Jollibee Food Corporation

HISTORY
Jollibee is founded by Filipino-Chinese Tony Tan Caktiong and his family began as a two-branch
ice cream parlor in 1975 at Cubao Offering hot meals and sandwiches. The original company
name was Jolibe then Mr. Lumba next reformed the name Jolibe to Jolly Beeand made the two
words form a single name Jollibee.Their success is phenomenal. Fast food popularity began in
the 1960's and the pioneers of this are Ray Kroc – McDonalds and ColonelSanders – Kentucky
Fried Chicken. They have the concept of Servetime constrained customers, good quality food,
clean dining environment, having a low price and giving convenience to the customer. The bee
was chosen because it connotes hard work, while its association with honey evoked the sweet
life. Jollibee’s first branding efforts are attributed to marketing consultant Manuel Lumba, who
first met Tan Caktiong in 1978 when Jollibee was still called “Jolibe” and the now prolific CEO
needed advice on where to steer the business next. The name also needed work. From Jolibe, it
became Jollibee. An extra L and E were added to make it more recognizable as “jolly bee.”

Jollibee has opened branches all over the world, from Papua New Guinea to Milan, mascots have
come and gone (RIP Mico), TV shows have been produced, prime ministers have driven
through. Jollibee himself has toured the Philippines and gotten a glow up, becoming a Funko Pop
(twice!), as well as appearing on Glee and comic books like The Avengers and The Flash.The
Jollibee Food Corp. owns and operates numerous restaurant franchises in the Philippines, as well
as overseas. Locally, its portfolio includes Mang Inasal, Chowking, Greenwich, Red Ribbon,
Burger King Philippines. Internationally, it has Smashburgers as well as a stake in Panda Express
Philippines.The threat of substitute products is considerable. Local street food and high-end
restaurants form two ends of a range of substitutes. Potential entrants face entry barriers that will
hinder them from entering the industry. These are the inability to gain access to technology and
specialized know-how, brand preference and customer loyalty, capital requirements, economies
of scale, and strategically situated distribution channels. But Jollibee can overcome this. A new
substitute for Jollibee products will be hard to enter into the industry and compete with Jollibee.
Logistics. For inbound logistics, Jollibee has an effective and efficient delivery, transport and
storage of goods for their business operations coming from the manufacturing warehouse. While
for outbound logistics, Jollibee distributes to franchises and fully-owned stores. Because of
Jollibee’s distribution system, it is an advantage to have a centralized processing and
manufacturing quarters that delivers to stores in proximity. Thus, Jollibee has a timely basis
delivery for perishables and maintains its quality until it reaches the consumers.

Supply Chain.. Jollibee’s raw materials, processed and manufactured products are imported and
are grown by their suppliers. Jollibee has developed long-term deals with these partners. This
means that the supply chain works in a reliable working environment between the supplier and
Jollibee. In addition to that, the Jollibee openly supports their suppliers like farmers- the JFC
supports them financially and technically. However, due to global trade barriers- especially for
their international branches and franchises, coupled by the increase in oil prices, it is possible
that Jollibee procure its raw materials from the country where they are located and also process
within the country. This also could lead to reinventing the corporation’s procurement process,
and obtain what is available in the country
 ● Supply Chain made up of commissaries and distribution centers all over the country.
● Deliveries by land, sea and air to 1453 stores from 16 commissaries
● Zenith Food Corporation- Corporate supply chain of Jollibee Corporation

Jollibee Corporation (JFC) is a fast-food restaurant chain with over 5000 locations worldwide.
As of December 2019, it had the largest food service network in the Philippines, with 3,316
stores in the country and 2,655 stores abroad. JFC only uses best-in-class processes and
technology, with its full operational procurement system used to support its rapidly expanding
store network in the Philippines over the years. As it continues to develop and expand globally,
there was a need for an integrated global procurement framework for its upstream or strategic
process that would perform in the presence of risks and uncertainties, as well as enhance cross
functional coordination among internal stakeholders, procurement, and suppliers.
Jollibee Food Corporation works with various suppliers in accordance with JFC’s policies on
accreditation of suppliers. JFC evaluates goods and services provided by its suppliers based on
the quality, pricing and trading terms, payment conditions, and distribution channels to ensure
that they are fit for the purpose they were procured with the best value available. Accreditation is
valid for one (1) year from date of acceptance; thereafter suppliers may file for re-accreditation.)
PSC employs a third party procurement validator for its supplies. Suppliers are also subject to
regular inspection for quality control and evaluated based on standard requirements and criteria
such as good manufacturing practices, sanitation, and product quality control.
Jollibee Foods Corporation (JFC) runs the largest chain of fast food restaurants in the Philippines
and is reliant on a steady supply of raw materials, such as vegetables, cereals and animal
produce, at significant quantities and stable prices. They have 20 top estimated suppliers and part
of it are:
● Jollibee Foods Corp. International
● Jollibee Food Corp. Philippines
● Honeybee Foods (Canada) Corp. Canada
● Zenith Foods Corp. Philippines Manufacturer
● Honeybee Foods Corp. Regina, Saskatchewan, Canada
● C W Shasky And Associates. Canada
 ● Jollibee Worldwide Pte., Ltd
The JFC group’s operation performance is very effective and efficient as they are able to lower
the company’s food, supply and labor costs. JFC’s operational structure leads the company to
attain effective utilization of commodities, improved ingredients control, inventory control, and
scheduling of food preparation flexibly.

Customers can download the app then create an account. They can save their addresses to make
future deliveries faster and more convenient, and get ... full menu, so everyone can order all their
favorites in one convenient mobile app. Or go to the store! Jollibee also provides the customers
elevated customer experience using the latest technology, the self-order kiosks cater to the
so-called time and energy-starved customers who prefer to order at their own pace, see the
available menu selections, and be given the choice to customize their orders with ease and
accuracy. One of Jollibee’s value chain key elements is marketing and effective ad campaigns.
Jollibee ads reach the customers through media by using celebrities to promote the company's
products and citizenship, and also through different social-media sites such as- youtube,
facebook, instagram and twitter. Jollibee also launched its online delivery in its webpage that
allows everyone to have easy access upon ordering at home especially to individuals who do not
have telephone at home. Also, Jollibee’s culture of family values is very well communicated
through publicity moves such as MaAga ang Pasko which is the longest-running corporate social
responsibility program by a fast food chain, and their newest move; the Family Values Award
which aims to celebrate the genuine and irreplaceable joy of togetherness of the Filipino family.
Jollibee also caters different product innovation, product bundle pricing and low-priced value
meals which are affordable for families, friends, and individuals.

Economic conditions affect the business for instance that there is a high inflation rate in the
market which would result in a more expensive cost of doing business hence investors and
lenders will demand a higher rate of return which results in higher cost of capital. A high
inflation causes an increase in raw materials supply expense as the company needs to generate
more cash in order to sustain and support its operations’ needs.
While the supply and demand have an effect on consumer’s buying power and the bargaining
power of suppliers, which affects the costs of doing business in the food industry. Companies
might have to shell out more amounts of cash due to an increase in price of supplies and services
that their suppliers render to the companies. The companies also may possibly adjust their
products' pricing if the purchasing power of the customers is low- just for the companies to earn
and make sales rather than accumulate higher inventory and less revenue, sales and profit. In
addition, government’ new ruling and tax rates reform might as well affect the industry by
obliging the companies to have a change with their capital, operation,and marketing structure for
them to comply with the government requirements. Lastly, technology and development have an
impact within the food industry as these make standards higher when it comes to how the
companies adapt and adjust to business environment changes, corporate social responsibility and
quality of goods and services the company produces.

Problems in Supply Chain and Logistic:

● Chicken Shortage Issues. Jollibee Food Corporation had a problem regarding their
chicken, the taste is still the same, the quality is still the same, therefore there is a lot of
consumer demanded their CHICKENJOY product, unfortunately they had shortage in
their popular product CHICKENJOY
● Lack of supply because of the delay of delivery of their suppliers
● Delay of delivery

To prevent these problems, solutions are,Jollibee needs to start small, it means that they need to
make a smaller-scoped project because it’s less risky than big projects that they made. A small
initial project would allow the clients to better understand what they really need. Second, they
should have tested the project because the benefit of it is they are able to catch the bugs early and
it would be easy and cheap to fix. Third, they should have continuous delivery; they should still
use the old system while the new system undergoes bug-fixing. Last, they should stay visible so
that clients can monitor the progress of the project, and catch problems earlier rather than later.

The root causes are Miscommunication, Lack of Manpower, Customer Dissatisfaction, lastly It
upgrade. The Jollibee had Miscommunication with the suppliers with that the suppliers occurred
delayed in delivering the chicken. They have a system upgrade and inaccurate information that’s
why they commit a mistake on communicating with the suppliers. Lack of manpower, because if
there’s no sales the tendency is they will lessen the workers to do the Job. Since there is lack of
manpower, it greatly affected their services and also the loyalty of the customers to Jollibee, their
service may be too slow which contributes to the dissatisfaction of their customers