📚Here's how Tony Tan Caktiong built Jollibee & beat McDonald's.
In 1978, a Filipino entrepreneur started a burger restaurant.
If you enjoyed this, buy us a coffee☕️
In 1978, a Filipino entrepreneur started a burger restaurant.
3 years later, McDonald's entered his market & he had to choose: compete, or join them?
He competed, & has become the king of Filipino fast-food.
Here's how Tony Tan Caktiong built Jollibee & beat McDonald's.
Tony Tan Caktiong was born in the Philippines in 1953 as the son of restauranteurs.
After earning a degree in chemical engineering, he changed course and decided to follow in his parents footsteps.
So in 1975, he opened 2 small ice cream parlors in Manilla.
After customers kept asking if they also served hot-food, Tony began serving burgers to accommodate their requests.
Burgers quickly became the hottest menu item, so he went all in on fast-food and redesigned his restaurants.
In 1978, Jollibee was officially born.
His restaurants were off to a good start, but in 1981 the 1st McDonald's opened in the Philippines.
All of Tony's advisors said the same thing:
"Convert your restaurants to McDonald's or they'll run you out of business".
What he did next was not for the faint of heart 👇
He chose to compete, and immediately flew to the US to study his competition.
Keep in mind, at this point McDonald's had:
• A 23 year head-start
• 5,000+ locations worldwide
Jollibee had a few locations and was barely 3 years old - taking them on was no small endeavour.
His in-market analysis made things clear:
McDonald's had him beat in every way, except one: taste.
Filipinos love American food, but they have a specific taste for sweeter meals.
So Tony updated Jollibee's menu and brand to best fit the Filipino palate and culture.
The menu may surprise you - a typical Jollibee will serve the following:
• Sweet burger steaks
• Sweet fried chicken known as Chickenjoy
• A Yum Burger with special Jollibee dressing
And the Filipino favorite: "Sweet spaghetti" made with banana ketchup and hot dog chunks 🤔
Tony also crafted the slogan and mascot to be distinctly Filipino:
"Langhap-Sarap" means "delicious aroma" in Filipino.
Meanwhile the mascot-
a human sized bumble bee wearing a blazer, it symbolizes the Filipino spirit of an always busy but cheerful nation.
On top of 1st-mover advantage, Jollibee now had:
• Better recipes
• Slightly lower prices
• Concept --> cultural fit
McDonald's couldn't adapt, although it was clear they were trying to, as made evident by the surprise launch of the "McSpaghetti" meal in the mid 80's.
The meal flopped in the US and was removed off the menu (it's still available in the Philippines tho).
40 years later, it's clear who's leading the Filipino market:
• Jollibee has 1,150 locations & does $1.6B in revenue
• McDonald's has 650 locations & does $845M in revenue
Jollibee also owns much of the other fast-food competition in the Philippines:
• Burger King (23 locations)
• Greenwich Pizza (#1 Filipino pizza franchise)
• Chowking (#1 Chinese fast-food in the Philippines)
• & more
With the Filipino market on lock, Jollibee Foods Corporation (JFC), is now set on America:
They've built 37 Jollibee's in cities with a heavy concentration of Filipinos.
Every time a new store opens, lines form as early as 4:30am as Jollibee is a symbol of Filipino pride 🇵🇭
In December 2018, JFC also completed a full acquisition of American burger franchise Smashburger, who had ~120 locations at the time.
Smashburger now has 220+ locations as of the of start 2022.
JFC plans to turn them into a top contender in American fast-food.
Today, Tony Tan Caktiong is a billionaire & serves as chairman of Jollibee Foods Corporation.
JFC is the largest Asian restaurant company in the world, with 1,500 stores and more to come.
If Tony were to have bowed to McDonald's in 1981, none of his success would've happened...
✅ Jollibee has dominated Filipino fast-food since 1978
✅ McDonald's has attempted to infiltrate for 40+ years
✅ Jollibee still has the Filipino market in a chokehold
✅ Jollibee is now encroaching on McDonald's home turf
If you enjoyed this. Buy us a coffee☕️