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在线翻译:
szdaily -> World Economy -> 
Philippine chain hungry to expand in US, China
    2019-09-16  08:53    Shenzhen Daily

JOLLIBEE Foods Corp., the Philippine fast food specialist known for fried “Chickenjoy” and chopped hotdogs in sweet spaghetti sauce, is doubling down on expansion plans in the United States and China that are likely to include more M&A.

Helped by the purchase of California-based Coffee Bean & Tea Leaf in July and having taken full control of Denver-based Smashburger in 2018, it wants to earn 30 percent of its revenue in the United States in a decade’s time, executives said.

It is also aiming to lift revenue in China to 30 percent of overall sales, while the Philippines would fall to 30 percent.

That would represent a major rejig of revenue streams for Jollibee, which ranks No. 4 among Asia’s listed quick service restaurant firms, and would build upon plans to cut its reliance on its domestic market to 50 percent of sales in the “medium term.”

Prior to its acquisition of Coffee Bean, the Philippines accounted for 73 percent of sales while the United States represented 15 percent and China 12 percent.

“We want to spread our portfolio and risk,” Jollibee CEO Ernesto Tanmantiong said in an interview. “There’s huge opportunity out there.”

Jollibee, which is valued at US$4.8 billion and has 16 brands or franchises to its name, aims to have six brands each in the United States and China, just as it does in the Philippines.

In the U.S. market, it currently has five including its namesake Jollibee restaurant chain and a minority investment in Tortas Frontera, run by Michelin-starred chef Rick Bayless and which offers Mexican-inspired sandwiches at just three outlets in Chicago’s O’Hare airport.

It has three brands in China — the Dunkin Donuts franchise, as well as the Yonghe King noodle and Hong Zhuang Yuan congee restaurant chains.

Jollibee likes to acquire quite small, loss-making firms at low prices and turn them around. It receives business proposals frequently but acquisitions are more often stumbled upon during one of chairman Tony Tan Caktiong’s long food tasting trips than sought out through bankers.

“Most of the acquisitions resulted from Tan Caktiong eating in a restaurant, liking the food and asking ‘who runs the place?,’” said Erwin Elechicon, former chief of Jollibee’s international operations.

While noting they tend to buy small, Jollibee executives say they are open to any type of acquisition if the food is good.

But they acknowledge their immediate focus is on turning around Smashburger and Coffee Bean — both loss-making and bigger than Jollibee’s usual acquisitions with US$210 million spent on Smashburger and Coffee Bean costing US$350 million including debt.

Investor concerns that Jollibee is overextended were exacerbated by first-half profit sliding by a third to 2.66 billion pesos (us$51 million) due to losses at Smashburger and deliveries problems with its Red Ribbon Bakeshop. Its stock has lost 18 percent since late July.

(SD-Agencies)

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