
Originally Posted by
Dakota
to Tarmac, the reason why Jollibee opens stores in the USA is because companies have to grow revenues and profits to meet share holder and street expectations. If Jolliebee can crack the USA market it will attain these goals. Someone at Jolliebee looked at the market demographics, prepared a business case that was eventually approved by the company that said it had a positive NPV or EVA with all the required checks and balances. But a business case is just a piece of paper. Jolliebee will have to deliver on these expectations while competing in a very competitve fast food market with the likes of McDondalds, Burger King, KFC, Chick Filet and a host of other wannabees. Jolliebee has a brand upside because so many filipinos are aware of the brand and enjoy its products. The jobs in the USA pay more because of the law, but more importantly labor competition. To attract and retain fast food workers, companies must pay competitive wages in markets where labor over-supply does not exist. Another fundamental economic principle.
It opened in the US because there is a demand and not just for Filipinos alone. It opened there because there is purchasing power. Yes the Filipino base customers will help in its initial stage but thats not the end all and by all. Its still purchasing power. It did not open to a poor country because wages are cheap. By the way- Jollibee in the US follows statutory requirements just like in the Phils.