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Burger Palabok Pie Sample the Jollibee menu

June 1, 1999
Web posted at: 2:16 p.m. EDT (1816 GMT)

From Correspondent Farland Chang

MANILA, Philippines (CNN) -- Throughout Asia's economic crisis, Philippine fast food restaurant Jollibee has been the object of deep affection from both children and investors.

William Tan and his family have good reason to be jolly. The ice cream stand his brother Tony started 20 years ago is now an empire, with profits of more than $20 million a year.

It's ranked in surveys as the most admired company in the Philippines and one of the top six in all Asia.

"This is brought about by Jollibee being able to stay tuned to customer needs," Tan said.

Before Tan's family started Jollibee in the late '70s, it wanted to buy a McDonald's franchise but didn't want to pay royalties to McDonalds. So rather than join them, it set out to beat them.

"For every store they opened, we would open three around it," Tan said.

The strategy is one reason Jollibee has gobbled up more market share in the Philippines: 325 stores compared to McDonald's 200.

"I think they were able to cater their tastes specifically to what Filipinos like," said customer Manuel Pasca.

Jollibee's success is based on Western fast food served Asian-style and at low prices. For example, in Manila, the Aloha burger comes with a slice of pineapple.

"Everything's a little bit sweeter," said customer Timmy Rodas. "Filipinos have a sweet tooth."

Jollibee's burgers, fried chicken and spaghetti are served in 12 countries, including China and Malaysia.

Last year, the company opened its first U.S. store in Daly City, California. Customers waited up to two hours for food.

"As much as half of the customers are non-Filipinos, which is to say they are other Asian nationalities, Caucasian and the mainstream market," Tan said.

Jollibee plans to open 50 more new stores overseas this year.