In an industry heavily dominated by companies belonging to the west, Jollibee has been able to make a name for itself in due course of time. Jollibee Foods Corporation or JFC is aimed at franchising, operating, and developing QSRs (Quick Service Restaurants). The Business Model of Jollibee here is aimed at explaining how Jollibee’s engagement in various areas of property leasing, manufacturing to support QSRs has contributed to its success.
The blog analyses the business model of Jollibee, its revenue model, its value proposal, and other variables. See our other blogs for information about Jollibee Marketing Strategy.
Let’s start with discussing about the company in brief:
Jollibee is the Philippines’ largest fast-food chain brand with a network of over 1400 outlets. Jollibee is a leading leader in the Philippines and is more than all other multinational fast-food brands that merge PH, he enjoys the lion’s share of the local market. Jollibee serves tasty, quality, and inexpensive food goods that include their superior service Chickenjoy, mouthwatering Yumburger, and scrumptious Jolly Spaghetti among other wonderful products with rigorous adherence to the highest standards of food quality, service, and cleanliness.
In the U.S., Canada, Macau, Singapore, Malaysia, Saudi, Hang Kong, Singapore, United Arab States, Qatar, Oman, Kuwait, Bahrain, Italy, and in the United Kingdom, Jollibee is embarking on an aggressive international plan of expansion with more than 270 international branches. The mission of Jollibee is to serve delicious meals and bring everybody the delight of eating. Jollibee is a family-centered brand promoting family values and cohabitation. Jollibee brand principles are based on the following in the joyful Filipino market: customer focus, speed with excellence, humility to listen and learn, family and fun spirit, and completeness.
Current News about the brand
- Jollibee continues its international expansion by strategically opening new restaurant locations in various countries outside of its home market in the Philippines. This expansion involves targeting areas with a mix of Filipino communities and local customers interested in experiencing Jollibee’s unique menu offerings.
- By establishing a presence in different regions, Jollibee aims to introduce its Filipino fast-food brand to a diverse global audience, cater to local tastes, and tap into the curiosity of consumers seeking new and flavorful dining experiences.
- Value of money
- Taste of food
- Huge variety to choose from
- Quality Products
- Food in a few minutes
Interest & Hobbies
- Playing Soccer.
- Packaging of Product
- Takes time to deliver
- Taste of food
Social Media Presence
Business Model of Jollibee
JFC is one of the world’s largest fast-food companies to have originated in Asia and the largest in the Philippines. The success of its flagship brand marked the beginning of JFC’s acquisition of its competitor brands within and outside the Philippines like Red Ribbon, Mang Inasal, Chowking, and Greenwich Pizza. Right now JFC has over 5,900 stores across the world.
The total retail sales are 82.1 billion pesos. JFC’s focus on its manufacturing, its logistics framework, its menu, its marketing strategies, its founder’s leadership, and its attention paid to globalization are some of the key factors that, according to them, have contributed greatly to its success. The Asian Business Review also once stated that constant efforts in the areas of innovation, testing, and piloting are something that Jollibee owes its business growth to. Let’s discuss the business model of Jollibee in detail.
1. Value Proposition
Jollibee is known for its delicious food and high-quality standards. Jollibee’s success can be attributed to its delectable menu offerings, which include the superior-tasting Chickenjoy, mouth-watering Yumburger, and Champ hamburger, and delectably satisfying Jollibee Spaghetti, as well as creative marketing programs and efficient manufacturing and logistics facilities. Well-trained teams that work in a culture of integrity and humility, as well as a fun and family-like atmosphere, make it feasible.
Customers are greeted with a clean and welcoming in-store environment as well as friendly and fast service at every Jollibee location. And it is this tried-and-true combination of great-tasting cuisine, commitment to world-class operating standards, and the global appeal of the brand’s family values that is propelling Jollibee’s expansion both locally and internationally.
2. Customer Relationship
Jollibee is a well-known Filipino brand, and customer happiness has always been a vital factor in the company’s success. Jollibee has evolved to be one of the most well-known and preferred brands in the Philippines by never losing sight of its objectives. In the Philippines, it is now the market leader among fast-food chains, with a market share of more than half of the industry. Their customer relationship is branched out into two parts, i.e. self-service and personal assistance.
3. Key resources
The third most important part of the business model of Jollibee is its Physical Resources. Jollibee’s physical resources consist of production equipment, storage facilities, distribution centers, and workers. Resources Technological Jollibee invests in cutting-edge technology for its operating systems to continuously train its managers to stay ahead of the competition.
4. Key Activities
Offer burgers, chicken, pies, fries, morning dishes, and desserts, among other items. To serve consumers, hire staff such as a manager, cashier, and service team, as well as delivery drivers. Join forces with food-delivery applications. Constantly consider product innovation to provide clients with a variety of culinary options.
5. Key Partners
- Fresh N’ Famous Foods.
- Red Ribbon Bakeshop, Inc.
- Mang Inasal Philippines.
- Perf Restaurants Inc.
- Smashburger IP Holder.
- Superfoods Group.
- The Coffee Bean & Tea Leaf
6. Revenue Model of Jollibee
Jollibee Foods Corp., a home-grown rapid food corporation, managed to restore growth in the final three months of 2020, which was not enough to save the company from a pandemic loss last year. In its announcement to the stock exchange on Monday Jollibee captured the financial year 2020 with a total net loss of P11,5 billion, a reversal from P7,3 billion net income in the previous year.
The good news is that Jollibee repaired profit in the fourth quarter with net revenues of P2 billion in the first three quarters of 2020, however, earnings were still down 34.5 per cent year on year. The Executive Director, Ernesto Tanmantiong, hopes the recovery will be sustainable. Jollibee shares were closed each time at P179.50.
Breakdowns in the figures have led Jollibee to a 27.8% crash year-on-year by 2020 at EUR 176 billion in its broad sales system a measure of all sales for customers both in the companies and the franchisees. Revenues plummeted 27.9 per cent per year to 129.5 billion PP owing to lockdowns that prohibited customers from restaurant ‘permanent store closures and reduced sales per store.’
Even before the pandemic hit, the profit of the Jollibee Group decreased slowly after two foreign loss-making companies, Smashburger and Coffee Bean & Tea Leaf, were bought in 2018, and could not quickly turn around. Annually 2019, in the second quarter of 2020 the bottom line of the corporation fell 14.4 per cent, and the health issue acted as a final clue.
JFC or Jollibee Food Corporation’s primary aim is to stay at the top as a leading quality service and product provider. Accomplishing the same requires Jollibee to focus on the following key factors:
- Ensuring the supply of services and products of high quality.
- Make sure that customers are being provided with value.
- It also needs to employ resources in building an excellent customer experience.
Starting as ice cream by the founder and his family, Jollibee shifted to serving Hamburgers with a customized taste. The shift might seem simplistic now but was a well-thought-out consequence of the 1977 oil crisis that would have doubled ice cream prices. People in the Philippines have a thing for spicy food and that’s exactly the information that Jollibee decided to use to its advantage. Jollibee employed its resources towards catering to the Filipino taste and was able to serve dishes customized to suit the local preferences in a manner no one else around them was doing.
The operational fact of Jollibee reflects its constant pursuit of excellence. Usage of pre-fabricated in the construction of its outlets’ new outlets talks a lot about its efforts aimed at saving both time and money. With two of its commissaries in Pasig City and Mandaue City, JFC caters to fast-food requirements in the Luzon Area (Pasig City) and the Visayas-Mindanao area. The principal outlet’s activities carried out at both these commissaries included planning of raw materials and ingredients, manufacturing of processed foods, warehousing, logistics, distribution, outlets, and more.
These are some of the most important aspects of the business model of Jollibee that you really need to know.
How does this brand use digital marketing in its strategy?
Jollibee has utilized various digital marketing strategies to enhance its brand presence, engage customers, and drive sales. Here are a few ways Jollibee has employed digital marketing:
- Social Media Engagement: Jollibee has maintained active profiles on popular social media platforms like Facebook, Twitter, Instagram, and YouTube. They share visually appealing content, such as high-quality images and videos of their menu items, promotions, and events. Social media allows them to connect with their audience, respond to customer inquiries, and even run contests or interactive campaigns..
- Mobile Apps and Online Ordering: Jollibee has developed mobile applications that allow customers to place orders online for pickup or delivery. These apps provide convenience and enable customers to browse the menu, customize orders, and make payments digitally.
- Digital Promotions and Discounts: Jollibee has leveraged digital platforms to promote special deals, discounts, and limited-time offers. This not only encourages repeat business but also attracts new customers seeking value through digital channels.
- Email Marketing: Jollibee likely employs email marketing to communicate directly with customers. They might send out newsletters, updates about new menu items, and exclusive offers to their subscribers.
- Interactive Campaigns: Jollibee may have run interactive digital campaigns, such as contests, polls, quizzes, or challenges, to engage their audience and create a sense of participation.
Top 5 competitors of the brand
- McDonald’s: A global fast-food giant known for its iconic golden arches, McDonald‘s offers a wide range of burgers, fries, and other fast-food items. It competes with Jollibee by providing a diverse menu and strong brand recognition.
- KFC (Kentucky Fried Chicken): Known for its fried chicken and “finger-lickin’ good” slogan, KFC is another major competitor. It focuses on chicken-based meals, often featuring a variety of fried chicken pieces, sandwiches, and sides.
- Burger King: With its flame-grilled burgers and unique offerings like the Whopper, Burger King is a strong competitor. It aims to differentiate itself through its grilling technique and distinctive flavor profile.
- Wendy’s stands out for its “fresh, never frozen” approach to beef and its square-shaped burger patties. Wendy’s competes by emphasizing the quality and freshness of its ingredients.
- Chick-fil-A: A popular chain that specializes in chicken sandwiches and nuggets, Chick-fil-A is known for its strong customer service and distinctive flavor. It competes by offering a focused menu and a unique dining experience.
Failed campaigns of the brand
What was the issue?
In February 2018, Jollibee experienced a major chicken shortage that forced the closure of over 700 restaurants. The issue was caused by a combination of factors, including a change in suppliers, a lack of communication between Jollibee and its suppliers, and a failure to properly plan for the change.
What backlash did the brand face?
The chicken shortage caused a major backlash from customers, who were left disappointed and angry when they were unable to get their favorite fried chicken. The brand was also heavily criticized in the media, with some commentators accusing Jollibee of poor planning and management.
What did the brand do in this situation?
Jollibee initially responded to the crisis by issuing a series of apologetic tweets. The brand also set up a dedicated website where customers could find information about the shortage. In the longer term, Jollibee made changes to its supply chain and its communication with suppliers.
Suggest 1 or 2 Better Campaigns
“Taste of Home” Campaign: Jollibee could launch a heartwarming campaign that focuses on the emotional connection people have with their favorite Jollibee meals. The campaign could feature real stories from customers sharing their fond memories of enjoying Jollibee with their loved ones, whether it’s a family gathering, a celebration, or a simple moment of joy. This campaign would not only highlight the delicious food but also the role Jollibee plays in creating cherished moments and a sense of togetherness.
So, that was the business model of Jollibee. This company is a successful business that has had considerable expansion; yet, if you are to become a large global player in the quick food industry, you confront intense rivalry. I came to the opinion that Jollibee should be entering the UK market, but not alone, following different analyses by Jollibee and by the fast-food business in general. Jollibee should form a joint venture with a declining company, like Burger King, which requires support to start sales yet again.
Since Burger King has been founded in the UK for some time, it can provide insights into the culture and functioning of the UK fast food business and consumer behaviour. Consumer preferences appear to impact Asian-influenced dishes as illustrated in Appendix 2, which offers Jollibee an exceptionally significant opportunity. Jollibee has the experience and substantial achievements with joint ventures of the past, as Deli France shows, and so joint ventures on this developing brand and company appear the ideal option in the UK market.
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