I.

HISTORICAL BACKGROUND OF THE CASE

(Reported by: Rachel Baylon and Gia Castro)

 1975
- Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao.
This will later become the 1st Jollibee Outlet.

 1977
- Diversified into sandwiches because of the oil crisis that would double the price of an ice
cream. Changed the spelling of Jolibe to Jollibee.

 1978
- Open five stores in Metropolitan Manila and incorporated as Jollibee Foods
Corporation.

 1979
- Spaghetti Special is introduced.
- Jollibee’s first franchised-store opens at Ronquillo, Sta. Cruz, Manila.

 1980
- Jollibee launches its 1st TV commercial.
- Jollibee’s Chickenjoy and French Fries are launched.
- The well-loved Jollibee mascot is conceived to support brand
awareness and identity efforts. Other mascots are later introduced.
- Jollibee’s Chickenjoy becomes one of its best-selling menu items.

 1981
- Jollibee Foods Corporation enters the list of Top 1000 Corporations in the
Philippines.
- The company first serious challenge arose when McDonald’s entered the
Philippines. McDonald’s had more money and highly developed operating
systems.
 1982
- Jollibee pioneers the use of in-store promotions, novelty premium items
and Kiddie packages
- Birthday packages for kids.
- Palabok Fiesta is introduced.

 1983
- The Langhap-Sarap TV ad Campaign is launched.
- Chickeee and Lady Moo join the Jollibee mascots.
- McDonalds’s had grabbed a 27 % share of the fast food
market, within striking range of Jollibee’s 32%.
- The impressive performance of McDonald’s Big Mac, led
Jollibee to respond with a large hamburger of its own, called
The Champ.
- Jollibee’s The Champ intended knockout punch was
eclipsed by larger events. Political opposition leader Benigno
Aquino returned from exile and was assassinated.
- The economic and political crisis that followed led most foreign investors including
McDonald’s to slow their investment in the Philippines.
- Jollibee pressed ahead, employing nationalistic advertising to capitalize on a wave of
patriotism.

 1984
- The appeal of McDonald’s foreign brand and its advantage in per-
store sales were fading.
- Champ hamburger is launched.
- Mascots Champ and Hetty join the Jollibee family.

 1985
- Jollibee’s first venture abroad in Singapore began. Franchise was
owned by
a partnership consisting of Jollibee, the local manager and five
Philippine- Chinese investors.
 - Jollibee becomes the market leader in the fast food industry.
- Breakfast Joys are introduced.

 1986
- Jollibee revoked the franchise agreement and shut down the
Singapore store.
- Jollibee formed a partnership with a Tan family friend in Taiwan.
Although sales boomed immediately after opening, low pedestrian
traffic by the site eventually led to disappointing revenues.
-Jollibee has a 31 stores and was clearly the dominant presence in
the market.
- Jollibee wins the 9th International Foods Award from El Comestible in Barcelona, Spain.
- Jollibee adds Chunky Chicken Sandwich in its menu.

 1987
- Jollibee had a joint venture with shoe- mart and opened a store located on the northern side
of the island of Borneo.
- Jollibee opens 1st fast food outlet in Brunei, marking its entry into the global market.

 1988
- Jollibee decided to dissolve the partnership and pulled out of Taiwan. By the reason of the
conflict arouse over day- to- day management and when the property market in Taiwan took
off and store rent increased dramatically.
-Jolly Twirls soft serve is successfully launched.
-Jollibee celebrates its 10th year anniversary.

 1989
- 2nd Brunei store opens.
- Jollibee opened its first store in Jakarta. The operation struggled, facing competition from
street vendors and cheap local fast food chains.
 1990
- Jollibee adds Jolly Hotdog, Chickenjoy Take-Me-Out, Coleslaw, and Peach
Mango Pie to its ever-growing menu.
- Jollibee receives the Excellence in Marketing Management Award from the
Asian Institute of Management.

 1991
- Jollibee opens a record high of 35 new stores.
- Jollibee launches its Pancakes and Jolly Meals.
- Jollibee sales hit a whopping P2.65 billion.

 1992
- Jollibee improves its soft serve ice cream line by offering fruit-flavoured ice cream.
- Jollibee maintains its advantage over its competitors by acquiring more than 50%
share of the fast food industry.
- Created a fast food version of the Indonesians local favourite Nasi Lema. A mixture
of rice based meal and coconut milk.

 1993
- On July 13, JFC is listed in the Philippine Stocks Exchange with an initial offering of P9.00
per share.
- Jollibee went public and initial public offering raise Php216 million pesos ($ 8 million). Tan,
however retained the majority ownership and clearly controlled Jollibee.
- Jollibee have four successful stores in Brunei and identified a key difference in the Brunei
entry strategy: In Singapore and Taiwan, the local partners ran the operation, while they
provided just technical support. In Brunei, the local investor was a silent partner. Jollibee sent
managers from the Philippines and the local partner supported them.
- Tony Tan Caktiong (TTC) decided that Jollibee’s international operations required greater
structure and more resources. Because most of his management team was more interested in
the fast- growing domestic side of the business.

 1994
- Acquisition of Greenwich Pizza Corporation
 - In Jakarta branch, Conflict between the local partners and the manager that they hired
paralyzed the operation. That leads Jollibee to dissolved the partnership and sold the operation
to a new franchise. Nevertheless, the company viewed the market as promising
- Tony Tan Caktiong (TTC) decided to hire an experienced outsider as Vice President for
International Operations.
- Tony Kitchner was hired as Vice President for International Operations. Kitchner asked for
the resources and autonomy to create an International Division.
- Kitchner instituted the first dress code, requiring his manger to wear ties.
- Kitchner decided to increase the pace of international expansion. Kitchner’s choice of markets
rested on two main themes: targeting expats and planting the flag.

 1995
- Formation of a joint venture with Deli France
- Jollibee opens an additional 20 stores in the Philippines, bringing its total
store network to 168.
- Jollibee successfully opens stores abroad: Guam, Dubai, United Arab
Emirates, Kuwait, and Jeddah, and Kingdom of Saudi Arabia.

 1996
- The chain of Jollibee stores still generated about 85 % of the parent
company’s revenue.
- 148 Jollibee stores nationwide by year-end.
- JFC expands into the pizza-pasta segment with the acquisition of Greenwich Pizza
Corporation.
- Jollibee is cited as one of the leading companies in Asia by the Far Eastern Economic Review.
- Opening of new branch at Papua New Guinea
- One of the first signs of serious trouble came during a project to redesign Jollibee logo.
 - Jollibee’s system-wide sales increase to P8.29 billion which translates to a market share of
more than 50% among all hamburger fast food chains.
- Mary’s Chicken was born; a semi-self-service restaurant and
another Jollibee subsidiary.
- The company reengineers its visual identity system.
- Amazing Aloha is launched.
- The 1st Jollibee store kanya in Hong Kong opens.

 1997
- The company opened 19 new stores in 8 new national markets. (Brunei, Dubai, Kuwait,
Guam, Malaysia, Hong Kong, Indonesia, Vietnam)
- Kitchner left Jollibee to return to Australia. Manolo P. (‘’Noli”) Tingzon became the general
manager of International Division.
- System-wide sales increase to P11.17 billion.

 1998
- Jollibee opens in Daly City, Califorina, its first store in the USA.
- The company celebrates its 20th year anniversary.
- Jollibee wins the Employer of the Year Award.

 1999
- Jollibee opens 50 stores nationwide, which increased the store
count to 350 stores.
- The Cheezy Bacon Mushroom Burger is introduced to its line of
specialty burgers.
- Far Eastern Economic Review cites Jollibee as the Philippines’
leading business corporation.
 2000
- Jollibee acquires Chowking .
- For the 3rd straight year, Far Eastern Economic Review ranked
Jollibee as the Philippines’ leading company.
- Asian Business Magazine ranks Jollibee as the Most Admired
Company in the Philippines and the 3rd over-all in Asia, surpassed only
by global giants General Electric and Microsoft.
- JFC’s system-wide sales reach P20 billion.

 2001
- System-wide sales rose to 18.8% to P24.11 billion. Income reaches P959 million.
- JFC store network expands to 800 restaurants, which includes Greenwich and Chowking
stores.

 2002
- Revenues almost reach the P27-billion mark. JFC number of stores exceeded 900.
- Tony Tan is named MAP “Management Man of the Year”.

 2003
- JFC store count reaches 988 nationwide.
- For the sixth straight year, the Far Eastern Economic Review ranked JFC as the Philippines’
Leading Company.
- Jollibee celebrates its 25th year.

 2004
- Chairman and Chief Executive Officer Tony Tan Caktiong is named Ernest
and Young’s and 2004 World Entrepreneur of the Year.
- Jollibee opens its 500th store in Basilan.
- JFC acquires its 1st foreign brand – Yonghe King, a fast food chain in
China.
 - The Jollibee Group Foundation is established.

 2005
- JFC acquires Red Ribbon Bakeshop.

 2006
- Ernesto Tan Mantiong receives Corporate Citizen Award of the year from CNBC Asian
Business Leaders Awards.

 2007
- Jollibee opens 600th store in Aparri, Cagayan.
- Jollibee opens Las Vegas outlet.

 2008
- Jollibee launches Jollitown, the first children’s TV show in the
country to be produced by a fast food chain.
- Tony Tan Caktiong and Ernesto Tan Mantiong are featured by
BBC and CNBC Managing Asia, respectively.
- Jollibee marks its 30th anniversary.
- Jollibee bested some of Asia Pacific’s biggest multinationals as it
bagged the FMCG and F & B Asia Pacific Supply Chain Excellence
Award at the SCM Logistics Excellence Award held in Singapore.
- Zenith Foods Corporation, the commissary plant of JFC, adjudged
the national winner of Meat Processing Plant AAA category in the
search for Best Meat Establishment of the National Meat Inspection Service.
- Jollibee strengthens US network with the opening of three new stores.

 2009
- Jollibee income rises 14.6% to P2.66 billion in 2009

 2010
- Jollibee opens its 700th store in Baguio City.
- Jollibee opens its first store in Qatar.
 2011
- Jollibee opens its first store in Hawaii, USA.
- Jollibee launches its first Family Values Award.

 2012
- Jollibee opens its first store in Kuwait.
- Jollibee is named by New York-based magazine Travel + Leisure as one of the best fast food
chains in the world.

 2013
- Jollibee celebrates its 35th anniversary.
- Jollibee opens in Singapore, which has a record first-day sales.
- Jollibee opens its 800th store in Malaybalay, Bukidnon.
- Jollibee opens its 100th international store in Jubail, Saudi Arabia.
- USA’s Restaurant Business Magazine includes Jollibee as among the 50 fastest growing
chains in the United States.
- Tony Tan Caktiong, JFC’s Chairman & CEO, is named Global Filipino Executive of the Year
at the Asia CEO Awards.

 2014
- Jollibee is named Outstanding Food Retailer-Large Category at the Philippine Retailers’
Association Awards.
- Jollibee opens its 100th store in Mindanao.
- Jollibee is included among the top 10 international fast food restaurants in the United States
by The Daily Meal.
- JFC’s stock price reaches the P200-level.

 2015
- Jollibee reaches its 1000th store as it opens its first store in Dubai, UAE.
- Jollibee opens its first store in Bahrain.

 2016
 - Jollibee invests P10.4Billion for expansion it embarks on further store expansion and network
support improvement.

 2017
- Jollibee eyes Europe entry.
- Open new store in Chicago, Illinois
- JFC has earmarked P10.4 billion in capital spending this year