Jollibee Foods Corp. to close 255 stores as it suffers billions of net loss
- Jollibee Foods Corp. disclosed some details regarding the company’s status
- Due to the COVID-19 pandemic, JFC now suffers billions of net loss during the second quarter of 2020
- In its Business Transformation program, part of the plan is to close down 255 company-owned stores
- Aside from this, they are also planning to change the ownership of 95 stores
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Fast-food giant Jollibee Foods Corp. (JFC) announced that it is suffering billions of net loss during the second quarter of 2020 as the COVID-19 pandemic persists in the Philippines.
KAMI learned that JFC reported a net loss of P10.171 billion.
As reported by Inquirer (authored by Doris Dumlao-Abadilla), the company had a P11.963 billion net loss for the first six months of 2020.
Most of the JFC stores worldwide were temporarily closed due to the strict lockdown measures. The stores that were open mostly relied on deliveries and take-outs.
“The business results were very bad but in line with our forecasts. We are now focusing on rebuilding our business moving forward along with implementing major cost improvement under our Business Transformation program,” JFC chief executive officer Ernesto Tanmantiong said.
In a report by GMA News Online (authored by Ted Cordero), it was also mentioned that as part of the Business Transformation, JFC has to close 255 company-owned stores and even change in ownership of 95 stores.
“The spending for Business Transformation includes closure of 255 company-owned stores, change in ownership of 95 stores from company to franchisees, payment of pre-termination penalties of stores in the US and China, closure of supply chain facilities and reduction in the size of the organization at various countries where we do business,” JFC chief financial officer Ysmael Baysa said.
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Jollibee Foods Corp. was founded by Tony Tan Caktiong. It is one of the biggest companies in the Philippines. Aside from its flagship store, Jollibee, it also acquired Chowking, Greenwich, Red Ribbon, and Mang Inasal.
About a year ago, the JFC also planned to invest and acquire Coffee Bean and Tea Leaf. The investment had cost around $100 million or P5.13 billion.
Meanwhile, the Philippine government now has a growing debt of P9.05 trillion as of June 2020. The national government has been mostly relying on debts to sustain its COVID-19 efforts.
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