Jollibee still on lookout for new acquisitions

Jollibee Foods Corp. (JFC), the Filipino-owned Asian food conglomerate, will continue to be on the lookout for new companies to acquire despite the difficult business environment brought about by the coronavirus disease 2019 or COVID-19 pandemic.

“Acquisition will always be part of our growth strategy. We remain open to opportunities that may arise, but as always we are stringent with our acquisitions,” JFC chairman Tony Tan Caktiong said last week during the company’s first virtual stockholders meeting.

JFC’s recent acquisition was the California-based Coffee Bean & Tea Leaf, which analysts said was a drag on the company’s earnings growth.

However, Tan Caktiong said JFC’s two previous major acquisitions – Smashburger and CBTL – are on-track to profitability by 2021.

JFC CEO Ernesto Tanmantiong said the group is already seeing recovery from the impact of COVID-19 in the US, China and other countries.

He said the company has embarked on a major business transformation to address the changing business environment.

“We do recognize that the COVID-19 pandemic has brought shifts and lasting changes to consumer behavior, such as the greater use of digital, work from home, and more reliance on delivery and takeout. That is why JFC has embarked on a business transformation to address the changing economics of our business across the globe, especially in our largest markets – the Philippines, North America, and China,” Tanmantiong said.

In the Philippines alone, JFC is already seeing improvements in the business with dine-in now allowed at 50 to 75 percent capacity.

JFC has allotted P7 billion for its business transformation program.

The company will focus on building its off-premise channels such as delivery, drivethru, and take-out. It will also close some stores that are not earning well.

JFC has, likewise, introduced new family and group meals for takeout, delivery, and drive-thru.

In all, Tanmantiong said JFC is adapting very quickly and decisively.

“The COVID-19 pandemic has significantly disrupted our business and our lives, but Jollibee is adapting very quickly and decisively as reported to you. I am confident as ever about the bright future of our company,” he said.