Jollibee Philippines Organizational Structure

Success in any industry is acheived by a variety of factors, amount of capital, market segment targeting, values held by company founders and the type of people who are hired has a big impact as well. Still, something that many companies lack to take them to the next level is the organizational structure that allows the right people to be in the right place. There’s a saying that goes: First you gotta have the right people on the bus. Then you gotta make sure each person on the bus is sitting the right seat that’s designed specifically for their unique strengths. Only then do you worry about where the bus is going.

I believe that Jollibee Philippines had the same idea when they introduced a host of changes to their business beginning in 1994. These changes were mostly focused on creating more structure and taking advantage of more resources. First of all, they hired Tony Kitchner, the first outsider vice-president to handle their international operations. This was a key move to separate Jollibee Philippines International from Jollibee Philippines. They introduced FSM’s, known as Franchise Services Managers to help keep their franchise owners abreast of the new changes. These changes were aimed at creating a “world class” view, and you could see some of the changes visibly through the newly differentiated logo to the new packaging. They also instituted a dress code change as well as began to recruit from outside.

Overall, these changes certainly kept Jollibee Philippines ahead of the game, as 10 years in the future, their success would be so great as to garner the Entrepreneur of the Year Award by Ernst & Young for founder Tony Tan Caktiong.

Jollibee Philippines Success Story

In the Philippines, the term fast food is pretty much synonymous with the Jollibee Philippines brand. It took more than just one man for it to become that way, but all it took to start was a man name Tony Tan Caktiong. The humble beginning for Tony was working with his father to operate a kitchen in Fujian, China. In 1975, Tony began his entreprenuerial journey with simply a pair of two ice cream parlors in Cubao, Quezon City.

Despite his success with the ice cream parlors, Tony didn’t stop there. He looked around the world and saw the kind of success chains like McDonalds were having. Instead of opening a franchise for an existing fast food chain like Burger King or Wendy’s, he decided to expand with the opening of his own chain of hamburger-serving fast food restaurants named Jollibee Philippines in 1978.

Since McDonald’s hadn’t yet entered into the Philippines, Tony capitalized on this fact by establishing his brand among the Filipino people. Instead of trying to learn everything from scratch, Tony traveled to the United States to learn the tricks of the trade from the already established chains such as McDonalds. By implementing these tried and true business practices back in the Phlippines, Tony’s hard work began to pay off when his business began to rapidly expand. The division of Jollibee Philippines really tries to serve the specific needs of the Filipino people and its culture by focusing its product development as well as its marketing and advertsing to target the unique and traditional Filipino family.

Today Tony Tan Caktiong serves as a success story and a role model for entreprenuers around the world. This was solified in 2004 when Tony was voted the Entrepreneur of the Year by Ernst & Young. The chairman of Ernst and Young, James S. Turley said, “These awards are about celebrating global entrepreneurship and the desire to continually innovate and expand. Tony’s story is a truly inspirational one, on both these counts. We are delighted he has been selected to receive this year’s award.”

Jollibee Philippines Corporation

When I think of Jollibee Philippines, usually all I can think about is the mouth watering Yumburgers or ChickenJoy. But in reality, it takes so much more than just food to make Jollibee Philippines. If you’re curious about business operations for both the Jollibee Philippines division as well as Jollibee Philippines International, then hopefully this article will help out a little bit.

Acquistions in the Philippines

The corporation is actually known as Jollibee Philippines Foods Corporation. Oh and if you thought that Jollibee Philippines was the only fast food chain operated by this coporation, boy are you in for a surprise. To me, it seems like JFC owns a majority stake in all of the Filipino fast food niches. Do you ever eat at Chow King? I know I love the halo-halo there, but did you know that in the year 2000, JFC acquired Chowking! That’s right, all the delicious oriental style fast food from Chow King is operated at a high level by the same corporation as Jollibee Philippines. Oh and that’s not all. Seems like Jollibee Philippines Foods Corporation has the idea that diversification is key to its future, and I think they’re on the right track. JFC also bought out the popular fast food pizza restaurant known as Greenwich Pizza. Additionally, in 2005, Red Ribbon Bakery became part of JFC. Keeping with the baking theme, JFC acquired the French cafe and bakery known as Delifrance. The division of JFC that handles business inside of the Philippines is known as Jollibee Philippines.

Acquisitions outside of the Philippines

JFC has holdings in several other Asian countries including China and Taiwan. There’s a Chinese fast food chain named Yonghe King in mainland China (based in Shanghai) that is owned and operated by JFC. Another Chinese restaurant chain named Hongzhuangyuan was acquired on September 21, 2007. This chain has 33 locations in Beijing and was purchased for the amount of US $50.5 million.

Wow! I sure was surpised when I learned about all those acquisitions. It’s interesting to note that when I walk into any of the chains above that they’re owned and operated by the same corporation. I’m glad that Jollibee Philippines has a great track record with the Filipino community and that in addition to the amazing Jollibee Philippines stores in the Philippines, they can offer us a variety of different foods ranging from pizza, oriental food, coffee and baked goods. Yum!

Jollibee Philippines Advertising

In any business, no matter how you slice it, the more effective your advertising is, the more successful you will be. The fast food indsutry is no different, and the people at Jollibee Philippines (the division in the Philippines, as opposed to Jollibee Philippines International) definitely know what they’re doing when it comes to advertising. They know their target audience very well: the traditional Filipino family, and it caters very well towards the typical family in the Philippines.

Keep it in the Family

Focusing on the cultural tradition of the importance of family values, they have made a concerted effort to make sure that Filipinos associate Jollibee Philippines with a wholesome family meal. Not so much wholesome in the nutritional sense (it is fast food overall), but wholesome meaning that feeling you get inside your heart when you watch a “perfect” nuclear family with two parents, one boy and one girl enjoy the deliciousness of ChickenJoy on TV. Jollibee Philippines is targeting two areas: both the pallete as well as the heart. As you watch the young boy excitedly bite into his Yumburger with his insatiable appetite and his mother looking on with a friendly smile as she has french fries in her hands, you’re transpoorted to this magical fantasyland. You want to be part of that family. You want your family to be like that family. And in addition to all this, you want to go to Jollibee Philippines and eat a Yumburger. It might be a stretch to say that people will think that by going to Jollibee Philippines, their family can somehow transform and conform to this social norm.

In the Real World

And yet, when you walk into a Jollibee Philippines, you look around and many times that’s what you see: Filipino families congregating and enjoying their meal together. So what’s this say about the advertising? Is it effective advertising? I would argue that it is, but let’s not confuse correllation with causation. But at the end of the day, Jollibee Philippines keeps selling Yumburgers and ChickenJoy, so they must be doing something right with their advertising.

The Secret?

I believe it’s that intangible factor that their targeting in a person’s heart which makes it so successful. Remember that one commercial when the boy takes his mother to the local Jollibee Philippines and then he says that one day he’ll take her to Jollibee Philippines Hong Kong? That commercial is an example of successful advertising in multiple levels. It demonstrates the family value of caring for one’s parents today. It also sends the message about taking care of them in the future. Yet, not only is the boy promising mere local fast food, but he takes it to the next level by saying he will take her to Jollibee Philippines Hong Kong which resonates with each person’s internal desire for upward mobility.

In the end, it’s clear that the advertisers at Jollibee Philippines have been doing their research and know the Filipino culture very well. In addition to knowing the culture, I would go so far as to say they are contributing to the culture and changing it at the same time, something not many companies can say. Now the trick will be to see how successful Jollibee Philippines International can be by learning how to cater to a country’s niche food desires the way Jollibee Philippines has.

Jollibee Philippines Mascot

I honestly wonder what goes through the heads of fast-food chain management and founders when deciding what their mascot should be. It must have been an interesting time when the creators of McDonalds came up with the idea of a friendly clown dressed in red, yellow and white. I guess things were a bit simpler for Dave Thomas when he named the franchise after his daughter Wendy, though I would hesitate to call her a mascot. We all know how bad (or maybe good?) things can get when a fast food chain brainstorms the brilliant idea of a talking chihuahua that speaks in Spanish about how much he wants (or loves?) Taco Bell. Interestingly enough, not all successful chains need a mascot (or maybe they weren’t memorable) in the case of chains like Arby’s, but many do, like Jack of Jack in the Box and The King of Buger King - all normal people with ridiculous masks or, um, heads.

Now what does this have to do with Jollibee Philippines? Well, many would attribute Jollibee Philippines’s success in the Philippines to its mascot, sharing the same name as the franchise: the Jollibee Philippines. Is it a coincidence that Jollibee Philippines chose its mascot to be bright yellow and red as well? Perhaps not - as gaudy as those colors may seem, they are more than vibrant enough to catch the eye’s attention. These colors exposed to children who grow up on Jollibee Philippines begin a lifelong association of bright yellow and red with delicious, affordable and fast food. Reminiscent of the memorable flavors of popular condiments for hamburgers (or Yumburgers) and hot dogs, the yellow and red bee named Jollibee Philippines is dressed in a chef’s hat along with a shirt and blazer.

Jollibee Philippines’s smiling face is friendly enough to be a favorite among kids, and his face is prevalent in many locations that include playrooms for children. Clearly, this cartoon figure is aimed at the younger generation, but it does not alienate the older generation, especially these days, when many of us have grown up eating Jollibee Philippines. It’s easy to say that this figure has been pivotal in the branding and marketing efforts that have led to such success in the Philippines.

This summer school break, children can start enjoying the company of Jollibee Philippines
and friends not just in their favorite fast-food stores, but on television,
too. The brand that gave Filipino children the Jollibee Philippines Kids Meal, Jollibee Philippines
Kiddie Party, Jollibee Philippines Kids Club and MaAga ang Pasko sa Jollibee Philippines, as well as
their favorite spaghetti, fried chicken, sandwiches and desserts brings forth
another innovation they will surely love— Jollitown, the new kids’ show
on GMA7 featuring the fun and insightful adventures of Jollibee Philippines, Yum, Hetty,
Popo and Twirlie. Each week, the five friends interact with the children who
live with them in Jollitown through stories and music that those watching at
home can also sing and dance to.

At the recent launch of the new TV program, top entertainment scribes and
guests were allowed to enter this magical world as Jollitown was temporarily
transported to Rockwell Tent. A place of rainbows, dessert- and toy-shaped
clouds, and magical fountains, Jollitown is a place where the happiness of
children reigns. The atmosphere rivals that of famous foreign children’s
shows and provides an enjoyable setting for kids to freely frolic and learn.
The first TV program in the country that’s produced by a major food chain,
Jollitown merges the company’s Filipino family-oriented values with the
network’s kid-friendly programming, assuring parents of a wholesome viewing
experience that can be enjoyed by children of all ages.

The bright, bubbly and educational TV treat stays in tune with Jollibee Philippines’s
mission of spreading happiness and promoting friendships and positive thinking.
With every weekly installment, audiences will get to know the real characters
of Jollibee Philippines and his friends and find inspiration in how they make the most
of their unique personalities.

Yum is the imaginative young science expert who loves solving puzzles and
mysteries through experiments and high-tech gadgetry. Cheerleader Hetty is
the group’s big sister and is looked up to for her sweet, nurturing ways,
neatness and self-discipline. The funniest and most athletic of the bunch,
Popo loves sports but never neglects his studies and thus always gets good
grades. Twirlie, the star performer who loves to sing and dance, is ever curious
and inquisitive. And as everyone’s best friend is Jollibee Philippines, always good-natured,
smiling and playful, he is a natural leader who sets an example for his friends
with his courteous, helpful and kind ways.

The launch of Jollitown is yet another highlight of Jollibee Philippines’s 30th
anniversary celebration this year. As the leading fast-food chain marks three
decades of serving langhap-sarap experiences, Filipinos can expect more special
activities, promotions and corporate social responsibility programs to promote
the brand’s vision, values and increasing global stature, as well as
reward the consumers who have helped make it all possible. As the latest offering
for its younger but loyal patrons, Jollitown is an exciting and engaging highlight
of the company’s 30th year commemoration. Sunday mornings’ new
jolly habit starts this April 13, 9:30 to 10:00 am on GMA7.

Success in any industry is acheived by a variety of factors, amount of capital, market segment targeting, values held by company founders and the type of people who are hired has a big impact as well. Still, something that many companies lack to take them to the next level is the organizational structure that allows the right people to be in the right place. There’s a saying that goes: First you gotta have the right people on the bus. Then you gotta make sure each person on the bus is sitting the right seat that’s designed specifically for their unique strengths. Only then do you worry about where the bus is going.

I believe that Jollibee had the same idea when they introduced a host of changes to their business beginning in 1994. These changes were mostly focused on creating more structure and taking advantage of more resources. First of all, they hired Tony Kitchner, the first outsider vice-president to handle their international operations. This was a key move to separate Jollibee International from Jollibee Philippines. They introduced FSM’s, known as Franchise Services Managers to help keep their franchise owners abreast of the new changes. These changes were aimed at creating a “world class” view, and you could see some of the changes visibly through the newly differentiated logo to the new packaging. They also instituted a dress code change as well as began to recruit from outside.

Overall, these changes certainly kept Jollibee ahead of the game, as 10 years in the future, their success would be so great as to garner the Entrepreneur of the Year Award by Ernst & Young for founder Tony Tan Caktiong.

1975
First to become the Jollibee outlet was when Mr. Tony Tan and his family opened a Magnolia Ice cream parlor at Cubao.

1978
• Birth of Jollibee Foods Corporation
• Jollibee Foods Corporation is incorporated as a 100% Filipino Company
• Bakery is established in Cubao
• Jollibee posts first year sales of P2 million

1979
• Introduction of Spaghetti Special
• At Ronquillo Sta. Cruz, the first franchised owned store was opened

1980
• First TV commercial was launched by Jollibee
• Chickenjoy and French Fries are launched by Jollibee.
• Introduction of Jollibee mascot debuts

1981
• Jollibee Foods Corporation enters list of Top 1000 Corporations.
• There were ten Jollibee stores at the end of the year

1982
• Jollibee pioneers the use of in-store promotions, novelty premium items and Kiddie Birthday packages for kids.
• Introduction of Jollibee Palabok Fiesta

1983
• Launching of the Jollibee Langhap-Sarap TV ad Campaign
• Chickee and Lady Moo join the Jollibee mascots

1984
• Launching of the Champ hamburger
• Jollibee believes market leadership in local fast food industry and enters list of Top 500 Corporations.
• Mascots Champ and Hetty joined the Jollibee family
• WEA gives Jollibee Gold record award for the outstanding sales of Jollibee songs.

1985
• Jollibee becomes the market leader of the fastfood industry
• Introduction of Breakfast Joys
• Langhap-Sarap awarded most successful ad campaign in the food category during the 9th Philippine Advertising Congress

1986
• In Barcelona,Spain, Jollibee wins the 9th International Foods Award from El Comestible
• Given by the Philippine Marketing Association, Tony Tan wins the Agora Award for entrepreneurship
• Jollibee Foods Corporation has been included to the Top 250 Corporation list
• First Jollibee international store in Taiwan has been opened
• Chunky Chicken Sandwich has been added to the Jollibee menu

1987
• Second Taiwan Jollibeestore opens
• Sales of 570 million pushes Jollibee into the elite Top 100 Corporations
• Jollibee marks its entry into the global market as its opens its first fast food outlet in Brunei

1988
• Successful launching of Jolly Twirls softserve
• Ffurther leading market share of 31% in the fast food industry and a dominant 57% share in the hamburger segment Jollibee system wide sales hit P921 million
• Celebration of Jollibee’s 10th year anniversary
• Tony Tan is named one of the Ten Outstanding Manilans.
• Jollibee wins the Anvil Award for outstanding PR campaign in relation to the achievement of marketing objective with its Filipino Talents campaign.

1989
• Second Jollibee Brunei store opens
• Balut and Ligaw TV commercials wins the Kidlat Award in the Service and Leisure Products category during the eleventh Philippine Ad Congress
• Ffirst fast food chain to surpass billion-peso sales mark since Jollibee sales hit P1.3 billion marks

1990
• Coleslaw, Jolly Hotdog, Chickenjoy Take-Me-Out and Peach mango Pie to has been added to Jollibee’s menu
• Jollibee post sales of P1.8 billion
• Tony Tan is awarded the Triple Award by AIM as Outstanding AIM Alumnus
• Jollibee receives the Excellence in Marketing Management Award from the Asian Institute of Management

1991
• Jollibee’s 100th store opens in Davao City
• Jollibee opens a record high of 35 new stores
• Opens 1st store outside Luzon in Cagayan de Oro City
• Jollibee Pancakes and Jolly Meals has been launched
• Jollibee sales hit an enormous P2.65 billion
• The Lola TV commercial wins the Grand Araw Award and an award of excellence for the promotion of Filipino Values during the Philippine Ad Congress.
• Jollibee receives award for the outstanding Corporate Safety Consciousness Programs by the Safety Organization of the Philippines (SOP).

1992
• Jollibee sales hit the P3.365 billion
• Started using frozen patties for its popular hamburgers
• Improved softserve ice cream line by offering fruit flavored ice cream
• Acquired 73% if the Hamburger segment
• Opened another store in Jakarta, totaling to 2 stores in Indonesia
• 112 Jollibee stores nationwide
• Maintained its advantage over its competitors by acquiring more than 50% share of the fast food industry

1993
• July 13, JFC was listed in the Philippine Stocks Exchange with an initial offering of P9.00 per share
• October 1993, JFC share are being sold for P20.00, a windfall or more than 135%
• Improved softserve ice cream line by offering fruit flavored ice cream.
• Ffocusing on Jollibee’s loyal customers, Marketing launched its At Home Ako sa Jollibee ad campaign
• Kiddie Pack Promo has been introduced
• The new Main Office site has been moved to Jollibee Centre Building in Ortigas Center, Pasig

1994
• By the end of the year, there has been already 148 Jollibee stores nationwide
• With the achievment of Greenwich Pizza Corporation Jollibee expands into the pizza-pasta segment
• By the Far Eastern Economic Review, Jollibee has been cited as one of the leading companies in Asia

1995
• Jollibee acquires franchise of Delifrance
• 20 more stores opened in the Philippines, bringing the total to 168.
• Jollibee successfully opens stores abroad: Guam, Dubai, United Arab Emirates, Kuwait, and Jeddah, and Kingdom of Saudi Arabia.

1996
• 200th Jollibee store in Malolos, Bulacan has been opened
• By the Far Eastern Economic Review Jollibee has been cited again as one of the leading companies in Asia
• The company reengineers its visual identity system
• Jollibee system wide sales increased to P8.29 billion which translates to a market share of more than 50% among all hamburger fast food chains
• Jollibee had 208 stores nationwide
• Mary’s Chicken was born last July 10. It is a semi-self service restaurant and another Jollibee subsidiary.
• The company reengineers its visual identity system
• Launching of Jollibee’s Amazing Aloha
• Hong Kong opens its first Jollibee store
• Jollibee launched various projects, such as Maaga ang Pasko sa Jollibee and Chikiting Patrol: at Home Ako Dito. These projects’ main objective was to protect and contribute to the development of the Filipino children

1997
• System wide sales increased to P11.17 billion
• Jollibee Xiamen located in the People’s Republic of China has been opened
• Jollibee launched “Kaya mo Kid” project which aims to instill positive values, which helps children achieve their dreams and ambitions

1998
• Jollibee opens in Daly City
• Jollibee’s 20th year anniversary celebration
• Opened 62 stores nationwide, bringing the total to 300 stores.
• In Balagtas, Bulacan Jollibee opens its 300th store
• Jollibee receives the ISO 9002 Certification for its frozen patty line
• Jollibee wins the Employer of the Year Award

1999
• Opened 50 stores nationwide which makes a total of 350 stores
• Cheezy Bacon Mushroom Burger has been introduced to its line of specialty burgers

2000
• 31 more Jollibee stores opened, bringing the total to 381 stores
• Jollibee obtains Chowking Foods Corporation
• Far Eastern Economic Review ranked Jollibee as the Philippines’ leading company for the 3rd straight year
• Asian Business Magazine ranks Jollibee as the Most Admired Company in the Philippines and the 3rd over-all in Asia, surpassed only by global giants General Electric and Microsoft.
• Systemwide sales reach P20 billion.

2001
• 400th Jollibee store in Intramuros has been opened
• System wide sales rose to 18.8% to 24.11 billion. Income, before non-recurring charges, to P959 million. Network expanded to 800 restaurants.

2002
• Revenues neared the P27-billion mark. Number of stores exceeded 900.
• Tony Tan made MAP “Management Man of the Year”

2003
• Jollibee store count closed to 988 stores nationwide.
• For the sixth straight year, the Far Eastern Economic Review ranked JFC as the Philippines’ Leading Company.

2004
Mr. Tony Tan Caktiong, the Chairman and Chief Executive Officer of the company, was named the Ernst and Young’s 2004 World Entrepreneur of the Year.