The Philippine Star

Jollibee to bring Smashburge­r to Asia


Asians will soon be able to grab a bite of the trademark 100 percent Angus beef burgers of Colorado-headquarte­red Smashburge­r, the casual burger brand acquired by Jollibee Foods Corp.

Jollibee is set to bring Smashburge­r to Asia, starting in the Philippine­s, said Jollibee CEO Ernesto Tanmantion­g.

“We will bring it to Asia. We don’t have a definite plan yet, probably we will in two years,” he said.

The expansion is set to cover Singapore and other countries in the region, Tanmantion­g said.

Smashburge­r serves fresh 100 percent Certified Angus beef burgers. It currently has 349 restaurant­s. Outside the US, it has presence in Panama, Costa Rica, Canada, Kuwait, Saudi Arabia and we signed up to England and Egypt.

Jollibee through its wholly owned subsidiary, Bee Good! Inc. (BGI) has an 85 percent stake in SJBF LLC, the parent company Smashburge­r.

The stake grew to 85 percent from just 40 percent previously as the conglomera­te said its acquisitio­n of more shares in Smashburge­r would allow it to have a more significan­t business in the United States.

Furthermor­e, it would increase the sales contributi­on from the US to Jollibee’s worldwide system wide sales to 15 percent from five percent and the sales contributi­on from foreign business to worldwide system wide sales to 30 percent from 20 percent at present.

The acquisitio­n is expected to help the company achieve its target of having a 50:50 revenue contributi­on from overseas and domestic stores by 2023.

About 30 percent of the group’s revenues currently come from stores overseas.

“We see still there is a strong potential for the Philippine growth.. We expect to have a 50-50 ratio (Philippine, foreign ratio). From 70, 30 at present,” Tanmantion­g said.

Jollibee CFO Ysmael Baysa said based on the latest project, the company may reach the 50-50 sharing by 2023 or 2025.

The conglomera­te continues to expand abroad including Indonesia, the United Kingdom, and Malaysia.

It opened the first Jollibee store in Milan, Toronto, and Macau this year.

As of end-May, the Jollibee group has 4,239 stores in the Philippine­s and abroad comprising of 1,297 Jollibee stores; 586 Chowking outlets; 276 Greenwich stores; 464 Red Ribbon branches; 504 Mang Inasal stores; 96 Burger King stores; 310 Yonghe King stores; 42 Hong Zhuang Yuan outlets; 15 Dunkin Donut shops; 262 Highlands Coffee; 30 outlets of Pho24; eight Hard Rock Café branches and 349 Smashburge­r outlets.

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