Dive Brief:
- Jollibee, a fast food chicken brand originally from the Philippines, has launched a U.S. franchising program, according to a Tuesday press release.
- The chain aims to reach 350 locations across the U.S. and Canada within the next few years. It currently operates 76 stores in the U.S. and 28 in Canada.
- Jollibee expects franchised stores will eventually comprise the majority of its U.S. and Canada store base.
Dive Insight:
Chicken chains generally are growing in popularity in the U.S., with brands like Chick-fil-A, Dave’s Hot Chicken, Raising Cane’s and Zaxby’s all seeing meaningful expansion in recent years. Jollibee has worked assiduously to set itself up as a competitor to other players in the space.
Last year, the chain launched a loyalty program in the U.S. and added a lineup of premium drinks to court the coveted Gen Z consumer cohort. The brand also began testing a double drive-thru in Orlando in 2023.
In keeping with that experimental layout, Jollibee’s franchising program will include options for “stand-alone buildings with or without drive-thru, strip mall endcaps, urban storefronts, and exterior mall entrances,” to fit business needs. The company said it would eventually be interested in developing non-traditional locations in airports, college campuses and other high-traffic places if it finds the right franchisees.
Company-operated Jollibee restaurants have been able to sustain a relatively high unit volume, according to the FDD, with free-standing locations averaging about $4.5 million, and in-line stores $4.3 million. Those unit economics could make the chain’s stores more enticing to operators. The company also boasted 50 consecutive months of same-store sales growth, which the chain attributed to increased customer traffic, according to the press release.
The brand attributed its success to its distinctive menu: “there is a growing demand for alternatives to the traditional American fast-food and QSR chains,” according to the press release.
The brand is particularly focused on multi-unit franchisees with significant development resources and restaurant operating experience. Such operators are more likely than individual franchisees to be able to raise the funds necessary to speed up the chicken chain’s development. The chain said it will award franchises in both existing and new markets. A newly created U.S. subsidiary, JBM LLC, will operate its franchising program in the U.S.
