Billionaire Tony Tan Caktiong's Jollibee Spending Record $366 Million For Expansion
Jollibee Foods—controlled by billionaire Tony Tan Caktiong and his family—is spending up to 21 billion pesos ($366 million) this year to bring its global footprint to over 10,000 stores.
The largest Philippine fast food chain will open up to 800 new stores this year with its coffee segment a key expansion driver, Richard Shin, chief financial officer of Jollibee, said in an email response to Forbes Asia's queries.
'Our expansion strategy remains anchored in our strategic framework, focusing on growing the coffee and tea segments,' Shin said. The Coffee Bean & Tea Leaf will lead the coffee segment's global expansion, while Compose Coffee, which was acquired last year, will continue strengthening its presence in South Korea for now, he said.
About 500 of the new stores will be opened outside of the Philippines, Shin said. Jollibee had 9,766 stores at the end of 2024, with 6,384 located overseas including 2,629 outlets of South Korea's Compose Coffee.
'We see strong potential for expansion in various international markets, particularly in Southeast Asia,' Shin said. 'Additionally, North America and Europe present exciting growth opportunities.'
Franchised outlets will account for 70% of new store openings this year.
Jollibee—known for its bestselling crispy fried chicken and sweet-sauced pasta—is focusing its expansion on franchising its flagship restaurant with franchised outlets accounting for 70% of new store openings year, Shin said.
A significant portion of Jollibee's capital expenditures this year will be spent on technology to drive transaction growth and revenue, Shin said. The rest will be spent on building new and renovating existing company-owned stores and constructing facilities such as new commissaries in the central Philippine island of Cebu.
In the past decade, Jollibee had stepped up its global expansion to meet its target of tripling its net income to 24 billion pesos from 8.8 billion pesos in 2023. It has also been investing in new segments such as coffee, while reducing losses at U.S. chain Smashburger, Shin said.
The group's net income rose 18% to 10.3 billion pesos in 2024 and Shin forecasts the net income will steadily increase to 11.9 billion pesos in 2025, 15 billion pesos in 2026 and reach 19 billion pesos in 2027.
Jollibee started in 1975 when Tan and his family opened an ice cream outlet in a Manila suburb that evolved into the first Jollibee restaurant three years later. The group has since grown globally, operating 19 brands including Chinese restaurant chain Tim Ho Wan and Vietnam's Highlands Coffee, across 34 countries. With a net worth of $2.9 billion, Tan and his family ranked No. 6 when Forbes Asia published the list of the Philippines richest in August.
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