Fastfood giant Jollibee Foods Corp. plans to build up its network to 8,000 stores over the next five years after expanding it to 4,000 by the end of 2017.
Jollibee president Ernesto Tanmantiong said in an interview at the sidelines of the recent stockholders’ meeting the group would achieve the target of 8,000 stores mostly through organic growth and acquisitions.
“Our plan is to double in five years. So we are now 4,000 stores by end 2017. We are now aiming to have 8,000. While the overall target is 10,000, we believe that over the next five years, we can have 8,000 stores,” Tanmantiong said.
“This will mainly be from organic growth and acquisitions. We continue to be open to acquisitions mainly in the three pillars we have identified, namely Philippines, China and the United States,” Tanmantiong added.
Most of the store openings over the next five years will also be geared overseas as the fastfood giant aims to divide equally the revenue contribution of overseas and domestic outlets.
Only 20 percent of the group’s revenues currently come from overseas stores. The figure excludes joint venture businesses. Including joint ventures, foreign business would account for 30 percent of group’s global system wide sales.
“We hope to hit 50 percent foreign sales over the next five years,” Tanmantiong said.
Jollibee sees the bulk of expected increase in foreign sales from China, the US and Vietnam.
The group has earmarked a record P14.7 billion in capital expenditures for 2017 to finance rollout of new stores and expansion of its commissary both here and China.
Aside from store expansion, the consolidation of Superfoods Group under Jollibee’s operations starting in May is expected to help the company achieve the 4,000 store network target this year.
Jollibee in May increased its stake in Superfoods Group to 60 percent. Superfoods Group currently operates the brands Highlands Coffee and Pho 24, and is a franchisee of Hard Rock Café.
Superfoods over the next three years plans to open 485 stores by expanding its presence in Indonesia, Cambodia, Korea and Australia.
“We aim to make Highlands Coffee and Pho 24 to be dominant market leaders and truly national brands of Vietnam,” Jollibee chairman Tony Tan Caktiong said.
He said these plans would help the company achieve its long term vision to become one of the top five quick service restaurants in the world in terms of market capitalization.
Meanwhile,the company on Monday opened Monday the 1,000th store of the flagship brand Jollibee at Bonifacio Global City Triangle Drive in Taguig City.
The store features thelatest modern tropical design concept that will appeal to customers of all ages.
Over 200 Jollibee stores also operate outside the Philippines. The fastfood chain is set to open a Jollibee store in Manhattan, New York City and a second store in Canada before the end of 2017 or early 2018.
It will also open a Jollibee store in Sydney, Australia, Guam and Malaysia next year and is looking at opening stores in Japan by 2019.
Share price of Jollibee on Monday rose 1.1 percent to P206.20.