Foods Corp. is further expanding its presence in the Middle East region with plans to put up two stores in Qatar – one Jollibee and one Chowking.

Qatar, an oil-rich nation, has the second highest GDP per capita in the world.

On the sidelines of the company’s annual stockholders’ meeting Friday, JFC president Tony Tan Caktiong said the food firm continues to be on a global expansion mode to anticipate fresh opportunities when they arise.

“Despite the difficult economic environment, we believe there are still enormous opportunities for our business to grow in the medium and long term future, here in our country and outside of our country. We believe that there are so much unmet needs whenever consumers eat outside of their homes, both in the emerging and developed markets,” said Tan Caktiong.

Tan Caktiong said the group is exploring new markets like Qatar and other areas where there is a large concentration of overseas Filipino workers (OFWs) as it continues to expand in existing markets like China, United States, Vietnam and India.

The company is targeting to build the same number of branches it did last year. It opened a total of 186 new stores – 110 in the Philippines and 76 overseas – the highest number of new store openings in its 30-year history.

Ysmael Baysa, chief finance officer of Jollibee, said 65 percent of new stores openings would be in the Philippines while the balance of 35 percent would be abroad.

Baysa estimates that number of branches it will open abroad will outpace new store openings here in the next five years as it accelerates its expansion overseas.

As of end-December 2008, the Jollibee Group had a total of 1,804 stores worldwide, of which 1,515 are located here comprising flagship brand Jollibee 651, Chowking 387, Greenwich 231, Red Ribbon 211, Delifrance 26 and Manong Pepe’s 9. It had a total of 289 stores operating abroad: Yonghe King in the People’s Republic of China with 141 stores, Jollibee 49 mostly in the United States, Chowking 31 mostly in the United States and the United Arab Emirates, Chu Shui Tang Tea House and Hongzhuangyuan which has 38 stores in China.

The group has set aside P4 billion for its capital spending this year to sustain double-digit growth in sales and net earnings. This year’s capex is a bit lower than last year’s level of P4 billion which included acquisitions.

In the first quarter this year, JFC reported a 17-percent jump in net profit on the back of a 14-percent growth in sales.

Tan Caktiong said JFC remains on the lookout for acquisitions to further boost its cashflow and ensure long-term growth.

Last year, the group acquired Hongzhuangyuan, a restaurant chain with congee as its core products with 38 stores located mostly in Beijing in the People’s Republic of China. It also signed a joint venture agreement for a 70-percent equity in Lao Dong, a restaurant chain in Taiwan.

Aside from these, JFC bought shares in Chow Fun Holdings, a restaurant chain in the United Sates serving Asian cuisine.

At end-December, JFC was operating a total of 1,515 stores in the country and 289 worldwide. 

Other popular brands under the Jollibee Group include pizza and pasta chain Greenwich, Red Ribbon Bakeshop and French gourmet chain Delifrance.