Background

From modest beginnings to the top of the world are the words that succinctly sum up Tony Tan Caktiongs story, today president
and CEO of Jollibee Foods Corporation, the biggest fast food restaurant chain in the Philippines.

Born in a poor family who migrated from southeastern China to the Philippines in search of a better life, he became involved in the
restaurant business from an early age when his father opened a restaurant. The restaurant became profitable with the help of all
family members and this success enabled Mr. Caktiong to pursue a degree in chemical engineering in Manila.

At the age of 22, inspired by a visit to an ice cream plant, he set out to gain his own foothold in the restaurant business: relying on
family savings, he seized a franchising opportunity with Magnolia Dairy Ice Cream and opened two ice cream parlors. In response to
customer requests, he added hot meals and sandwiches to the menu, which soon proved a lot more popular than ice cream. Three
years later, in 1978, he decided to capitalize on this development, discontinued the Magnolia franchise and converted his parlors into
fast food outlets.

Tony Tan Caktiongs Jollibee has been one of the most admired, most copied, most innovative and most
professionally-run company here in the Philippines. It has been the number one fastfood chain overtaking giants
such as Mc Donalds and Kentucky Fried Chicken or KFC.

How did a local jolly red bee knocked down a multinational red-haired clown named Ronald? Lets see another
inspiring story of the founder of one of my ideal businesses. With its success, a Jollibee franchise has now a tag
price of P25+ Million (US$ 500,000+). Wow!

Tony Tan Caktiongs Life and his Jollibee company is another rags to riches story of an entrepreneur that truly
inspires everyone. Tony was the third of seven siblings born to poor parents who migrated from the Fujian province
in China to look for a better life here in the Philippines. His father began as a chef in a Chinese Temple. Not later on
his father was invited to open a restaurant business in Davao so the whole family moved south. All together, they

helped one another in managing the restaurant business which in turn became profitable. This allowed young Tony
to return back to Manila and pursue his course Chemical Engineering at the University of Santo Tomas (UST).

In 1975, Tony and his colleagues went on a visit to a Magnolia Ice Cream plant located in Quezon City and learned
that it was offering franchise when he saw a poster for it. By the month of May, with his family savings, he took
P350,000 to grab the franchise opportunity and opened two Magnolia ice cream parlors named Cubao Ice Cream
House located near the Coronet Theater, and Quiapo Ice Cream House located beside the bridge the one going to
ilalim near a Mercury Drug outlet. They all worked hands-on but as the business propels, they noticed they could
not do it all so they started to set up an organization hired store managers, and trained people.

Tony started with just two ice cream. Then after two years, he offered chicken and hamburger sandwiches, because
customers were telling them they didnt want to be eating ice cream all the time. They prepared the food in the
back kitchen, and soon noticed that people were lining up more for hamburgers than for ice cream. Then in 1978,
when they already had six ice cream parlors, they asked themselves: Why dont we change into a hamburger
house?

That was also the time they decided to incorporate and realized thet they needed a brand name. They were looking
for a symbol that would represent the group, and because Tony was very impressed with Disneyland
characters, they decided on a bee. The bee is a busy creature that produces honey one of lifes sweetest
things. They thought it would be a very good symbol to represent everybody. They decided they would all be very
busy and happy at the same time, because if they were busy but not happy, it wouldnt be worth it. Thats why they
put the word jolly and just changed the y into i to form a brand name JOLLIBEE.

It wasnt long before we heard that the multinationals were coming in including McDonalds. Friends started
asking us if we were going to get a McDonalds franchise but I remember saying, if you franchise, you cant grow
outside the Philippines, says Tony.

McDonalds came in 1982, but they didnt feel threatened because they were a little nave and Jollibee was doing
very well. They found McDonalds to be very good at everything, but it didnt know the local culture. They knew the
Filipinos taste buds and what he liked in food, so they offered him flavorful and good-tasting products. He likes
pasta, so they started offering spaghetti. He likes chicken, so they came up with good fried chicken by mixing
different flavors. They also knew something important all along: Filipino taste is sweet. This is very Filipino very
Asian. He said: If we eat anything sweet; we dont really think its sweet; but try giving it to a foreigner and theyd
be surprised.

Tony narrates: Filipinos also like to smell their food before they eat it. They want to be sure it smells delicious
before they take a bite. Sometimes they would open a kettle and say, whats this? It smells good! This was proved

by the Langhap-Sarap advertising campaign by Basic [Footcone and Belding]. They did it for us initially for the
hamburger, and when it became successful, we started using it as a campaign slogan for the other products.

It didnt take them long to introduce new products when they were starting out. The family members would discuss
what new products customers would like, and without much marketing theyd bring something out like
spaghetti. Tonys sister is also a good cook, so she would come up with a new recipe, they would comment on it,
and then shed fix the recipe before they started offering it. Before, it was simple. Now, theres a formal structure.
Theres a big Research and Development (R&D) department and a marketing department. The marketing
department gets inputs from customers and the products they like, and then communicate that to R&D. R&D then
develops it. We have an internal taste panel that taste the food and comment on it, and when a formulation is
needed they do it. The next step is a consumer panel test. We have the product taste-tested by consumers, and if
its okay, we test the product in a few stores. Before it was easy, but now it takes three to six months to roll out a
new product. Another time-consuming process is training our people on how to prepare and serve the new product.
says Tony.

Jollibee group has also become bigger. Now they have Chowking, Greenwich, Delifrance, and the recently acquired
Red Ribbon. Greenwich pizza started as an over-the-counter pizza store at the Greenhills Shopping Center in San
Juan, Metro Manila, in 1971. One time, the founder approached Tony to ask if they were interested at that time she
has 50 kiosks and having difficulty managing the business when she asked them if they were interested, Tony
said, why not? Lets form a joint venture. They took over the management in 1994, but they retained the taste of
her products because it suits the local market. On the other hand, they took over Chowking in 2000 because
Chinese food is also very popular among Filipinos, but there was no good company serving the market. So they took
over and worked on it.

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Delifrance is doing so-so. And the reason is because were still not used to eating bread as a meal therefore, the
market is limited to the AB classes. It cant grow into a mass-market type. Our latest acquisition was Red Ribbon
Bakeshop last 2005 to include cakes, rolls, breads and pastries in their line of products. For us to sustain a good
growth rate on a long-term basis, we have to continue acquiring businesses, Tony relates.

They had to let go of Binggo. They found that the convenience store was in a totally different industry. At one
time, they had around 20 stores, but they found it hard supplying them because the volume they were buying for
them was just too small to attract good suppliers. They had to let it go.

Theyre also bullish on China because theyve acquired Yonghe King and its 91 stores. Its making money. So
theres no pressure to turn it around; the challenge is how to expand the brand. China is huge; its like having

several countries in one country. If we do well, we can have several thousand stores there. If Jollibee has more than
500 stores for 80 million Filipinos, how many stores can you put up for 1.3 Billion Chinese? Kentucky Fried Chicken
alone is opening 200 stores a year in China. Its doing very well, says Tony.

Many countries share our taste in food, and the opportunity is in going to China, India and Indonesia- countries
with large populations. We usually do a very broad 10-year horizon but its not detailed. We have a five-year plan, a
three-year plan, and a one-year plan. We have plans for China and India, but if we want to go to India, well need a
long-term plan. We might have to start putting Indian people into the organization and it would probably take at
least three years before we sent them back. In China, we had an opportunity to break into the market with Yonghe,
but because our people didnt speak the language, we had to hire translators to help us out. We still send our
people there, but they have to work with translators. We also need good people here. Were lucky to be the leader,
but its still a competitive market. You cant afford mistakes because customers will leave if theyre not happy with
you. The food business is still very basic. Its still about taste. Its still about How did you serve me? Is your place
nice? Am I treated well? Do I get value? If you think about it, if were going out to eat, these are the basic things we
look out for, but the execution is the difficult part. Its not like other businesses where its the concept or the
knowledge thats difficult. Here, theres no secret; its very easy, but its the execution thats hard. If you ask a lot of
restaurant, they know all these things. Executing day by day is whats hard., Tony continues.

When asked whats the secret of Jollibees success, Tony says: If you have to ask, the secret of Jollibees success is
sharing. We share our success with people; we give good compensation; we share any honor that comes our way.
Actually, this idea of sharing didnt come from me. It came from a friend. He said: You know why youre successful?
You know how to share. A lot of people do not share, but in Jollibee you share a lot with your people.

Truly, Tony Tan Caktiong is another exemplar example of an inspiring entrepreneur. He had all the achievements
from Management Man of the Year in 2002 to an Agora Award for Outstanding Marketing Achievement, from a Triple
A Alumni Award from the Asian Institute of Management to a Ten Outstanding Young Men Award for
Entrepreneurship. And to cap it all, he also won the World Entrepreneur of The Year 2004 by Ernst & Young besting
other 31 world entrepreneur competitors.

On July 25, 2007, Jollibee Group launched Tio Pepes Karinderia in EDSA Central in Mandaluyong, its pilot restaurant
to professionalize Filipinos Carinderia Industry.

As of 2007, Jollibee had under its wing 1,385 stores in the country: Jollibee (583); Chowking (367); Greenwich (237);
Red Ribbon (163); and Delifrance (35)

Overseas, Jollibee Group has 174 stores: Yonghe King in China (102); Jollibee in US (12); Red Ribbon in US (19);
Chowking in US (12); Chowking in Dubai (7); Chowking in Indonesia (5); Jollibee in Other Countries (16) and one
Chun Shui Tang, a teahouse in Taiwan.

HISTORY of JOLLIBEE
1975
First to become the Jollibee outlet was when Mr. Tony Tan and his family
opened a Magnolia Ice cream parlor at Cubao.
1978
Birth of Jollibee Foods Corporation
Jollibee Foods Corporation is incorporated as a 100% Filipino Company
Bakery is established in Cubao
Jollibee posts first year sales of P2 million
1979
Introduction of Spaghetti Special
At Ronquillo Sta. Cruz, the first franchised owned store was opened
1980
First TV commercial was launched by Jollibee
Chickenjoy and French Fries are launched by Jollibee.
Introduction of Jollibee mascot debuts
1981
Jollibee Foods Corporation enters list of Top 1000 Corporations.
There were ten Jollibee stores at the end of the year
1982
Jollibee pioneers the use of in-store promotions, novelty premium items and
Kiddie Birthday packages for kids.
Introduction of Jollibee Palabok Fiesta
1983
Launching of the Jollibee Langhap-Sarap TV ad Campaign
Chickee and Lady Moo join the Jollibee mascots
1984
Launching of the Champ hamburger

Jollibee believes market leadership in local fast food industry and enters list
of Top 500 Corporations.
Mascots Champ and Hetty joined the Jollibee family
WEA gives Jollibee Gold record award for the outstanding sales of Jollibee
songs.
1985
Jollibee becomes the market leader of the fastfood industry
Introduction of Breakfast Joys
Langhap-Sarap awarded most successful ad campaign in the food category
during the 9th Philippine Advertising Congress
1986
In Barcelona,Spain, Jollibee wins the 9th International Foods Award from El
Comestible
Given by the Philippine Marketing Association, Tony Tan wins the Agora
Award for entrepreneurship
Jollibee Foods Corporation has been included to the Top 250 Corporation list
First Jollibee international store in Taiwan has been opened
Chunky Chicken Sandwich has been added to the Jollibee menu
1987
Second Taiwan Jollibeestore opens
Sales of 570 million pushes Jollibee into the elite Top 100 Corporations
Jollibee marks its entry into the global market as its opens its first fast food
outlet in Brunei
1988
Successful launching of Jolly Twirls softserve
Ffurther leading market share of 31% in the fast food industry and a dominant
57% share in the hamburger segment Jollibee system wide sales hit P921
million
Celebration of Jollibee's 10th year anniversary
Tony Tan is named one of the Ten Outstanding Manilans.
Jollibee wins the Anvil Award for outstanding PR campaign in relation to the
achievement of marketing objective with its Filipino Talents campaign.
1989
Second Jollibee Brunei store opens
Balut and Ligaw TV commercials wins the Kidlat Award in the Service and
Leisure Products category during the eleventh Philippine Ad Congress
Ffirst fast food chain to surpass billion-peso sales mark since Jollibee sales

hit P1.3 billion marks

1990
Coleslaw, Jolly Hotdog, Chickenjoy Take-Me-Out and Peach mango Pie to
has been added to Jollibee's menu
Jollibee post sales of P1.8 billion
Tony Tan is awarded the Triple Award by AIM as Outstanding AIM Alumnus
Jollibee receives the Excellence in Marketing Management Award from the
Asian Institute of Management
1991
Jollibees 100th store opens in Davao City
Jollibee opens a record high of 35 new stores
Opens 1st store outside Luzon in Cagayan de Oro City
Jollibee Pancakes and Jolly Meals has been launched
Jollibee sales hit an enormous P2.65 billion
The Lola TV commercial wins the Grand Araw Award and an award of
excellence for the promotion of Filipino Values during the Philippine Ad
Congress.
Jollibee receives award for the outstanding Corporate Safety Consciousness
Programs by the Safety Organization of the Philippines (SOP).
1992
Jollibee sales hit the P3.365 billion
Started using frozen patties for its popular hamburgers
Improved softserve ice cream line by offering fruit flavored ice cream
Acquired 73% if the Hamburger segment
Opened another store in Jakarta, totaling to 2 stores in Indonesia
112 Jollibee stores nationwide
Maintained its advantage over its competitors by acquiring more than 50%
share of the fast food industry
1993
July 13, JFC was listed in the Philippine Stocks Exchange with an initial
offering of P9.00 per share
October 1993, JFC share are being sold for P20.00, a windfall or more than
135%
Improved softserve ice cream line by offering fruit flavored ice cream.
Ffocusing on Jollibees loyal customers, Marketing launched its At Home Ako
sa Jollibee ad campaign
Kiddie Pack Promo has been introduced

The new Main Office site has been moved to Jollibee Centre Building in
Ortigas Center, Pasig
1994
By the end of the year, there has been already 148 Jollibee stores nationwide
With the achievment of Greenwich Pizza Corporation Jollibee expands into
the pizza-pasta segment
By the Far Eastern Economic Review, Jollibee has been cited as one of the
leading companies in Asia
1995
Jollibee acquires franchise of Delifrance
20 more stores opened in the Philippines, bringing the total to 168.
Jollibee successfully opens stores abroad: Guam, Dubai, United Arab
Emirates, Kuwait, and Jeddah, and Kingdom of Saudi Arabia.
1996
200th Jollibee store in Malolos, Bulacan has been opened
By the Far Eastern Economic Review Jollibee has been cited again as one of
the leading companies in Asia
The company reengineers its visual identity system
Jollibee system wide sales increased to P8.29 billion which translates to a
market share of more than 50% among all hamburger fast food chains
Jollibee had 208 stores nationwide
Marys Chicken was born last July 10. It is a semi-self service restaurant and
another Jollibee subsidiary.
The company reengineers its visual identity system
Launching of Jollibee's Amazing Aloha
Hong Kong opens its first Jollibee store
Jollibee launched various projects, such as Maaga ang Pasko sa Jollibee and
Chikiting Patrol: at Home Ako Dito. These projects' main objective was to
protect and contribute to the development of the Filipino children
1997
System wide sales increased to P11.17 billion
Jollibee Xiamen located in the Peoples Republic of China has been opened
Jollibee launched "Kaya mo Kid" project which aims to instill positive values,
which helps children achieve their dreams and ambitions
1998
Jollibee opens in Daly City

 Jollibee's 20th year anniversary celebration

Opened 62 stores nationwide, bringing the total to 300 stores.
In Balagtas, Bulacan Jollibee opens its 300th store
Jollibee receives the ISO 9002 Certification for its frozen patty line
Jollibee wins the Employer of the Year Award
1999
Opened 50 stores nationwide which makes a total of 350 stores
Cheezy Bacon Mushroom Burger has been introduced to its line of specialty
burgers
2000
31 more Jollibee stores opened, bringing the total to 381 stores
Jollibee obtains Chowking Foods Corporation
Far Eastern Economic Review ranked Jollibee as the Philippines' leading
company for the 3rd straight year
Asian Business Magazine ranks Jollibee as the Most Admired Company in
the Philippines and the 3rd over-all in Asia, surpassed only by global giants
General Electric and Microsoft.
Systemwide sales reach P20 billion.
2001
400th Jollibee store in Intramuros has been opened
System wide sales rose to 18.8% to 24.11 billion. Income, before nonrecurring charges, to P959 million. Network expanded to 800 restaurants.
2002
Revenues neared the P27-billion mark. Number of stores exceeded 900.
Tony Tan made MAP "Management Man of the Year"
2003
Jollibee store count closed to 988 stores nationwide.
For the sixth straight year, the Far Eastern Economic Review ranked JFC as
the Philippines' Leading Company.
2004
Mr. Tony Tan Caktiong, the Chairman and Chief Executive Officer of the
company, was named the Ernst and Youngs 2004 World Entrepreneur of the
Year.