October 1, 2011, 12:33am
MANILA, Philippines — Jollibee Foods Corporation (JFC), the country’s top food service company, headed by CEO Tony Tan Caktiong, is acquiring a majority stake in the firm that operates the competing Burger King franchise in the Philippines for P65.5 million.In a disclosure to the Philippine Stock Exchange, Jollibee said it has signed an agreement to buy 54 percent of BK Titans Inc. which owns PERF Restaurants Inc., the sole franchisee of Burger King in the Philippines.
BK Titans is owned by a group of friends led by PLDT chairman Manuel V. Pangilinan, Tanduay Distillers president Wilson Young, Philippine Basketball Association chairman Ricky Vargas, Philippine franchisee of FedEx Bert Lina, and Air 21 president Lito Alvarez.
The group had acquired the Burger King franchise from Pure Foods Corporation which was then controlled by the Ayala group before it was sold to San Miguel Corporation. Among the assets of the Burger King is a local basketball team.
“PERF Restaurants operates 23 Burger King restaurants in the country, practically all located in Metro Manila,” said Jollibee adding that PERF generates an annual revenue of P800 million and is profitable.
Like Jollibee, Burger King serves hamburgers, fried chicken and French fries as its core products. However, Burger King’s products are priced about 30 percent higher than comparable Jollibee products.
Jollibee said its acquisition of the majority interest in BK Titans will allow it to have presence in the premium price segment of the hamburger category in the Philippine fast food market.
According to Jollibee, it “expects the premium price segment of the fast food market to grow appreciably in the years ahead as the Filipino consumers’ standard of living rises from the growing economy.
Founded in 1954, Burger King is the second largest fast food hamburger chain in the world. It operates more than 12,300 outlets serving over 11 million guests daily in 78 countries and territories worldwide.
Last year, Jollibee also acquired majority control of Mang Inasal which was giving it stiff competition in the fastfood service market. (JAL)
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