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2476 : STEP FOUR – PLANNING FOR IMPLEMENTATION

The robust business model and formidable brand identity combined to
make Jollibee a powerful franchise proposition. Of its 450 Jollibee
stores, around 50 per cent were franchised. The business process model
was documented down to the last detail in order that brand identity and
operating practice could be consistent across the entire Jollibee
network. New stores were assembled from pre-constructed elements in
order to ensure consistent image and to control cost. Extensive training
and development were offered throughout the system to employees,
franchisees and suppliers.

Ever vigilant for growth possibilities, Jollibee entrenched its position
during the temporary market withdrawal during 1989–90 by its American
competitors, including McDonald’s, prompted by the failed military coup.
Its flexibility of operation was highlighted during the Philippines’
recession of 1997, when Jollibee introduced so-called Value Meals,
which cost customers less than a snack from a street-side hawker’s
stall. Jollibee maintained its margins by negotiating cost reductions from
suppliers and by bringing bread bakery in-house.

Jollibee grew within the Philippines not only through organic growth
but also through the acquisition of such complementary brands as
Greenwich (pizza and pasta), Chowking (Chinese quick service segment),
and Delifrance (French-style speciality cafés).

Recognising that the global fast-food players had been hampered by
not adapting their product to local tastes, Jollibee gave priority in its own
foreign expansion to countries where it could easily achieve local
customisation. Rather than go head to head with McDonald’s in its first
overseas forays, Jollibee selected smaller countries such as Brunei,
Guam and Vietnam to pilot its operations. A significant number of
Filipino nationals worked in these countries, providing a ready customer
base for the Jollibee concept. Current priorities for Jollibee’s overseas
expansion include Indonesia and China.

As president and 65 per cent owner of a globally recognised operation
now achieving annual sales in excess of £310 million, Tony Tan Caktiong
provides proof positive that nimble entrepreneurs really can slay the
giants.