ARELLANO UNIVERSITY

Jose Abad Santos Campus

3058 Taft Avenue, Pasay City

School Of Hospitality And Tourism Management

INTRODUCTION
Jollibee is the largest fast food chain in the Philippines, operating a

nationwide network of over 750 stores. A dominant market leader in the

Philippines, Jollibee enjoys the lion’s share of the local market that is more than

all the other multinational brands combined. The company has also embarked on

an aggressive international expansion plan in the USA, Vietnam, Hong Kong,

Saudi Arabia, Qatar and Brunei, firmly establishing itself as a growing

international QSR player. In 1975, Tony Tan Caktiong and his family opened a

Magnolia Ice Cream parlor in Cubao, Quezon City which is credited as the first

Jollibee outlet. The Magnolia outlets operated by Tan's family began offering

hotmeals and sandwiches upon request from the customers which the family

found out to be more popular than the franchise' ice cream. In 1978, the family

decided to cancel the Magnolia franchise and converted the ice cream parlors

they operated into fast food outlets. Management consultant Manuel C. Lumba

advised the family of the move. The company that would be managing the chain

of fast food, Jollibee Foods Corporation, was incorporated on January 1978. By

the end of that year, there were 7 branches in Metro Manila. The first franchised

outlet of Jollibee opened in Santa Cruz, Manila in 1979.

Jollibee experienced rapid growth. It was able to withstand the entry of

McDonald's in the Philippines in 1981 by focusing on the specific tastes of the

Filipino market, which differed from the American fast food company. The first
 ARELLANO UNIVERSITY
Jose Abad Santos Campus
3058 Taft Avenue, Pasay City

School Of Hospitality And Tourism Management

Jollibee store overseas opened in Taiwan in 1986 which is now closed. Jollibee

continued to expand and set up outlets both within the country and abroad.

Jollibee is a Philippine based company that began with “imitating

McDonald’s Operations while capitalizing on its Filipino culture, tastes and

preferences. It aggressively builds a local network in key Philippine cities and

was able to attain a competitive advantage over McDonald’s by doing two things:

Retaining tight control over operations management, which allowed it to price its

menu below its competitor and Having the flexibility and focus to cater to the

tastes of its local consumers. While Tony Kitchner was hired to develop these

competitive advantages abroad, the correct international strategy of “planting the

flag” and “targeting expats” to initial target the existing OFW population

concentrated in Asia and the Middle East were executed haphazardly and

subsequently resulted in losses for the firm. His eventual dismissal was largely

due to his inability to manage intra-firm tensions and franchisee relations. . The

arrival of Noli Tingzon signaled a critical period for Jollibee, as it confidently

began to enter the US market, the home of the hamburger. The US operations

started In Daly City where there is a concentration of Filipino immigrants where it

was received enthusiastically and created positive reaction among Hispanics,

Blacks, Asians and even white Americans. The key to Jollibee’s success in Daly

City will be its ability to find a local partner was that able to leverage its

organizational advantage, while navigating the murky challenges of operating a

 ARELLANO UNIVERSITY
Jose Abad Santos Campus
3058 Taft Avenue, Pasay City

School Of Hospitality And Tourism Management

business in the United States. I. Creating Competitive Advantages in the Filipino

market Jollibee’s success in its home market developed as a result of its ability to

better meet the needs and demands of the Filipino customer particularly its

distinct and unique tastes and preferences. Although its success was tempered

by the political and economic situation of 1983, Jollibee was still able to deliver a

product that was both cheaper and better suited to the Filipino palate than that of

McDonald’s. The ability of Jollibee to adjust its menu to local tastes, as well as

the “5 Fs” of its operations management are two organizational capabilities that

led the company to develop a sustainable competitive advantage over the giant

McDonald’s.
 ARELLANO UNIVERSITY
Jose Abad Santos Campus
3058 Taft Avenue, Pasay City

School Of Hospitality And Tourism Management

KEY ISSUES

 Maintenance Issues.

 Service Quality Issues.

 Chicken shortage Issues.

GOAL

 Expand all over the world.

 To serve great tasting food, bringing the joy of eating to everyone.

 Jollibee is also like to looking at entering Japan by 2019.

PPROBLEMS

 Slow of service

 Sanitation

 Lack of maintenance on their facilities like comfort rooms, aircon and

utensils that are not properly washed,

 ARELLANO UNIVERSITY
Jose Abad Santos Campus
3058 Taft Avenue, Pasay City

School Of Hospitality And Tourism Management

DECISION CRITERIA

The Jollibee Food Corporation experience of complaining of their guest

because of their Key Issues and problems, Maintenance Issues some of their

branch has a not comfortable ambience because of their aircons, tables and

chairs are broken, and Service Quality Issues some branches has slower

service, bad customer traffic, and sometimes tangy foods. Some of their

employees did not entertain their customers well because their crews are

exhausted. This can divert other customers to their competitors. the common

problem in the Jollibee is the sanitation because they not properly washed the

utensils

ASSUMPTION / HYPOTHESIS

Null Hypothesis – there is no difference between Jollibee current Problems in the

industry now.

Alternative Hypothesis – there is difference between Jollibee Current Problems in

the industry now.

 ARELLANO UNIVERSITY
Jose Abad Santos Campus
3058 Taft Avenue, Pasay City

School Of Hospitality And Tourism Management

DATA ANAYSIS

I choose this case because i want to know more about Jollibee Food

Corporation that i want to solve the problem they have this pass years, the

Jollibee issues and problems are Maintenance Issues, Service Quality issues,

and Chicken Shortage Issue. In the maintenance issues the problem is the lack

of maintenance of their facilities like there air cons and etc. in the Service quality

issues, we all know that the Jollibee is a fast food chain and the fast food chain

can serve in 3-5 minutes the problem in Jollibee is they have a slow serve,

sometimes they serve like 10 to 15 minutes. The last key issues they have for me

is the Shortage of they chicken, the problem with that they have the limited stack

of their chicken joy in their many branches and the cause of that they have

decrease their sales and the worst thing they face is to shut down some of their

branches.

PREFERRED ALTERNATIVE WITH RATIONALE

The alternative solution of their problems like Maintenance issues is to fix

the broken parts of the store to satisfy their customers. Service Quality Issues the

alternative solution of that is to double time their work or to well-trained their staff

to satisfied the customer to their service, chicken shortage issues the alternative

solution of that is to buy a chicken in the market to get serve in the store.
 ARELLANO UNIVERSITY
Jose Abad Santos Campus
3058 Taft Avenue, Pasay City

School Of Hospitality And Tourism Management

RECOMMENDATION

I will recommend in the maintenance Issues and problems to maintain the

proper maintenance period and check every month the equipment they use in the

work place to avoid accident in the back of the house and front of the house.

I will recommend in the service quality Issues and their problem in low of

service is to upgrade the counter in the store and increase their human power in

the Back of the house and the Front of the House to avoid customer complain to

their slow of service and also advance drop of the meal to be a fast service.

I will recommend in the Chicken Shortage Issues is to build a poultry farm

in some place in the Philippines or they will find a good supplier of chicken that

they contact to avoid shortage of their chicken or temporary closed.

CONCLUSION

I will conclude that they need to do my recommendation because I have a

nice and good idea in my recommendation that what they need in their current

problems in the store and become a number one fast food chain in the

Philippines and to increase their sales per month and to be a successful fast food

chain in the country.

 ARELLANO UNIVERSITY
Jose Abad Santos Campus
3058 Taft Avenue, Pasay City

School Of Hospitality And Tourism Management

REFERENCE

 https://www.coursehero.com/file/p5kj9dh/Problem-Statement-A-Service-

Quality-Issues-Jollibee-Food-Corporation/

 https://en.wikipedia.org/wiki/Jollibee

 https://www.jollibee.com.ph/about-us/
 ARELLANO UNIVERSITY
Jose Abad Santos Campus
3058 Taft Avenue, Pasay City

School Of Hospitality And Tourism Management

Jollibee Problems
In the
Industry

Submitted By: Retaña, Emmanuel O.

Submitted To: Mrs. Anna, Del Rosario