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Inside the Leader’s Mind: Jollibee’s Founder Tony

bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Q: “Tony, the success of the Jollibee story is truly inspiring. Jollibee not only grew into
the country's biggest food giant, even beating McDonald's, but has also been embarking
on an international expansion. Can you share with us the story of how the Jolly Bee
started? What are the business and personal challenges that you face along the way.
how did you overcome them and what are the lessons that you have learnt?”

Tony: “Being born into a poor family which migrated from Fujian in southeastern China
to the Philippines in search of opportunity, I became involved in the food and beverage
Jollibee’s Founder Tony Tan Caktiong and
wife Grace Ang Caktiong Industry at an early age as my family ran a restaurant which sustained the family and put
me through college. At the age of 22, my wife Grace and I put up an ice cream parlor two
months after graduating as engineers from college. We got the idea of putting up an ice
“… way back then, we learned that cream parlor after visiting a Magnolia shop which had a notice saying a franchise for a
it pays to give customers more store is available. We spent P150,000 for the store which opened its doors to customers
than they expect. That was the in 1975. There were many ice cream parlors at the time, and they were all selling the
first lesson - and it is something same stuff. Our challenge was how to attract customers to our stores. We decided to
that Jollibee espouses to this day. I offer extra-big scoops of ice cream, provide cleaner stores than others, and super
believe that we should give our efficient service. Happily, customers flocked to our stores and way back then, we learned
fellow men more than they expect, that it pays to give customers more than they expect.
whether they be customers, co-
workers, suppliers, family and That was the first lesson - and it is something that Jollibee espouses to this day. I believe
friends. I think that comes from that we should give our fellow men more than they expect, whether they be customers,
the view that we don't have to be co-workers, suppliers, family and friends. I think that comes from the view that we don't
greedy in our daily lives or have to be greedy in our daily lives or business. If we strike the right balance, we share
business. If we strike the right the benefits with whomever we're dealing. This eagerness to give people what they
balance, we share the benefits wanted and more, was what pushed the firm's entry into the fastfood business. When
with whomever we're dealing.” we found out that our customers were craving for something hot, we introduced
sandwiches until we decided on adding the store's popular Yum burger and Chicken Joy
to the menu in 1978. And soon enough, the hamburgers were outselling the ice cream.”
33

Inside the Leader’s Mind: Jollibee’s Founder Tony


bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “The idea of expanding the store's menu came from the store's patrons. From
early on, we were already listening to our customers. At first, it was actually chicken
sandwich, and hotdog, and cheese--those were the three sandwiches we started with.
They were very simple but good. Then we embarked on a ‘research’ stage, looking for
the right hamburger we can add to the growing menu. We went out almost everyday to
all the hamburger stores in town. We bought burgers and we dissected them... we tried
to see what each was made of. We kept on eating until one day, we said, 'this is good'.
Before we came out with the burger, it was, I think, over a year. So we were eating
burgers everyday for over a year.

“Many of my well-intentioned The second lesson was endurance. Just as Jollibee started growing, we found out in 1981
friends advised us to sell out while that the world's biggest hamburger chain McDonald’s was about to enter the Philippines.
we still could. The mindset was, Many of my well-intentioned friends advised us to sell out while we still could. The
'How could a small Filipino mindset was, 'How could a small Filipino company with only 5 stores take on a big
company with only 5 stores take multinational company in a business they practically invented?' Friends started asking us
on a big multinational company in if we were going to get a McDonald’s franchise but I remember saying, if you franchise,
a business they practically you can’t grow outside the Philippines. This was a moment of truth for us. A moment
invented?' Friends started asking that directly tested my hope and ambition. In one of our early planning sessions, my
us if we were going to get a vision was to create the largest food company in the world. Some people thought I was
McDonald’s franchise but I overly optimistic. The mindset and optimism in making a business succeed is very
remember saying, if you franchise, important. If I had no hope, I would have sold out the business right then and I would
you can’t grow outside the not be standing in front you of today, I might just be flipping burgers for you-know-who.
Philippines. This was a moment of
truth for us. A moment that Was it naiveté? Maybe, but it was definitely not blind faith. I believed that we could
directly tested my hope and succeed in the hamburger business even against the biggest player in the world. I did not
ambition.” make up that belief - I really believed it. For better or worse, that was my mind-set.
That's because I knew our customers liked our hamburgers. They liked their taste and
they kept coming back.”
34
Inside the Leader’s Mind: Jollibee’s Founder Tony
bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “Taste - that was the secret, and what made the difference. We had a meeting to
strategize how we could compete. After a long trip to the U.S. to study how McDonald‘s
operated, top managers brainstormed over every attribute that helps decide where
customers go to eat and measured how Jollibee compared on each one. We found that
they excelled over us in all aspects--except product taste. It suited Americans but not
really Filipinos. Our food tends to be sweeter, more spices, more salty. We were lucky as
it was not easy for them to change their product because of their global image.

We innovate smartly - taking risks while focusing on known strengths. My father who
once helped found a restaurant in Davao once told us that in the restaurant business, it's
the taste that counts. That sounds elementary, doesn't it? And very basic. But it is very
“Till today, we keep things simple important. My mother would say I was the most difficult to bring up because I was the
and fill a simple need: very tasty choosiest in terms of taste, whereas my brothers would just eat anything. She would say,
food at a reasonable price. To this ‘You are the hardest to satisfy.’ I was convinced that our company could offer better-
day I repeat to my people what my tasting products than our competitors. So we went ahead and we opened up one store
father told me--you have to make at a time, slowly at first. Then when we saw that each store was making money, we
sure your food tastes really good. opened more. And since then, we never lost our leadership position, and I guess that's
Jollibee’s mission statement is ‘To because our customers really liked our products. Till today, we keep things simple and fill
serve great tasting food, bringing a simple need: very tasty food at a reasonable price. To this day I repeat to my people
the joy of eating to everyone’.” what my father told me--you have to make sure your food tastes really good. Jollibee’s
mission statement is ‘To serve great tasting food, bringing the joy of eating to everyone’.

But even with better-tasting food, could we really compete? If we want to compete we
have to make sure we at least equal them in all the other attributes. It was a challenge
because in advertising, promotion, store look, size, playgrounds, service speed, we
ranked lower. We focused on the other attributes one by one. Sometime later we did a
customer survey, and we were surprised we ranked higher than McDonald's on a lot of
attributes.”
35

Inside the Leader’s Mind: Jollibee’s Founder Tony


bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “We were surprised customers ranked us higher in courtesy and service style.
Maybe they felt we were warmer? And then they liked our marketing, promotion and
advertising better. And then customers kept just coming back.

But those early days were not easy. We faced many challenges and took many risks. In
taking these risks there were times we lost money due to the mistake we made. The
brands that we started but failed to grow included Mary's Chicken and Copenhagen ice
cream. Lots of research went into these brands but the products that were eventually
launched were far from what was originally tested. We thought that barbeque chicken
product was our best product. We did a lot of work on it. But it didn’t do very well. Do I
call it a major mistake? Maybe not a major mistake but it’s a failure we have in our
“Saving every peso we could was history. When it comes to education, the only school I can learn from is the school-of-
our mindset during the early days hard knocks. And I'm still learning today. Failing is just an experience or a learning. If you
of Jollibee when we had a lone can pick up some learning’s then it’s worth it. It’s like paying tuition fee.
store in Cubao. We had to do
everything by ourselves in the Saving every peso we could was our mindset during the early days of Jollibee when we
beginning. As Grace said wisely, had a lone store in Cubao. We had to do everything by ourselves in the beginning. Pati
‘There's a Chinese saying that says janitorial services –Grace and I even cleaned the toilet. When there's no cashier, you do
it's easier for you to save than to the cashier, if there's no cook, you do the burger, if there's no janitor, you clean the
earn’. So if you have something toilet. It's like your neighborhood mom-and-pop store. We also served the customers as
and you can save it. Don't waste it waiter and waitress, and then at night, we do the accounting by ourselves. As Grace said
because to earn money, it takes a wisely, ‘There's a Chinese saying that says it's easier for you to save than to earn’. So if
lot of hard work.” you have something and you can save it. Don't waste it because to earn money, it takes a
lot of hard work. We worked hands-on but as the business propels, we noticed they
could not do it all so we started to set up an organization hired store managers, and
trained people.”

36
Inside the Leader’s Mind: Jollibee’s Founder Tony
bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “During those challenges I continued to have high hopes and optimism that
anything is possible. I think I pick up this belief from my mom. Our role is to do what we
can as best we can and don’t worry about the outcome. The outcome will take care of
itself. This belief has allowed me to sleep well at night. It gives me new hope everyday.

The third lesson is that innovation starts in our minds. Our mindsets determine what
we're able to accomplish. The story of Jollibee is a story of finding opportunity amidst
difficult times. The main thing is to dream, dream big and not be afraid of it. Dreams are
free. Why limit what you are aspiring for? But dreaming is not enough. One must be
willing to put in the needed action and hard work to make these dreams come true. If
“Our mindsets determine what we're you dream big and put your dreams into action you will indefinitely make mistakes. But
able to accomplish. The story of Jollibee don’t be scared to make mistakes. Just be quick to recognize them and learn from them
is a story of finding opportunity amidst as fast as you can. Learn from each mistake and it will not be a waste of time. If we place
difficult times. The main thing is to no restrictions on ourselves, then we're capable of doing anything. If we are not greedy,
dream, dream big and not be afraid of it.
then more things will return to us. If we give more to our fellowmen and to our
Dreams are free... But dreaming is not
enough. One must be willing to put in the customers, more than what they expect, they'll return over and over again.
needed action and hard work to make
these dreams come true. If you dream Q: “How did the iconic bee mascot came about?”
big and put your dreams into action you
will indefinitely make mistakes. But don’t Tony: “While searching for the business name and a mascot for our first fast food store, I
be scared to make mistakes. Just be
quick to recognize them and learn from
came across my valuable collections of Disney memories and found, a character of a bee,
them as fast as you can. Learn from each that somehow represent my philosophy of spreading happiness and being productive,
mistake and it will not be a waste of and added jolly because I believe that people should be happy with their work and also
time.. If we are not greedy, then more enjoy working at the same time. When we aired our animated commercial on a
things will return to us. If we give more Philippine Basketball Association finals match, overnight, Manila woke up to—what
to our fellowmen and to our customers,
seemed to many—a foreign brand. To the consumer, they will remember that the brand
more than what they expect, they'll
return over and over again.” connotes very tasty food and also the experience, the ambience, the service, and they
are also proud to be a part of that brand.”
37

Inside the Leader’s Mind: Jollibee’s Founder Tony


bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Q: “Can you share with us more about Jollibee’s ambitious international expansion? How
does Jollibee manage the risk of expanding into new markets?”

Tony: “Our vision is clear: We want to become a global player, with a 50-50 split between
domestic and international sales by 2020. It's a challenge to reach 50% because the
Philippines is growing fast so the outside has to grow much faster. We are adding outlets
in the U.S. and other places where large parts of the Filipino diaspora have settled. We
are also buying local chains in huge markets such as China and Vietnam that have few
Filipinos.

“Our vision is clear: We want to become Jollibee made its initial moves abroad confident in the brand loyalty of the 2 million
a global player, with a 50-50 split Filipinos working overseas. The company opened Jollibee, Chow King and Red Ribbon
between domestic and international
sales by 2020. It's a challenge to reach
stores in the U.S. in the 1980s. We first entered California where the Filipino population
50% because the Philippines is growing was more than 25%. By 2008 we had franchises in Saudi Arabia, Qatar and the United
fast so the outside has to grow much Arab Emirates. Opening Jollibees in places with large Filipino communities will continue.
faster. Jollibee made its initial moves We don't have to advertise when we open in these places. The longing for home is there.
abroad confident in the brand loyalty of It's just packed. They come here because it's the taste of comfort food. When we opened
the 10 million Filipinos working overseas.
a store in the Middle East, a customer asked me, ‘Sir, can you play your old jingle? I want
All overseas Filipinos love Jollibee
because they feel like they are at home. my daughter to hear it.' All overseas Filipinos love Jollibee because they feel like they are
But the road to becoming an at home. The sight of the bumblebee logo outside of the Philippines fills them with
international force must go through pride: ‘Jollibee can do what other food chains can do, franchise to other countries. It
countries without a strong Filipino means that Filipinos can make their name around the world.’
presence. So instead of building our own
brand, Jollibee decided to buy already-
popular brands and work to improve
But the road to becoming an international force must go through countries without a
their strength in the marketplace.” strong Filipino presence. In China the company opened a Jollibee in Xiamen in 1998 but
had to close it three years later. So instead of building our own brand, Jollibee decided to
buy already-popular brands and work to improve their strength in the marketplace.”

38
Inside the Leader’s Mind: Jollibee’s Founder Tony
bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “We decided the harder thing to do was marketing the brand, so we buy brands
with a following and just have to improve the back end of the operation. Jollibee bought
the Yonghe King fast-food outlets in China in 2004. With our Hong Zhuang Yuan chain, a
congee brand purchased in 2008, Jollibee improved the taste of the food, redesigned the
restaurants and introduced new products. In March 2012 it paid $6 million for 55% of
Chinese beef noodle chain San Pin Wang. We don't even have to launch a Jollibee store
in China--these branches in themselves can be a major business. In 2011 we opened a
food processing plant in Anhui Province and built a R&D center and corporate offices in
“The company is ready to expand Shanghai.
because we have developed a
management corps with the right We are also entering Taiwan with an agreement to join with a subsidiary of the country's
experience in catering to local largest restaurant-chain group, Wowprime. Together, we will own the hot pot dining
customs and preferences, but we chain 12 Sabu and plans for more in China, Hong Kong and Macau; Jollibee is making an
are aware of the challenges, such $8 million investment. We broke into Vietnam, spending $25m in Jan 2012 to buy half of
as maintaining consistency. Food the SuperFoods Group, which operates Highlands Coffee Shops, Pho24 noodle houses
development is key, in terms of and Hard Rock Cafes. The deal expands Jollibee's business in Indonesia, where it had 2
making sure that the hamburger Chow King outlets and now also has 13 Pho24s.
here and there tastes the same
regardless of whether ingredients The company is ready to expand because we have developed a management corps with
might be different quality; beef the right experience in catering to local customs and preferences, but we are aware of
might vary in taste or tomatoes in the challenges, such as maintaining consistency. Food development is key, in terms of
sweetness. And as it's a location- making sure that the hamburger here and there tastes the same regardless of whether
based business, we need to know ingredients might be different quality; beef might vary in taste or tomatoes in sweetness.
the community very well in order And as it's a location-based business, we need to know the community very well in order
to understand traffic flow, where to understand traffic flow, where people stay. Understanding that local consumers might
people stay. .” have different tastes--Jollibee's products are often saltier or sweeter --the company is
open to adjusting recipes if needed.”

39

Inside the Leader’s Mind: Jollibee’s Founder Tony


bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “Core products like chicken don't need to be adjusted because, all over, they love
chicken the same, but our spaghetti might be adjusted, as it's super sweet. For the
Filipino market, we just have to do our job very well and it's there. For the others you
have to go beyond that. You have to build a brand because they don't know anything
about it.

I take a hands-on approach to product development. If I taste a new product and like it, I
will say, ‘Wow, this is good, we can do this. But the marketing department will want a
product survey, which takes time. A lot of times I give in to them, but I try to balance the
organization. Everyone can do market research. We also need gut-feel. It didn’t take us
long to introduce new products when we were starting out. The family members would
“I take a hands-on approach to discuss what new products customers would like, and without much marketing we would
product development. If I taste a bring something out – like spaghetti. My sister is also a good cook, so she would come
new product and like it, I will say, up with a new recipe, we would comment on it, and then she’d fix the recipe before we
‘Wow, this is good, we can do this. started offering it. Before, it was simple. Now, there’s a formal structure. There’s a big
But the marketing department will R&D department and a marketing department. The marketing department gets inputs
want a product survey, which from customers and the products they like, and then communicate that to R&D. R&D
takes time. A lot of times I give in then develops it. We have an internal taste panel that taste the food and comment on it,
to them, but I try to balance the and when a formulation is needed they do it. The next step is a consumer panel test. We
organization. Everyone can do have the product taste-tested by consumers, and if it’s okay, we test the product in a few
market research. We also need stores. Before it was easy, but now it takes three to six months to roll out a new product.
gut-feel.” Another time-consuming process is training our people on how to prepare and serve the
new product.

Many countries share our taste in food, and the opportunity is in going to China, India
and Indonesia- countries with large populations. We usually do a very broad 10-year
horizon but it’s not detailed. We have a five-year plan, a three-year plan, and a one-year
plan.”
40
Inside the Leader’s Mind: Jollibee’s Founder Tony
bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “We have plans for China and India, but if we want to go to India, we’ll need a
long-term plan. We might have to start putting Indian people into the organization and it
would probably take at least three years before we sent them back. In China, we had an
opportunity to break into the market with Yonghe, but because our people didn’t speak
the language, we had to hire translators to help us out. We still send our people there,
but they have to work with translators. We also need good people here. We’re lucky to
be the leader, but it’s still a competitive market. You can’t afford mistakes because
customers will leave if they’re not happy with you.

The food business is still very basic. It’s still about taste. It’s still about How did you serve
“The food business is still very me? Is your place nice? Am I treated well? Do I get value? If you think about it, if we’re
basic. It’s still about taste. It’s still going out to eat, these are the basic things we look out for, but the execution is the
about How did you serve me? Is difficult part. It’s not like other businesses where it’s the concept or the knowledge that’s
your place nice? Am I treated difficult. Here, there’s no secret; it’s very easy, but it’s the execution that’s hard. If you
well? Do I get value? If you think ask a lot of restaurant, they know all these things. Executing day by day is what’s hard.”
about it, if we’re going out to eat,
these are the basic things we look
out for, but the execution is the
difficult part. It’s not like other
businesses where it’s the concept
or the knowledge that’s difficult.
Here, there’s no secret; it’s very
easy, but it’s the execution that’s
hard. If you ask a lot of restaurant,
they know all these things.
Executing day by day is what’s
hard.”

41

Inside the Leader’s Mind: Jollibee’s Founder Tony


bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Q: “What is the wide-moat competitive edge and critical success factor of Jollibee to
keep growing and scaling up?”

Tony: “Food is our business. This is what we're good at. During the heydays before the
Asian crisis, a lot of people were telling us that we were limiting our focus. Since we
were catering to children, they said we should consider operating theme parks. We
opted to keep to the food retail business. As the regional financial crisis unfolded - and
as numerous companies divested themselves from non-core businesses, our focus paid
“Food is our business. This is what off.
we're good at. During the heydays
before the Asian crisis, a lot of Jollibee was listed in the Philippine Stock Exchange in 1993, and was the first food
people were telling us that we service company in the local bourse. After this milestone came a series of network
were limiting our focus. Since we expansions - local and abroad - and acquisitions to corner more of the local food market
were catering to children, they share, such as Greenwich Pizza in 1994, Chowking in 2000, Red Ribbon bakeries, Mang
said we should consider operating Inasal grilled chicken outlets, Delifrance and Burger King.
theme parks. We opted to keep to
the food retail business. As the Greenwich pizza started as an over-the-counter pizza store at the Greenhills Shopping
regional financial crisis unfolded - Center in San Juan, Metro Manila, in 1971. One time, the founder approached me to ask
and as numerous companies if we were interested – at that time she has 50 kiosks and having difficulty managing the
divested themselves from non-core business – when she asked us if we were interested, I said, ‘why not? Let’s form a joint
businesses, our focus paid off.” venture.’ We took over the management in 1994, but we retained the taste of her
products because it suits the local market. On the other hand, we took over Chowking in
2000 because Chinese food is also very popular among Filipinos, but there was no good
company serving the market. So we took over and worked on it.

A big part of Jollibee Foods' success has been the development of market-leading brands
across several categories. Most competitors have single brands. Having multi-food
concepts enables Jollibee to capture a bigger chunk of the dining-out market.”
42
Inside the Leader’s Mind: Jollibee’s Founder Tony
bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “For example, a typical customer can eat at Jollibee on Monday, Chow King on
Tuesday, etc. For us to sustain a good growth rate on a long-term basis, we have to
continue acquiring businesses.

In terms of the value chain in the Philippines, the downstream end franchise partners,
50% of our outlets, were supported and strengthened – being the customer face. In
order to protect the company’s high quality and service standards, potential franchisees
have to conform to a specific profile: self-driven entrepreneurs with good management
skills, good community standing and excellent interpersonal skills. Successful franchising
applicants undergo a 3-month full time Operations Training Program (BOTP) at a
“A big part of Jollibee Foods'
designated training restaurant, supplemented with other programs that will enrich the
success has been the development
franchisee's management and analytical skills needed in the operation of the restaurant.
of market-leading brands across
However, support for franchisees does not end there: Jollibee provides advice for and
several categories. Most
assistance with restaurant layout and design, equipment specifications, furniture and
competitors have single brands.
fixtures, and construction management. Field personnel renders consulting services once
Having multi-food concepts
the outlets are operational. Creative advertising and marketing programs, product
enables Jollibee to capture a
development, manufacturing and logistics facilities provide further support to franchisee
bigger chunk of the dining-out
restaurants. The franchise partners true to Jollibee’s values were treated like family
market. For example, a typical
members. On the upstream end were the three Jollibee Commissary Systems, ensuring
customer can eat at Jollibee on
the manufacture and distribution of safe and high- quality food to all our outlets in the
Monday, Chow King on Tuesday,
most cost-efficient manner is made possible. It operates 24/7.
etc. For us to sustain a good
growth rate on a long-term basis,
To keep Jollibee growing, we are always on the lookout for new global trends,
we have to continue acquiring
innovations and technology in the industry. We study the design and product mix of
businesses.”
other fast-food chains such as Wendy's but look beyond them. We also look at airlines to
see what they are doing on the service side, as we are also in the service industry. And
Disneyland--we learn how they keep their look. It's more than 50 years old but if you go
there it looks like it opened yesterday. And people are always courteous.”
43

Inside the Leader’s Mind: Jollibee’s Founder Tony


bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “As part of our strategy to counter the Western image of McDonald's, Jollibee's
marketing campaign promoted Filipino values like respect for elders, patriotism and loyalty
to the family. We have even launched a TV show (“Jollitown”), established a line of toys and
published several children’s books. Apart from marketing, our organizational culture can be
identified as Jollibee’s key core competencies. Our organizational culture is the alchemy of
many attributes of Jollibee, the main being its values. And therefore not easily copied by its
competitors. Employees give suggestions and ideas to the boss directly – thus generating
innovations. All managers followed suit and upward-downward flow of communication
improved. I took pride in serving the employees through a culture of family bonds and
“As part of our strategy to counter the belonging.
Western image of McDonald's, Jollibee's
marketing campaign promoted Filipino Many social causes were taken up faithfully such as medical assistance to the
values like respect for elders, patriotism underprivileged and for hearing impaired children. Collection of toys and story books for
and loyalty to the family. We have even
children and housing projects for the poor. The company has tapped its nationwide presence
launched a TV show (“Jollitown”),
established a line of toys and published to assist the Department of Health (DoH) in its immunization program. The opportunity
several children’s books. All such came up when a former DoH secretary asked company officials if the government could use
initiatives and more turned Jollibee into a the by then popular Jollibee food chain as patak centers for its polio vaccine drive. 2014 also
national level icon. From a rather crude, marks the 10th year of Jollibee Group Foundation (JGF) in spreading joy in programs that
strange-looking bee that no bank dared create valuable and meaningful impact in the community, including the Busog, Lusog, Talino
to touch back in 1978, Jollibee and his (BLT) School Feeding Program for undernourished pupils, Farmer Entrepreneur Program
cheeky smile today have become
(FEP) to enable smallholder farmers to become entrepreneurs and directly supply fresh
synonymous with a truly Filipino success
story that is now a source of patriotic produce to institutional markets, with records showing that farmers delivering to JFC can
pride. It used to be that a local earn up to five times more compared to when they sell to local markets. All such initiatives
government unit would aspire for and more turned Jollibee into a national level icon. From a rather crude, strange-looking bee
cityhood when it has a San Miguel beer that no bank dared to touch back in 1978, Jollibee and his cheeky smile today have become
warehouse in town. Now, having a synonymous with a truly Filipino success story that is now a source of patriotic pride. It used
Jollibee branch in a locality has become to be that a local government unit would aspire for cityhood when it has a San Miguel beer
the measure of progress.” warehouse in town. Now, having a Jollibee branch in a locality has become the measure of
progress.”
44
Inside the Leader’s Mind: Jollibee’s Founder Tony
bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “Thus, Jollibee’s strong focus on product development, operational excellence,


customer service, marketing and promotion, and social responsibility, and the leadership
helped it become the market leader in the Filipino fast-food industry, beating all the
multinational companies. Aside from having our fingers firmly on the Filipino pulse and
staying several steps ahead of the competition, a big moat for Jollibee is classlessness.
You go in there and find corporate chiefs with their kids, office girls and gardeners. Rich
and poor alike are regulars.

If you have to ask, the secret of Jollibee’s success is sharing. We share our success with
people; we give good compensation; we share any honor that comes our way. Actually,
“Aside from having our fingers this idea of sharing didn’t come from me. It came from a friend. He said: ‘You know why
firmly on the Filipino pulse and you’re successful? You know how to share. A lot of people do not share, but in Jollibee
staying several steps ahead of the you share a lot with your people.’ If you treat staff well, they treat the customers well.
competition, a big moat for We have profit sharing, stock-option plans-our compensation for employees, if not the
Jollibee is classlessness. You go in highest, is one of the top in the industry. We treat our people well.”
there and find corporate chiefs
with their kids, office girls and Q: “What is the corporate culture at Jollibee? What is your management style?”
gardeners. Rich and poor alike are
regulars. If you have to ask, the Tony: “I believe in persuading people instead of ordering them, emphasizing coming to a
secret of Jollibee’s success is consensus. I motivate people by delegating and maintaining a strong rewards system. I
sharing. We share our success with learned to be kind to people, so I seldom scold a person in the organization, even in
people; we give good private. I try to put myself in his shoes--try to imagine how he feels and respond from
compensation; we share any that point of view. I try to see if he did something wrong, is it intentional? Usually it's
honor that comes our way.” not. You try to understand why so you can teach him.

We are always concerned with our organization's capability to handle change. We worry
about how we deal with our customers, the quality of our products, and how well we
listen to customers' needs.”
45

Inside the Leader’s Mind: Jollibee’s Founder Tony


bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Tony: “Good times don't last forever. Decisions made in good times affect the impact of
bad times on an organization. The time to reorganize, realign, and reposition one's self is
when times are good. Then your change can be managed better without the sword of
closure hanging overhead. Jollibee's corporate philosophy is summed up by the
acronym, I CARE:

I - signifies personal commitment


C - denotes communication. When they keep communication lines open within the
company, they create a positive working environment.
“We are always concerned with A - means appreciation. Letting the employees realize that their contributions are vital to
our organization's capability to the business. A gesture of appreciation often comes free, but it is a priceless way of
handle change. We worry about giving proper recognition.
how we deal with our customers, R - is for rewards and remuneration. To attract the best and the brightest to work for
the quality of our products, and them, they pay them competitively.
how well we listen to customers' E - is for empowerment. This means giving their professional managers the license to
needs. Good times don't last take charge and run the company as best as they see fit in consonance with their
forever. Decisions made in good corporate goals.
times affect the impact of bad
times on an organization. The time The I CARE philosophy has helped Jollibee weather uncertain times.”
to reorganize, realign, and
reposition one's self is when times Q: “Who inspires you the most?
are good. Then your change can
be managed better without the Tony: Ordinary people who do extraordinary acts. I admire people's will to do something
sword of closure hanging despite their handicaps, like when you see people without hands who use their legs to
overhead. Jollibee's corporate paint beautiful pictures. It motivates me-here I am a physically perfect person, but look
philosophy is summed up by the at what they can do. If I had that person's will, then I could really do more.”
acronym, I CARE.”

46
Inside the Leader’s Mind: Jollibee’s Founder Tony
bamboo nnovator
Tan Caktiong R.E.S.-ilience in Value Creation
《竹经:经商经世离不得立根创新》

Q: “Tony, your entrepreneurial journey in building Jollibee is truly heartwarming and


inspiring, just like the red jolly bee! Do you have advice or message for the next
generation of leaders?”

Tony: “Work hard. Deal with people honestly. Always look to improve yourself. Celebrate
if we outdo ourselves, not when we outdo others. Enjoy what you are doing. This will
help you to deliver the best products and services to your customers. It will also help you
to strive to improve until you achieve excellence. Be ready to innovate. And never be
afraid to dream big! The advice and motivation comes from one source – my mother. She
is steadfast in counselling us, on how to live the life that is upright.”
“Work hard. Deal with people
honestly. Always look to improve
yourself. Celebrate if we outdo
ourselves, not when we outdo
others. Enjoy what you are doing.
This will help you to deliver the
best products and services to your
customers. It will also help you to
strive to improve until you achieve
excellence. Be ready to innovate.
And never be afraid to dream big!
The advice and motivation comes
from one source – my mother. She
is steadfast in counselling us, on
how to live the life that is upright.”

47

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