I.

Market Size

The economic characteristics of the food industry provide a framework for understanding
pressures for takeover activity. In general, food companies seek targets to augment product lines and to
extend their geographic scope, particularly into international markets.

However, Philippines, characterized by various factors, such as its growing young affluent
population, rising disposable income and rising consumer awareness regarding health and safety
concerns. With these factors, the demand for health food and drinks is surging high. Thus, here in our
country the food market industry one of the largest individual marketing sectors of the economy. Growth
has been achieved by a high rate of new product introductions, promotion methods to develop brand
strengths, expansion into international markets, and by acquisitions and divestitures. The country exports
foods to several countries, including the US, Europe and some Asian countries. However, the ongoing
financial turmoil is forcing the country to look at alternative destinations such as the Middle East and
Africa.

Here in the Philippines, there are a total of 95, 812 hotels and restaurants covered in the year
2005. Most of the establishments were restaurants at about 95.8% (91, 791) in which provided 548, 146
employees. Jollibee is one of it, and talking about Jollibee’s market size it has long been serving a lot of
Filipino people and even non Filipinos here in our country and abroad.

To achieve its long term goal to be the country’s food service leader, Jollibee acquired
Greenwhich Pizza in 1994. A year later,, the company obtained the franchised of Delifrance, an
international food company. These moves expanded Jollibee’s penetration in pizza-pasta and French
café bakery segments. In 2000, the strategic acquisition of Chowking solidified the company’s position as
the dominant leader. The move gave its leadership in the Oriental quick-service restaurant segment. And
As of year 2006, Jollibee is operating with a 20,000 employees and P33, 911, 000 revenue,

Local fast food leader Jollibee Foods Corporation (JFC) emerged as the most-admired company
in the Philippines in the most recent Asian Wall Street Journal annual Asia 200 survey.The company also
ranked number one in terms of corporate reputation and innovation.

The corporation’s tenacity in the face of the global economic downturn has earned for it the votes
of the publication’s subscribers and top businessmen. This year, despite Filipinos spending less, JFC
successfully increased its fourth quarter sales 18 percent compared to the previous year, thanks to
consumer-oriented expansion and marketing strategies.

With its consistently high-quality food at value prices, the various brands under JFC became the
top choice of more customers trading down from expensive restaurants. These are customers who have
foregone their fine-dining fixes to enjoy more value-for-money fare at any of JFC’s quick-service
restaurants. Apart from its popular burger and fries joints, the business also offers pizza, pasta and even
Chinese food through its other brands Greenwich and Chowking.

Accessibility through its large network was another major factor that helped JFC claim the top
spot. To date, the corporation already has 1, 825 stores, including 307 overseas. The flagship restaurant
Jollibee also continues to expand internationally, having just opened a store in Queens, New York and
with more in the works for Asia and the Middle East. Currently, Jollibee has 660 local and 50 international
branches. Indeed, while many other local companies espouse a more conservative approach to tide them
over the economic slowdown, JFC’s robust showing proves that a stronger tack may be a better way to
go, not just for the business community but for the country as well. Experts agree that Jollibee’s
continuous growth and leadership signal good things for the Philippine economy, the bulk of which is
made up of consumer spending the JFC helps keep going.
II. Market Growth

The Philippines has emerged as one of the rapidly growing food and drinks industries in the Asian region
over the recent past. With these factors, the demand for health food and drinks is surging high.

Recipe for success

Jollibee’s rapid growth is due to its superior menu line-up, creative marketing programs, and
efficient manufacturing and logistics facilities. It is made possible by well-trained teams that
work in a culture of integrity and humility, fun and family-like.

As a corporate citizen, Jollibee is also committed to give back to its host communities through
meaningful and lasting socio-civic projects.