Amoroso, Izzythea E.
BMTG 25
BSA 1-1 Operations Management and TQM
Jollibee Foods Corporation; Total Quality Management
Brief Background
Jollibee Foods Corporation, a company which started by Toni Tan Caktiong as an ice-
cream parlor in 1975, has now 1804 stores worldwide under its aegis with total sales exceeding
$1billion. Other notable accomplishments include becoming part of the top 100 corporations
in the Philippines in 1987 and becoming the first food service company to be listed in the
Philippine Stock Exchange. The prestigious award of “World Entrepreneur of the Year” was
given to founder Tony Tan Caktiong in 2004 for the inspiring work he’s done. Additionally, the
Far Eastern Economic Review has judged Jollibee as “The Most Admired Company” in the
Philippines over the last 6 years. The company now wants to go for diversification and
expansion to increase its presence in international markets and compete with global fast-food
giants like McDonalds and KFC. Today they satisfy the appetites of Filipinos everywhere with
600 stores in the Philippines and over 30 international stores.
Jollibee is the largest fast-food chain in the Philippines, operating a nationwide network
of over 750 stores. A dominant market leader in the Philippines, Jollibee enjoys the lion’s share
of the local market that is more than all the other multinational brands combined. The company
has also embarked on an aggressive international expansion plan in the USA, Vietnam, Hong
Kong, Saudi Arabia, Qatar and Brunei, firmly establishing itself as a growing international
QSR player. At the heart of its success is a family-oriented approach to personnel management,
making Jollibee one of the most admired employers in the region with an Employer of the Year
Award from the Personnel Management Association of the Philippines, Best Employer in the
Philippines Award from Hewitt Associated and a Top 20 Employer in Asia citation from the
Asian Wall Street Journal. Aside from promoting a family-oriented work environment, the
brand’s values also reflect on their advertising and marketing. Jollibee knows their target
audience very well: the traditional family and all communication materials focus on the
importance of family values, making Jollibee the number one family fast food chain in the
Philippines and a growing international QSR player.
Jollibee’s growth is due to its delicious menu line-up- like its superior-tasting
Chickenjoy, mouth-watering Yumburger and Champ hamburger, and deliciously satisfying
Jollibee Spaghetti -ably complemented with creative marketing programs, and efficient
manufacturing and logistics facilities. It is made possible by well-trained teams that work in a
culture of integrity and humility, fun and family-like. Every Jollibee outlet welcomes customers
with a clean and warm in-store environment and friendly and efficient service. And it is this
tried and tested formula of delivering great-tasting food, adherence to world class operating
standards and the universal appeal of the family values the brand represents that are driving the
expansion of Jollibee both locally and in the overseas market.
FSC of Jollibee Foods Corporation
Every Food (F) item served to the public must meet the company's excellent standards
or it will not be served at all, Service (S) must be fast and courteous; and Cleanliness (C) from
sidewalk to kitchen, from uniforms to utensils, must be maintained at all times.
Total Quality Management of JFC
One of the Philippine companies that utilize Total Quality Management (TQM) is
Jollibee Foods Corporation, which is the largest fast-food chain in the country. Jollibee
implements TQM by consistently improving the quality of their products and services. They
also prioritize the satisfaction of their customers through different quality initiatives.
To achieve this quality standard, Jollibee has implemented various practices such as
continuous employee training, constant product testing, and quality audits in all their stores. In
addition, they also have a quality assurance team that monitors the performance of their
suppliers to ensure that they only provide high-quality ingredients.
One notable TQM approach that Jollibee uses is the "Kaizen," which is a Japanese term
that means "continuous improvement." This approach involves identifying areas of
improvement within the company and making necessary changes to improve the quality of
their products and services. Jollibee also adheres to the ISO 9001 Quality Management System,
a globally recognized standard that ensures consistent delivery of high-quality products and
services.
8 Success Secretd from Jollibee
1. Customer focus - The market is so dynamic and fast-changing, SO Jollibee do a lot of
research. When Jollibee was small and had little research funds, Jollibee used to directly ask
its customers about their needs and wants.
2. Vision - A jollibee Family member said "When we started in 1978, people asked why we
didn't get a US franchise. We already wanted to create our own brand because we didn't want
to be limited to the Philippine market. Since the start, our vision was. first, to become No. 1 in
the Philippines; second, to eventually expand overseas. Now our vision is we want to be one
of the top three largest and among the most profitable restaurant companies in the world. Again,
this is a big dream."
3. Spirit of family and fun - Among the Jollibee core values are unity and team work.
JOLLIBEE has less than 10 family members working at Jollibee group. And now have over
40,000 employees, roughly 4,000 of whom are managers. If you include the other brands,
JOLLIBEE has maybe more than 60,000 employees.
4. Good quality - Consistently "superior taste" of Jollibee foods is one success secret of their
business. The family's eldest sister Virgie Tan Chua was the one who started Jollibee spaghetti.
When it was asked if they had paid her for this recipe, Ato Tanmantiong laughed, saying, "Don't
give her the idea!"
5. Location - Jollibee makes sure that its stores and affiliates are conveniently located.
6. Good partners - Jollibee group has grown phenomenally due to good business partners
through its franchising system. Today, 50 percent of Jollibee stores are owned by franchisees.
Each franchise now costs about P25 million.
7. Culture - JOLLIBEE make sure that the whole organization shares our vision and values,
meaning they're all part of that, "Our corporate values are excellence, spirit of family and fun,
humility to learn and listen, integrity, frugality, respect for the individual, and teamwork.
Anybody who is not a fit to all that, we remove from the organization. Our people are more
engaged and committed."
8. Marketing - The overall marketing programs and efforts have contributed to the success of
Jollibee, from the brand name, logo, the popular mascot, TV commercials and print ads, to their
very own TV show. Their top celebrity endorsers include Aga Muhlach, Sarah Geronimo,
Gerald Anderson, Enchong Dee, Kim Chiu, international brand ambassador Jessica Sanchez
and the very first endorser of the early 1980s, singer Gary Valenciano.
Corporate Social Responsibility of JFC
Jollibee Group Foundation is the social responsibility arm of the Jollibee Group, one
of the fastest growing Asian restaurant companies in the world. Jollibee Group Foundation
promotes improved access to food by implementing programs on agro-entrepreneurship,
education and disaster response, together with partner organizations in the Philippines and from
other countries.
By implementing TQM, Jollibee has achieved many milestones, such as winning
several international awards for their products and services. Moreover, their commitment to
quality has resulted in customer loyalty and steady growth in their business.
Jollibee Foods Corporation is a prime example of how TQM can lead to success in the business
world. Their continuous efforts to improve their products and services have helped them to
maintain their position as the leading fast-food chain in the Philippines. Jollibee's commitment
to quality not only benefits their business, but also their customers and suppliers.
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