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“How shall freedom be defended? By arms when it is attacked by arms, by truth when it is attacked by lies, by faith when it is attacked by authoritarian dogma. Always, in the final act, by determination and faith.”

― Archibald MacLeish

Sunday, January 12, 2014

Jollibee Versus Max's:The Battle Royale For RP Fast Foods' Supremacy

The Battle Royale For RP Fast Foods' Supremacy

"I was attracted to fast-food restaurants because they were so easy to understand. A restaurant chain that succeeded in one region had an excellent chance of duplicating its success in another." Peter Lynch, well-known investment guru

The Jollibee Group is the acknowledged leader in the fast foods business in the Philippines.The Max's restaurant group could pose a very serious challenge to Jollibee's market supremacy with Max's P3.9 billion pesos acquisition of the Pancake House Group.

The Battle of The Fast Foods Brands
JFC Group: Jollibee, Chowking, Greenwich Pizza, Red Ribbon, Mang Inasal and Burger King Philippines.

Max's Group :Max's Fried Chicken, Philippine licensee for Krispy Kreme and Jamba Juice, Pancake House, Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Sizzlin’ Pepper Steak, Le Coeur De France, The Chicken Rice Shop, Maple and Yellow Cab.
A Triumph for and of the Filipino and a source of Filipino pride.
Jollibee dedicated its continuous success to the Filipinos who have been there from the very start.

Jollibee is so well-loved everytime a new store opens, especially overseas, Filipinos always form long lines to the store. It is more than home for them. It is a stronghold of heritage and monument of Filipino pride.
Jollibee Foods Corporation abbreviated as JFC and popularly known as Jollibee (PSE: JFC) is a Filipino multinational chain of fast food restaurants headquartered in Pasig City, Philippines. It is the parent of Jollibee, the country's leading fast-food chain brand. Among its licensed brands are Chowking, Greenwich Pizza, Red Ribbon, Mang Inasal and Burger King Philippines. Since its inception, JFC expanded and to date, it has a total of 2,510 stores worldwide with a system wide retail sales totaling to 82.1 billion pesos for the fiscal year 2011. From Wikipedia
From The JFC Website:
Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of over 750 stores. A dominant market leader in the Philippines, Jollibee enjoys the lion's share of the local market that is more than all the other multinational brands combined. The company has also embarked on an aggressive international expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei, firmly establishing itself as a growing international QSR player.

A company that values family
Jollibee was founded by Tony Tan and his family with its humble beginnings as an Ice Cream Parlor which later grew into an emerging global brand. At the heart of its success is a family-oriented approach to personnel management, making Jollibee one of the most admired employers in the region with an Employer of the Year Award from the Personnel Management Association of the Philippines, Best Employer in the Philippines Award from Hewitt Associated and a Top 20 Employer in Asia citation from the Asian Wall Street Journal.

Aside from promoting a family oriented work environment, the brand's values also reflect on their advertising and marketing. Jollibee knows their target audience very well: the traditional family and all communication materials focus on the importance of family values, making Jollibee the number one family fast food chain in the Philippines and a growing international QSR player.

A Well-Loved Brand
Customer satisfaction has always been key to Jollibee's success. Never losing sight of its goals, Jollibee has grown to be one of the most recognized and highly preferred brands in the Philippines. Now the market leader among fast food chains in the Philippines, claiming a market share that totals to more than half of the entire industry.

Great tasting products and quality systems
Jollibee's growth is due to its delicious menu line-up – like its superior-tasting Chickenjoy, mouth-watering Yumburger and Champ hamburger, and deliciously satisfying Jollibee Spaghetti -ably complemented with creative marketing programs, and efficient manufacturing and logistics facilities. It is made possible by well-trained teams that work in a culture of integrity and humility, fun and family-like. Every Jollibee outlet welcomes customers with a clean and warm in-store environment and friendly and efficient service.

And it is this tried and tested formula of delivering great-tasting food, adherence to world class operating standards and the universal appeal of the family values the brand represents that are driving the expansion of Jollibee both locally and in the overseas market.

Widest store network in the Philippines and an emerging global player
Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of more than 750 stores. A dominant market leader in the Philippines, Jollibee enjoys the lion's share of the local market that is more than all the other multinational brands combined. The company has also embarked on an aggressive international expansion plan, and currently has 80 stores outside the Philippines-USA (26), Vietnam (32), Brunei (11), Jeddah (7), Qatar, Hong Kong, and Kuwait (1 each), firmly establishing itself as a growing international QSR player.
Max's of Manila, popularly known as Max's Restaurant, is a Philippine-based restaurant serving fried chicken and Filipino dishes. 
In 1945, after World War II, American troops stationed in Quezon City became friends with Maximo Gimenez, a teacher who had graduated from Stanford University. Some soldiers came to his nearby house for a drink or two, until they insisted that they pay for their drinks.
Gimenez decided to open a café which served chicken, steak, and drinks. He was joined by his wife Mercedes, sister-in-law Felipa Serrano Sanvictores, his niece Ruby who managed the kitchen, and her husband Claro. Ruby's fried chicken proved popular with G.I.s. and locals also began patronising the establishment.
Encouraged by her mother to expand the menu and serve more Filipino food, Ruby set up the Baclaran branch along Roxas Boulevard in Parañaque. They decided to name the restaurant "Max's" after Maximo.
Max's Restaurant bills itself as "The house that fried chicken built". In 1998 it started franchising. From Wikipedia

From Max's Restaurant Online
Max's Restaurant's beginnings started in 1945, after World War II. Maximo Gimenez, a Stanford - educated teacher, befriended the American occupation troops stationed at Quezon City. Because of this friendship, the soldiers regularly visited Maximo's nearby home for a drink or two. Later on, the troops insisted that they pay for their drinks. This prompted Maximo to open a cafe; where the troops could enjoy food and drinks.

The cafe initially served chicken, steak and drinks. Maximo's niece - Ruby, who managed the kitchen, created a special recipe for chicken that became an instant favorite for the GIs. Soon, the Filipino public heard about the delicious chicken - tender, juicy and crispy - and they came too! Max's Restaurant was born.

Over the years, Max's Restaurant's popularity grew and became known as "the house that fried chicken built". It has expanded in Metro Manila, Southern and Northern Luzon, Cebu and California, USA.

Looking towards the next millennium, Max's Restaurant has established itself as a household name, an institution, and a proud Filipino tradition. The second and third generations of the family continue to zealously uphold the standards and traditions set by Maximo and Ruby for all Max's Restaurants..



Max’s buys controlling stake in Pancake House for P3.9B

From Inquirer Business
The Max’s restaurant group is taking over a controlling stake in publicly listed Pancake House Inc. for as much as P3.9 billion, a major consolidation in the food retailing industry that will create one of the country’s biggest restaurant chains with a combined network of at least 450 stores.

Pancake House’s principal shareholder, the Lorenzo family-led Pancake House Holdings Inc., had agreed to unload its 60.37-percent stake in the listed restaurant firm at P15 a share, the company disclosed to the Philippine Stock Exchange yesterday.

Shares of Pancake House surged by 21.99 percent to close at P17.20  Friday on optimism on the consolidation of the country’s two popular homegrown restaurant brands. Trading was halted at the stock exchange from 1:30 p.m. to 2:30 p.m. Friday following the disclosure of the material information.

The privately held Max’s group, for its part, will also make a tender offer to buy shares held by other minority investors in Pancake House by January 2014, giving other shareholders the option to exit at the same price that the Lorenzo family had agreed to sell out.

The total tender offer price values the entire share capital of Pancake House at P3.9 billion on a fully diluted basis, after the conversion into equity of remaining convertible debt securities issued by the company.

“This offer from the Max’s group is superior to the others we have received, including one from a foreign entity that just had too many legal and other obstacles to surmount and would have resulted in the company going private,” Pancake House president Martin Lorenzo said.

The transaction, Lorenzo said, would ensure that the company would remain “in the capable hands of a Filipino family with a deep understanding of the market and a solid commitment to the continued growth of the company.”

Robert Trota, Max’s chair, assured that the new shareholder group would retain Pancake House as a listed company. It was not mentioned whether the assets of Max’s would be infused into Pancake House.

“We at Max’s group are excited by this unique opportunity to bring together excellent resources and strong brands such as Pancake House and Max’s. Both companies share a long history of brand recognition and innovation, customer loyalty and proven track record for expansion,” Trota said.

“We are also confident that this transaction will reinforce the values of both Pancake House and Max’s in serving our customers,” he added.

Founded in 1974, Pancake House has 105 outlets of flagship brand Pancake House plus 300 other outlets across other brands like Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Sizzlin’ Pepper Steak, Le Coeur De France, The Chicken Rice Shop, Maple and Yellow Cab.

The Max’s group, for its part, was founded in 1945 and now has 150 Max’s stores in the Philippines and overseas. The group, which is very popular for its Max's fried chicken and other Filipino dishes, has also brought to the country international food brands such as Krispy Kreme and Jamba Juice. Its key shareholders are the Fuentebella, Trota and San Victores families.