Jollibee Foods Corp. (JFC), the largest food conglomerate here in the Philippines, has partnered with Panda Restaurant Group Inc. as it plans to introduce Panda Express in the Philippines market.
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JFC is planning to expand its food retailing portfolio as it adds another fast food chain along with its current list of which includes Jollibee, Greenwich, Chowking, Mang Inasal, Red Ribbon, Burger King and PHO24. The said partnership will be a 50-50 joint venture. Apart from JFC’s established name here in the Philippines, it has also ventured into the international market as it is able to open over 4, 324 stores abroad.
This has led JFC to partner with another fast food chain and this one is even bigger. While it already has a Chinese fast food chain, Chowking, under its umbrella, it decided to tap into a similar market but this time, from an international brand. Expansion wise, JFC is aiming to target different food categories in order to serve the demands of the market and tap other brands for a greater fast food chain portfolio.
So, why did JFC choose to add Panda Express in its portfolio? We will find out in this article. And in order to fully appreciate the answer, we must look at the history and long line of success of the company. First of all, Panda Express was established in 1983 by the Cherngs in California, U.S. It means they’ve been running the business for more than 30 years. What’s surprising is that, the company during this duration was able to expand exponentially. It has now over 2,000 stores covering areas not only in the United States but also in other countries such as Puerto Rico, Guam, Guatemala, El Salvador, Aruba, Canada, Mexico, Dubai, Saudi Arabia, Japan and Russia.
It is still branching out hence the partnership with JFC. Its entry into the Philippines will be another milestone for the company. This being said, they plan to initially open five (5) stores to be located in Metro Manila. The companies are positive on the outcome of their agreement and are confident that this will be a good way to introduce to introduce Filipinos an American Chinese cuisine.
The good thing about this partnership is that, both companies have the same brand portfolio and both definitely have a thorough experience in the domestic and international market in their field of business. They will be able to utilize their resources and gain optimum profitability. Apart from the company’s economic benefits, Filipinos are quite thrilled to hear about this news since we’re known to be great fans of American or international brands. The store openings in Metro Manila will definitely get a huge welcome from the public. While Chowking may experience a portion of its market share from the entry of Panda Express, rest assured it will still be eaten under the same umbrella company, JFC.