Jollibee braces for ‘indirect’ Trump tariff impact
Despite having a strong presence in the United States via its flagship brand, homegrown fast-food giant Jollibee Foods Corp. (JFC) downplayed the impact of the global trade war on its business, saying that any effect would be “indirect.”
In a statement sent to the Inquirer on Friday, JFC said most of the raw materials used for its US products were sourced from North America, thus limiting import exposure.
The maker of the popular Chickenjoy meals did not specify which raw materials it sourced locally.
“The impact is likely to be indirect,” JFC said of US President Donald Trump’s move to impose a 17-percent tariff on goods coming from the Philippines.
Although Trump has hit the pause button on most of the reciprocal tariffs for 90 days, JFC said, “Our team is currently assessing the potential impact of the reciprocal tariffs on the business.”
JFC debuted in North America in 1998, when it opened its first American store in Daly City, California.
Expanding network
As of December 2024, the group had 103 Jollibee stores in the region.
Last year, Jollibee stores in North America contributed 6.5 percent to the group’s overall system-wide sales, up from 6.2 percent in 2023.
JFC’s network in the continent spans 369 stores, including other brands like Red Ribbon, Chowking and Smashburger.
Stores in North America accounted for 11.9 percent of JFC’s system-wide sales, down from 12.5 percent the previous year due to continued weakness in Smashburger.
As global trade tensions heat up, JFC said it was “closely monitoring any further developments in this area, and Trump’s openness to negotiations with certain countries can be a positive sign.”
“We are prepared to adapt our sourcing strategies as needed to reinforce supply chain stability and ensure continued operational efficiency,” it added.
Earlier, JFC announced plans to spend up to P21 billion this year to open as many as 800 stores across its brands, with Jollibee likely to be the main focus.
This came after the company booked P10.32 billion in earnings last year, up by 17.7 percent on the strength of both the Philippine and international markets, along with fresh gains from its newest coffee acquisition.
This year, JFC expects an 8- to 12-percent growth in system-wide sales, and a 10- to 15-percent climb in operating income due to its expansion plans.
