MANILA, Philippines - Fastfood giant Jollibee Foods Corp. (JFC) is ramping up its store expansion for next year, with a third of new branches to be opened abroad.
Although the number of new stores planned next year is yet to be finalized, JFC chief finance officer Ysmael V. Baysa said it would be more than the 300 stores slated this year both here and abroad.
Baysa said JFC has allotted P9.3 billion in capital expenditures (capex) this year to open 300 new stores, of which 200 will be in the Philippines and 100 overseas.
He said the capex for next year, which is also being finalized, would be used not only for store expansion, but also for commissary upgrade and store renovations.
For 2015’s new stores, Baysa said the ratio would likely be the same as this year, with two thirds of the branches allotted for the Philippine market and a third for the international market.
“We’re opening more stores in more countries in the Middle East. Most likely this will be done through franchising,” he said.
Baysa said JFC is looking at introducing its brand in two countries in the Middle East next year.
Aside from the Middle East, Baysa said JFC would also continue bolstering its presence in China where it presently operates about 400 stores.
Outside Asia, JFC is looking to beef up its business in the US.
“We believe there is still potential for a space for growth in the US. It is also for
more diversification. Right now, our main segments of business are Philippines, China and the US, those are the main countries but among the three, the US has the fewest stores,” Baysa said.
He said US operations only accounts for about five percent of JFC’s business whereas China’s is already at 12 percent.
“So we’re investing primarily to expand our business in the US to balance our portfolio,” he said.
JFC operates the largest fastfood service network in the Philippines with 2,244 branches as of end-June. Its brands include Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King
Its foreign operations consist of 589 stores in various cities and provinces in China, US, Southeast Asia and the Middle East.