The Coffee Bean & Tea Leaf enhances the F&B franchise experience with seamless mobile ordering.
Jollibee Foods Corporation (JFC), the powerhouse behind some of the world’s most recognizable F&B franchise brands, is making bold moves in the coffee sector. The Manila-based conglomerate is set to accelerate its expansion in 2025, with a strategic focus on franchised growth for its coffee brands: Compose Coffee, The Coffee Bean & Tea Leaf (CBTL), and Highlands Coffee.
With plans to open between 700 and 800 new stores globally, JFC is strengthening its position in the international F&B franchise market. Key growth regions include South Korea, India, and Vietnam, where demand for branded coffee chains is soaring.
South Korea’s coffee industry ranks among the top three globally in per capita coffee consumption, making it a lucrative market for F&B franchise investments.
JFC acquired a 70% stake in Compose Coffee in July 2024 for $238 million, a move that significantly expanded its coffee portfolio. The brand, known for its affordable, high-quality coffee, has quickly grown to over 2,600 outlets across South Korea.
To capitalize on this momentum, JFC aims to open at least 360 new Compose Coffee stores in 2025. According to JFC’s Chief Financial Officer Richard Shin, demand from prospective franchisees has surged since the acquisition.
“We’re building 30 stores a month just in South Korea, and that is because franchisees are coming in to take this brand on,” said Shin.
This aggressive expansion underscores the strength of the F&B franchise model in a market that favors scalability and brand recognition.
Highlands Coffee, one of Vietnam’s largest and most recognized coffee chains, is also a key driver of JFC’s coffee strategy. The brand currently operates over 723 outlets in Vietnam and 779 globally, maintaining a 35-40% market share in the Vietnamese coffee sector.
In 2023, Highlands Coffee was ranked Vietnam’s top F&B brand in customer experience by KPMG, reflecting its strong brand loyalty and market penetration.
JFC has set an ambitious goal to double net outlet growth for Highlands Coffee in 2025, with 150-180 new stores planned across Vietnam and the Philippines. While Vietnam remains its primary market, the Philippines has emerged as an expansion hub, with 43 existing locations and growing consumer interest in premium coffee experiences.
This rapid expansion aligns with Vietnam’s booming coffee culture, where demand for specialty coffee, café chains, and social spaces continues to rise.
India is emerging as a key battleground in the global coffee industry, with JFC making major investments to capture market share.
CBTL, already an internationally recognized coffee chain with over 1,200 outlets in 24 countries, is set for aggressive growth in India. In December 2024, JFC signed a master franchise agreement with Kolkata-based Ekaagra Ostalaritza Pvt Ltd. Under this deal, over 200 CBTL stores are expected to launch in India by 2030, with at least 25 new stores opening in 2025.
India’s rapidly growing middle class and evolving café culture make it an ideal target for CBTL. Franchising is a key component of JFC’s strategy, as master franchise agreements allow for faster expansion with reduced operational risk.
“Master franchisees expand with speed, and franchised cafés are quicker and to some extent easier to build,” noted Shin.
By leveraging this model, JFC is positioning CBTL as a major player in India’s competitive coffee landscape, where local and international brands are vying for dominance.
JFC’s coffee division has become a key contributor to its overall revenue growth. In 2024, the company reported 10.6% year-on-year revenue growth, reaching PHP 270 billion ($4.7 billion).
Its coffee brands played a major role in this success:
CBTL contributed 16% to system-wide sales growth.
Highlands Coffee accounted for 13%.
Compose Coffee added 8%.
JFC’s coffee-focused strategy aligns with its broader goal to operate over 10,000 stores globally, with more than 66% of outlets located outside the Philippines. This marks a significant shift toward international expansion, reinforcing JFC’s commitment to becoming a dominant force in the global F&B franchise sector.
While JFC is aggressively expanding its coffee portfolio, its non-café brands remain strong contributors to its revenue. The company owns and operates:
Jollibee, its flagship fast-food brand known for fried chicken and Filipino-style spaghetti.
Greenwich Pizza, a popular pizza chain in the Philippines.
Smashburger, a U.S.-based fast-casual burger chain.
Chowking, a quick-service Chinese restaurant chain.
These brands continue to drive steady growth, ensuring JFC maintains a diversified and resilient business model.
Jollibee Foods Corporation is making bold moves in the F&B franchise industry, particularly in the global coffee sector. With major investments in South Korea, Vietnam, the Philippines, and India, JFC is well-positioned to compete with the biggest names in the coffee business.
By leveraging its franchise model, focusing on high-growth markets, and scaling aggressively, JFC is set to become a powerhouse in the international café industry.
As the demand for quality coffee and scalable franchise brands continues to grow, JFC’s expansion strategy is a clear signal that the company is just getting started in reshaping the global coffee landscape.
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