In what could possibly be my worst nightmare, Philippines based fastfood retailer Jollibee has purchased Californian coffee roaster and cafe The Coffee Bean & Tea Leaf. I sometimes joke about certain takeovers where it it like finding out your favourite restaurant has been purchased by McDonalds.
The Filipinos are extremely proud of their favourite national fastfood retailer, for the life of me I don't know why, its product is awful. But I have eaten there on occasions, especially when I am in the provinces and lack choice.
Jollibee Inc is a big business enterprise supported by a proud and fanatical population. The Coffee Bean & Tea Leaf isn't a young business, it has been around since 1963 and operating in many countries with a large consumer base in South East Asia.
What my concern is that executives will want to start playing around with the winning retail formula and try to put their own style on the business and ruin the consumer experience. Without reviewing their financial statements, I can see The Coffee Bean & Tea Leaf has expanded in many countries and may have not developed their supply chains extensively.
Jollibee has a pretty captive market, sure the fast food business is crowded with American giants McDonalds, KFC, Burger King and Pizza Hut dominating markets, but they are able to draw on nationalistic influences and attract consumers. I hope they just leave the business along and allow it to start trading profitably again.
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