Tony Tan Caktiong’s Jollibee has been one of the most admired, most copied, most innovative and most professionally-run companies here in the Philippines. It has been the number one fastfood chain overtaking giants such as Mc Donalds and Kentucky Fried Chicken or KFC. Tony Tan Caktiong’s 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 and Quiapo Ice Cream House. 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 creams. Then after two years, he offered chicken and hamburger sandwiches, because customers were telling them they didn’t 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 don’t we change into a hamburger house?” That was also the time they decided to incorporate and realized that 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 life’s 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 wouldn’t be worth it. That’s why they put the word jolly to form a brand name – JOLLIBEE. McDonald’s came in 1982, but they didn’t feel threatened because they were a little naïve and Jollibee was doing very well. They found McDonald’s to be very good at everything, but it didn’t know the local culture. They knew the Filipino’s 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 don’t really think it’s sweet; but try giving it to a foreigner and they’d 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, what’s 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 didn’t 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 they’d bring something out – like spaghetti. Tony’s sister is also a good cook, so she would come up with a new recipe, they would comment on it, and then she’d fix the recipe before they started offering it. “Before, it was simple. Now, there’s a formal structure. There’s 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 it’s 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? Let’s 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. “Delifrance is doing so-so. And the reason is because we’re still not used to eating bread as a meal – therefore, the market is limited to the AB classes. It we have to continue acquiring businesses”.countries with large populations. India and Indonesia. it’s very easy. and the opportunity is in going to China. it’s like having several countries in one country. but in Jollibee you share a lot with your people. The restaurant became profitable with the help of all family members and this success enabled Mr. strange-looking bee that no . in 1978. They had to let it go. It’s still about taste. Caktiong to pursue a degree in chemical engineering in Manila. breads and pastries in their line of products. Executing day by day is what’s hard. Born in a poor family who migrated from southeastern China to the Philippines in search of a better life. The “jolly” prefix was intended to connote happiness and enjoyment. Tony says: “If you have to ask. They had to let go of Binggo. Tony Tan Caktiong is another exemplar example of an inspiring entrepreneur. It’s still about How did you serve me? Is your place nice? Am I treated well? Do I get value? If you think about it. there’s no secret. we had an opportunity to break into the market with Yonghe. And to cap it all. They chose a bee because of its association with hard work. He said: You know why you’re successful? You know how to share. he set out to gain his own foothold in the restaurant business: relying on family savings. if we’re going out to eat. the secret of Jollibee’s success is sharing. Tony continues. So there’s no pressure to turn it around. If Jollibee has more than 500 stores for 80 million Filipinos. China is huge.” Truly. this idea of sharing didn’t come from me. Background “From modest beginnings to the top of the world” are the words that succinctly sum up Tony Tan Caktiong’s story. It came from a friend. We’re lucky to be the leader. from a Triple A Alumni Award from the Asian Institute of Management to a Ten Outstanding Young Men Award for Entrepreneurship. rolls. he added hot meals and sandwiches to the menu.can’t grow into a mass-market type. We have plans for China and India. 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. and a one-year plan. we give good compensation. The food business is still very basic. We still send our people there. but it’s the execution that’s hard. we had to hire translators to help us out. but because our people didn’t speak the language. but it’s still a competitive market. we can have several thousand stores there. For us to sustain a good growth rate on a long-term basis. the mark struck a chord with the public: “From a rather crude. Trademarks and Branding Realizing that he needed a brand name and logo for his new business. he decided to capitalize on this development. which soon proved a lot more popular than ice cream. these are the basic things we look out for. He had all the achievements from Management Man of the Year in 2002 to an Agora Award for Outstanding Marketing Achievement. It’s doing very well”. they had around 20 stores. We also need good people here. We usually do a very broad 10-year horizon but it’s not detailed. Our latest acquisition was Red Ribbon Bakeshop last 2005 to include cakes. the biggest fast food restaurant chain in the Philippines. but they found it hard supplying them because the volume they were buying for them was just too small to attract good suppliers. A lot of people do not share. how many stores can you put up for 1. inspired by a visit to an ice cream plant. At the age of 22. but if we want to go to India. Mr. and because honey represents the sweet things in life. At one time. From Ice Cream Parlor to Fast Food Empire: Tony Tan Caktiong’s Story “Jollibee” is a registered trademark in the Philippines and other countries.3 Billion Chinese? Kentucky Fried Chicken alone is opening 200 stores a year in China. Helped by smart marketing and advertising strategies. “It’s making money. he seized a franchising opportunity with Magnolia Dairy Ice Cream and opened two ice cream parlors. Actually. Caktiong and his family decided on using a smiling red bee. discontinued the Magnolia franchise and converted his parlors into fast food outlets. but the execution is the difficult part. says Tony. they know all these things. the challenge is how to expand the brand. Three years later.”. we share any honor that comes our way. We share our success with people. In response to customer requests. They’re also bullish on China because they’ve acquired Yonghe King and its 91 stores. Tony relates. If we do well. a three-year plan. You can’t afford mistakes because customers will leave if they’re not happy with you. he also won the World Entrepreneur of The Year 2004 by Ernst & Young besting other 31 world entrepreneur competitors. we’ll need a long-term plan. Here. We have a five-year plan. today president and CEO of Jollibee® Foods Corporation. They found that the convenience store was in a totally different industry. but they have to work with translators. “Many countries share our taste in food. Jollibee invested millions of pesos to register the “bee” trademark in the Philippines and other key countries. In China. If you ask a lot of restaurant. When asked what’s the secret of Jollibee’s success. It’s not like other businesses where it’s the concept or the knowledge that’s difficult. he became involved in the restaurant business from an early age when his father opened a restaurant. great customer service. Jollibee Foods Corporation has grown spectacularly: today. and housing and disaster relief. they represent either trust in the company or trust in the brand… they will remember that the brand connotes very tasty food and also the experience. it would have been difficult to prevail in the extremely competitive fast food market. environment. Jollibee’s business success relies on its smart branding strategy. and innovative marketing strategies. livelihood. “Yumburger”. concludes Mr. the company has established an institutionalized mechanism of giving back to the community through projects in the areas of education. leadership development. And these are just the tip of the iceberg. 10 Interesting Facts You Didn’t Know About Jollibee You can’t be a true-blooded Filipino unless you’ve met the charming. and they are also proud to be a part of that brand”. It is estimated that the Jollibee brand is now worth several billion pesos”. From its humble beginnings in 1975. owns many trademarks (including “Bee Happy”. Jollibee and his cheeky smile today have become synonymous with a truly Filipino success story that is now a source of patriotic pride. Business Results Jollibee is the most popular fast food restaurant in the Philippines Since its establishment at the end of the 1970s. And it was in a family-run restaurant business here where Tony learned how to develop an entrepreneurial mindset. the group plans to roughly double the number of restaurants to 4. Protecting their brands through national and international trademark registration has been instrumental in Jollibee’s remarkable success – without an easily recognizable brand associated with highest quality and customer service standards. the United States and Viet Nam. some of them in several countries. happygo-lucky Jollibee. Hong Kong (SAR of China). Jollibee now operates 750 stores nationwide and 87 branches around the globe including United States. “To the consumer. Marking their Territory in the Philippines and abroad Today. Jollibee Foods Corporation uses 8 proprietary brands (including “Jollibee” for their core fast food business. he explains.000 outlets worldwide. They migrated in the Philippines to look for better opportunities. family-friendly atmosphere. Jollibee may be the nation’s favorite fast food chain but the humble bee we’ve always known is more than meets the eye. Now on it’s 35th year. “Greenwich” for their pizza and pasta chain. . Humble beginnings Jollibee’s CEO Tony Tan Caktiong was born and raised in a poor family from southeastern China. Jollibee still has the stuff that great success stories are made of: delicious meals. By 2020. Indonesia. Other major acquisitions include the Chinese fast food chain Yonghe Dawang (in 2004) and the Chowking oriental food outlets (in 2000). and Saudi Arabia. the ambiance. For years. Through the Jollibee Foundation. ranking 16th. Mr. the Jollibee group was the only Philippine company that made it to the top 20 of Asia’s best employers list. Join me as we list down ten of the most interesting facts about the Philippines’ beloved bee. “Intellectual property is becoming very important because you need to distinguish yourself from the others – it’s a very competitive world [in which] you need to create something unique”. But Jollibee is more than an endearing child-friendly mascot. “Trademarks increased a lot of value to our business”. China. “Chickenjoy” and “Amazing Aloha”) and has registered all of its logos. the fast food chain named after him has been the country’s pride and a symbol of every Filipino’s strong family ties. Mr. Caktiong. Hong Kong. The company is also present in Brunei Darussalam. creative marketing programs and efficient manufacturing and logistics facilities. Caktiong received the Ernst & Young World Entrepreneur Award. and “Chowking” for their oriental food outlets). The guy is so iconic that he has given Ronald McDonald a run for his money. Saudi Arabia. Jollibee is the leading fast food chain in the Philippines with over 50% market share and hundreds of restaurants all over the country. In 2004. From urban legends to stories of struggle. superior menu line-up. 10. complemented by strong customer orientation. the United Arab Emirates. In a recent survey.bank dared to touch back in 1978. innovative new products. Jollibee has its own fair share of life’s surprises. The company’s public listing at the Philippine Stock Exchange in 1993 broadened its capital and allowed for the acquisition of the “Greenwich” pizza and pasta chain in 1994. Jollibee Foods Corporation ranked third among Asia’s most admired companies in 2000 and was cited as number one in overall leadership among the top ten Philippine companies. the service. Caktiong points out. by nature. Jollibee as McDonald’s biggest “embarrassment” In a country that loves to patronize foreign brands. optimistic. thanks to excellent customer service and bigger scoops of mouth-watering ice cream.com] 1. 22-year old Tony used family savings to open two Magnolia ice cream parlors in Cubao. To reach a larger market. The franchise was a hit. Quezon City. But how did a happy-go-lucky bee manage to beat a superstar clown over the years? For food consultant Gene Gonzales. Jollibee is one of the best things that happened in the Philippines. Just be quick to recognize them and learn from them as fast as you can.In 1975. But don’t be scared to make mistakes. [Image source: kopinoy. And just like a typical working Filipino. are hardworking insects who always strive to get honey or the sweetest things that life could offer. Jollibee proves to be an exception. Despite threats from international brands such as McDonald. The rest. Jollibee remains an undisputed force in the local fast food industry.wordpress. patriotism and loyalty to the family”. Tony Tan mentioned that the adorable bee mascot we’ve always loved represents Filipino spirit: hardworking. is history. During an interview with Rappler.” 8. Without any doubt. bees are “happy even though they’re busy”. Bees. Tony officially transformed his store into a burger chain by 1978. And unless McDonalds start a serious overhaul. you will indefinitely make mistakes. Tony’s team hired management consultant Manuel Lumba who later found out that the public was craving for hot snacks such as hamburgers. ‘jolly’. Jollibee and the ‘Filipino spirit’ In an article published in The Economist. Learn from each mistake and it will not be a waste of time. And the fact that The Economist named Jollibee as “a huge embarrassment to McDonald’s” in 2002 speaks highly of the local brand’s dominance. From the time it was founded by Tony Tan in the late 70’s up to its recent international expansion. Tony shared some of his secrets to success: “If you dream big and put your dreams into action. and most of all. its happy clown will always remain in the shadows of our very own Jollibee . there are two major reasons why Jollibee always rules: a recipe tailored for the local taste buds and a strategic marketing campaign that promotes Filipino values such as “respect for elders. as they say.