Customised to taste success
Extending the joy of eating, ‘Jollibee’, a revolutionary fast food chain from Philippines today is a recognised global brand name. In an interview, Dennis M Flores, Vice President, International Operations, Jollibee and Chowking, Asia and Middle East shares the brand’s franchise expansion plans.
Namita Bhagat (NB): Tell us about the origin and concept of 'Jollibee'.
Dennis M Flores (DMF): Jollibee began as a two-branch ice cream parlor in 1975 also offering hot meals and sandwiches. It became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. Thus, was born the company that revolutionised fast food in the Philippines.
In 1984, Jollibee hit the P500 million sales mark, landing in the Top 500 Philippine Corporations. In 1987, barely 10 years in the business, Jollibee landed in the country’s Top 100 Corporations. It became the first Philippine fast food chain to break the P1 billion sales mark in 1989. In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus broadening its capitalisation and laying the groundwork for sustained expansion locally and beyond the Philippines.
Today Jollibee is a bustling network of more than 800 restaurants worldwide from the Philippines to Brunei, Vietnam, Saudi Arabia, Qatar, USA, Hong Kong and Kuwait.
NB: What is the USP of the brand?
DMF: Jollibee offers western food concepts attuned to local preferences complemented by localised offerings. It also adheres to the highest standards of food quality, service and cleanliness. It serves great tasting and affordable meals and its flagship offering is chicken, popularly known as “Chickenjoy”. It also serves burgers and spaghetti as part of its core menu offering. The basic menu idea is to have something for everyone because spending quality time with families and friends is at the core of the Jollibee brand and Jollibee is the perfect place to bring people together over good food.
NB: What are the motivating factors that inspired the company to opt the franchise model for the brand's expansion? What consumer segment does the brand cater to?
DMF: The company looks at franchising as a strategy to help us achieve our goal of becoming known as a global brand while enabling us to continue fulfilling our simple mission of ‘spreading the joy of eating to everyone’. Inspired by the success of our franchising program in the Middle East, we believe that we are ready to enter other countries as we have gained experience and are now focused on catering to the mainstream population.
We also feel that the brand is well differentiated versus global QSRs. Some of our key differentiators include; a) Products that are adapted to local taste, complemented by localised offerings, b) everyday affordable pricing strategy c) Our Chicken is differentiated (Crispy) d) Unique ‘Jollibee experience’ i.e. enhanced hospitality that has been the trademark of Jollibee stores anywhere in the world.
Our brand’s core target market is composed of contemporary families with children. There is definitely something for everyone to enjoy at Jollibee. We want every member of the family to feel happy and at home at Jollibee.
NB: Could you share the operational strategy to enhance the brand's presence through franchising in the Middle East?
DMF: We have awarded master franchises in the countries we are in, in the Middle East. We will consider other franchising options, depending on the country’s market potential. The common denominator across all business partners that we have is they all share the passion for serving quality food and a solid commitment to grow the business in the long term.
NB: What are your expansion plans for the region in terms of target locations, number of franchisees?
DMF: Our network expansion plan has always been to open stores where it is convenient and accessible to our target market. The number of franchisees that we require will depend on the country / market potential and the entry strategy best suited for the specific country.
NB: Could you share the investment outlay required in terms of space and money from the franchisees’ end to partner with the brand in Middle East?
DMF: The capital investment required to open an outlet starts at USD 250,000. However, the final investment will depend upon the market and the extent of the development required. Space requirement starts at 200 sq. m. The sales potential in a particular trade area drives the space requirement for a Jollibee store.
NB: What are the qualities the brand seeks in its franchisees? What kind of training and support does the company provide them?
DMF: We are looking for franchisees who are self-driven, know how to motivate people, willing to devote time to oversee the day-to-day operation of the restaurant, willing to undergo a full time training on restaurant operations, and the ability to fund the investment requirement with a minimum net worth of USD five million.
Jollibee will provide the technical expertise in store construction, sourcing and purchasing of equipment facilities, furniture and fixtures, initial hiring and selection which also includes the training of store employees, and marketing support.
NB: What other international markets you are looking at for launching the concept and could you share the time line?
DMF: We are interested in expanding our brand in Oman, and Bahrain in the Middle East. In Asia Pacific, we are actively looking for business partners in Malaysia, Indonesia, and Cambodia.
