JOLLIBEE FOODS CORPORATION

(ACQUISITIONS)

Presented to the Faculty of Graduate School

University of the East
Sampaloc, Manila

In Partial Fulfillment of the Requirements for

Master of Business Administration

JOHN DAVE M. TAMONDONG

JEFFREY PAWIG
NICOLE BANTUG
October 2018
Table of Contents

I. PROFILE OF FIRMS INVOLVED ............................................................................................. 3

JOLLIBEE FOODS CORPORATION ............................................................................... 3
GREENWICH PIZZA CORP. ........................................................................................... 14
RED RIBBON BAKESHOP, INC. ..................................................................................... 19
MANG INASAL PHILIPPINES, INC. .............................................................................. 24
II. THE ACQUISITION/MERGER TRANSACTIONS ............................................................... 31
III. OBJECTIVES OF ACQUISITIONS ......................................................................................... 32
IV. APPROACH ................................................................................................................................. 35
V. PROBLEMS ENCOUNTERED AND HOW ADDRESSED ................................................... 36
VI. LESSONS LEARNED ................................................................................................................. 38
VII. PERSONAL INSIGHTS ............................................................................................................. 38
VIII. REFERENCES............................................................................................................................. 39
I. PROFILE OF FIRMS INVOLVED

JOLLIBEE FOODS CORPORATION

A. Corporate Overview

JOLLIBEE FOODS CORPORATION (“JFC” or the “Company”) was incorporated on

January 11, 1978. Its principal business is the development, operation and franchising of
quick-service restaurants (QSR) under the trade name “Jollibee.” In the Philippines, the
Company has, as subsidiaries, FRESH N’ FAMOUS FOODS, INC., which develops,
operates and franchises quick-service restaurants under the trade names “Chowking” and
“Greenwich,” RED RIBBON BAKESHOP, INC. (through RRB HOLDINGS, INC.),
which develops, operates and franchises restaurants under the “Red Ribbon” trade name,
MANG INASAL PHILS., INC. (of which the Company owns 70%), which develops,
operates and franchises restaurants under the “Mang Inasal” trade name, and PERF
RESTAURANTS INC., (through holding companies, of which the Company owns 54%)
which franchises restaurants under the “Burger King” trademark in the Philippines. The
Company also has subsidiaries and affiliates which develop and operate its international
brands, “Yonghe King,” “Hong Zhuang Yuan,” “San Pin Wang,” brands under the
SuperFoods Group (including Highlands Coffee and Pho 24), “12 Hotpot”, Sma and
“Dunkin’ Donuts”.
Jollibee Foods Corp. is engaged in developing, operating, and franchising fast food stores
under the trade name Jollibee. The company operates through the following segments:
Food Service, Franchising, and Leasing. The Food Service segment engages in the
operations of quick service restaurants and the manufacture of food products to be sold to
Jollibee Group-owned and franchised QSR outlets. The Franchising segment is involved
in the franchising of the Jollibee Group's QSR store concepts. The Leasing segment leases
store sites mainly to the Jollibee Group's independent franchisees.

B. Culture

Through the years, JFC has formed its foundation from good business practices and strong
core values of Customer Focus, Speed with Excellence, Integrity, Spirit of Family and Fun,
Humility to Listen and Learn. JFC continues its steadfast commitment in upholding these
core values:
Customer focus
We provide great taste, and superior value to all our customers.
We treat our customers with sincere service and a warm smile.
We take part in creating exceptional customer experience.
Speed with Excellence
We plan, decide and act quickly.
We set challenging goals and execute well.
We constantly find ways to improve and innovate.
 Humility to Listen and Learn
We seek, welcome and value feedback
We acknowledge and learn from our mistakes
We aspire to learn from people from all walks of life
Spirit of Family and Fun
We take care of each other and bring out the best in everyone
We are true to our name, hard-working and happy.
We recognize individuality and foster teamwork.
Integrity
We live by honesty and we do what is right all the time.
We act as responsible stewards of the company.
We speak our minds constructively when needed.

C. Personnel

Current Number of Employees: 12,309

Capital Market Stakeholders
Jollibee’s capital market stakeholders include its shareholders whom have a direct interest
in the company. Since going public on the Philippine Stock Exchange, Jollibee had been
able to tap on this key resource to expand its horizon within and beyond the local
Philippine’s market. The importance of the capital market stakeholders is also evident in
the growing operations of Jollibee over the years.
Product Market Stakeholders
Jollibee’s product market stakeholders include its customers locally and globally, as well
as suppliers of its food sources. Jollibee has been able to capture the market share of the
fast food going customers due to its understanding of locals’ preferences and it quality and
competitive pricing of its food. An approximate 1 million customers ate at Jollibee’s stores
daily, making them an important stakeholder in this category.
The large daily requirement of food resources had enabled Jollibee to enjoy better prices
through economies of scale from its suppliers.
Organizational Stakeholders
Jollibee’s organizational stakeholders include its large number of employees under its
corporation, its managers and its franchisees. In maintaining its high standards, Jollibee’s
compensation, benefits and comprehensive training programs ensure they have the best
employees that are available.
D. Intellectual Property

Mr. Caktiong, the owner, and his family decided on using a smiling red bee. They chose a
bee because of its association with hard work, and because honey represents the sweet
things in life. The “jolly” prefix was intended to connote happiness and enjoyment. Jollibee
invested millions of pesos to register the “bee” trademark in the Philippines and other key
countries.

E. Brands

FRESH N’ FAMOUS FOODS, INC., which develops, operates and franchises quick-
service restaurants under the trade names “Chowking” and “Greenwich,” RED RIBBON
BAKESHOP, INC. (through RRB HOLDINGS, INC.), which develops, operates and
franchises restaurants under the “Red Ribbon” trade name, MANG INASAL PHILS., INC.
(of which the Company owns 70%), which develops, operates and franchises restaurants
under the “Mang Inasal” trade name, and PERF RESTAURANTS INC., (through holding
companies, of which the Company owns 54%) which franchises restaurants under the
“Burger King” trademark in the Philippines. The Company also has subsidiaries and
affiliates which develop and operate its international brands, “Yonghe King,” “Hong
Zhuang Yuan,” “San Pin Wang,” brands under the SuperFoods Group (including
Highlands Coffee and Pho 24), “12 Hotpot”, Sma and “Dunkin’ Donuts”.

F. Risk Management

The acquisition of several new brands such as Greenwich, Chowking and Delifrance allow
the diversification of its products into different market niches. It proved to be a hedge
against downturns and competition and as seen in the case study, most of the acquisitions
are the leader in their respective market segment.
 G. Capacity

Red text denotes the time of acquisition, merger and buy out transactions.
H. Assets, Liabilities and Equity (Based on Consolidated Financial Statements)
I. Profitability (Based on Consolidated Financial Statements)

Since its inception as a corporation in the late 70s, Jollibee has seen strong financial growth. As seen in the financial data
provided, Jollibee’s sales and revenue has been on the rise in the recent years. As shown in their revenues, an amount of $12.9
billion pesos in 1998 was gradually increased to $26.2 billion pesos in 2004, and indicating strong growth and ability to compete
in the already dense fast food market locally and internationally. The organization going public on the Philippine Stock Exchange
in 1993 acts as a foundation for the rapid expansion of its stores locally and internationally.
J. Customers

Jollibee projects itself as being closer to Filipino families as compared to its competitors.
There is already widespread awareness locally that Jollibee is a local Filipino
establishment, which in turn appealed to the mass population whom felt more comfortable
in a familiar setting. Tailoring its menu towards the Filipino taste, it positioned itself as the
favorite destination for family outings as compared to its similar competitors.

K. Product Development

The main draw for customers into Jollibee’s restaurants is the appeal for local styled food
catered to Filipinos’ preferences. This is evident as they are constantly adding its product
range on top of their already popular favorites menu, in order to allow its local customers
to experience the traditional Filipino way of having local flavored taste in a comfortable
setting.

L. Production Process

Primary Activities
Outbound Logistics
Individual RBUs are able to achieve greater efficiency in the delivery of products and
services, quicker coordination, and more timely decision making due to this decentralizing.
Marketing and Sales
Portraying itself as a fast-food outlet of high-quality at an affordable price specifically
tailored for the Filipinos, the chain has appealed to patriotic locals. With its introduction
of in-store play activities for children and a cast of brand mascots, it reaches and appeals
to the children and is evidently more popular than its nearest competitors. Recognizing that
a normal Filipino family’s weekends are normally reserved for children, the previously
mentioned activities add value to Jollibee's position as the prime destinations for family
outings.
Service
The Filipino speaking crew appeals to the locals more than its competitors where their crew
spoke in English. It is also in Jollibee’s commitment that this service component of their
business to their customers must be fast and at the same time being courteous.
Support Activities
Procurement
Being a major player in the Fast-food industry in Philippines, they constantly enjoyed
economies of scale in terms of retail site selection, procurement, manufacturing,
distribution, and marketing levels unavailable to most industry players.
 Human Resource Management
To attract the right talent and retaining of valuable staffs, the compensation and benefits
package at Jollibee is the highest in the Philippine fast-food industry. Employees are to
undergo comprehensive training programs based on underlying standards. Managers also
received ongoing training in the latest operations systems and people-management skills.
Opportunities are available for crew members to advance into a management role in the
organization.

GREENWICH PIZZA CORP.

A. Corporate Overview

The first Greenwich Pizza restaurant was established in 1971. The small over-the-counter
shop was in metro Manila inside Greenhills Shopping Center, otherwise known as
Greenhills Commercial Center, a large mall with indoor and outdoor shops. Between 1971
and 1994, the Greenwich Pizza brand expanded to 50 branches.

B. Market Overview

Greenwich Pizza was best known as a pizza chain in the Philippines that appealed mainly
to the mass market.
Competitors:
 Dominos Pizza
One of the top competitors of Greenwich is Domino’s. Domino's Pizza is
recognized as the world's leading pizza delivery company. There are expertise and
passion for delivering hot and fresh pizzas has earned us numerous awards and the
loyalty of millions of pizza lovers around the world. Domino's Pizza UK and
Ireland Limited is a wholly owned subsidiary of Domino's Pizza Group ("DPG")
which is quoted on the main market of the London Stock Exchange. DPG is the UK
and Ireland's leading pizza delivery company and holds the master franchise to
own, operate and franchise Domino's Pizza stores in these markets.
 Pizza Hut
Pizza Hut is now more than just a pizza place. It offers a unique casual dining
experience that is different from the usual fast-food environment. The casual dining
restaurant now has an expanded pizza menu, appetizers such as ribs and a new line
of desserts, soup options, smoothies, a variety of pasta dishes and a whole lot more.
Veering away from plastic and tiles typical of fast-food joints of old, Pizza Hut now
has a very classy, casual-dining feel with sleek wooden furniture, warm, ambient
lighting, and a touch of whimsy dominating the whole interior. With the new
ambience come more customer interaction and service that is made doubly fast and
extra friendly.
  Shakeys
Also a Greenwich competitor is Shakeys. As of today, they are all over 500
Shakey’s restaurants world-wide. Pizza is still their mains stream of offering food.
Whether it’s their original thin crust version with its crispy, crunchy taste or the
classic hand-tossed pizza with dough baked thick and chewy. Shakey’s guests also
find a wide and different of ala carte items and foods such as marinated pressure-
fried chicken, their exclusive Mojo potatoes (French -fried slices in seasoned
breading) and pasta.
 Yellow Cab
Yellow Cab Pizza Company is a pizza chain that retails fast food, primarily pizza.
They offer a lot various of pizza which they originate the pizza as big as it and it is
expensive. They are also famous for making hot wings and other various chicken
dishes and other viand meals. Yellow Cab’s pizza dough is quite rich and their
toppings are always generous and their customer service is rate as excellent.
C. Culture
The Company’s campaign focused on the barkadas started with the purpose “We decided
that we want our brand to be stronger in the minds of our consumers. Pizza is a fun product,
adventurous considering the many kinds of toppings one can put on it, less formal as you
eat it with your bare hands whether sitting or standing and it is a type of food that people
enjoy eating when shared,” he says. Given the characteristics of its main product offering,
it was decided that Greenwich pizza and the yindies were a perfect match.
The term “yindie” has been around for a while now, although it did not become a buzz
word like “yuppie.” It is defined in dictionaries as an informal term referring to a person
who combines a lucrative career with non-mainstream tastes. For Greenwich, the biggest
pizza chain in the country, however, yindies are cool and hip, stylish, confident and
independent young people who belong to the digital generation. They are less stiff and less
formal compared with the yuppies. The yindies work hard and play hard. They value
friendship and strive for a balanced life. They are the core target market, particularly the
barkadang yindies (buddies), of Greenwich.
D. Capacity (refer to JFC Capacity)
E. Assets, Liabilities and Equity

E.1 Before merger and buyout

E.2 After merger of Chowking Foods Corporation, Greenwich Pizza Corporation and Baker Fresh Foods Philippines, Inc.
F. Profitability
F.1 Before merger and buyout

F.2 After merger of Chowking Foods Corporation, Greenwich Pizza Corporation and Baker Fresh Foods Philippines, Inc.
G. Customers

The target market of Greenwich Pizza is young adults were defined as Filipinos 20-30 years
old who are just coming up in the world and enjoying their newfound independence and
financial freedom. They are just out of college and in their first or second jobs, earning
their own money and spending as they see fit, thus an appealing market for food companies.
That insight into the psyche of young adults was translated into a massive tri-media
campaign in 2008 introducing to the market the Overloaded Pizza line with the message
that pizza is best shared among friends and family.

H. Intellectual Property

Greenwich re-invents itself more with a more dynamic “G” logo to attract more customers.
This brand look is also an indication of how attuned the company is with the ever-changing
times and evolving customer lifestyles.
From its previous dark green and red color scheme, Greenwich stores were redesigned with
a contemporary motif using the brighter and more dynamic colors of brilliant green and
vivid rose. The new colors and graphics help create a livelier, more inviting ambience in
Greenwich stores. In addition to this, the new corporate visual identity graphics exhibit the
dynamism of the brand.

RED RIBBON BAKESHOP, INC.

A. Corporate Overview

Red Ribbon is a known bakeshop in the Philippines. It was founded by Amalia Hizon
Mercado and her husband Renato Mercado which they started as only a hobby in 1979 at
a small shop in Timog, Quezon City. The shop expanded into a proudly Filipino-owned
and it becomes a well-known brand of cakes and pastries in the Philippines. Red Ribbon
began its franchising in 1999 which expands the business across the Philippines and
abroad.
Red Ribbon has grown to over 370 outlets all over the Philippines and over 33 stores in US
with locations in California, Nevada, Washington, Hawaii, New York, New Jersey and
Virginia. With its acquisition in October 2005 by Jollibee Foods Corporation, Red Ribbon
entered a new phase in its company history. The company soon became one of the biggest
and fastest growing bakeshops in the Philippines and has taken part in every Filipino’s
special moments.

B. Market Overview

Demographic
Age: 20’s and above; Gender: Male and Female;
Income: Upper and Middle Class
 Top three competitors of Red Ribbon Bakeshop:
Goldilocks - is perceived as one of Red Ribbon Bakeshop's biggest rivals. Goldilocks's
headquarters is in Mandaluyong, Other, and was founded in 1966. Goldilocks operates in
the Food Processing industry. Goldilocks generates 314% of Red Ribbon Bakeshop's
revenue.
Julie’s Bakeshop - has been one of Red Ribbon Bakeshop's top competitors. Julie's
Bakeshop is a Private company that was founded in 1981 in Duljo-Fatima, Cebu. Julie's
Bakeshop operates in the Food Processing industry.
Gardenia Bakeries Philippines - is Red Ribbon Bakeshop's #3 rival. Gardenia Bakeries
Philippines was founded in Binan, Laguna} in 1978. Gardenia Bakeries Philippines is in
the Food Processing industry. Compared to Red Ribbon Bakeshop, Gardenia Bakeries
Philippines generates $51M more revenue.

C. Culture

For Red Ribbon Bakeshop, the ingredients to success are quality, service, value, and
customer. Red Ribbon has even taken itself to a higher level of customer service.
Improvements are geared towards a more delightful dine-in experience with strict FSC
(Food, Service, Cleanliness & Condition) compliance, better take-out experience to ensure
faster servicing time, and enhanced delivery service with a broader coverage.
Mission: To serve great tasting food bringing the joy of eating to everyone.
Vision: To be the leader in the bakeshop industry and the most loved bakeshop in the
Philippines.

D. Personnel

Estimated number of employees: 155

E. Brands

Marketing Mix
• Products: Cakes, Rolls, Pastries, Meals, Merienda, and Beverages
• Price: Roll Cakes: PHP165-330; Cakes: PHP350-800; Pastries: PHP20-250;
Meals: PHP65-200; Merienda: PHP20-90; Beverages: PHP20-90
• Promotion: Print (Flyers), TV, Radio, Internet
• Place: Inside Malls, Highways, Free Standing stores, Jollibee outlets, Ports and
Terminals (Red Ribbon also have internet and delivery hotlines)
F. Risk Management

The Red Ribbon franchising program has been activated since September of 1999 and has
progressed consistently, bringing more stores closer to customers nationwide. All stores,
franchised and company-owned follow the strict quality assurance measures of
international standards assuring its customers that they will be proud of having made Red
Ribbon their first choice for their family’s celebrations.

G. Capacity (refer to JFC Capacity)

H. Assets, Liabilities and Equity
I. Profitability
J. Customers

 Male and Female

 Children, Teenagers, Students, Workers and Adults who love to eat sweet foods
 Class A and Class B families
 People wanting cakes and pastries for dessert, meryenda, or special occasions.

K. Sales Activity

Marketing Strategies
 TV Commercials
 Internet
 Billboards
 Radio
 Print Ads (Newspaper, Magazine, Flyers)
 Privilege and Loyalty Cards
 Promos
 Product Innovation

L. Product Development

Red Ribbon uses premium ingredients, such as real butter, high quality cake flour, and its
unique Red Ribbon cream. Red Ribbon cakes have become a tradition, an integral part of
every celebration like birthdays, christenings, anniversaries, and weddings.

MANG INASAL PHILIPPINES, INC.

A. Corporate Overview

Mr. Edgar “Injap” Sia a half Chinese and Japanese (founder of Mang Inasal), become the
youngest billionaire in the Philippines at the age of 34, after selling his 70% stake in Mang
Inasal to Jollibee.
With the support of Mr. Edgar Sia’s family he established “Mang Inasal” on December 12,
2003 in a 250 square meter space at the Robinson’s Mall Carpark-Iloilo and the second
branch opened in 2004 at the supermarket building of his parents in Roxas. By 2005,
confident of stability and brand recall of the business, he opened Mang Inasal for
franchising having 303 Mang Inasal branches, only 24 are company owned. By 2009, they
had a store network of one hundred stores. This June 19, 2018, as they celebrated a
milestone as it formally opened its 500th store in the city where it all began – IloIlo.
₱800,000.00, the amount Sia’s seed money when he started the business.
From a Hiligaynon word for Mr. Barbeque, Mang Inasal was established as a unique entry
to the saturated grill restaurant industry.
 Mang Inasal started to offer the tasty vinegar-marinated chicken served in skewers and
paired it with unlimited rice, an almost irresistible come-on. Today, Mang Inasal with its
strong portfolio of Chicken Inasal, Pork Barbeque, Halo-Halo, and Palabok variations in
the menu are constantly being developed to meet the discriminating demands of its growing
customer base.
Early on he learned the importance of following your instincts, taking risk, strategizing,
negotiating, and motivating yourself and your people. Innovating further, he began offering
the menu in the familiar fast food dine-in concept. The business grew by leaps and bounds,
conquering markets beyond Visayas, including Metro Manila, the make-it-or-break-it-city.

B. Market Overview

Target Markets
Age: 15 yrs. Old and above
Gender: Male and Female
Income: From Lower to Upper Class.
Occupation: Employed to Unemployed
Occasions: Ordinary days to Unforgettable Celebrations
What do they like to visit: The products that focused customer’s health as a fast food.
Competitors of Mang Inasal
a) Bagnetified - Has been one of Mang Inasal’s top competitors. Bagnetified
headquarters is at Main Road Purok 5, Bayan Luma 5 Imus, Cavite, Philippines,
and was founded in 2013. It is in the packaged foodS and Meats Industry.
b) Bente Silog - is one of Mang Inasal’s top rivals. Ben company that was founded
in Manila. Other in 20 operates in the Food processing industry. Bente Silog
employees vs. Mang Inasal.
c) Binalot - Is perceived as one of Mang Inasal’s biggest rivals. Binalot was founded
in 1996, and is headquartered in Parañaque City. Binalot generates $29.8M less
revenue vs. Mang Inasal.
C. Culture

Customer satisfaction has always been Mang Inasal’s priority. They live the FSC
philosophy by serving great Food, delivering excellent Service, and maintaining
Cleanliness and good store condition every day.
The variety of food that they serve is carefully developed to ensure ingredients are secured
from suppliers with quality high regards to quality and safety. These are then prepared,
cooked, and served complaint to the highest standards that will surely make each customer
feel satisfied after every meal.
The aim is not just to deliver high-quality meals but to serve the Alagang Pinoy Way.
Mission: To serve great tasting food, bringing the joy of eating to everyone.
Vision: To be the preferred quick service restaurant of every pinoy everywhere.

D. Personnel

Number of Employees: 15,000

E. Brands

Mang Inasal main product is grilled chicken. The secret of it is the use of local herbs and
spices that make the chicken taste good.
Meals
• Chicken Inasal (comes with Paa or Pecho part)
• Sisig (Bangus and Pork)
• Pork Barbeque
Merienda
• Palabok
• Lumpiang Toge
• Halo-Halo (Pinoy Style or Crema de Leche)
Beverages
• Ice Tea
• Soda
• Sago’t Gulaman
Desserts
• Leche Flan

F. Capacity (refer to JFC Capacity)

 G. Assets, Liabilities and Equity

*Financial Information for 2016 at the time of the 30% buyout is not yet available.
H. Profitability
I. Customers

Age: 15 yrs. Old and above

Gender: Male and Female
Income: From Lower to Upper Class.
Occupation: Employed to Unemployed
Occasions: Ordinary days to Unforgettable Celebrations
In year 2010 “The Guest Relation Crew Program” was introduced wherein crew members
are trained to give great service to all of its customers, while the Blue Pending Number
system aims to prioritize the needs of senior diners in Mang Inasal stores.

J. Sales Activity

Marketing Strategies
Uses:
• TV (Commercials)
• Events and Experience
• Word of Mouth
• Billboards
• Print Ads
Current Positioning Strategy
Mang Inasal offers Inasal and other Filipino food, coupled with unlimited rice Priced 23%
lower than competitors. The presence of every Mang Inasal in a certain area provides not
only employment but also opportunities to community members including suppliers of
Calamnsi, Charcoal, Banana Leaves, Vegetables, Bamboo Sticks, and other Ingredients.
Mang Inasal positions their company to play on their loyalty to their group. They advertise
their products by sponsoring Family gatherings, Birthday parties and school events. Also,
they make a difference in a child’s life today by supporting the Busog, Lusog, Talino
School Feeding Program.
Low Price Strategy
Mang Inasal position themselves as affordable options for consumers by selling low-priced
goods.
Mang Inasal’s market Share as of 2010: estimated ₱2.6 billion in revenue, and its system-
wide sales at ₱3.8 billion (before)
Mang Inasal Market Share would add: 5 percent to its worldwide system-wide sales, 5
percent to its revenue, 7 percent to its net operating income
Continuing with its mission to provide customers with a great Pinoy dining experience,
Mang Inasal established its Training Academy, which serves all the training needs of the
brand, This move led to the creation training curriculums for management tainees and
managing directions to better equip them with the basic knowledge, skills, and behaviour
 needed to integrate the entire operation. One such program is the Grill Certification
Program that consistently trains grill crews on the proper Mang Inasal way of grilling
chicken.

K. Product Development

The Philippines is the 12th most populous country in the world with over 90 million mouths
to feed. The owner looked at the 16 different regions in the Philippines and recognized that
each has a unique set of culinary traditions and eating habits. He then analyzed and
identified what type of food would have the most potential and mass appeal. This was the
ubiquitous barbecue (inasal in Ilonggo) partnering with unlimited rice. Filipino is one the
biggest rice consumer in the world, “Kanin Lover”.
They create The Bulilit Party Package opening the brand to the celebration of children’s
birthday parties. They launched the aggressive guerrilla marketing campaign, Project by
Geronimo, which involved precisely placed buy-one-take one leafleting to neutralize one
of its fast growing competitors. Such effort led to 49% traffic decline in that competitor’s
targeted stores.
The tag line “The More The Many-er” campaign which introduced a range of exciting new
products. The campaign built buzz and excitement through teasers on TV, dim axed with
an all-out media blast that bornharded the city with news about the brand’s delicious new
offerings.
II. THE ACQUISITION/MERGER TRANSACTIONS
Greenwich Pizza Corporation
In 1993, Jollibee Foods Corp. acquired 80 percent of the Greenwich shares. The name of
the Greenwich chain was officially changed to Greenwich Pizza Corp., and new stores
began to spring up within the next year. By June 1995, the company's branding had been
altered, including the logo designs. New pizza flavors were brought out shortly after the
Jollibee acquisition in July 1995. By October 1995, the company had doubled its previous
year's sales.
Jollibee finished its buyout of Greenwich Pizza Corp. in 2006, purchasing the remaining
20 percent of the company. This made Jollibee the sole owner of Greenwich, which is still
the case as of time of publication; Greenwich is the largest pizza chain in the Philippines.
In 2006, Jollibee Foods Corp. is merged its three wholly-owned fastfood units – Chowking
Food Corp., Greenwich Pizza Corp. and Baker Fresh Foods Philippines – in line with
efforts to enhance operational efficiency.
In a disclosure to the Philippine Stock Exchange, Jollibee said the merger is part of its
program to "simplify its legal structure and improve its administrative efficiency".
Chowking will be the surviving entity.
Jollibee did not issue shares to the surviving entity nor any exchange of shares. The net
assets of Greenwich and Baker Fresh were simply treated as additional paid-in capital in
the surviving entity.
Chowking Foods Corporation is renamed Fresh N’ Famous Foods Inc. and became the
second largest food service company in the country after Jollibee.
Red Ribbon Bakers,Inc.
On October 27, 2005, in line with its goal to be a major global food service company,
fastfood giant Jollibee Foods Corp. acquired 100 percent of the cake and pastry restaurant
chain for 1.8 billion, Red Ribbon Bakeshop, which has branches in the United States. The
Jollibee Group paid P1.3 billion in cash on October 27, 2005, with the balance to be paid
in three equal annual installments following the date of acquisition.
In a disclosure to the Philippine Stock Exchange, Jollibee said it has reached an agreement
with the owners of Red Ribbon to acquire the latter’s 147 outlets – 131 in the Philippines
and 16 in California, USA. The purchase price was not immediately known.
Jollibee said the Red Ribbon chain will complement its existing operations of 1,079 stores
comprised of 508 Jollibee restaurants, 310 Chowking Oriental fastfood stores, 228
Greenwich pizza/pasta restaurants, and 33 Delifrance stores. The company said Red
Ribbon Bakeshop is a valuable synergistic member of the Jollibee family.
Mang Inasal Philippines, Inc.
On November 22, 2010, Jollibee Foods Corporation acquired 70% of Mang Inasal
Philippines Inc, the owner and operator of Mang Inasal, a chain of 303 restaurants all over
the country serving grilled chicken and other Filipino food. Of the estimated P3 billion
transaction price, Jollibee has paid P200 million to parent firm Injap Investments Inc.,
which continued to hold 30% of Mang Inasal.
 Ninety-percent of the balance is paid after the two parties signed the share purchase
agreement, which is subject to a 30-day due diligence conducted by PriceWaterhouse
Coopers-Isla Lipana & Co. auditing firm and Romulo Mabanta Sayoc De los Angeles law
firm. The remaining 10% will be paid over 3 years.
Mang Inasal’s network will add about 5% to Jollibee’s worldwide systemwide sales, 5%
to its revenues, and 7% to its operating income. Once completed, the deal will also increase
Jollibee’s current 1,578 stores in the Philippines and 375 abroad by 16%.
In 2016, Jollibee Food Corporation (JFC) buys out remaining 30 percent equity shares of
Mang Inasal Philippines (MIPI) for P2 billion. This move is in line with the terms sited
under the Shareholders’ Agreement on 22 November 2010, when JFC acquired the initial
70 percent stake of the MIPI. With this acquisition, JFC now owns 100% of Mang Inasal
Philippines.
Other JFC transactions:
Delifrance
Jollibee has recently sold its stake in Delifrance, a French pastry store that it acquired in
2006 and divested from two businesses in Taiwan and China in line with its thrust to
concentrate on larger quick-server restaurant businesses.
Burger King
In 2011, signed an agreement acquiring a 54-percent stake in BK Titans Inc., owner of
PERF Restaurants that, in turn, is the sole franchisee of the Burger King brand in the
Philippines. The deal was priced at P65.5 million.
Yonghe King
On March 25, 2004, the Group through Jollibee International (BVI) Ltd. (JIBL), a wholly
owned subsidiary of the Company, acquired 85% of the issued capital shares of Belmont,
the holding company of the Yonghe King chain of fastfood restaurants operating in the
People’s Republic of China. The acquisition included an initial cash payment of US$11.5
million that was paid on March 25, 2004 and, based on certain financial performance level,
a future contingent payment for the next three years not to exceed US$11.0 million. The
maximum purchase price for the 85% interest is US$22.5 million.
San Pin Wang
Asia’s largest food service company said wholly owned subsidiary Jollibee Worldwide Pte.
Ltd. (JWPL) completed the sale of a 55% stake in Guangxi San Pin Wang Food and
Beverage Management Company Limited - the owner of San Pin Wang. JFC is now
focusing on building up Yonghe King, its biggest business in China with 315 stores at end-
November 2016.
Guangxi Zong Kai Food Beverage Investment Company Limited now owns 100% of the
restaurant chain.
The Philippine company bought into an already profitable San Pin Wang in 2012 when it
only had 34 stores. The restaurant specializing in low-priced beef noodles has since
expanded its footprint to 71 stores at end-November 2016.
Chow Fun Holdings LLC.
The fast-food giant (JFC) through its subsidiary Jollibee Worldwide Pte. Ltd. (JWPL)
divested its 80.55% stake in Chow Fun Holdings LLC, the owner of the Jinja Bar and
Bistro restaurant concept in the US.
JWPL received $1.6 million in readily available funds from Chow Fun for the redemption
of 2,900 Class A membership units. JFC initially acquired a 12% stake in Chow Fun in
July 2008 before expanding its shareholding to 80.55% in March 2011.
JFC’s divestment of its shareholdings in Chow Fun is part of its intention to concentrate its
resources in building its larger businesses.
III. OBJECTIVES OF ACQUISITIONS

Jollibee Foods Corp. (JFC) aims to be the largest home grown quick service restaurant chain
in Asia by 2020. Jollibee is the largest fast food chain in the Philippines, operating a
nationwide network of more than 750 stores. A dominant market leader in the Philippines,
Jollibee enjoys the lion’s share of the local market that is more than all the other multinational
brands combined. The company has also embarked on an aggressive international expansion
plan, and currently has 80 stores outside the Philippines-USA (26), Vietnam (32), Brunei (11),
Jeddah (7), Qatar, Hong Kong, and Kuwait (1 each), firmly establishing itself as a growing
international QSR player.
In order to meet its goal of becoming among the top 5 food chains worldwide, JFC needs to
accelerate its net income and system-wide sales growth by acquiring more companies. JFC
owns other fast food brands in the Philippines such as Chowking, Greenwich Pizza, Red
Ribbon Bakeshop, Mang Inasal, and Burger King Philippines.
Currently, JFC is putting up 500 stores globally while scouting for new acquisitions, in a bid
to have an equal contribution in sales from the local and international segments by 2023. Of
the total store openings, around 250 to 300 will be located within the Philippines and the
remainder internationally. Among the international expansion, Vietnam will have the most
number of store openings, as the company is currently ramping up the expansion of its
Highland Coffee chain.
The target store openings will also allow the company to enter new markets such as United
Kingdom, Malaysia and Indonesia.
By the end of 2018, JFC would have around 4,200 stores, compared to the 3,797 stores it had
by 2017.
IV. APPROACH

Greenwich Pizza Corp.

In 2006, Fastfood chain Jollibee Foods Corp. (JFC) had bought out its partner’s 20-percent
stake in Greenwich Pizza Corp. for P384 million in line with its strategy to consolidate its
operations. With the purchase, Jollibee owns 100 percent of Greenwich. The purchase was
paid in cash on Jan. 17, 2006.
Jollibee chairman and chief executive officer Tony Tan Caktiong said the purchase is part of
the Jollibee Group’s corporate strategy to acquire businesses or additional stakes in existing
businesses and to streamline operations.

Mang Inasal Philippines, Inc.

Jollibee Food Corporation (JFC) buys out remaining 30 percent equity shares of Mang Inasal
Philippines (MIPI) for P2 billion. This move is in line with the terms sited under the
Shareholders’ Agreement on 22 November 2010, when JFC acquired the initial 70 percent
stake of the MIPI. With this acquisition, JFC now owns 100% of Mang Inasal Philippines.
The JFC Group of Companies will also continue its strong business relationship with Mr.
Edgar Sia II, former owner and founder of MIPI, together with his team, primarily the
DoubleDragon Properties Corp.

Red Ribbon Bakeshop

In 2005, fastfood giant Jollibee Foods Corp. had acquired 100 percent of the cake and pastry
restaurant chain, Red Ribbon Bakeshop, which has branches in the United States.In a
disclosure to the Philippine Stock Exchange, Jollibee said it has reached an agreement with
the owners of Red Ribbon to acquire the latter’s 147 outlets – 131 in the Philippines and 16
in California, USA. The purchase price was not immediately known.
V. PROBLEMS ENCOUNTERED AND HOW ADDRESSED

JFC encountered minimal problems with the operations on its transactions but have
encountered many problems in their preparation and presentation of the financial statements.
The following are some of the problems that they had encountered and how the company may
have resolved such setbacks to achieve a fair presentation of the financial information:
Functional Currency and Translation
This problem arose for the reason that Jollibee has been maintaining international operations
in the United States, Hong Kong, Vietnam, Brunei, Guam, and Saipan. In addition, its
Chowking stores are located in Dubai, while their Yonghe King restaurants situated in China.
Red Ribbon had also expanded in the US even before it was acquired by Jollibee. Because
these countries uses different currencies in their daily operations and in the preparation of
financial data, it is wondered how Jollibee will address such problem in their consolidated
financial statements, whose parent company is situated in the Philippines.
The problem was resolved when the company’s management determined its functional
currency to be the Philippine peso. In this case, the company measured these international
transactions in Philippine peso at the transaction dates. Monetary assets and liabilities were
measured using the exchange rate at balance sheet date. Non-monetary assets and liabilities
was measured at historical cost using the exchange rate at the date of initial transaction. Its
foreign subsidiaries’ financial statements were translated into the presentation currency of the
company. Exchange rate differences were presented in the financial statements, though in
aggregate form.
Receivables
Although the company’s main business is the development, operation, and franchising of
Quick Service Restaurants (QSR), the company also maintains other operations in support of
their QSR restaurants like franchising and leasing of facilities to other companies, it can be
inferred that the company does not only depend on cash sales brought about by their restaurant
operations. Receivables arose because franchising and real estate are also revenue-generating
areas of the organization which also forms part of their trade receivables. Moreover, they also
have dues from the joint venture and other related parties, which were aggregated as loan
receivables.
To prevent confusion, the company presented in its segment information the operations of
such segments and as such, users can find out those transactions under franchising and real
estate operations may primarily cause such receivables recognition.
Admission of Red Ribbon into the Jollibee Group
In 2005, the company bought Red Ribbon, a company that sells cake products to Philippine
consumers. Red Ribbon’s financial statements prior to acquisition are prepared for the fiscal
year ending June 30. Since Jollibee and Red Ribbon have time differences in financial
reporting, the stockholders and the Board of Directors agreed that the reporting period of the
company should follow the calendar year presentation of Jollibee.
Restatement of Previous Years Financial Statements
The financial statements of Mang Inasal Philippines Inc. has to be restated as it was reflecting
some errors on the amounts presented and does not reflect the result of operations of the
company before the acquisition by JFC. JFC decided to replace the previous auditors of MIPI
which is a single proprietor to its auditor on all companies it operates.
VI. LESSONS LEARNED

1. Problems are unending especially in acquiring a new business. New policies, new
standards, and new conventions may lead to problems especially in dealing with the
preparation of the company’s financial statements. Sometimes, resolving these problems
might have adverse effects. It really depends on the company on how they are motivated
to face these situations.
2. JFC has been very aggressive when it comes to expansion and diversification throughout
the country and internationally. With its massive acquisitions and other transactions in the
previous years with minimal problems encountered, JFC has proven that every transaction
the company entered into have undergone careful considerations and thorough conduct of
due diligence.

VII. PERSONAL INSIGHTS

JFC’s expansion has been phenomenal throughout the years and might as well continue to be
in the upcoming years. This could only show that the Philippines could really compete well
with the other countries’ products and services. JFC could be already at the peak of its success
and already at the maturity level of business lifecycle, at this current stage the company may
have already undergone on the decision whether to exit some of its businesses or to continue
its expansion and achieve for further growth rates which is obviously the choice of the
company. There might come a time that the company will experience a possible downturn in
some of its business if not all and the managers and executives will be tested on how to
overcome them as they come. This only shows that the expansion and diversification of every
company should be conducted in a manner that it could minimize the risk associated therein
taking JFC as an example and probably projecting the possible outcomes and factors that the
company may be facing in the future.
VIII. REFERENCES

https://www.jollibee.com.ph/about-us/milestones-history/
https://www.jollibee.com.ph/wp-content/uploads/
https://www.greenwich.com.ph/about-us/
sliceapizzaatgreenwich.blogspot.com/p/history.html
https://ireport.sec.gov.ph/iview
https://www.slideshare.net/IannePatrickSantiago/10-step-marketing-plan-for-mang-inasal-
ianne-patrick-santiago-7078541
https://www.scribd.com/document/238781943/Mang-Inasal-Feasibility-Study
https://www.manginasal.com/about-us/
https://www.glassdoor.com/Benefits/Mang-Inasal-Philippines-Philippines-Benefits-
EI_IE562821.0,23_IL.24,35_IN204.htm
https://en.wikipedia.org/wiki/Mang_Inasal
https://www.zomato.com/manila/mang-inasal-balintawak-quezon-city/reviews
https://eunrepiso.weebly.com/uploads/5/7/8/8/57881887/mang_inasal.pdf
https://trademarks.justia.com/855/12/mang-85512045.html
https://eunrepiso.weebly.com/uploads/5/7/8/8/57881887/mang_inasal.pdf
https://incognitodaily.wordpress.com/2014/08/19/mang-inasal-chicken-problems-too/
https://www.owler.com/company/redribbonbakeshop#competitors