Jollibee Foods Corporation credits its coffee and tea chains as strong contributors to its positive second quarter sales – but outlet growth for its largest coffee chain, The Coffee Bean & Tea Leaf, continues to stall
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The Coffee Bean & Tea Leaf's current footprint marks a decline from the 1,189 stores in operation in 2019| Photo credit: CBTL
Jollibee Foods Corporation (JFC) has hailed the performance of its coffee and tea chain brands after posting year-on-year second quarter revenue growth of 41.9% to Php 52.1bn ($941m).
However, the Filipino foodservice giant cited higher raw materials and freight costs in addition to recent Covid-19 trading restrictions in China as headwinds contributing to the net closure of 130 outlets across the group.
Its largest coffee chain, California-based The Coffee Bean & Tea Leaf (CBTL), achieved 16.5% revenue growth in the three months ended 30 June 2022 but continues to see its footprint shrink. CBTL closed net three stores over the period to operate 1,059 outlets.
The company’s current footprint marks a decline from the 1,189 stores in operation when the CBTL was acquired by JFC for $350m in late 2019.
JFC also owns Vietnamese coffee chain Highlands Coffee, which it highlighted in 2021 as ‘the fastest growing business in the Jollibee Group’, and Taiwanese bubble tea brand Milksha.
Highlands Coffee opened 25 new stores to reach 525, predominantly in its native Vietnamese market, while Milksha added net five outlets in the second quarter to reach 269.
JFC is the largest fast-food operator in the Philippines and operates a total of 6,297 stores worldwide.