Case study of The Jollibee Foods Corporation

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  1. Introduction

Jollibee Foods Corporation widely known as Jollibee is a  chain based in the . Founded by Tony Tan Caktiong, a Filipino Chinese in year 1975.  It is an American-style fast-food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes. Currently it is the biggest fast-food chain in the country, it also has locations in the , , , , ,  and . Jollibee is also the name of their , a large  in a ,  and chef's .

As of December 2007, Jollibee has become one of the biggest fast-food chains in the world with more than 600 stores worldwide and total sales of more than $1 billion, where out of that figure about 500 restaurants are located in the Philippines itself.

 and his family opened a Magnolia Ice Cream parlor at  in  with Jolibe as the original name. Sometime in 1978, Tony Tan and his brothers and sisters, being partners, engaged the services of a management consultant in the person of Manuel C. Lumba. Consultant Lumba shifted the business focus from ice cream to hamburgers, after his studies showed that a much larger market was waiting to be exploited. Lumba became Tony Tan's first business and management mentor. Lumba next re-formed the name Jolibe to Jolly Bee and made the two words form a single name Jollibee, but changed the "y" to an "i". The Jollibee mascot was conceptualized by Lumba inspired by local and foreign children's books. Lumba next created the product name "Yumburger" as well as the name "Chickenjoy". He had the company incorporated in order to benefit from incorporation and leased a house on Main St. in Cubao, Quezon City as the first headquarters. Lumba also formulated a long-term marketing strategy, listing up a number of consumer promotions and traffic building schemes. Tony Tan stressed that developing internal strengths was critical. The stores were re-designed, the service transformed into a full self-service, fast-food operation with drive thrus. Not long after, Tony Tan and Manny Lumba went on an observation tour in the United States, attended food service and equipment conventions. Tony Tan placed Manny Lumba in charge of franchise development.

In , the company acquired , a similar type of restaurant operated in the Philippines,  allowing Jollibee to be part of the oriental quick service restaurant segment. Similarly, Jollibee also acquired  on , another popular fast-food restaurant in the Philippines.

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In , the company acquired the franchise of . This further expanded its penetration in the food service industry particularly in the  cafe-bakery, a growing segment of the Philippine food market. In September of 2006, the company acquired the remaining 50% stake of Delifrance Asia Ltd. in Baker Fresh Foods Phils., Inc. (BFFPI). This means BFFPI is now a wholly owned subsidiary of Jollibee and that the listed food giant has the exclusive rights to operate Delifrance outlets in the country. "The acquisition involved a restructuring of all advances by Jollibee and Delifrance Asia amounting to P130 million into equity," ...

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