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2456 : STEP FOUR – PLANNING FOR IMPLEMENTATION

In 1979, he undertook a two-week tour of the United States together
with his brother. They immersed themselves in the fast-food market in
order to identify best operational practice. Right from the start, they
were willing to copy best-in-class business processes so that they could
concentrate their efforts in the Philippines on their specific areas of
uniqueness. Subsequently, Caktiong regularly reviewed best
management practice from western economies, particularly in relation
to human resources, and incorporated it into Jollibee’s operations.

Caktiong also challenged cultural traditions by recruiting outside the
family: ‘Early on, we organised the structure by hiring professionals. We
realised that in terms of marketing, finance, human resources, we did
not have the skill.’ The company also outsourced its IT activity.

Frugality became an explicit company value. Profits were reinvested
into the business. To this day, Caktiong and his family prefer to fly
economy class rather than business class.

Caktiong registered the Jollibee trademark in the Philippines and
overseas. He also adopted franchising to increase the reach and speed
of his geographical coverage, while limiting his financial exposure.

The exercise of benchmarking best practice contributed significantly to
Jollibee’s robust business process. The creation of an holistic brand
which appealed not only to the Filipino palate but also to Filipino culture
was the next challenge. Caktiong completely redefined the conventional
concept of fast food to suit the local market. Recognising that the
Filipinos enjoyed eating out in groups and ordering different dishes,
Jollibee offered a much wider menu than conventional fast-food
restaurants.

Caktiong’s sister created special recipes to appeal to local tastes. A
significant additional advantage of using local ingredients such as
noodles and chicken was the avoidance of the import bills faced by the
traditional fast-food competitors as they brought in potato and beef
products. The nature of Jollibee’s recipes was a closely guarded secret
within the company – the few individuals who needed to know were
bound by stringent confidentiality agreements.

By focusing on aromatic herbs and spices, the menu appealed explicitly
to the emotions and values of his home market. As Caktiong explained:
‘There is a ritual involved in the way we Filipinos eat. Whether we lift
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