Filipino food company Jollibee Food Corporation has credited its Highlands Coffee, The Coffee Bean & Tea Leaf and Milksha brands as standout contributors to $957m third quarter revenues
Vietnamese coffee chain Highlands Coffee opened 37 stores in the period to reach 562 outlets | Photo credit: Highlands Coffee
Out-of-home beverage companies have strongly contributed to Jollibee’s record $957m third quarter revenues, but its coffee chains continue to experience contrasting fortunes in terms of net outlet growth.
Jollibee’s total revenues for the three months ended 30 September 2022 grew by 49% to reach ₱55.4bn ($957m). System-wide sales increased 51% to ₱77.8bn ($1.3bn).
Vietnamese coffee chain Highlands Coffee opened 37 stores in the period to reach 562 outlets. The brand contributed to Jollibee’s 47% international segment system-wide sales growth. Same-store sales for its international businesses grew 9%.
Jollibee also highlighted the success of The Coffee Bean & Tea Leaf (CBTL) during the period, with the California-based coffee chain contributing 16% same-store sales growth and a 41% increase in system-wide sales.
Howeverm while Jollibee continued to open stores globally across its brands, its CBTL coffee chain has continued to close stores.
The company opened 69 CBTL outlets in the first nine months of this year but ended its third quarter with a net loss of six CBTL stores compared to the end of June 2022.
Jollibee acquired a majority stake in Taiwanese bubble tea café operator Milksha in November 2021. It currently operates 278 Milksha stores, having opened nine new outlets in the quarter.
“Our beverage business composed of CBTL, Highlands Coffee and Milksha, which currently accounts for 30% of the JFC Group’s consolidated store network and 15% of system wide sales, generated a 90.6% year-on-year growth in system wide sales in the third quarter. We continue to see a strengthening of our sales globally and are confident that we can deliver according to our full-year outlook,” said Ernesto Tanmantiong, CEO, Jollibee Food Corporation.
Jollibee operates 17 brands globally, including Filipino fast-food chain Jollibee, US-based SmashBurger and bakery chain Red Ribbon. In the first nine months, the company opened 361 new stores and closed 207 to reach a total of 6,351 stores across its portfolio.
In November 2022, Jollibee ended its operation of Dunkin' in China after struggling to expand the business, closing seven stores.