UNIVERSITY OF ASIA AND THE PACIFIC

A.Y. 2020-2021

A Requirement in Business Knowledge Exchange

BAM131B

“Research”

Rhebong, Rhys
Hernandez, Renzo
Torres, Paulo G.
3BSBA1

Submitted to:
Ms. Kyra Pulohanan

October 2, 2020
Executive Summary
In today’s ever-increasing workloads and hectic environments, food service companies
need to satisfy the needs of their valued customers. ​As customers demand more great-tasting and
quality foods, companies need to prepare large food quantities and offerings for their customers
at a fast-paced rate and at affordable prices. Moreover, customers have no stomach for long
hours of waiting for their meals to be served due to rush hours, morning works, traffic
congestion, and other related problems. In order to offer a solution this, fast-food industries are
types of food restaurants that caters customers quality and quick-service cuisines at an affordable
price. These fast-food chains serve quick-service meals while customers are being seated,
through food deliveries and take-outs only for immediate consumption (Philippines Standard
Industrial ​Classification, 2009). Moreover, these fast-food restaurants provide services that
could reach their customers in terms of convenience and accessibility. Hence, these restaurants
provide ​take-outs, drive-thrus, home deliveries online orders through digital technologies which
are all convenient and accessible to the needs of their loyal customers.
However, competition intensifies and the fast-food industry has become fiercely
competitive in the market as local fast-food industries and franchises become prevalent around
the world such as McDonald’s, KFC, Wendy’s, Shakey's Pizza, and other related fast-food
competitors.
As for Jollibee, the largest and fastest growing fast food chain in the Philippines has been
one of the most well-loved brands due to its great-tasting products and quality systems, and its
presence in the daily lives of Filipino families (Jollibee, 2020). Given that the company is
recognized as a well-loved brand and the most demanding fast food chain overseas, the Jollibee
Food Corporation has acquired and operated well-known brands such as Red Ribbon,
Greenwich, Mang Inasal, Burger King Philippines, Chowking, Panda Express Philippines, The
Coffee Bean & Tea Leaf, and others (Cigaral, 2019). Also, the fast food company continues to
offer a high variety of delicious menus for Filipinos at affordable prices such as Chickenjoy,
Yumburger and Champ hamburger, and Jollibee Spaghetti.
Moreover, the target market for Jollibee is composed of families, young individuals, and
senior citizens of Jollibee’s products who belong to the middle-upper class of society and may be
of any race/ethnicity. Moreover, they may be teenagers or young adults living in more urban
areas or cities of the country who would want to meetup, and satisfy their needs or cravings by
eating trusted food. Moreover, the people who wish to eat satisfying breakfasts, snacks, lunch
and/or brunches, and dinner would go to the restaurant as well. Jollibee is so well-loved that it
has become a stronghold of heritage and a major figure of success for Filipinos everywhere
because of its continued dedication of service to its customers, especially overseas.
For Jollibee, the majority of the meals or meal combo sets start at a price range of 200
pesos. With this, Jollibee is able to reach potential consumers who consider budget in selecting
meals. Jollibee specializes in its f​ood offering through Western and Filipino inspired breakfast
meals and others. Examples for this are such as the Fiesta Noodle Palabok in noodles menu,
Beef Tapa, Tocino, Longannisa, and Corned beef with hot-steamed rice in rice meals. Through
this, Jollibee gives the opportunity for more consumers to enjoy their products at any given time
of the day.
Due to the increase of competition in the Philippines fast-food industry, the researchers
wish to analyse the whole fast-food industry in a macro environment setting to determine its
classifications of products and services. Furthermore, the researchers wish to determine the
strengths and weaknesses of each fast-food competitor, and their overall strategy to give
Jollibee's insights into what the brand is facing presently. Moreover, the researchers want to
examine the various factors that affect not only the Jollibee, but the whole fast-food industry.
Through the analysis of this paper, the researchers may be able to identify what are various
forces that are favourable for the company to develop its brand and its profitability of products
and services.

Current Market Situation

Industry
The Philippines Standard Industrial Classification is a comprehensive type of
classification that shows the latest updates of prevailing establishments within the country
(National Statistical Coordination Board, 2009). Moreover, the Philippines Standard Industrial
Classification (PSIC) is an abridged version of the United Nation International Standard
Industrial Classification in order to manage and tackle existing establishments on a national-level
The purpose of the PSIC is to regulate and examine the economic activities and ​the structure of
the economy. Second, the ​Philippines Standard Industrial Classification complies with ​the new
technologies used by industries or organizations that affect the production and shifting of
economic activities. Lastly, the PSIC was modified in order to accommodate with the ISIC
revisions for international comparability purposes.
The classification of functional industries includes the food and beverages service
activities wherein companies undertake victual activities that are suited for immediate
consumption only ​(National Statistical Coordination Board, 2009)​. Also, this type of industry
would include fast-food restaurants, self-service restaurants, fast-food trucks or concession
stands, and others related to this matter. However, this type of food and beverage industry is
different from the Division 10 of Manufacture of Food Products. The Manufacture of Food
Products from the Division 10 is the processing of raw food materials which are agriculture,
forestry and fishing, animal food processing, and other intermediate products that are indirectly
related to the food production. Also, the Division 56 of Food and Beverage Service Activities
are different from the Division 11 of Manufacturing of Beverages. This section involves
companies who produce outputs of beverages such as mineral water, non-alcoholic,
manufacturing and blending of alcoholic drinking products through beers, wines, whickies, gins,
brandies, and others. In addition to this, the Section G of Wholesale and retail trade and repair of
motor vehicles and motorcycles are clearly different from Food and Beverage Service Activities.
This section includes wholesale and retail sale of any kind of goods or services. This could be
sale of goods through merchandise or rendering services such as repairing motor vehicles and
motorcycles.
On the other hand, Food and Beverage Service Activities from the Division 56 are
production of meals and drinks that are suitable only for immediate consumption. Therefore,
Manufacture of Food Products and Beverages, and Wholesale and retail trade and repair of
motor vehicles and motorcycles are excluded from Food and Beverage Service Activities
because they are food and drinking products that are not qualified for immediate consumption
and not classified as meals appropriate for immediate consumption ​(National Statistical
Coordination Board, 2009)​.

Definition of Industry:
The researchers based the fast-food industry’s products and services by the following
categories in accordance with the 2009 Philippines Standard Industrial ​Classification.
 Section Accommodation and Food Service Activities (I)

Division Food and Beverages Service Activities (56)

Group Restaurants and Mobile Food Service Activities (561)

Class Restaurants and Mobile Food Service Activities (5610)

Subclass Fast-food chains (56102)

Section I: Accommodation and Food Service Activities

According to the Philippines Standard Industrial ​Classification (2009), ​Section I involves
Accommodation and Food Service Activities wherein existing establishments render
quick-service meals and drinks to guests, clients, visitors, travelers, customers, and others that
are suitable for immediate consumption. Moreover, Section I comprises existing
establishments in the Philippines wherein they provide customers either short or long-term
services such as meals, snacks, and beverages for immediate consumption. The accommodation
and food service activities are important towards the social and economic development of the
country because it has a significant impact towards tourism development, labor and employment,
and the number of firms in an industry that affects the performance of metropolitan and
developing areas in the Philippines (OCED, 2015).
Division 56: Food and Beverages Service Activities
The division of Food and Beverages Service Activities are industries that serve its
customers complete quick-service meals and beverages that are suitable for immediate
consumption (Philippines Standard Industrial ​Classification, 2009). Hence, the key parameters
for industries that engage in food and beverage services are offering meals and drinks for quick
consumption and not another establishment providing it.
However, industries that manufacture food products and beverages, and engage in
wholesaling and retail trading and repairing services are not qualified for catering complete
quick-service meals and beverages to its customers. Moreover, food service activities that
conduct their daily operations within establishments such as malls, hotels, civic and social
associations, amusement and recreation parks, and theatres are excluded from this Division 56
(OCED, 2015).
Group 561 and Class 5610: Restaurants and Mobile Food Service
The products are further classified under Restaurants and Mobile Food Service activities
wherein individual customers are fully served with their meals by waiters in full-service
establishments such as restaurants, cafes and others related to this matter (Philippines Standard
Industrial ​Classification, 2009)​. Not only full-service establishments, but also self-service
establishments wherein meals are served by the customers themselves and they are provided with
available seats in their restaurant such as fast food outlets, cafeterias, and other related
establishments. Moreover, these classifications include service activities that involve serving
meals through food deliveries and take-outs for immediate service through motorized or
non-motorized vehicles. According to the Philippines Standard Industrial ​Classification (2009)​,
industries that engage into this kind of service activity includes restaurants, fast-food restaurants,
cafeterias, ice-cream truck vendors, mobile food charts, and food preparation in market malls.
Subclass 56102: Fast-Food Chains
The subclass of fast food chains are establishments that offer quality and quick-service
cuisines at an affordable price. Fast-food restaurant chains provide quick meals and drinks to
customers while being seated, through food deliveries and take-outs only for immediate
consumption (Philippines Standard Industrial ​Classification, 2009). Therefore, this type of
restaurant serves meals instantaneously and sells affordable meal prices, but with quality taste, in
today’s ever increasing workloads and hectic environments (Nagarajan et al., 2017).
However, Fast-food chains do not engage or operate service activities that involve
industrial catering services. Industrial catering services is a type of service activity wherein
industries provide meals for employees or customers for special occasions, events, and others
that are based on contractual arrangements for a specific period of time (​Philippines Standard
Industrial ​Classification, 2009). This type of service activity may include activities such as food
service contractors, operation of concession stands for sporting events, and activities of canteens
or cafeterias.
Size in Terms of Peso Value
According to the 2016 Annual Survey of Philippine Business and Industry, it showed that
a total of 30,889 establishments in the sector of the economy were engaged in Accommodation
and Food Service Activities. Out of all these establishments, the fast-food industry makes up
14.3% or 4,411 establishments nationwide. Meanwhile, when it comes to employment, the total
employment generated by the sector reached 495,973 employees in 2016. 97.9% of these were
paid employees and the remaining were the owners and unpaid workers. Among all the
industries, the fast-food industry employed the highest number of employees that reached
138,051 or 27.8% of the total number of workers employed. The average number of workers per
establishment was recorded at 16. However, the fast-food industry exceeded this average in 2016
and recorded an average of 31 workers per establishment. Moving forward to compensation, the
sector paid a total compensation of P74.2 billion and an average annual compensation of P152.8
thousand per employee. The fast-food industry paid the highest compensation with P22.1 billion
or 29.8% of the total. The average annual compensation given by the industry per employee was
P161,104. When it comes to shares in income and expense, the sector earned a total income of
P551.1 billion in 2016. Again, the fast-food industry generated the highest income with P203
billion or 36.8% of the total. Meanwhile, the sector also recorded a total expense of P477.7
billion in 2016. The fast-food industry spent the highest expense with P181.7 billion or 38% of
the total. Moving forward, the fast-food chain industry generates the highest value added. In
2016, the sector generated P182.3 billion and the fast-food industry contributed P52.2 billion or
28.6% of the total. Sales from e-commerce transactions in 2016 totals to P5.6 billion and the
fast-food industry was third among the contributors with P119.3 million or 2.1% of the total.

As we notice, the fast-food industry has been a major contributor to the activities of
accommodation and food service. It is safe to conclude that this industry has been dominating the
food service for the past years and is still expected to dominate in the next coming years.

Stage in Industry Life Cycle

The stage in the industry’s life cycle displays how the number of its goods and services
change throughout the year (Griffin, 2016). In order to provide better services to their customers
and to become more competitive in the market, managers must be able to understand the four
stages in the product life cycle for their business to thrive. The four stages of the Product Life
Cycle are introduction, growth, maturity phase and decline.
In the introductory stage, managers must evolve by starting to launch their product out in
the market without adversely influencing the quality of the product (Griffin, 2016). The
introductory stage is about getting these new products released due to the consumer’s high
demand. As consumers demand more of the product, companies start to innovate and accelerate
by producing and offering a wide variety of products. To produce the number of products, they
need to employ and hire potential employees, and assess the company’s cost and production by
managing the money that flows into and out of the business. As for fast-food chain restaurants,
these restaurants offer quick-service food orders to their customers such as cheeseburgers and
hamburgers, pastas, chicken products, french fries, hot and cold beverages, tacos, hot dogs,
desserts and shakes, and others related to fast-food. During this stage, not only fast food
restaurants recruit new employees but they also start to utilize marketing strategies through
pricing schemes, advertisements, TV commercials, billboards, transit signs, and other related
marketing tools to increase awareness of their brand and the company’s presence worldwide.
During the growth phase of the product life cycle, companies start to manufacture and
increase the number of goods and services in order for its business to thrive (Griffin, 2016).
Despite increasing its number of goods and services, companies still face certain challenges and
constraints as they continue to achieve their goals. Also, certain constraints may threaten the
company’s competitiveness in the market. Hence, necessary strategies must be taken in order to
secure a competitive position in the market, strengthen the company’s performance, and
successfully achieve its goals. In today’s ever-increasing workloads and hectic environments,
fast-food industries direct their resources to achieve their goals and objectives which are profit
maximization and increase their market shares. Therefore, fast-food restaurants ​innovate and
accelerate ​in every aspect of its customers’ experience by improving its wide range of menu
items, adding new features into their food offerings, and implementing new food and beverage
items into their menus (Jollibee, 2020). Not only do these fast-food restaurants engage heavily
on their food products but also expand their business operations. Fast food industries continue to
grow as competition rises in the market by establishing mergers and acquisitions. Through
mergers and acquisitions, a business can obtain the operations of another business in order to
expand its productive capacity, establish more fast-food outlets both local and international, to
acquire more diversified customers, and to maintain a competitive advantage in the market
(Cigaral, 2019).
During the maturity phase of the product life cycle, a company has reached its maximum
point and the company’s sales growth or sales volume begins to diminish (Griffin, 2016). If
businesses want to continue its operation and thrive in the long run, they must make necessary
changes and strategies to survive. However, fast-food chains are still experiencing growth at the
competitive level in the maturity phase of their life cycle. Due to the increasing entry of
competitors in the market, fast-food companies are confronted with challenges wherein
implementation of competitive strategies must be determined in order to prolong their products
and services to maintain their competitive position in the market. This can be done through
making adjustments and major improvements of their target population, change in food
offerings, venturing in different food segments, acquiring additional food brands, and
establishing outlets that offer various services and expanding its operations competitively
through mergers and acquisitions of fast food chains in order to attract additional customers in
the Philippines and abroad. Hence, fast-food companies have been one of the emerging
successes in the Philippine economy and industry.
Overall, the fast-food industry is still experiencing major growth by establishing outlets
that offer various services, offering a wide variety of delicious food offerings at affordable
prices, and implementing feasible strategies necessary to innovate on their food offerings. Given
the competitive nature of the market, fast-food restaurants adapt and ensure their survival by
expanding its operations competitively through mergers and acquisitions of fast food chains
despite facing many obstacles that hinder them in achieving their goals.

Political factor
Political factor is the governmental factor or policies that affects the business of the
company. The factors influence the fast-food industry significantly, because the restaurants must
confirm the orders or policies from the government otherwise, the restaurant will be penalized.
The governmental policies are the basis of what the food industry business needs to standardize.
For an example, the Philippines Department of Health (DOH) introduces five keys to safer food
which are to keep clean, separate raw and cooked foods, cook foods thoroughly, keep food at
safe temperatures, and use safe water and raw materials. Any type of restaurant in the Philippines
should confirm what DOH has ordered because the customers can preserve the evidence of the
foods that are not clean or half-cooked and report the clear evidence to the local health
department. The government can order policies depending on the circumstance which can even
reduce the profit of the business. Nowadays, due to COVID-19, restaurants in the area of General
Community Quarantine can operate 50 percent of capacity and are only allowed to dine- in and
the restaurants should prepare and provide sanitizers and temperature scanners. The restaurants
in the Philippines should follow the policies, but if any of the following is violated, the
government can shut down establishments that violate protocols.
Legal factor
Legal factor is the rules and regulations to control the business trade ethically. In terms of
the food industry, employment law, consumer protection law, health and safety law is
considerable. Concentrating on consumer protection law, the Philippines government established
RA 7394, which is known as the Consumer Act of the Philippines as the legal basis for customer
protection in the country. The purpose of the Act is to protect the interest of the consumer,
promote citizen’s legal welfare and establish standards of conduct for business and industry as
following:
● Protection against hazards to health and safety.
● Protection against deceptive, unfair and unconscionable acts and practices.
● Provision of information and education to facilitate sound choice and the proper exercise
of rights by the consumer.
● Provision of adequate rights and means of redress
● Involvement of consumer representatives in the formation of social and economic
policies.
Next, According to Republic Act No. 11360, it guides how the restaurants in the
Philippines should treat their employees as follows.
● Section 3. Distribution of service charges- All service charges actually collected by
covered establishments shall be distributed completely and equally, based on actual hours
or days of work or service rendered, among the covered employees, including those
already receiving the benefit of sharing in the service charges.
● Section 4. Frequency of distribution- The shares referred to herein shall be distributed
and paid to the covered employees not less than once every two weeks or twice a month
at intervals not exceeding sixteen days.
● Section 5. Increase in minimum wage- In the event that the minimum is increased by law
or wage order, service charges paid to the covered employees shall not be considered in
determining the covered establishment compliance with the increased minimum wage.
 Guiding those two consumer protection laws and employment laws, the food industry in
the Philippines must satisfy the laws related to its business to operate its own restaurants
ethically and securely.
Environmental factor
Environmental factors are the economic growth, exchange rates, interest rates, inflation
rates, disposable income and unemployment that affects the business operation. It affects the
food industry importantly because unstable environmental factors can differ or increase the price
of raw materials to finished foods. Also, environmental factors encompass any other factors
because the surrounding of the business is affected by political, economical and ecological
factors.
Social

Lifestyle and health have been a huge factor on the overall stand of the food industry.
Nowadays, people have become more careful when it comes to health and lifestyle. People tend
to become more aware of the nutritional facts that they consume. In short, people nowadays
already think before they eat. It includes not only junk foods, but also snacks and beverages.
Media has been a huge factor in creating this perception. Some businesses offer less-calorie
products or even no-calorie products. Others also offer prices depending on the number of
calories, meaning, lesser the calorie, the cheaper the price. These media and advertising
perceptions had a huge impact on the industry.

Another change that has been happening right now is driven by the Corona virus
pandemic. Our health and lifestyle have changed big time. Since most of us have been
working/studying remotely, fast food deliveries have become in demand since quarantine started.
Instead of dine-in, customers prefer deliveries or pick-up and it has made a huge impact not only
with the health and lifestyle of people but also on the fast food industry as well.

Technological

Technology has been a huge part of the overall success in every existing establishment in
the Philippines, especially the fast-food industry. In order to make its service more convenient
and accessible online, fast-food restaurants have recently operated its delivery services through
grab deliveries, social media platforms, mobile technology, and others (Sharp, 2017). Not only
do fast-food restaurants focus on improving the quality of food offerings and adding all-different
meals into their menus but also manage heavily on customer service and convenience. By
modifying its customer service and convenience with the use of social media channels and
mobile technology, they may be able to use prevalent social media websites on the internet to
effectively communicate with their customers. Through the usage of mobile technology,
customers may be able to access established websites and apps on mobile phones. Amidst this
COVID-19 pandemic, fast-food companies are operating or partnering with a lot of big delivery
companies wherein customers can have their food on demand with the accessibility of booking
their deliveries within seconds. Therefore, this has made fast-food companies more valuable as
it became more convenient and accessible for the customers.

Economic

With the current we are facing globally, it has been a huge impact on the food industry as
well. Since the income of a lot of people has been greatly affected, customers tend to become
more mindful of their expenses and consume goods more wisely, including food. Because of
this, the industry has suffered a lot and they thought of some ways in order for them to gain or at
least, retain customers. One way that they thought of was to improve the customer service. They
believed that good tasting products are not enough for them to become profitable. Another way
they thought of was to offer more affordable meals and promos such as buy 1 take 1. Customers
are very attracted when they see promos. These strategies have been effective and customers
were more encouraged to consume the products. In short, the economic factor is a huge factor in
the industry. The way they cope up and adjust during these kinds of recessions is a proof of it.

Henry Porter's 5 Forces

Competition in the industry

- Other existing and well-known fast food chains in the Philippines and from abroad

Potential of New Entrants into the industry

- Other globally dominant fast food chains entering the Philippines

Power of Suppliers

- Many suppliers
- Fast-food restaurant chains have strong bargaining power given its popularity

Power of Customers

- Bargaining power of customers is low as product prices are fixed

- Prices are affordable which allows customers to easily pay for meals (value meals)

Threat of Substitute Products

- Convenience stores
- Non-fast food substitutes
- Cheaper alternatives may affect interest of consumers to purchase products
Key Players

McDonald’s Philippines

It was in the year 1981 that George T. Yang opened the first McDonald’s branch in the
Philippines. It had first been founded in the United States by Ray Kroc, Dick, and Mac
McDonald. Originally, it started out as a burger shop. This however, needed to change as it
arrived in the Philippines. The local palate was more accustomed to rice meals. This saw the
introduction of now common favorites McChicken and McSpaghetti. The menu also consists of
a variety of desserts including apple pie and sundaes. The similarity in products offered between
McDonald’s and Jollibee could be credited to the fact that Jollibee had already been popular by
the time McDonald’s arrived in the Philippines. As such, the fast food chain had to adjust to suit
the local palate.

Wendy’s Philippines

Wendy’s is a fast food joint founded by Dave Thomas in 1970 that focuses on serving
fresh and better quick-service meals to families and communities at affordable prices (Wendy’s,
2020). Wendy’s is well-known for its variety of fresh and quality food offerings, especially its
burger selections, chicken nuggets and sandwiches, salad meals, milkshakes, and other related
food offerings of Wendy’s.

However, in 2019, it was announced that the founder of Udenna Corporation, Dennis Uy,
has acquired and taken over the 51 restaurants of Wendy’s to further expand its food business in
certain urban areas in the Philippines. Not only that, but also to continue offering quality and
affordable quick-service meals to Filipino customers (CNN Philippines, 2019).
KFC Philippines

Kentucky Fried Chicken or KFC for short originated from the United States when
Colonel Sanders first began selling his eleven herbs and spices chicken recipe door-to-door and
in gas filling stations. It found its way to the Philippines in 1966. From then on, it became such a
big hit that by the year 1999, the restaurant had established its 100th branch in Taft. Its
popularity is partly due to the fact that KFC offered chicken rice meals in the Philippines,
something that the local market was already accustomed to. As of today, the fast food chain has
gotten a larger menu including Zinger, Double Down, and many other local favorites.

Products

Below are the top-selling products Wendy’s Philippines, McDonald’s Philippines, and
KFC Philippines.

Wendy’s Philippines

Wendy’s is a fast food joint focused on making burgers. Their most famous and most
easily recognized product is the Baconator. Aside from this, they also sell variations of fast food
offerings into their menus. These are burger menus, sandwiches, fried chicken selection, salad
meals, rice meals or Wendy’s deals

As for their Burger selection, their top-selling burger items are the Baconator Mushroom
Melt and Double, Big Bacon Mushroom Melt, Bacon Cheeseburger, and Bacon Mushroom Melt
Whatta Box.
 On the other hand, their top-selling sandwiches are Homestyle Chicken, Fish Fillet, and
Spicy Chicken sandwiches.

Unlike Jollibee, McDonald’s Philippines, and KFC Philippines, Wendy’s Philippines has
their own salad meals selection into their food menus. For veggie-lovers, these are Apple
Waldorf, Chicken Caesar, and Macaroni Side salads.
 As for their Wendy’s Philippines deals, the fast food chain also offers rice meals.. Their
top-selling rice menus are Salisbury Steak, Crunchy Spring Roll, and Soy Garlic Chicken with
rice.

As a fast food joint, they also serve sides like chips and fries as well as desserts. They
serve frosty ice cream as well as beverages to complete the meal.

Additionally, Wendy’s Philippines cater its customer with their new quick-meal offering
such as Chili n Chips, Potato, and Rice, Cheeseburger Fries, and Choco Cookie Overload
(Wendy’s Philippines, 2020)
McDonald’s Philippines

As for McDonald’s food menu items, the restaurant has its own breakfast, drinks and
desserts, burgers, chicken and platters, McCafe, and fries menus. Furthermore, McDonald’s
Philippines serves its local customers their favorite and unique Filipino palate such as Chicken
McDo, Burger McDo and McSpaghetti​As for their breakfast menus, McDonald’s caters its
customers with hotcakes, breakfast sandwiches, hash browns, and platters. For hotcakes, they
serve their hot and golden pancakes that are best paired with hot sausages and sweet flavor of
maple syrup. Not only do they serve hotcakes for breakfast, but also serve breakfast sandwiches,
especially the Sausage McMuffin with Egg. The Sausage McMuffin with Egg is served with a
hot sausage with real creamy American cheese and some freshly cooked Grade A egg. Next, the
Mcdonald’s breakfast Hash browns which is served with hot and golden potato patties. For
breakfast platters, McDo serves customers with the Sausage Platter with Rice.

As for desserts and beverages, McDonald’s Philippines serves a wide variety of desserts
(McDonald’s Philippines, 2020). These are McFlurry with oreo cookies, Hot Caramel Sundae,
Chocolate McDip, Vanilla Sundae Cone, Hot Fudge Sundae, Apple Pie, and others. For cold and
hot beverages, Orange and Pineapple juice, Coke McFloat, and McDonald’s Premium Roast
coffee.
 Unlike Jollibee, McDonald’s Philippines has its own McCafe that serves coffee either hot
or cold such as McCafe Americano, McCafe Iced Coffee, Caramel Frappe and Mocha Frappe,
Hot Cafe Latte, Hot Cappuccino, Americano, and others. To add, it also caters cakes such as
blueberry and oreo cheesecake, dark chocolate cake, and more.

As for McDonlad’s burgers menu, the Quarter Pounder, Big Mac, McChicken and
Filet-O-Fish sandwich are well-known items in their menus (McDonald’s Philippines, 2020).
For the Quarter Pounder, it has a f​resh seasoned beef with two slices of melty cheese on a
sesame seed bun. As for the McDonald’s ​Filet-O-Fish, it is served with a hot and crispy chicken
fillet, mayonnaise, shredded iceberg lettuce, and a perfectly toast bun paired. On the other hand,
McDonald’s Big Mac burger comes with purely seasoned beef with its own special sauce on a
sesame seed bun with McDonald’s melty American cheese, crisp lettuce, and crisp dill pickles.
KFC Philippines

KFC Philippines’ caters its customers through its breakfast and chicken bucket meals, all
chicken buckets, fixin and extras. However, their chicken bucket meals, all chicken buckets, and
fixin and extras are for sharing only (KFC Philippines, 2020).

For their breakfast meals, KFC Philippines has already established its own breakfast
buffet in eight selected restaurants during weekends (ABS-CBN News, 2014). Although, this
encourages customers to reserve their seats ahead for the breakfast buffet. Moreover, KFC’s
Philippines breakfast menus offer chocolate chip pancakes, longganisa, tocino, chicken fillet
with steak sauce, egg, garlic rice, arroz caldo, and more.

Currently, KFC Philippines has its unique food items to differentiate from the rest. These
food offerings include ​KFC Zinger, the KFC Double Down, the KFC Chizza, and KFC’s Cheese
Top Burger (KFC Philippines, 2020). The Cheese Top Burger is chicken sandwich with
parmesan dressing and a slice of melted cheese placed on top of the bun
 Unlike McDonald’s Philippines and Jollibee, KFC Philippines does not have a wide
variety of rice meals, noodle menus, burger menus, special desserts and beverages.

Overall Strategy

Wendy’s Philippines

Wendy’s operates by appealing to its customers without changing their products much.
For example, their menu rarely changes and has little to no development. However, this also
means that they are able to focus more on quality. They specialize in burgers which means that it
may be difficult to diversify their menu but their currently existing menu is almost always
guaranteed to be good. This is reflected in the size of their burgers. Generally speaking, their
burgers are much larger in size than those offered by competing fast food chains. Also, they have
more toppings like bacon, cheese, and mushrooms which are not commonly found elsewhere.
They may sell burgers similar to others, but their product is guaranteed to be distinct in terms of
size and quality.

Aside from focusing on having a good product, Wendy’s has diversified its platforms.
Most of their revenue is generated by over-the-counter transactions in their branches. However,
they have also utilized technology in developing a mobile application that its patrons may use to
order food. Also, they have partnered with Food Panda to increase their reach. As their deliveries
are still limited, they made a good decision to partner with a company that specializes in
distributing food.

McDonald’s Philippines

McDonald’s Philippines continues to cater and respond to the ever-changing needs of its
loyal customers, especially the Filipino family, by continuously offering quick-service meals
with good value for their money and high quality food at a low cost menu. Not only quality
tastes, but also serving them with fresh ingredients and serving hot meals.

In order to become the first choice when it comes to food and dining experience,
McDonald’s Philippines continues to amaze and delight their customers with menu innovations
or product innovation such as Twister Fries, Shake Shake Fries and different McFlurry, McFloat
flavors and McCafe product lines (Go, 2014).

In order to acquire more customers and make it convenient for them, McDonald’s not
only opened new restaurant establishments in the Philippines, but also improved on their food
offering on their menus. This could be done by offering quick-service meals to customers at
affordable prices.

In order to improve on the brand’s convenience and accessibility, McDonald’s continues

to improve their services by ordering anytime and anywhere through McDelivery, its website
(mcdonalds.com.ph), and McDo PH App.

To serve better and serve more Filipinos every single day, McDonald’s Philippines
increases its business operations through franchising. Through this unique model, McDonald’s
Philippines has established partnerships with entrepreneurs who are Filipino or former natural
born Filipino citizens in order to serve great tasting food and expand its networks worldwide
(McDonald’s Philippines, 2020).

KFC Philippines

KFC offers a wide range of products that are sold by themselves or in bundles. For
instance, a customer may purchase chicken with rice by itself but he/she may also opt to buy the
meal with a drink for a discounted price. Instead of buying the chicken and the drink separately,
which is more expensive, customers are given the chance to buy them together at a lesser price.

Aside from a good pricing strategy, KFC is also able to cater to multiple demographics.
For a company that originates in the United States, it had no trouble finding a niche in the
Philippine market. Their iconic eleven herbs and spices recipe is consistently well-liked by
different people in different places and age groups. KFC is able to easily market its product
because the product itself is good.

KFC also utilizes traditional marketing strategies such as putting up billboards and
handing out flyers. However, they are not limited to this. They also utilize television for
commercials and the internet for other ads. KFC has developed an application for online
deliveries which allows customers to order food with the convenience of their phones.
Strengths and Weaknesses

Wendy’s Philippines

Strengths

Wendy’s is an internationally acclaimed brand that has around 6,650 branches

worldwide. Its employee numbers are also high at 46,000 people. The company has a strong
supply network which allows them to preserve the quality of its products. With this, they are able
to serve fresh beef instead of serving frozen ones. The company is also able to market itself well
which gave it its popularity. This allows it to consistently sell its products which makes it
financially stable.

Weaknesses

Despite being the third largest fast food company in the world, Wendy’s still has a
limited reach compared to its competitors. Additionally, the company also has products that may
easily be imitated. They are essential burgers that can be imitated simply by adding cheese or
bacon to them. Also, the focus on burgers also makes them less diverse. This specialization can
strain them from innovating new products. This is reflected in their limited breakfast menu.

McDonald’s Philippines

Strengths

Mcdonald’s is a global brand that owns 31,000 branches that serve in 120 countries. Two
of the most popular products of Mcdonald’s are the Big Mac and McNuggets. These products
have become the face and branding of Mcdonald’s. Another strength of Mcdonald’s is its logo,
which was once recognized as one of the world’s most recognized logos. Lastly, its
advertisements have become one of the biggest here in the country. Just like the other big fast
foods, they used celebrities and influential people to endorse their brand. Some noticeable artists
include Manny Pacquiao and Sharon Cuneta.

Weaknesses
 One of the biggest weaknesses of Mcdonald’s is its advertisements. Their advertisements
only focus children as the target market. They have focused too much on that market that the
impact of it on the other age groups is weak. Another weakness of Mcdonald’s is the lack of
innovative products. As we can see, their menu line-up is almost the same with the line-ups in
other countries. It could be because they want to maintain the standards of the brand, which
originated in the U.S. However, not everyone loves American fast food. Some, especially the
elder ones prefer to eat something that they are familiar with.

KFC Philippines

Strengths

One of the advantages of KFC is its recognized brand, not only locally, but also
internationally. As of 2020, KFC now has a total of 21,000 branches across 130 countries.
Another advantage of KFC is the innovation of non-meat products for a growing market. This is
one of the biggest advantages of KFC over all the other fast companies in the Philippines. In the
last few years, KFC has been offering vegan products, specifically salad. This is a big thing since
people nowadays have become more conscious of their health. We believe that KFC has become
more popular since they added this option.

Weaknesses

Just like the other fast-food joints, its menu still makes some of the customers conscious
about their health. Their menu is high in fats and calories and this has been a hindrance for the
company to attract new customers. Another disadvantage is also their lack of innovation. Despite
innovating vegan products, they still haven’t came up with a menu that specializes in a certain
country. They could have added products that have a taste of Filipino vibe that could attract their
main target market.

The Company

Jollibee Food Corporation

 Jollibee is one of the biggest and fastest-growing fast food companies in the Philippines
owned by President Tony Tan Caktiong (Jollibee, 2020). Furthermore, as Jollibee being the
most dominant fast-food chain in the Philippines, it has currently more than 750 stores in the
Philippines, 39 in Vietnam, 13 in Brunei, 27 in the United States, 8 in Jeddah, three in Qatar and
one each in Hong Kong, Kuwait and Singapore. ​Jollibee Food Corporation has humble
beginnings that traces its roots to simple Magnolia ice cream parlor franchises in Cubao and
Quiapo. These ice cream parlors, established by Tony Tan Caktiong, soon became unsustainable
which led Tan Caktiong to add hot savories to his menu. Eventually, he sold his franchises and
opened the first Jollibee restaurant. From simple ice cream parlors, the fast food chain now sells
its iconic chicken, spaghetti, burger steaks, and different desserts.
Given that the company is recognized as a well-loved brand and the most demanding fast
food chain overseas, the Jollibee Food Corporation has acquired and operated well-known
brands such as Red Ribbon, Greenwich, Mang Inasal, Burger King Philippines, Chowking,
Panda Express Philippines, The Coffee Bean & Tea Leaf, and others (Cigaral, 2019). Also, the
fast food company continues to offer a high variety of delicious menus for Filipinos at affordable
prices such as Chickenjoy, Yum Burger and Champ hamburger, Jollibee Spaghetti, and more
varieties of food products that the company offers. ​All these products were specifically designed
to fit the local palate. In fact, Jollibee engineered its products to be fragrant for they noticed that
many Filipinos would smell their food first before they would eat it.
Products and Brands

Jollibee caters its customers breakfast and rice meals, burger, chicken, hotdog
sandwiches, noodles, and french fries and sides.

For breakfast and rice meals, Jollibee serves its own Sandwich Pancakes with either egg,
bacon, and cheese that are enclosed by two moist pancakes. Unlike McDonald’s Philippines,
Jollibee has more breakfast rice meals such as Breakfast Hotdogs, Breakfast Shanghai, Breakfast
Longganisa, Breakfast Beef Tapa, Corned Beef, Breakfast Salisbury Steak, and others related.
 As for the burger menu, the Cheesy Deluxe Yumburger, Champ Burgers, Cheesy Hash
Brown Burger, and others are one of the best-servings and great-tasting food offerings of Jollibee
(Jolli​bee, 2020). The langhap-sarap Yum Burger comes with lettuce, tomato, cheddar cheese,
crispy bacon, and pure beef patty. Unlike Mcdonald’s, Jollibee has its own Hash Brown Burger
which is served with ​pure beef patties, slices of cheese, and sweet tomato sauces on the that are
sandwiched by two hot-baked hash browns.

As for Chicken meals, one of Jollibee’s signature food dishes is the Chickenjoy fried
chicken. In 1980, this food offering became one of the best selling menu items (Jollibee, 2020).
Until now, it is still one of the best and most delicious chicken because it served the best tasting
delicious and crispylicious battered fried chicken that is crunchy on the outside and juicy on the
inside.

For the Hotdog Sandwiches menu, one of the top selling food offerings of Jollibee are
Jolly Hotdogs. The Jolllibee’s Jolly Hot Dogs was launched and contributed to its post sales of
P1.8 billion in the year 1990 along with other new food offerings (Jollibee, 2020). Today, it is
still one of the best food items in their menus because of its extra beefy sausage, grated cheese
with an extra creamy sauce and sweet tomato sauce.
 Unlike McDonald’s Philippines, Jollibee has its own special item under the Noodles
menu which is the Fiesta Palabok Noodles. Not only does the fast-food restaurant serve its Jolly
Spaghetti but also the Fiesta Palabok Noodles which McDonald’s does not have. The First
Palabok is a Filipino noodle dish with a variety of delicious toppings such as garlic, green
onions, crushed pork rinds, shrimp, parsley, and two of hard-boiled eggs (Jollibee, 2020).

Moreover, Jollibee serves its customers with their Salisbury Burger Steak which is a pure
beef patty best paired with a hearty serving of hot mushroom gravy and steamed rice. In addition
to this, the Salisbury Burger Steak is another menu that you wouldn’t find in McDonald’s
Philippines, only in Jollibee restaurants.

SWOT Analysis

Strengths

Jollibee Foods Corporation has grown exponentially on all aspects of operation. As of

2020, Jollibee operates a total of 3,286 branches in the Philippines, which include brands like
Chowking, Red Ribbon, Mang Inasal, Greenwich, Burger King, and Panda Express. Jollibee has
acquired most of its competitors in the past years. Another strength of Jollibee is its superior
menu line-up. From their YumBurger up to their famous Chicken Joy that everyone loves. Their
menu line-up attracts not only the young ones, but everyone. They also highlight the culture of
the Philippines by making special products that originated in the Philippines such as Palabok and
Filipino Style Spaghetti. They also offer desserts that are very famous here in the country like
buko pie, peach mango pie, and halo-halo smoothie. This line up of Jollibee really made them
the dominant fast food in the country. Another strength is their creative marketing program. The
marketing strategy of Jollibee is one of the most effective strategies right now. As we can notice,
we see Jollibee’s advertisements almost everywhere. They really make good use of their
commercials by using celebrities and influential people to advertise their brand. Some examples
of noticeable artists that endorse Jollibee are Aga Muhlach, Sarah Geronimo, and Julia Barretto.
Lastly, Jollibee operates 24/7 to serve its loyal customers. Everyone can enjoy the taste of
Jollibee anytime as they are open 24 hours. This is a huge advantage since people working at
night can also enjoy their products.

Weaknesses

One weakness of Jollibee is the fear of customers buying fast food products. As we all
know, these kinds of products can cause obesity and people nowadays have become more
conscious about their health and lifestyle. This is one of the hindrances that keeps customers
from continuously buying fast food products. Another weakness is their pricing that some people
cannot afford. Even if their products are one of the favorites of Filipinos, a lot of them still can’t
afford the price that they offer. As we all know, the majority of Filipinos are in middle class and
lower class.

Opportunities

Despite being the top fast-food firm in the country, Jollibee still has a lot to improve on in
order to maximize the sales. One of the opportunities is the new venture of products and services.
The brand should invest in many new products that not only kids will love, but everyone. They
should also consider including vegetarian food in their menu to cater those customers who are
fitness enthusiasts. Investing into new services that would be more reliable for the customers
such as online service and payment methods should also be considered by the brand. Another
opportunity for Jollibee is to improve their online marketing. Venturing in the online market
would highly increase the revenues. Since most people are already online, this is already an ideal
method to get customers. Last opportunity is the international expansion. We all know that
Jollibee has been widely known in the Philippines. However, they should consider extending its
reach at the global level. There are a lot of food lovers around the world who want to try
different kinds of food and Jollibee is surely one of them.

Threats

One of the biggest threats of Jollibee is the strong competition from other fast-food
brands not only in the Philippines, but in the world. The brand has to continuously execute new
strategies and innovations in order to outperform its big competitors. Another threat is the
concept of diet or low-calorie food and healthy living. This concept has affected the
decision-making of a lot of people to prefer food that is prepared using less fat or calorie. This is
a major issue as this concept could be the cause of the decline in customers and revenues.
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