Jollibee closes down low-cost restaurant

Monday, April 11, 2011

JOLLIBEE Foods Corp., the Philippines' leading fastfood chain operator, has shuttered its Manong Pepe’s Karinderia to concentrate its resources in building larger quick-service restaurants like its newly acquired Mang Inasal.

"Wholly-owned subsidiary, Fresh N' Famous Foods, Inc. shall discontinue operating its Manong Pepe Karinderia business effective April 9," the company told the Philippine Stock Exchange (PSE).

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Manong Pepe, which began operations in 2007, serves popular Filipino dishes at low prices especially for urban employees. To date, there are 10 stores operated by Jollibee Foods, all in Metro Manila.

Last November, Jollibee bought 70 percent of rising chicken barbecue chain Mang Inasal for P3 billion, in a bid to maintain its dominance in the food business.

“For now, Jollibee Foods will concentrate on building the Mang Inasal business. However, it will retain and maintain its ‘Manong Pepe’ trademark and operating processes for potential use in the long-term. It also plans to convert existing ‘Manong Pepe Karinderia’ stores to its brands where the sites are suitable,” Jollibee said.

According to Jollibee Foods’ chief financial officer Ysmael Baysa, the cessation of Manong Pepe’s operations will not have a “material impact” on the company's profit, which grew 16.3 percent to P3.1 billion in 2010 from P2.7 billion in 2009.

Mang Inasal, which currently has 345 stores, owes its success to selling grilled chicken and other Filipino dishes.

Last December, Jollibee also had to let go of French pastry store Delifrance to a subsidiary of listed Euro-Med Laboratories Philippines Inc. for P100 million.

Jollibee Foods operates the largest food service network in the Philippines with 1,921 stores.

Of this number, flagship Jollibee brand has 717 outlets, followed by Chowking with 400 and Greenwich, 223.

Shares in Jollibee Foods were unchanged at P95 each on Monday. (Virgil Lopez/Sunnex)