Business

Entering new normal: Tan Caktiong allots P7B for Jollibee’s global business continuity plan

Asian fastfood giant Jollibee Foods Corp. has announced a P7 billion restructuring initiative to further streamline its global footprint and operations as it adjusts to the changing needs of its people, customers and suppliers while navigating the impact of the coronavirus.

JFC said the changes involve the rationalization of its non-performing stores, store network, supply chain facilities and management and support group structure as well as investment in digital commerce and technology.

The plan also includes ramping up delivery, takeout and drive-thru services even as it expects to open a worldwide total of 171 company-owned new stores and renovate 96 existing ones this year.

It also aims to secure for its future stores excellent locations that will become available due to weak economic environment.

JFC chief executive officer Ernesto Tanmantiong said it was time to “embark on another business and organization transformation in response to changing consumer behavior caused by the COVID-19 pandemic.”

The planned changes will take place mostly in JFC’s largest markets, namely the Philippines, China and North America.

Jollibee founder and chairman Tony Tan Caktiong said the group is taking the necessary steps to reshape its business and ultimately achieve its goal to become one of the five largest quick-service restaurants in the world.

“2020 is an extremely challenging year for JFC as for most other businesses, but out of this transformation, we aim to emerge in 2021 as an even stronger business and organization. Regardless, our mission has not changed: “to serve great tasting food, bringing the joy of eating to everyone!” Our vision remains the same: “To be one of the top 5 restaurant companies in the world”,” Tan Caktiong said.

JFC’s brands across different parts of the world are expected to grow even in this time of economic difficulties given their excellent product quality, value for money and reputation as truly trusted brands, he said.

The homegrown fastfood operator scaled down its capital budget to P5.2 billion this year from the original plan of P14.2 billion given tough economic conditions.

Operating costs have also been slashed at all levels- at the stores, commissaries, support services and main offices in all regions in the world.

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