Jollibee allots P7B for business transformation
LISTED Jollibee Foods Corp. (JFC) is looking to spend P7 billion to implement changes in its global business structure.
In a disclosure on Friday, the fast food giant said the amount would be used in the rationalization of its nonperforming stores, store network, supply chain facilities and management, and support group structure.
The expense provision would be set up in the second quarter and would incur mostly within the year, it added.
The plan also include the implementation of safety and social distancing protocol in the dining area; investment in digital commerce and technology; the establishment of a “cloud kitchen” or unmarked delivery outlets with no dine- in facility in discreet, low rent sites; and the rationalization of production and distribution facilities.
JFC also looks to increase its delivery-to-home and -office services and take-out and drive capacity, as well as install mobile applications, which would facilitate food ordering and payment.
The changes would also include transforming support and management groups in the field and in offices.
According to JFC, its deliveryto-home and offices business continues to grow significantly and Smashburger registered a delivery sales growth of 600 percent, making it the fastest growing business of the JFC Group.
The planned changes would be implemented in the company’s businesses worldwide, especially in the Philippines, China and North America. “2020 is an extremely challenging year for JFC, as for most other businesses, but out of this transformation, we aim to emerge in 2021 as an even stronger business and organization,” JFC Chairman Tony Tan Caktiong was quoted as saying in the disclosure.
“Regardless, our mission has not changed — ‘to serve great tasting food, bringing the joy of eating to everyone!’ [ and] our vision remains the same — to be one of the top five restaurant companies in the world,” he added.
JFC earlier announced that it would reduce its planned capital expenditure for the year by 63 percent from P14.2 billion to P5 billion.
JFC shares shed P3.50 or 2.56 percent to close at P133 apiece on Friday.