MANILA, Philippines - Jollibee Foods Corp. (JFC) has struck a deal to take over a firm that operates the Burger King franchise in the Philippines for P65.5 million, a move that would give the local fastfood giant a foothold in the premium hamburger segment.
In its disclosure to the Philippine Stock Exchange yesterday, JFC said it will acquire the 54-percent stake held by BK Titans Inc., which owns PERF Restaurants Inc., the sole franchisee in the country of the Burger King brand. The remaining 46 percent is owned by the group led by courier service magnate Alberto Lina (33 percent) and telecommunications magnate Manuel V. Pangilinan (13 percent).
PERF operates 23 Burger King restaurants in the country, generating annual revenues of P800 million. Burger King offers five platforms – the Whopper (burger) line, the Extra-long chicken (patty for sandwiches), the BK Doubles or double patties, the BK Singles (single patty) and fish. It also serves fried chicken and fries.
JFC said it believes that the premium price category of the fastfood market will grow significantly in the years ahead as Filipinos improve their standards of living with a rising economy.
The group intends to revitalize the brand and further enhance operations.
The Ayalas used to own the Burger King Franchise in the Philippines but decided to divest its entire holdings to BK Titans in 2006 to allow it to focus on core businesses, which include real estate, financial services, telecommunications, utilities and electronics.
Founded in 1954, Burger King is the second largest fastfood hamburger chain in the world, operating in more than 12,300 locations and serving over 11 million guests daily in 78 countries and territories worldwide. In Asia, the business is managed by BK Asiapac Pte. Ltd. based in Singapore.
For its pert, JFC operates the largest food service in the country with a total of 1,941 stores as of Aug. 31, 2011: Jollibee (733) Chowking (395), Greenwich (209), Red Ribbon (209), Café Ti Amo (2), and Mang Inasal (393).
Overseas, the group had a total of 437 stores as of the same period: Yonghe King (235), Hong Zhuang Yuan (52), Jollibee (71) Red Ribbon (39) and Chowking (40).