Jollibee Foods Corporation

PRESENTED BY:
•Abobo, Kate Nyza B.
•Agustin, Erika F.
•Gamboa, Joseph Nathaniel J.
•Gutierrez, Christine Sydney
•Nera, Aeron
•Nieto, Andrea Monique C.
•Torio, Happy Princess
•Toyoda, Yurina
Introduction
This report is an attempt to analyze the case of “Jollibee
Chickenjoy shortage” and “Jollibee's Service Quality.” In this
study we first analyze the case background so that we can
understand the system plan of future actions. In this section we
lay emphasis on the causes of certain problems relating Jollibee
and their service quality perceived by the customers. We also
discuss the Strengths, Weaknesses, Opportunities, and Threats to
Jollibee in the fast food industry and we identify certain issues
with Jollibee which involved the management, business, etc.
Company History
• Jollibee Foods Corporation began as an ice cream parlor in the
year 1975 but later diversified in to sandwiches when the 1977
oil crisis occurred and the President Tony Tan Caktiong
expected the ice cream parlor prices to soar. The hamburger
recipes developed by Tony’s chef father became famous and a
year later thy opened five store in Manila, where the family
incorporated as Jollibee Food Corporation.

• Tony Tan Caktiong’s vision was to see that employees enjoy

while working and are efficient. Jollibee expanded quickly
throughout he Philippine financing all grown internally until
1993. Most of the operations of the business were run by Tan
Family and for expert opinion they outsourced the mainly the
marketing and finance department.
Company Background
A part of Jollibee Foods Corporation, is the largest fast food
chain in the Philippines, operating a nationwide network of over
750 stores. The company has also embarked on an aggressive
international expansion plan in the USA, Vietnam, Hong Kong,
Saudi Arabia, Qatar and Brunei, at the heart of its success is a
family-oriented approach to personnel management, making
Jollibee one of the most admired employers in the region with an
Employer of the Year Award from the Personnel Management
Association of the Philippines,Best Employer in the Philippines
Award from Hewitt Associated and a Top 20 Employer in Asia
Aside from promoting a family oriented work environment, the
brand’s values also reflect on their advertising, marketing and
customer satisfaction has always been key to Jollibee’s success.
Now the market leader among fast food chains in the Philippines,
claiming a market share that totals to more than half of the entire
industry. Jollibee’s growth is due to its delicious menu line-up –
like its superior-tasting Chickenjoy, mouth-watering Yumburger
and Champ hamburger, and deliciously satisfying Jollibee
Spaghetti -ably complemented with 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. Every Jollibee outlet welcomes
customers with a clean and warm in-store environment and
friendly and efficient service.
Problem Statement
A. Service Quality Issues

Jollibee Food Corporation encountered a problem regarding

their service quality, according to our research some
branches has slower service, bad customer traffic, and
sometimes tangy foods. Some of their employees did not
entertain their customers well because their crews are
exhausted. This can divert other customers to their
competitors.

• Slow Service
• Accommodation of Staff
B. Chicken Shortage Issues

Jollibee Food Corporation had a problem regarding their chicken,

the taste is still the same, the quality is still the same,
therefore there is a lot of consumer demanded their
CHICKENJOY product, unfortunately they had shortage in
their popular product CHICKENJOY.

• Shortage in Chicken Joy

• Closure of Stores
Root Causes of the Problem
A. Service Quality Issues

• The survey says that the most suggested improvement is about

service aspect of the fast-food chain, some crews are not
accommodating enough when the customers are having issues.
• The serving time of the orders is not always on time some
customers are getting mad because of this.
• Furthermore, Jollibee Chicken Joy’s quality isn’t the same
anymore, sometimes it is not that juicy or the size is not
satisfying.
B. Chicken Shortage Issues

• Allegedly, there’s a shortage on their Chicken Joy that’s why

they decided to temporarily close 72 stores of the fast food
chain where the majority of the stores that was temporarily
closed was located at metro manila.

• But the company explained and resolved the #ChickenSad

issue. “The product limitation has been caused by the
migration to new systems that started on Aug. 1, 2014, which
has resulted in a temporary slowdown in sales order taking,
product loading and dispatch of transportation,” Jollibee said in
its statement which came amid complaints and even ridicule on
social media.
SWOT Analysis
 Strength
• Customer Loyalty

Customers are still choosing Jollibee. They focus on specific

target markets which are the kids or the whole family.

• Cost Advantage

Their costs are lower that it lead to higher profits and it can under
cut rivals on prices.
 Weakness
• Lack of supply

• Sometimes, their chicken runs out because of the delay of

delivery of their suppliers.

• Services of Employees

• Sanitation

• Lack of maintenance on their facilities like comfort room,

utensils that are not properly washed.
 Opportunities
• Online Market
Jollibee can market to a much wider audience for relatively
little expense.

• International Expansion
There are many Filipinos that are the main customers of
Jollibee so, expanding their outlets is an opportunity in
reaching out their Filipino customers.
 Threats
• Intense Competition
They have many competitors that it may lead to a lower
profits.

• Change in Tastes
Consumers are always finding a new taste so they are
going to another fast-food chain to satisty what they want
to eat at that moment.
Layout
 Existing (STORE LAYOUT)
• Lack of Cashier and Slow Service
• Lack of Seat
• Lack of Fryer
 Proposed(STORE LAYOUT)
• To add more cashier
• To put a waiting area
• To add more seat
• To add more fryer
Existing (KITCHEN LAYOUT)
Proposed(KITCHENLAYOUT)
LAYOUT – ( #ChickenSad )
 LAYOUT – ( #ChickenSad )
A. Existing

- Bad planning

Jollibee had the problem in their system and the effect of it is a

big loss to their company because 72 stores closed because of
the shortage in chicken. They don’t make a better plan in
changing the system.
B. Proposed
•Start small
•Project testing
•Continuous delivery
•Stay visible

Our proposal is to help Jollibee to prevent the chicken shortage.

First, Jollibee needs to start small, it means that they need to make a
smaller-scoped project because it’s less risky than big projects that they
made. A small initial project would allow the clients to better understand
what they really need. Second, they should have test the project because
the benefit of it is they are able to catch the bugs early and it would be
easy and cheap to fix. Third, they should have continuous delivery they
should still use the old system while the new system undergoes bug-fixing.
Last, they should stay visible so that clients can monitor the progress of
the project, and catch problems earlier rather than later.
Quality Tools
 Jollibee’s Check Sheet
Questions Yes No Sometimes Total

Do you like the 71 18 36 125

ambiance of Jollibee?

Is the crew 44 2 79 125

accommodating

enough?
 Questions Yes No Total

Do you think the quality of 97 28 125

Jollibee's Chicken Joy is still the

same?

Have you ever felt dissatisfied 85 40 125

about the product/service of

Jollibee?
 SCATTER DIAGRAM
• PROBLEM: CHICKEN SHORTAGE
TOTAL NUMBER OF SUPPLY
1000
Q
900
U
A 800
N
T 700
IT
600
Y
0

APRIL MAY JUNE JULY AUGUST

This diagram shows the supply of chicken joy is slowly

falling down due to system migration that cause problem in
inventory deliveries to other branch to force to shut down.
Chicken Joy Supply In Jollibee
Stores
80
70
60
50 Chicken Joy Supply in
Jollibee Stores
40
30
20
10
0
JOLLIBEE’S CAUSE AND EFFECT
DIAGRAM
In this research the researchers come up with these problems that
has different effects in Jollibee, the root causes are
Miscommunication, Lack of Manpower, Customer
Dissatisfaction, lastly It upgrade. The Jollibee had occurred
Miscommunication with the suppliers with that the suppliers
occurred delayed in delivering the chicken. They have a system
upgrade and inaccurate information that’s why they commit a
mistake on communicating with the suppliers. Lack of
manpower, because if there’s no sales the tendency is they will
lessen the workers to do the Job. Since there is lack of
manpower, it greatly affected their services and also the loyalty
of the customers to Jollibee, their service may be too slow which
contributes to the dissatisfaction of their customers.
JOLLIBEE’S CAUSE AND EFFECT
DIAGRAM (MORAYTA BRANCH)
 In these research the researchers come up with these
problems that has different effects in Jollibee Morayta, the root
causes are environment and equipment, workers, product, and
service. Environment and equipment because of lack of tables
and their equipment is being not enough that’s why service is
effected to because lack of equipment affects the serving time for
their customers. The workers had lack of training and their health
conditions maybe a factor to their slow service. Product, the price
is high and the serving or size of food is not enough for the
customers’ satisfaction
JOLLIBEE’S PARETO CHART
 It is clear from the diagram that 79% of underperformance is
caused by two factors: lack of training and inadequate pay. The
former seems to account for 55% of underperformance and the
latter for 24%. The other three factors account only for 21% of
problems. Given the Pareto principle of 80/20, the most prudent
course of action would be providing meaningful training to staff
and revising a pay structure. Attacking these two factors will
provide greatest gains
Survey Results (Pie Chart & Histogram)

Most of the respondents were male; fifty-five percent and

less than half were female; forty-five percent.
The age of the respondents is thirty-four percent is twenty
years old; thirty-two percent is eighteen years old; twenty
percent is nineteen years old; and only fourteen percent is
seventeen years old.
The respondents educational attainment is thirty-seven percent
added with eighteen percent is on their third year in college;
twenty percent added with three percent is on their fourth year
in college; fifteen percent added with two percent is on their
second year in college; two percent is students who were in
highschool; and two percent had graduated in college.
Most of the respondents accumulating to ninety-three percent is
studying in FEU; six percent is on other schools not specified; and
only one percent from UST.
Improvement Cost
 1ST MONTH Every Saturday and
Sunday (INTERNAL)
2nd MONTH Every Friday and Saturday
(External)
3rd MONTH Every Wednesday
(INTERNAL) Every
Sunday( (EXTERNAL)
4TH MONTH Every Sunday (EXTERNAL)
5th MONTH Every Sunday (INTERNAL)
6th MONTHS AND UP End of Month (ALTERNATE
INTERNAL AND
EXTERNAL)
FIRST 3 MONTHS
•Employee Allowance (150php x 20 employees x 8
sessions)
•Food Allowance (150php x 20 employees x 8 sessions)
•Rent Fee (1000php x 8 sessions)
4TH AND 5TH MONTH
•Employee Allowance (150php x 20 employees x 4
sessions)
•Food Allowance (150php x 20 employees x 4 sessions)
•Rent Fee (1000php x 4 sessions)
6th Month and Above
•Employee Allowance (150php x 20 employees x monthly
session)
•Food Allowance (150php x 20 employees x monthly
session)
•Rent Fee (1000php x monthly session)
 Annual Training Cost of Jollibee
P273,000 x 1055 Jollibee Branches

TOTAL P288,015,000
 Asset Cost per Branch on the 1st year and every 10th year
Renovation Cost P300,000
New Equipment
Registrars P72,000
Receipt Printers P16,000
Maintenance and Repairs P120,000
Supplies P60,000
Total P568,000

Annual Asset Cost of Jollibee every 10 Years

P568,000 x 1055 Jollibee Branches

TOTAL P599,240,000
 Estimated Improvement Cost on the 1st year and every 10th year 
Training Cost P288,015,000
P599,240,000
Asset Cost
 
Total P887,255,000

Estimated Improvement Cost in between ten years

 
Training Cost P288,015,000
Asset Cost
Maintenance and Repairs P120,000
Supplies P60,000
Total P288,195,000
Implementation Plan
Training Period Activities Purpose
Participants
 Conclusion
The researchers concluded that most of the customers of Jollibee
are not satisfied with the ambiance and service of the employees
of the fast food chain and by doing seminars and trainings will
improve the retention of the skills being taught and simulations
can help them walk through actual scenarios and identify
mistakes when they make them. The human resource department
must orient their new employees, improve the skills of their
employees and lastly, interactive training enables the trainees to
concentrate on learning rather than on performing on actual jobs
to enhance their potentials.
 Recommendation
We recommend that they should improve their existing plan
with the laid out proposed layout. They should upgrade it to
make it easier for them to track down their inventory. Also,
they seminars and trainings for their employees will
improve their retention and skills so that they can work
efficiently. The management should focus in lessening
different problems like the management issues, the market
issues, business expertise, financial resources, inventory
management and etc. This would help in better
understanding of Jollibee’s current position and future
sustainability in the modern and fast paced business world.
END