# How This Filipino Fast Food Giant is Secretly Taking Over the US (ft. Jollibee) | AB Explained

https://www.youtube.com/watch?v=Tlla1CUgo9I

[00:00] All right, let's start with a serious question, and I'm dead serious because this could be controversial.
[00:07] What is your favorite fried chicken?
[00:10] KFC, Popeye's, [music] or are you a Chick-fil-A person?
[00:14] Whatever your answer, and I'm not here to judge, did you know that there's a fried chicken war going on right now?
[00:20] Americans spend over $60 billion a year on fried chicken alone?
[00:27] $60 billion.
[00:29] That's more than the entire GDP of some countries.
[00:32] And the competition is brutal.
[00:34] These big players are spending hundreds of millions of dollars on marketing.
[00:37] All fighting to become your go-to chicken spot.
[00:40] But what if I told you there's a fried chicken chain that's been hiding in plain sight in America for over 25 years, and most Americans still have no idea that it exists.
[00:51] It's been quietly building its US presence since 1998.
[00:53] And now it just launched its first US franchise location in Queens, New York last year in an aggressive plan
[01:01] New York last year in an aggressive plan to reach 500 locations across the US and to reach 500 locations across the US and Canada within the next few years.
[01:06] Canada within the next few years.
[01:06] And what if I told you it's not an American brand?
[01:12] Its name is Jollibee [music] and it's Filipino.
[01:15] And it's quietly become a $3.3 billion global empire, buying up American food [music] brands, opening restaurants on five continents, and building one of the most emotionally devoted customer [music] bases of any food company on Earth.
[01:29] People don't just like Jollibee.
[01:31] They cry at Jollibee openings at a fast food restaurant.
[01:35] So, what is it about Jollibee that triggers this kind of reaction?
[01:39] Is it the friendly looking bee mascot? or does the chicken taste like nothing you've ever had before?
[01:46] I've tried Jollibee because surprise surprise, I love fried chicken and honestly, it doesn't taste dramatically different from KFC or Popeye's in terms of sheer quality.
[01:56] And before you send me death threats, it still tastes pretty good, but at the end of the day, it's fast food.
[02:00] I'm just
[02:03] of the day, it's fast food.
[02:05] saying the difference in quality alone might not be what's driving people to tears when they see Jollibee.
[02:10] And if you've never heard of Jollibee, just ask any Filipino you know, and they'll tell you that Jollibee is not just a fast food chain.
[02:18] In the Philippines, it has more locations and more customers than McDonald's, KFC, and every other foreign fast food brand in the country combined.
[02:28] But here's the thing.
[02:30] When we started digging into how Jollibee is pulling this off in America, one of the most competitive fast food markets on Earth, what we found was not the story I expected.
[02:40] and what they are secretly planning for the global takeover might honestly be one of the smartest master plans any company in the world should be studying right now.
[02:49] A master plan that makes total sense once you see it, but one you won't see coming until the end of this video.
[02:55] And the bigger question for me as someone who's genuinely curious about how great companies and brands are built is whether any of this could actually be replicated.
[03:03] Could another brand from
[03:05] Replicated. Could another brand from another country with a complete different story pull off exactly what Jollibee is doing?
[03:12] Or does everything outside of your control like the timing, the history, and the cultural shift have to perfectly align for this to ever work at all?
[03:20] Let's dive in.
[03:26] Before we get into fried chicken wars and billion-dollar acquisitions, let me tell you about a boy from a Chinese immigrant family growing up in Dvau City.
[03:35] [music] It's a city at the far southern end of the Philippines, far from Manila, the capital, and far from anywhere a western viewer might recognize from a travel brochure.
[03:46] Chinese immigrants have been in the Philippines for centuries, ever since the Spanish colonial era.
[03:52] So this boy was Chinese Filipino or Chinoi as they're commonly called in the Philippines.
[03:56] Before he was even a teenager, he was already cleaning tables and washing dishes.
[04:00] He watched his father cook and watched his mother count the day's earnings and try to make the
[04:07] the day's earnings and try to make the numbers work.
[04:10] He was a third of seven children and according to his mother, the most difficult child to raise because he was too picky about food.
[04:15] Despite growing up in a household where you ate what was in front of you, he refused to eat things that didn't taste exactly right to him.
[04:24] His name was Tony Tang Kakyong and he would go on to create the most Filipino brand in history.
[04:32] He was Filipino enough to love the food, the culture, the warmth, but he was also Chinese enough that that belonging wasn't automatic.
[04:40] It had to be earned.
[04:42] And that most annoying quality his mother complained about, it turned out to be his greatest professional asset because he would spend the rest of his life obsessing over the precise flavor of every single item on his menu.
[04:54] Tony studied chemical engineering at the University of Santa Tomas in Manila, a degree that pointed towards a stable, respectable career.
[05:03] But everything changed during a visit to a Magnolia dairy ice cream plant where he
[05:07] Magnolia dairy ice cream plant where he noticed a poster on the wall advertising franchise opportunities.
[05:14] So in 1975, within months of graduating university, Tony put down 350,000 Philippine pesos of his family savings, roughly 48,000 at the time, which was a significant sum for an immigrant family running a restaurant in Davao.
[05:29] He signed the franchise agreement with Magnolia Dairy and opened two small ice cream parlors, both in Metro Manila.
[05:36] That's right.
[05:39] The $3.3 billion global empire we're talking about today didn't even start as Jollibee.
[05:43] It started as two ice cream shops run by a 22-year-old Chinese Filipino with zero business experience.
[05:48] So, how did they go from ice cream to fried chicken and burgers?
[05:53] Simple.
[05:55] Customers kept asking for hot food consistently.
[05:59] They would come in, order ice cream, and then ask, "Hey, do you have anything hot like sandwiches, burgers, something to actually eat?"
[06:06] Tony listened.
[06:06] He added sandwiches, then hamburgers, and within
[06:09] sandwiches, then hamburgers, and within a short time, the hot food was out.
[06:11] a short time, the hot food was out selling the ice cream so dramatically
[06:13] selling the ice cream so dramatically that the ice cream had become almost an
[06:15] that the ice cream had become almost an afterthought.
[06:15] Then in 1977, the global oil crisis spiked the price of dairy ingredients.
[06:20] oil crisis spiked the price of dairy ingredients.
[06:23] And that was the final push Tony needed.
[06:25] He discontinued the ice cream franchise and converted both parlers into full fast food restaurants.
[06:27] cream franchise and converted both parlers into full fast food restaurants.
[06:30] He was 24 years old, betting everything on the idea that Filipinos wanted burgers more than they wanted ice cream.
[06:33] on the idea that Filipinos wanted burgers more than they wanted ice cream.
[06:38] And so began the official era of Jollibee, formally incorporated in January 1978.
[06:40] And so began the official era of Jollibee, formally incorporated in
[06:42] Jollibee, formally incorporated in January 1978.
[06:44] January 1978.
[06:44] The name is a combination of jolly and bee.
[06:47] The name is a combination of jolly and bee.
[06:50] A bee that's always buzzing, making something good out of constant effort.
[06:52] something good out of constant effort.
[06:52] Hard work and sweetness, optimism and productivity.
[06:55] Hard work and sweetness, optimism and productivity.
[06:58] If you're ever in the Philippines and you ask somebody what Jollibee means to them, that's exactly what they'll tell you.
[06:59] Philippines and you ask somebody what Jollibee means to them, that's exactly
[07:02] what they'll tell you.
[07:02] As for the iconic mascot, Tony brought in a marketing consultant named Manuel Lumba to help
[07:03] As for the iconic mascot, Tony brought in a marketing
[07:06] mascot, Tony brought in a marketing consultant named Manuel Lumba to help
[07:09] consultant named Manuel Lumba to help build a brand.
[07:12] It was Lumba who landed on the idea of a bee inspired by his six-year-old daughter's comic books.
[07:16] And look, the mascot looks iconic now, but when it was first introduced, most people thought it looked crude and a little ridiculous.
[07:23] Tony didn't care.
[07:26] He built seven branches anyway.
[07:29] Now, how did they keep growing?
[07:30] Because one of the early decisions Tony made was genuinely a little crazy.
[07:33] His very first national marketing campaign involved buying advertising time during the Philippine Basketball Association or the PBA Finals as it's known.
[07:45] Now, if you're not Filipino, you need to understand something.
[07:47] Basketball in the Philippines is not just a sport.
[07:50] It's a religion.
[07:53] The PBA finals is to Filipinos basically what the Super Bowl is to Americans.
[07:59] And here was Jollibee, not a nationally known brand at the time, barely a handful of restaurants, buying a Super Bowl ad.
[08:05] The risk paid off.
[08:08] Overnight, Manila walk up to what felt like a brand
[08:10] Manila walk up to what felt like a brand new chain.
[08:10] The lines didn't stop.
[08:13] By new chain.
[08:13] The lines didn't stop.
[08:13] By 1981, Jollibee had 10 franchised stores across the Philippines.
[08:16] 1981, Jollibee had 10 franchised stores across the Philippines.
[08:16] The menu was set.
[08:19] The menu was set.
[08:19] The brand was growing.
[08:22] And then the golden arches arrived.
[08:22] McDonald's had by this point entered and dominated virtually every market it had ever touched.
[08:25] McDonald's had by this point entered and dominated virtually every market it had ever touched.
[08:27] virtually every market it had ever touched.
[08:27] Japan, Hong Kong, the UK, Australia.
[08:29] touched. Japan, Hong Kong, the UK, Australia.
[08:32] Australia. Tony's friends told him to sell.
[08:34] Tony's friends told him to sell.
[08:34] His business advisors told him to sell.
[08:37] sell. The logic was hard to argue with.
[08:40] The logic was hard to argue with.
[08:40] How could a small Filipino chain with a handful of stores take on a multinational that literally invented the modern fast food industry?
[08:43] How could a small Filipino chain with a handful of stores take on a multinational that literally invented the modern fast food industry?
[08:45] handful of stores take on a multinational that literally invented the modern fast food industry?
[08:47] multinational that literally invented the modern fast food industry?
[08:50] the modern fast food industry? Tony had two options.
[08:50] He could sell Jollibee to McDonald's, cash out, retire early.
[08:52] He could sell Jollibee to McDonald's, cash out, retire early.
[08:56] McDonald's, cash out, retire early. Nobody would have blamed him.
[08:58] Nobody would have blamed him.
[08:58] Or he could become a McDonald's franchisee, which honestly wasn't that bad of an option either.
[09:00] could become a McDonald's franchisee, which honestly wasn't that bad of an option either.
[09:02] which honestly wasn't that bad of an option either.
[09:02] A stable, respectable business, a proven global system, a comfortable life.
[09:04] A stable, respectable business, a proven global system, a comfortable life.
[09:07] business, a proven global system, a comfortable life.
[09:07] Guess what?
[09:07] He said no
[09:10] comfortable life.
[09:10] Guess what?
[09:10] He said no to both.
[09:13] He later said this was a moment of truth,
[09:17] that if he had no hope, he would have sold.
[09:19] But he had a vision and he wasn't going to go down without a fight.
[09:25] So here's what he actually did.
[09:25] He went on the offensive.
[09:27] Tony and his team got on a plane to America and spent weeks walking into McDonald's restaurants across the country, studying them from the inside.
[09:37] They were reverse engineering the entire operational system, the quality controls, the supply chain management, the standardized processes that ensured every Big Mac tasted exactly the same no matter where in the world you ordered it.
[09:51] Tony's chemical engineering background helped him approach the whole thing like a laboratory problem.
[09:57] Understand the system, identify your single point of genuine advantage, then optimize everything else around it.
[10:04] He came back home and built all of it into Jollibee with one critical difference, taste.
[10:07] Specifically, Filipino taste.
[10:10] And here's
[10:13] Specifically, Filipino taste.
[10:14] And here's where the story gets interesting for anyone who thinks that great businesses are just about operational efficiency.
[10:19] What Tony understood and what McDonald's with its globally standardized menu fundamentally could not accommodate was that Filipinos eat differently.
[10:29] Not slightly differently, structurally differently.
[10:31] First, rice.
[10:35] Filipinos eat rice with virtually everything.
[10:37] Not as a side option, as a default.
[10:41] A fast food meal without a rice option isn't really a complete meal in the Filipino cultural sense.
[10:48] McDonald's global menu was not built around rice.
[10:51] Jollibees was from day one.
[10:55] Second, flavor.
[10:57] The Filipino palette trends sweeter and more savory simultaneously than American or European pallets.
[11:03] Centuries of Spanish colonial influence, Chinese immigrant cooking traditions, and indigenous ingredients had produced a culinary culture where a little sweetness in savory food isn't
[11:13] little sweetness in savory food isn't strange.
[11:16] It's almost expected, even comforting.
[11:19] McDonald's burger seasoning calibrated for Western pallets tasted fine to Filipinos.
[11:24] Jollibee's slightly sweeter, slightly richer seasoning tasted like home.
[11:30] Third, Mari.
[11:32] This is a Spanish word that Filipinos adapted to mean an afternoon snack.
[11:35] And he points to something deeper about how Filipinos actually eat.
[11:39] The eating culture in the Philippines runs five to even six occasions per day rather than three.
[11:45] A fast food chain that understood this would design its menu around smaller, affordable, snackable items people could grab between meals, not just full combo meals.
[11:54] Jollibee did exactly that.
[11:58] Items like the yum burger, the peach mango pie, and the palabok noodles worked perfectly as a quick maranda stop, not just a sit-down lunch.
[12:08] The jolly spaghetti is the clearest expression of this entire philosophy.
[12:12] It comes with a sweet tomato sauce made with banana
[12:15] sweet tomato sauce made with banana ketchup, diced hot dog pieces, and ketchup, diced hot dog pieces, and shredded cheese on top.
[12:20] No American or Italian restaurant has ever made spaghetti like this, but it tastes exactly like the spaghetti a Filipino mother makes for her children's birthday parties.
[12:28] And that birthday party spaghetti is one of the most emotionally loaded taste memories of an entire Filipino generation's childhood.
[12:38] You cannot put a price on that kind of product market fit.
[12:42] Then there's Chicken Joy, a Jollibee signature fried chicken introduced in 1980.
[12:48] Tony's spent an enormous amount of time on this recipe.
[12:50] He and his team tested virgins obsessively looking for the exact marinade that hit the sweet savory balance.
[12:57] A crust that stayed crispy, an interior that stayed juicy.
[13:00] He even brought in his sister to help crack the formula when the development process stalled.
[13:06] It took years and when they got it right, it became the foundation of everything Jollibee would eventually build internationally.
[13:11] Slowly and
[13:15] build internationally.
[13:18] Slowly and against all reasonable expectations, it worked.
[13:22] By 1984, just 3 years after McDonald's arrived, Jollibee was already out selling McDonald's in the Philippines.
[13:29] By 1989, Jollibee became the first Filipino food chain to break 1 billion pesos in annual sales, roughly 50 million US dollars at the time, a milestone McDonald's Philippines had not yet reached.
[13:44] By 1993, Jollibee listed on the Philippine Stock Exchange, raising serious capital for the first time and signaling to the Philippine business community that a homegrown food company could compete with a global multinational and win.
[13:58] Today, Jollibee controls roughly 65% of the Philippine fast food market.
[14:03] McDonald's sits at around 15%.
[14:07] That outcome is one of the most remarkable results in the entire history of the global food industry.
[14:14] Tony's strategy wasn't really a business strategy in the conventional sense.
[14:16] strategy in the conventional sense.
[14:16] It was a cultural strategy.
[14:19] He won by was a cultural strategy.
[14:19] He won by knowing his customer more deeply than his competitor ever could.
[14:24] But here's a question that should already be forming in your mind.
[14:26] If hyper localization is Jollibee's superpower, designing every product for a specific culture's exact pallet and emotional memory, what happens when you try to take that brand somewhere else, somewhere without a Filipino pallet and any of the cultural DNA that made the whole thing work?
[14:46] Because what happened next when Jollibee tried to take that success beyond the Philippines to the United States almost destroyed everything it had built up until that point.
[15:01] Every time I try to dissect how a great company was built, there's a pattern that keeps emerging.
[15:08] And hopefully you're starting to see it, too.
[15:10] The founders's vision matters more than almost anything else.
[15:15] Tony, the founder of Jollibee, declared that he was going
[15:17] of Jollibee, declared that he was going to build the biggest food company in the world.
[15:22] Take a guess at how many restaurants he had when he said that.
[15:25] Five. just five restaurants.
[15:28] And he said what he said.
[15:30] But of course, beating a global multinational giant on your home turf is one thing.
[15:35] Going truly global is a whole other challenge.
[15:38] And from our research, Jollibee definitely made their fair share of mistakes getting there.
[15:42] Let's start with their first big failure.
[15:44] It's 1993.
[15:47] Jollibee had just listed on the Philippine Stock Exchange, raised serious capital for the first time, and they've already beaten McDonald's at home.
[15:53] All that's left to do is take Jollibee Global.
[15:56] So Tony does what any ambitious founder would do.
[15:59] He hires a professional, someone with real international experience, someone who's done this before.
[16:06] Enter Tony Kitner, an Australian executive who spent 14 years running Pizza Hut's Asia-Pacific operations out of Hong Kong.
[16:13] On paper, exactly the kind of seasoned global
[16:18] exactly the kind of seasoned global operator Jollibee needed.
[16:21] What happened next though is one of the most fascinating and painful chapters in Jollibee's history and almost nobody outside the Philippines knows about it.
[16:29] Kitchener walked in and immediately decided that Jollibee had an image problem to go global.
[16:33] He argued the brand needed to stop looking like a scrappy Filipino chain and start acting like a worldclass multinational.
[16:41] So he remodeled the international division's offices, introduced a formal dress code.
[16:48] managers now required to wear ties.
[16:51] And critically, he declared the international division completely separate from the Philippine operations, cutting it off from the R&D, the recipes, and the operational expertise that had made Jollibee what it was.
[17:05] Then he launched what he called a plant the flag strategy.
[17:07] Rapid simultaneous expansion into as many markets as possible as fast as possible.
[17:11] Singapore, Taiwan, Indonesia, the Middle East, all at once.
[17:15] It was a disaster.
[17:18] Singapore
[17:21] At once.
[17:21] It was a disaster.
[17:21] Singapore failed.
[17:21] Taiwan failed.
[17:25] And here's the failed.
[17:25] Taiwan failed.
[17:25] And here's the detail that should have been the loudest warning sign of all.
[17:26] detail that should have been the loudest warning sign of all.
[17:29] Taiwanese customers simply didn't like the sweet spaghetti.
[17:31] simply didn't like the sweet spaghetti.
[17:31] Indonesia ran into partner conflicts.
[17:34] Indonesia ran into partner conflicts.
[17:34] The Middle East was poorly executed with the wrong locations and the wrong partners.
[17:37] The Middle East was poorly executed with the wrong locations and the wrong partners.
[17:39] the wrong locations and the wrong partners.
[17:39] The international division was burning cash, creating internal conflict between Kitchener's team and the Philippine operations and generating almost no sustainable revenue.
[17:41] partners. The international division was burning cash, creating internal conflict between Kitchener's team and the Philippine operations and generating almost no sustainable revenue.
[17:44] burning cash, creating internal conflict between Kitchener's team and the Philippine operations and generating almost no sustainable revenue.
[17:45] between Kitchener's team and the Philippine operations and generating almost no sustainable revenue.
[17:48] Philippine operations and generating almost no sustainable revenue.
[17:48] By November 1996, Tony had seen enough.
[17:50] almost no sustainable revenue. By November 1996, Tony had seen enough.
[17:52] November 1996, Tony had seen enough.
[17:52] Kitner left Jollibee in 1997.
[17:55] Tony had seen enough. Kitner left Jollibee in 1997.
[17:58] Jollibee in 1997.
[17:58] Now, to be fair, Kitner's plant the flag approach was actually standard international expansion playbook for the mid190s.
[18:01] Now, to be fair, Kitner's plant the flag approach was actually standard international expansion playbook for the mid190s.
[18:03] approach was actually standard international expansion playbook for the mid190s.
[18:03] He basically did what any seasoned corporate executive would have done and it might have worked for a globally recognized brand like Pizza Hut where customers already know what they're walking into.
[18:05] international expansion playbook for the mid190s. He basically did what any seasoned corporate executive would have done and it might have worked for a globally recognized brand like Pizza Hut where customers already know what they're walking into.
[18:08] mid190s. He basically did what any seasoned corporate executive would have done and it might have worked for a globally recognized brand like Pizza Hut where customers already know what they're walking into.
[18:09] seasoned corporate executive would have done and it might have worked for a globally recognized brand like Pizza Hut where customers already know what they're walking into.
[18:12] done and it might have worked for a globally recognized brand like Pizza Hut where customers already know what they're walking into.
[18:14] globally recognized brand like Pizza Hut where customers already know what they're walking into.
[18:16] where customers already know what they're walking into.
[18:18] they're walking into. The problem was that Jollibee wasn't Pizza Hut.
[18:18] The problem was that Jollibee wasn't Pizza Hut.
[18:21] that Jollibee wasn't Pizza Hut. Outside the Philippines, nobody had heard of it.
[18:21] Outside the Philippines, nobody had heard of it.
[18:24] the Philippines, nobody had heard of it.
[18:25] And by cutting the international division off from the Philippine operations, the people who actually understood the food, the culture, and the emotional DNA of the brand, Kitner was trying to export a product he didn't fully understand.
[18:38] Strip away the Filipino identity, and you just have another mid-tier fast food chain with no particular reason to exist in markets already dominated by McDonald's and KFC.
[18:48] So, you would think that Jollibee learned their lesson here, but it would later turn out they didn't because just two years later in 1998, Jollibee tried America.
[19:01] And the opening looked incredible.
[19:04] The first US location opened in Daily City, California, a city just south of San Francisco with one of the largest concentrations of Filipino Americans in the United States.
[19:13] The line on opening day stretched around the block.
[19:17] People had been waiting for hours.
[19:19] For Filipino Americans who had immigrated in the 70s and 80s, Jollibee wasn't just a restaurant.
[19:23] It was a taste
[19:25] wasn't just a restaurant.
[19:25] It was a taste of a home they hadn't seen in years.
[19:28] So, of a home they hadn't seen in years.
[19:28] So, the opening was a genuine cultural moment.
[19:30] the opening was a genuine cultural moment.
[19:33] And here's what made the moment so powerful and so replicable wherever Jollibee went next.
[19:36] Jollibee went next.
[19:36] They didn't have to build their overseas customer base from scratch.
[19:38] build their overseas customer base from scratch.
[19:40] History had already built it for them.
[19:43] There are roughly 10 to 12 million overseas Filipino workers scattered across the globe.
[19:46] The Middle East, Singapore, Canada, the United States.
[19:48] These are people who left the Philippines often at enormous personal sacrifice to work abroad and send money home.
[19:50] Those remittances account for roughly 7% of the Philippines entire GDP, about 35 billion US flowing home every single year.
[19:53] to understand how the diaspora came to be in the first place.
[19:55] I actually did a deep dive on this in our previous episode on the Filipino gig economy.
[19:58] So check that out if you haven't.
[20:00] The point is the Filipino diaspora market is so big that you can
[20:26] diaspora market is so big that you can build a legitimate global business just
[20:28] build a legitimate global business just by serving them. But at the same time, I
[20:31] by serving them. But at the same time, I can see how Jollibee might have felt
[20:33] can see how Jollibee might have felt that the diaspora model had a ceiling
[20:35] that the diaspora model had a ceiling still. There are only so many overseas
[20:37] still. There are only so many overseas Filipinos in the world, right? If your
[20:40] Filipinos in the world, right? If your entire global expansion strategy depends
[20:42] entire global expansion strategy depends on following a diaspora, you will
[20:45] on following a diaspora, you will eventually run out of diaspora to
[20:46] eventually run out of diaspora to follow. Which is exactly why when
[20:49] follow. Which is exactly why when Jollibee got to America and saw the
[20:52] Jollibee got to America and saw the potential of the broader US market, the
[20:54] potential of the broader US market, the temptation to go mainstream was so hard
[20:57] temptation to go mainstream was so hard to resist. And Jollibee, encouraged by
[21:00] to resist. And Jollibee, encouraged by the US reception, kept opening locations
[21:03] the US reception, kept opening locations through the late 1990s and early 2000s,
[21:06] through the late 1990s and early 2000s, mostly in cities with heavy Filipino
[21:08] mostly in cities with heavy Filipino American populations, California,
[21:10] American populations, California, Hawaii, Las Vegas, Guam, and then
[21:14] Hawaii, Las Vegas, Guam, and then quietly they made the same mistake all
[21:17] quietly they made the same mistake all over again. They softened the Filipino
[21:19] over again. They softened the Filipino identity, toned down what made them
[21:22] identity, toned down what made them different, tried to position themselves
[21:25] different, tried to position themselves just as another fast food option rather
[21:27] just as another fast food option rather than leaning into being unapologetically
[21:29] than leaning into being unapologetically Filipino. One example of this was
[21:32] Filipino. One example of this was palabuk. Palabuk is a traditional
[21:35] palabuk. Palabuk is a traditional Filipino rice noodle dish and it was
[21:37] Filipino rice noodle dish and it was renamed fiesta noodles for American
[21:40] renamed fiesta noodles for American customers. So, if you had to take a
[21:42] customers. So, if you had to take a guess, how do you think that approach
[21:44] guess, how do you think that approach worked? It didn't at all. And the
[21:48] worked? It didn't at all. And the Filipino American customers who had been
[21:50] Filipino American customers who had been their core and the ones who had cried on
[21:52] their core and the ones who had cried on opening day could feel the brand
[21:55] opening day could feel the brand drifting. The food quality had slipped
[21:57] drifting. The food quality had slipped from what they remembered back home. By
[21:59] from what they remembered back home. By 2005, the situation was genuinely dire.
[22:03] 2005, the situation was genuinely dire. Jollibee had been in America for 7 years
[22:06] Jollibee had been in America for 7 years and had only nine locations and most of
[22:09] and had only nine locations and most of them were losing money. That's when they
[22:11] them were losing money. That's when they brought in Mary Beth Dela Cruz as
[22:14] brought in Mary Beth Dela Cruz as general manager to assess the damage.
[22:16] general manager to assess the damage. Her mandate, as she later described it,
[22:18] Her mandate, as she later described it, was simple. Figure out if there's still
[22:21] was simple. Figure out if there's still a path forward in America or tell us
[22:23] a path forward in America or tell us it's time to pack up and go home. She
[22:26] it's time to pack up and go home. She was given two years to make the call.
[22:28] was given two years to make the call. And here is the part of a story that I
[22:30] And here is the part of a story that I think deserves recognition. While she
[22:32] think deserves recognition. While she was rebuilding a failing business in a
[22:34] was rebuilding a failing business in a foreign country with a two-year deadline
[22:37] foreign country with a two-year deadline and the threat of shutdown hanging over
[22:39] and the threat of shutdown hanging over everything, she was diagnosed with
[22:41] everything, she was diagnosed with cancer and she kept going. She
[22:44] cancer and she kept going. She eventually helped turn things around and
[22:46] eventually helped turn things around and Jollibee didn't end up leaving the US
[22:48] Jollibee didn't end up leaving the US market and she also beat cancer. But the
[22:51] market and she also beat cancer. But the turnaround wasn't a walk in the park for
[22:54] turnaround wasn't a walk in the park for Dela Cruz and Jollibee. It required
[22:56] Dela Cruz and Jollibee. It required going back to basics, bringing in nine
[22:59] going back to basics, bringing in nine restaurant managers from the Philippines
[23:01] restaurant managers from the Philippines to restore the food quality,
[23:03] to restore the food quality, streamlining the menu, and refocusing
[23:06] streamlining the menu, and refocusing entirely on Filipino American
[23:07] entirely on Filipino American communities. It took about 2 years to
[23:10] communities. It took about 2 years to stabilize. Not the breakthrough Jollibee
[23:12] stabilize. Not the breakthrough Jollibee had hoped for, but at least they stopped
[23:15] had hoped for, but at least they stopped the bleeding. By the way, Mary Beth Dela
[23:17] the bleeding. By the way, Mary Beth Dela Cruz is now the president of Jollibee
[23:19] Cruz is now the president of Jollibee North America, which is welld deserved.
[23:22] North America, which is welld deserved. Here's the thing, though. Stopping the
[23:24] Here's the thing, though. Stopping the bleeding and stabilizing is not the same
[23:26] bleeding and stabilizing is not the same thing as expanding. From 2005 all the
[23:30] thing as expanding. From 2005 all the way through to roughly 2015, Jollibee
[23:33] way through to roughly 2015, Jollibee grew in the US slowly and quietly. They
[23:36] grew in the US slowly and quietly. They were still a beloved niche brand for the
[23:38] were still a beloved niche brand for the Filipino diaspora, steady and
[23:41] Filipino diaspora, steady and sustainable but small. But the real
[23:44] sustainable but small. But the real breakthrough didn't come from a
[23:45] breakthrough didn't come from a boardroom. It came from something
[23:47] boardroom. It came from something Jollibee couldn't have engineered even
[23:49] Jollibee couldn't have engineered even if they had tried. social media.
[23:52] if they had tried. social media. Starting around 2014, non-filipinos
[23:55] Starting around 2014, non-filipinos started discovering Jollibee completely
[23:57] started discovering Jollibee completely on their own. Food bloggers tried it.
[24:00] on their own. Food bloggers tried it. YouTubers posted reaction videos. At one
[24:03] YouTubers posted reaction videos. At one point, Jollibee releases annual
[24:05] point, Jollibee releases annual Valentine's Day ads in the Philippines.
[24:08] Valentine's Day ads in the Philippines. Emotional short films in Tagalog made
[24:10] Emotional short films in Tagalog made for a Filipino audience. And somehow,
[24:13] for a Filipino audience. And somehow, American YouTubers who couldn't
[24:15] American YouTubers who couldn't understand a word of the dialogue were
[24:17] understand a word of the dialogue were sitting in front of their cameras crying
[24:18] sitting in front of their cameras crying at a fast food commercial. By the time
[24:21] at a fast food commercial. By the time Jollibee opened in Times Square in 2022,
[24:24] Jollibee opened in Times Square in 2022, people were camping overnight to be
[24:26] people were camping overnight to be first in line, and most of them had
[24:29] first in line, and most of them had never been to the Philippines. Then, USA
[24:31] never been to the Philippines. Then, USA Today named Chicken Joy the best fast
[24:35] Today named Chicken Joy the best fast food fried chicken in America
[24:37] food fried chicken in America backto-back years, beating Chick-fil-A,
[24:39] backto-back years, beating Chick-fil-A, Popeye's, KFC, all of them. Jollibee
[24:43] Popeye's, KFC, all of them. Jollibee hadn't changed. The world had finally
[24:46] hadn't changed. The world had finally caught up to it. And that's when
[24:48] caught up to it. And that's when something interesting happened inside
[24:50] something interesting happened inside the company because for the first time,
[24:53] the company because for the first time, the brand's new vice president of
[24:54] the brand's new vice president of franchising in the US, a veteran who had
[24:58] franchising in the US, a veteran who had worked at Starbucks and Panera Bread
[25:00] worked at Starbucks and Panera Bread before joining Jollibee, said something
[25:02] before joining Jollibee, said something in an interview that would have been
[25:04] in an interview that would have been unthinkable 10 years earlier. He said
[25:07] unthinkable 10 years earlier. He said they were not a Filipino restaurant,
[25:09] they were not a Filipino restaurant, they were a fried chicken restaurant.
[25:11] they were a fried chicken restaurant. It's a subtle but important distinction
[25:14] It's a subtle but important distinction and it represents the moment Jollibee
[25:16] and it represents the moment Jollibee finally figured out how to talk about
[25:18] finally figured out how to talk about itself to mainstream America without
[25:20] itself to mainstream America without abandoning what made it so special in
[25:23] abandoning what made it so special in the first place. Before they were seen
[25:25] the first place. Before they were seen primarily as a burger brand competing
[25:27] primarily as a burger brand competing with McDonald's, which they do,
[25:29] with McDonald's, which they do, especially back home, but now they're
[25:32] especially back home, but now they're positioning themselves as a premium
[25:34] positioning themselves as a premium fried chicken chain with an
[25:35] fried chicken chain with an award-winning product in Chicken Joy
[25:38] award-winning product in Chicken Joy that could go head-to-head with anyone
[25:39] that could go head-to-head with anyone in the category. And the numbers back it
[25:42] in the category. And the numbers back it up. As of early 2026, Jollibee has 107
[25:47] up. As of early 2026, Jollibee has 107 locations across the US, which after 25
[25:50] locations across the US, which after 25 years in the market might not sound like
[25:52] years in the market might not sound like a lot, but here's what makes that number
[25:55] a lot, but here's what makes that number interesting. Each of those locations is
[25:57] interesting. Each of those locations is generating an average of $4.4 million in
[26:01] generating an average of $4.4 million in annual sales. For a brand that most
[26:04] annual sales. For a brand that most Americans have never heard of, that is a
[26:06] Americans have never heard of, that is a genuinely impressive number, higher than
[26:09] genuinely impressive number, higher than the average unit volume of many
[26:10] the average unit volume of many wellestablished American chains. On top
[26:13] wellestablished American chains. On top of that, Jollibee has recorded 57
[26:15] of that, Jollibee has recorded 57 consecutive months of same store sales
[26:17] consecutive months of same store sales growth. In an industry where most chains
[26:20] growth. In an industry where most chains are struggling just to hold their
[26:21] are struggling just to hold their numbers flat, that kind of consistency
[26:24] numbers flat, that kind of consistency is almost unheard of. So, what they've
[26:27] is almost unheard of. So, what they've built in America is small but extremely
[26:29] built in America is small but extremely profitable. And that profitability
[26:32] profitable. And that profitability exactly what gave them the confidence to
[26:34] exactly what gave them the confidence to finally launch their first US franchise
[26:36] finally launch their first US franchise program in 2025 with a target of 500
[26:40] program in 2025 with a target of 500 locations across the US and Canada by
[26:43] locations across the US and Canada by 2030. Which brings us to the part of the
[26:45] 2030. Which brings us to the part of the story I actually find most fascinating
[26:48] story I actually find most fascinating because everything we talked about so
[26:50] because everything we talked about so far, the KitchenA disaster, the near
[26:52] far, the KitchenA disaster, the near failure in the American market, the slow
[26:54] failure in the American market, the slow diaspora rebuild, the social media
[26:57] diaspora rebuild, the social media crossover, all of it was just a setup.
[27:00] crossover, all of it was just a setup. The real master plan, the one that could
[27:02] The real master plan, the one that could take Jollibee from 107 US locations to
[27:05] take Jollibee from 107 US locations to 500 and beyond, was still being
[27:08] 500 and beyond, was still being assembled. And it didn't come from the
[27:10] assembled. And it didn't come from the Philippines or America. It came from
[27:13] Philippines or America. It came from somewhere nobody expected.
[27:20] So, up until now, one could argue that
[27:23] So, up until now, one could argue that Jollibee's international success was
[27:25] Jollibee's international success was mostly lucky timing. But the more they
[27:28] mostly lucky timing. But the more they learned from their mistakes and chose
[27:30] learned from their mistakes and chose patient, deliberate expansion, the more
[27:34] patient, deliberate expansion, the more opportunities they had to create their
[27:35] opportunities they had to create their own destiny. So, how do you create your
[27:38] own destiny. So, how do you create your own destiny when you're flushed with
[27:40] own destiny when you're flushed with cash from careful expansion and growing
[27:42] cash from careful expansion and growing revenue? Well, one way of growing your
[27:45] revenue? Well, one way of growing your business is to acquire other companies
[27:47] business is to acquire other companies that complement what you already do. In
[27:50] that complement what you already do. In the business world, this is called
[27:51] the business world, this is called mergers and acquisitions or M&A. And
[27:54] mergers and acquisitions or M&A. And starting in 1994, that's exactly what
[27:57] starting in 1994, that's exactly what Jollibee started doing. Remember how I
[28:00] Jollibee started doing. Remember how I mentioned earlier that Jollibee's
[28:01] mentioned earlier that Jollibee's founders vision was to build the world's
[28:03] founders vision was to build the world's biggest food company, not just the fried
[28:06] biggest food company, not just the fried chicken franchise empire. Jollibee
[28:09] chicken franchise empire. Jollibee started building a portfolio of
[28:11] started building a portfolio of marketleading brands covering almost
[28:13] marketleading brands covering almost every major food category. And they
[28:15] every major food category. And they started domestically. The first
[28:17] started domestically. The first acquisition was Greenwich Pizza, a
[28:19] acquisition was Greenwich Pizza, a popular Filipino pizza chain in 1994.
[28:22] popular Filipino pizza chain in 1994. Chiao King, a Chinese fast food chain,
[28:25] Chiao King, a Chinese fast food chain, followed in 2000. Red Ribbon, a beloved
[28:28] followed in 2000. Red Ribbon, a beloved Filipino bake shop, in 2005. Mang Inasa,
[28:32] Filipino bake shop, in 2005. Mang Inasa, a grilled chicken chain in 2010. One by
[28:35] a grilled chicken chain in 2010. One by one, Jollibee was vacuuming up the
[28:37] one, Jollibee was vacuuming up the competition at home and building the
[28:39] competition at home and building the operational muscle to integrate and
[28:41] operational muscle to integrate and scale acquired brands quickly. Then,
[28:44] scale acquired brands quickly. Then, once they had proven that playbook
[28:46] once they had proven that playbook domestically, they turned their eyes to
[28:48] domestically, they turned their eyes to the global market. Here's a fun fact.
[28:50] the global market. Here's a fun fact. Did you know that Jollibee owns
[28:52] Did you know that Jollibee owns Smashburger? The American burger chain
[28:54] Smashburger? The American burger chain you probably seen at airports and malls
[28:56] you probably seen at airports and malls across the US. They started buying into
[28:59] across the US. They started buying into it in 2015 and took full ownership by
[29:02] it in 2015 and took full ownership by 2018. Though honestly, Smashburger has
[29:05] 2018. Though honestly, Smashburger has struggled on the Jollibee's ownership
[29:06] struggled on the Jollibee's ownership and hasn't turned a profit yet. I guess
[29:09] and hasn't turned a profit yet. I guess not every acquisition works. What about
[29:11] not every acquisition works. What about the Coffee Bean and Tea Leaf? The LA
[29:13] the Coffee Bean and Tea Leaf? The LA born coffee chain founded in 1963 with
[29:16] born coffee chain founded in 1963 with over 1,200 locations across 24
[29:19] over 1,200 locations across 24 countries. Jollibee acquired it in 2019
[29:22] countries. Jollibee acquired it in 2019 for $350 million. Then there's Teimoan,
[29:27] for $350 million. Then there's Teimoan, the Michelin star dim sum restaurant
[29:29] the Michelin star dim sum restaurant that originated in Hong Kong, now fully
[29:32] that originated in Hong Kong, now fully owned by Jollibee as of 2024. Or
[29:35] owned by Jollibee as of 2024. Or Highlands Coffee, Vietnam's most popular
[29:37] Highlands Coffee, Vietnam's most popular cafe chain. It seems like they're taking
[29:40] cafe chain. It seems like they're taking over companies from all these different
[29:42] over companies from all these different countries that really have nothing to do
[29:44] countries that really have nothing to do with each other. A fried chicken company
[29:47] with each other. A fried chicken company buying a coffee brand and a dim sum
[29:49] buying a coffee brand and a dim sum restaurant. But stay with me because
[29:51] restaurant. But stay with me because their next move is where the strategy
[29:54] their next move is where the strategy starts to reveal itself. And it involves
[29:56] starts to reveal itself. And it involves a country that most people would never
[29:58] a country that most people would never connect to a Filipino fried chicken
[30:00] connect to a Filipino fried chicken chain, South Korea. In July 2024,
[30:04] chain, South Korea. In July 2024, Jollibee paid $238 million for a 70%
[30:09] Jollibee paid $238 million for a 70% controlling stake in Composed Coffee. At
[30:12] controlling stake in Composed Coffee. At the time, the biggest acquisition in
[30:14] the time, the biggest acquisition in Jollibee's history by store count. Now,
[30:17] Jollibee's history by store count. Now, if you've never heard of Composed
[30:18] if you've never heard of Composed Coffee, that's okay. Most people outside
[30:21] Coffee, that's okay. Most people outside South Korea haven't. But inside South
[30:23] South Korea haven't. But inside South Korea, it's the third largest coffee
[30:26] Korea, it's the third largest coffee chain in the country with over 3,100
[30:29] chain in the country with over 3,100 locations by 2026, which means Compose
[30:32] locations by 2026, which means Compose Coffee has more stores in South Korea
[30:35] Coffee has more stores in South Korea alone than Jollibee has in the entire
[30:37] alone than Jollibee has in the entire rest of the world combined. It's 100%
[30:40] rest of the world combined. It's 100% franchised, high margin, debt-free, and
[30:44] franchised, high margin, debt-free, and it has a particular appeal among younger
[30:46] it has a particular appeal among younger Korean consumers, exactly the
[30:48] Korean consumers, exactly the demographic driving KF food's global
[30:50] demographic driving KF food's global popularity. Then came the next move.
[30:53] popularity. Then came the next move. Jollibee went after Norangak, translated
[30:56] Jollibee went after Norangak, translated literally as yellow chicken, one of
[30:58] literally as yellow chicken, one of South Korea's most popular fried chicken
[31:00] South Korea's most popular fried chicken chains with over 700 locations in a
[31:03] chains with over 700 locations in a signature ultra crispy style that is
[31:06] signature ultra crispy style that is broad domestic appeal. The deal was
[31:08] broad domestic appeal. The deal was estimated at around $und00 million and
[31:11] estimated at around $und00 million and Jollibee was selected as the preferred
[31:13] Jollibee was selected as the preferred bidder. They even signed the memorandum
[31:16] bidder. They even signed the memorandum of understanding and then it fell apart
[31:19] of understanding and then it fell apart because of bird flu. Aven influenza in
[31:22] because of bird flu. Aven influenza in Brazil disrupted chicken imports into
[31:25] Brazil disrupted chicken imports into South Korea and sent raw material cost
[31:27] South Korea and sent raw material cost spiking. Jollibee wanted a price
[31:30] spiking. Jollibee wanted a price reduction to reflect the new risk. The
[31:33] reduction to reflect the new risk. The sellers wouldn't move. Deal dead. Now,
[31:36] sellers wouldn't move. Deal dead. Now, here's what's interesting. A less
[31:38] here's what's interesting. A less committed company would have taken that
[31:40] committed company would have taken that as a sign. Maybe Korea is too
[31:42] as a sign. Maybe Korea is too complicated. maybe the timing isn't
[31:44] complicated. maybe the timing isn't right, etc. Jollibee did the opposite.
[31:48] right, etc. Jollibee did the opposite. Just two months later, in February 2026,
[31:51] Just two months later, in February 2026, they came back and acquired Shabu All
[31:53] they came back and acquired Shabu All Day, South Korea's leading hot pot chain
[31:56] Day, South Korea's leading hot pot chain for $87 million. That tells you
[31:59] for $87 million. That tells you something important about how serious
[32:01] something important about how serious this Korea strategy actually is. A
[32:03] this Korea strategy actually is. A Korean fried chicken acquisition is
[32:05] Korean fried chicken acquisition is likely still on the table, just with a
[32:08] likely still on the table, just with a different brand or the same one at a
[32:10] different brand or the same one at a different price. And when you understand
[32:12] different price. And when you understand why, the whole master plan snaps into
[32:15] why, the whole master plan snaps into focus. Turns out South Korea has one of
[32:18] focus. Turns out South Korea has one of the most sophisticated and competitive
[32:20] the most sophisticated and competitive fried chicken industries in the world.
[32:22] fried chicken industries in the world. Over 50,000 fried chicken restaurants in
[32:25] Over 50,000 fried chicken restaurants in a country of 52 million people. That's
[32:27] a country of 52 million people. That's roughly one fried chicken restaurant for
[32:30] roughly one fried chicken restaurant for every thousand South Koreans. The
[32:32] every thousand South Koreans. The Koreans have spent decades perfecting
[32:34] Koreans have spent decades perfecting fried chicken at a scale and level of
[32:36] fried chicken at a scale and level of innovation that no other country has
[32:38] innovation that no other country has matched. If you want to understand the
[32:40] matched. If you want to understand the global future of fried chicken, you
[32:43] global future of fried chicken, you study South Korea. And Jollibee isn't
[32:45] study South Korea. And Jollibee isn't just studying it. They're buying their
[32:48] just studying it. They're buying their way into it. But there's a bigger reason
[32:50] way into it. But there's a bigger reason for their obsession with the Korean
[32:52] for their obsession with the Korean market. You see, Korean culture has gone
[32:55] market. You see, Korean culture has gone global in a way that feels almost
[32:56] global in a way that feels almost unprecedented. K-pop, Kdramas, Korean
[33:00] unprecedented. K-pop, Kdramas, Korean skincare. What started out as a niche
[33:03] skincare. What started out as a niche cultural curiosity has become one of the
[33:05] cultural curiosity has become one of the most powerful cultural expert machines
[33:07] most powerful cultural expert machines on the planet. And where Korean culture
[33:10] on the planet. And where Korean culture goes, Korean food follows. In 2025, the
[33:13] goes, Korean food follows. In 2025, the South Korean government surveyed 11,000
[33:16] South Korean government surveyed 11,000 consumers across 22 major cities
[33:18] consumers across 22 major cities worldwide and asked them, "What is your
[33:21] worldwide and asked them, "What is your favorite Korean food?" The number one
[33:24] favorite Korean food?" The number one answer for the fourth consecutive year
[33:26] answer for the fourth consecutive year was Korean fried chicken. Not kimchi,
[33:30] was Korean fried chicken. Not kimchi, not pebb, not Korean barbecue, fried
[33:33] not pebb, not Korean barbecue, fried chicken. Think about what that means.
[33:35] chicken. Think about what that means. There's a global consumer, young, social
[33:38] There's a global consumer, young, social media savvy, already primed by years of
[33:41] media savvy, already primed by years of K-pop and Kdrama, who has been
[33:43] K-pop and Kdrama, who has been culturally conditioned to find Korean
[33:45] culturally conditioned to find Korean style fried chicken cool and worth
[33:47] style fried chicken cool and worth seeking out. That consumer is in the
[33:50] seeking out. That consumer is in the United States, in Europe, in Southeast
[33:52] United States, in Europe, in Southeast Asia, in the Middle East. They're
[33:54] Asia, in the Middle East. They're everywhere. And here's the part that
[33:57] everywhere. And here's the part that should make every Jollibee competitor
[33:58] should make every Jollibee competitor nervous. Koreanstyle fried chicken known
[34:01] nervous. Koreanstyle fried chicken known for its ultra crispy double fried
[34:04] for its ultra crispy double fried coating and sweet spicy sauces operates
[34:07] coating and sweet spicy sauces operates in a very similar flavor universe to
[34:09] in a very similar flavor universe to Filipino fried chicken. Both lean sweet
[34:12] Filipino fried chicken. Both lean sweet savory. Both prioritize crispiness. So
[34:15] savory. Both prioritize crispiness. So what Jollibee realized is that the Kwave
[34:18] what Jollibee realized is that the Kwave was doing for fried chicken globally.
[34:20] was doing for fried chicken globally. What the Filipino diaspora had done for
[34:23] What the Filipino diaspora had done for Jollibee locally, creating a pre-built
[34:26] Jollibee locally, creating a pre-built culturally prime customer base already
[34:28] culturally prime customer base already open to the exact flavor profile
[34:30] open to the exact flavor profile Jollibee had been perfecting for 50
[34:32] Jollibee had been perfecting for 50 years. Jollibee didn't have to change
[34:35] years. Jollibee didn't have to change its chicken. The world was changing to
[34:38] its chicken. The world was changing to meet it. And now they are making moves
[34:40] meet it. And now they are making moves to get ahead of the change. In September
[34:43] to get ahead of the change. In September 2025, Jollibee launched a Korean
[34:46] 2025, Jollibee launched a Korean barbecue fried chicken in the US.
[34:48] barbecue fried chicken in the US. Chicken Joy hand dipped in a Korean
[34:51] Chicken Joy hand dipped in a Korean kochang glaze that went viral. Now
[34:54] kochang glaze that went viral. Now that's a company that understands
[34:55] that's a company that understands exactly where the flavor trends are
[34:57] exactly where the flavor trends are heading and is quietly pulling its own
[34:59] heading and is quietly pulling its own product in that direction. And by
[35:01] product in that direction. And by acquiring Korean companies, Compose
[35:04] acquiring Korean companies, Compose Coffee, Shabu O, and possibly a Korean
[35:07] Coffee, Shabu O, and possibly a Korean fried chicken brand if the right deal
[35:09] fried chicken brand if the right deal comes together. Jollibee is buying a
[35:11] comes together. Jollibee is buying a seat at the table inside one of the
[35:13] seat at the table inside one of the world's most sophisticated food markets.
[35:16] world's most sophisticated food markets. South Korea is where fried chicken
[35:18] South Korea is where fried chicken innovation happens at the highest level.
[35:20] innovation happens at the highest level. The double frying techniques, the sauce
[35:23] The double frying techniques, the sauce development, the franchise operational
[35:25] development, the franchise operational systems, the supply chains, all of it is
[35:28] systems, the supply chains, all of it is being refined and iterated at a speed
[35:30] being refined and iterated at a speed and scale that no other country matches.
[35:33] and scale that no other country matches. Think about what that means for a
[35:35] Think about what that means for a worldclass fried chicken product like
[35:37] worldclass fried chicken product like Jollibee's Chicken Joy. Imagine what
[35:39] Jollibee's Chicken Joy. Imagine what happens when that product gets refined
[35:42] happens when that product gets refined by Korean operators who have spent
[35:45] by Korean operators who have spent decades inside the most competitive
[35:46] decades inside the most competitive fried chicken market on Earth. That's
[35:48] fried chicken market on Earth. That's the real long game. Not just riding the
[35:51] the real long game. Not just riding the Korean wave, becoming better at fried
[35:53] Korean wave, becoming better at fried chicken because of it. What's
[35:55] chicken because of it. What's fascinating about the Korean strategy to
[35:57] fascinating about the Korean strategy to me is that it's not just an acquisition
[35:59] me is that it's not just an acquisition play. It's a platform play. Jollibee is
[36:02] play. It's a platform play. Jollibee is assembling a connected portfolio,
[36:05] assembling a connected portfolio, coffee, fried chicken, hot pot across
[36:07] coffee, fried chicken, hot pot across the fastest growing food culture in the
[36:09] the fastest growing food culture in the world with an explicit goal of using
[36:12] world with an explicit goal of using that Korean credibility to open doors in
[36:15] that Korean credibility to open doors in markets where Filipino branding alone
[36:17] markets where Filipino branding alone wouldn't get them through. It's the
[36:19] wouldn't get them through. It's the equivalent of diaspora strategy, but
[36:21] equivalent of diaspora strategy, but instead of following Filipino people,
[36:23] instead of following Filipino people, they're following Korean culture. And
[36:26] they're following Korean culture. And Korean culture right now is going
[36:28] Korean culture right now is going everywhere. But even that isn't the
[36:30] everywhere. But even that isn't the final move because in January 2026,
[36:33] final move because in January 2026, Jollibee announced something that
[36:35] Jollibee announced something that genuinely surprised financial analysts
[36:37] genuinely surprised financial analysts and made the company's share price jump
[36:39] and made the company's share price jump over 14% in a single day, the biggest
[36:42] over 14% in a single day, the biggest jump in more than 5 years. They
[36:44] jump in more than 5 years. They announced plans to spin off their entire
[36:46] announced plans to spin off their entire international business and list it on a
[36:48] international business and list it on a US stock exchange by late 2027.
[36:52] US stock exchange by late 2027. That's a big deal because right now
[36:54] That's a big deal because right now Jollibee Foods Corporation is listed
[36:56] Jollibee Foods Corporation is listed entirely on the Philippine Stock
[36:58] entirely on the Philippine Stock Exchange. Which means that when
[37:01] Exchange. Which means that when international investors, I'm talking
[37:02] international investors, I'm talking about the big funds, the institutional
[37:05] about the big funds, the institutional money that drives global valuations,
[37:07] money that drives global valuations, want to assess Jollibee's global
[37:09] want to assess Jollibee's global business, they have to look at it
[37:11] business, they have to look at it bundled together with the Philippine
[37:13] bundled together with the Philippine domestic business on a smaller exchange.
[37:15] domestic business on a smaller exchange. The US IPO changes that. It puts
[37:18] The US IPO changes that. It puts Jollibee's international operations on
[37:20] Jollibee's international operations on the same exchange as McDonald's and
[37:23] the same exchange as McDonald's and Starbucks. It gives Jollibee access to
[37:25] Starbucks. It gives Jollibee access to the kind of capital that would allow it
[37:28] the kind of capital that would allow it to accelerate everything. More
[37:30] to accelerate everything. More acquisitions, faster expansion, more
[37:33] acquisitions, faster expansion, more firepower for the fried chicken war in
[37:35] firepower for the fried chicken war in America. This is how companies that
[37:37] America. This is how companies that started as tiny local brands become
[37:40] started as tiny local brands become global giants. But here's the tension I
[37:42] global giants. But here's the tension I keep coming back to. Jollibee's greatest
[37:45] keep coming back to. Jollibee's greatest strength has always been knowing its
[37:47] strength has always been knowing its customer better than anyone else in the
[37:49] customer better than anyone else in the room. They've been McDonald's in the
[37:51] room. They've been McDonald's in the Philippines because they understood
[37:53] Philippines because they understood Filipino taste. That hyper localization
[37:56] Filipino taste. That hyper localization was the whole game. But the Korean
[37:58] was the whole game. But the Korean strategy, the US franchise push, the
[38:01] strategy, the US franchise push, the Wall Street IPO, all of it requires
[38:04] Wall Street IPO, all of it requires Jollibee to become something more
[38:06] Jollibee to become something more universal, not just a Filipino brand.
[38:09] universal, not just a Filipino brand. It'll be interesting to see if they can
[38:11] It'll be interesting to see if they can pull that off without losing what made
[38:13] pull that off without losing what made them special in the first place. Which
[38:15] them special in the first place. Which brings me to my last question. Can any
[38:18] brings me to my last question. Can any other companies replicate what Jollibee
[38:20] other companies replicate what Jollibee has done? Honestly, I don't know. From
[38:23] has done? Honestly, I don't know. From my own experience as a founder, the most
[38:25] my own experience as a founder, the most overlooked factor in building a
[38:27] overlooked factor in building a successful global company is timing.
[38:30] successful global company is timing. Jollibee's rise wasn't just about great
[38:33] Jollibee's rise wasn't just about great food or smart management, [music] though
[38:35] food or smart management, [music] though it had both. It was built on two waves
[38:38] it had both. It was built on two waves of luck that nobody could have
[38:40] of luck that nobody could have predicted. The first was the 10 million
[38:42] predicted. The first was the 10 million Filipino workers scattered across the
[38:44] Filipino workers scattered across the world [music] by decades of economic
[38:46] world [music] by decades of economic history who just happened to carry their
[38:48] history who just happened to carry their love of chicken joy with them wherever
[38:50] love of chicken joy with them wherever they went. The second was the Korean
[38:52] they went. The second was the Korean wave which just happened to be priming
[38:55] wave which just happened to be priming consumers worldwide for the exact flavor
[38:57] consumers worldwide for the exact flavor profile Jollibee had been perfecting for
[38:59] profile Jollibee had been perfecting for [music] 50 years. Jollibee just had the
[39:02] [music] 50 years. Jollibee just had the wisdom to recognize both waves [music]
[39:04] wisdom to recognize both waves [music] and the courage to jump on them. That
[39:07] and the courage to jump on them. That being said, the countries and people who
[39:09] being said, the countries and people who win over the long [music] run aren't
[39:11] win over the long [music] run aren't necessarily the smartest or the best
[39:13] necessarily the smartest or the best funded. They are the ones who survived
[39:16] funded. They are the ones who survived long enough to be ready for the [music]
[39:17] long enough to be ready for the [music] next wave. Jollibees spend years being
[39:20] next wave. Jollibees spend years being overlooked and written off, but they
[39:22] overlooked and written off, but they never gave in. They kept [music]
[39:24] never gave in. They kept [music] watching. And when the moment came, they
[39:27] watching. And when the moment came, they were ready. I guess the wave doesn't
[39:29] were ready. I guess the wave doesn't care who you are. It just needs someone
[39:31] care who you are. It just needs someone [music] willing to ride it. If you found
[39:34] [music] willing to ride it. If you found this video insightful and feel like you
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