 Bacground

Tony Tan Caktiong, CM (simplified Chinese: 陈觉中; traditional Chinese: 陳覺

中; pinyin: Chén Juézhōng; Pee h-ōe-jī: Tân Kak-tiong; born in Davao del Sur on January

5, 1953) is a Filipino billionaire businessman. He is the founder and chairman of Jollibee

Foods Corporation, and the co-chairman of DoubleDragon Properties.

 Early Education

Born third of seven siblings, Tony Tan Caktiong was from a poor family in

China who immigrated to the Philippines in hope that they may have a better life. His

family helped each other out, establishing a restaurant business in Davao which enabled

young Tony to study Civil Engineering in the University of Santo Thomas.

 Start of Building Business

Tan founded the fast food chain Jollibee in 1978, after having started it as an ice

cream parlor in 1975.Through expansion and acquisitions of Greenwich Pizza

Corp.which enabled it to enter the pizza-pasta segment. In early 2006, Jollibee Foods

Corporation bought out the remaining shares of its partners in Greenwich Pizza

Corporation, equivalent to a 20% stake, for P384 million in cash. As of August 2008,

Tan's Jollibee has a total of 1,480 stores worldwide including Jollibee, Red Ribbon,

Chowking, Greenwich, Manong Pepe's and Mang Inasal. As of November 2015, Forbes

estimated his net worth at US$4.1 billion. When he was 22, Caktiong decided to shell

out ₱350,000 in an ice cream parlor franchise. He opened “Cubao Ice Cream House”
 and “Quiapo Ice Cream House”. As their business becomes more and more successful,

they started to hire more people to help them manage it.

Two years later, he decided to serve hamburgers, fried chicken, and spaghetti as

people began to tell him that they don’t want to eat ice cream all the time. It was then that

they decided to rebrand and change their name to “Jollibee” as it represents them as a

company, and the people that they cater to – hardworking and happy.

The first ever Jollibee branch was in Cubao, Quezon City which opened in

1975 as a “ Magnolia Ice cream parlor” . When Jollibee was incorporated in 1978, there

were 7 branches in Metro Manila. The first franchised outlet of Jollibee opened in

Santa Cruz, Manila in 1979.

 Problem and struggles

“In one of our early planning sessions, my vision was to create the largest food

company in the world. That was when we had 5 stores. Some people thought I was overly

optimistic,” Caktiong said in his speech at the APEC SME Summit on January 20.

 It's a mindset

Caktiong spoke about the early days of Jollibee, when it was founded in 1975 and

the key decisions they made that made them a food giant now. "Those early days were

not easy. We faced many challenges and took many risks.

The big shif

“It was not an easy change. Just as Jollibee started growing, we found out that the world's biggest

hamburger chain [McDonald’s] was about to enter the Philippines. Many friends told me to sell

out.

"The mindset was, 'How could a small Filipino company with only 5 stores take on a big

multinational company in a business they practically invented?' This was a moment of truth for

us. A moment that directly tested my hope and ambition.

"If I had no hope, I would have sold out the business right then and I would not be standing in

front you of today, I might just be flipping burgers for you-know-who,” said Caktiong, referring

to McDonalds.

 Big mistakes

As someone who’s had their fair share of failures along with successes, Caktiong

has learnt to take it as part and parcel of following your passion and dream. “When it

comes to education, the only school I can learn from is the school-of-hard knocks. And

I'm still learning today,” said Caktiong. Failing is just an experience or a learning.

Concludes that the main thing is to dream, dream big and not be afraid of it. “Dreams are

free. Why limit what you are aspiring for? But dreaming is not enough. One needs to put

in enough energy and input. If you dream big and put your dreams into action you will

indefinitely make mistakes. "But don’t be scared to make mistakes. Just be quick to

recognize them and learn from them as fast as you can. Learn from each mistake and it

will not be a waste of time,” said Caktiong. –

 Strategy

Trademarks and Branding

Realizing that he needed a brand name and logo for his new business, Mr.

Caktiong and his family decided on using a smiling red bee. “Trademarks increased a lot

of value to our business”, he explains. “To the consumer, they represent either trust in the

company or trust in the brand…they will remember that the brand connotes very tasty

food and also the experience, the ambiance, the service, and they are also proud to be a

part of that brand”.

 IP Infringements and Enforcement

The strong Jollibee brand name and its positive connotations have made it a target

for free-riders and counterfeiters: “We have some cases where people will do other things

like garments or shoes and they call it “Jollibee”. Overseas, they will open a restaurant or

a fast food also called Jollibee, even with the same drawing”, Mr. Caktiong reports.

 Franchising

Successful franchising applicants undergo a 3-month full time Operations

Training Program (BOTP) at a designated training restaurant, supplemented with other

programs that will enrich the franchisee's management and analytical skills needed in the

operation of the restaurant.

 Goals

 First, dream big and whenever you achieve your dreams – to dream even bigger.
 Second, never be afraid to fail.

 Third, never lose your incessant thirst and love for learning.

 Fourth, life involves making choices.

 Fifth, in the retail industry, there is a saying that what is important is location, location,

location.

 Sixth, giving back.

 Seventh and last – be happy.

Case Study

Mejorada, Jerico

Obnasca, Venus Arriane

Pastorpide, Rovie
BSBA2FM-B2