Jollibee bullish on 2017 prospects

Jollibee Foods Corp. (JFC), the largest Asian food service company, remains bullish on its prospects this year, banking on increased consumer spending.

“In general, we are quite bullish on the consumer sector. Usually, after election year they say consumption will go down,” JFC chairman Tony Tan Caktiong said on the sidelines of the Farmer Entrepreneurship Program awarding ceremony.

“But this year, because of the government programs including approval of the SSS (pension hike), additional pay to military and police, all these would eventually boost consumption,” he added.

Caktiong refused to provide details on the company’s expansion plans and capital expenditures for 2017.

Last year, the homegrown fast-food giant allocated P10.4 billion for the opening of new stores, renovation of existing ones, and supply chain investments.

As of the end of September last year, JFC reported a 10.3 percent growth in net income to P4.37 billion.

Jollibee Group Foundation, the company’s social responsibility arm, is looking at expanding its Farmer Entrepreneurship Program by adding cooperatives to improve smallholder farmers’ income and link them to supply chain of institutional markets.

JGF executive director Giselle Tiongson said they are looking at adding three more cooperatives this year from the existing 12 and increasing the total number of farmers to 500.

“We are also looking at additional sites probably in Calabarzon, Luzon and Metro Manila,” Tiongson said.

The company is also considering Visayas and Mindanao to increase local production of its vegetable supplies.

“We are continuously looking for partners such as local government units and micro-finance institutions that will help the farmers,” she said.

The company’s coop farmers supply about 20 to 30 percent of the total vegetable requirements of the brand’s businesses.