Despite rising global inflation and mounting geopolitical risks, Jollibee Foods Corp. is determined not to compromise on product quality or portion sizes, even as it navigates higher operating costs.
During a company briefing last week, Richard Chong Woo Shin, Jollibee’s chief financial and risk officer, emphasized that maintaining customer satisfaction and long-term brand equity is central to the company’s pricing strategy.
“We will not reduce quality or portion sizes to go to cheaper ingredients in order to manage our margins,” Woo Shin said. “That directly impacts consumer satisfaction, which is very important to us, and the long-term brand equity will suffer if we start to do that.”
The company reported a 13 percent rise in inventory costs in the first quarter, driven by global pressures linked to the Ukraine-Russia conflict, tensions between China and the US, and higher energy and freight costs. Inventory costs as a percentage of revenue climbed to 59 percent from 55 percent a year earlier, compressing margins in its Philippine operations.
Despite this, Jollibee kept price hikes minimal, with a 0.4-percent average increase in the first quarter to safeguard sales volumes and market share. “We are in the affordability and value segment of food, so we take pricing very seriously,” Woo Shin said.
Local sourcing has helped cushion the impact. Chicken, which makes up roughly 40 percent of Jollibee’s business, is fully raised in the Philippines, reducing exposure to currency swings and import-driven inflation. Imported beef, however, remains vulnerable to global supply pressures.
Woo Shin said Jollibee will continue implementing “measured, thoughtful, and targeted” price adjustments while ensuring that quality and serving sizes remain intact—a strategy aimed at weathering economic pressures without losing consumer trust.
