HO CHI MINH, VIETNAM: Jollibee opened its 200th outlet in Vietnam on Dec 12, marking a key milestone for the Filipino fast-food chain known for its fried chicken. The brand, which is already popular in Singapore and Malaysia, plans to grow even faster in Vietnam, aiming to open more locations next year, as reported by The Business Times.
It took the chain seven years to grow from 100 to 200 outlets in the country, but the pace has now picked up. In 2024, Jollibee opened 40 new locations and expects to hit 300 outlets “very soon”, said Lam Hong Nguyen, the managing director of Jollibee Vietnam, though no exact timeline was given.
He also said he expects double-digit growth in both profit and sales for the Vietnam chain this year.
Jollibee, with over 1,700 outlets globally, including 1,300 in the Philippines, is the third-largest quick-service restaurant (QSR) chain in Vietnam, behind Lotteria and KFC.
Richard Shin, CFO of Jollibee’s parent company, Jollibee Foods Corporation (JFC), said “there’s no reason why” Jollibee in Vietnam can’t grow as large as it is in the Philippines.
He pointed to similarities in demographics, economy, and culture as key factors driving Vietnam’s position as Jollibee’s largest international market for the next five years.
Damien Yeo, consumer and retail analyst at research firm BMI, also noted Jollibee’s willingness to expand into second- and third-tier cities as a key factor in its success.
However, Mr Yeo noted that Jollibee faces challenges standing out, with KFC’s stronger brand recognition in the fried-chicken market and Lotteria’s wider reach across retail, cinemas, and supermarkets in Vietnam.
QSRs now make up two-thirds of Vietnam’s restaurant market, with sales growing 8.8% annually from 2017 to 2022.
Although analysts said competition is high among QSRs in the country, the segment shows strong growth potential due to urbanisation, a growing middle class, and a favourable demographic profile.
Jollibee has expanded into markets like Malaysia, Singapore, and Brunei but does not plan to enter Indonesia or Thailand in the next five years, as these markets have fewer Overseas Filipino Workers (OFWs) driving demand, which is the brand’s primary target, said Mr Yeo.
Jollibee currently accounts for about half of the system-wide sales of JFC, the Philippine-listed food service giant, which aims to triple its net income by 2028. JFC’s growth strategy focuses on organic growth among its brands and acquisitions.
The group’s CEO, Ernesto Tanmantiong, said they’ve identified coffee and tea, hamburgers, fried chicken, and Chinese cuisine as categories with global potential.
In 2024, JFC acquired Hong Kong dim sum chain Tim Ho Wan for S$20.2 million and South Korea’s Compose Coffee for US$238 million, adding 80 restaurants and 2,470 coffee shops to its network.
JFC now has 19 brands and 9,500 stores in 32 countries. The company’s third-quarter sales rose 13.2% year-on-year (YoY), driven by a 20.5% growth in international business. In the first nine months of 2024, the company’s revenue increased 10.6%, with net income up 22.9%. /TISG