22 May 2026

Jollibee tempers growth as costs rise

Strong US interest drives Jollibee’s franchising program, but soaring expenses force management to tighten margins and delay growth plans.

aviNews Asia

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Jollibee Foods Corp is navigating a challenging start to 2026. Rising input costs have weighed heavily on first-quarter profits, prompting management to slow expansion plans. The company reported that soaring expenses, particularly in raw materials and logistics, have eroded margins, forcing executives to roll out cost-containment measures.

Balancing expansion with financial discipline

Despite these pressures, Jollibee remains committed to international growth. Its US franchising program, launched in 2025, has attracted strong interest, with over 100 stores already operating across North America. Demand continues to surge, and the company aims to reach 350 outlets in the region.

“We are seeing strong franchise demand in the US, but we must balance growth with financial discipline,” said Richard Shin, JFC’s Chief Financial and Risk Officer.

Price hikes dismissed as last resort

Speculation about possible menu price increases has surfaced as costs climb. Jollibee has publicly dismissed immediate price hikes, emphasizing that affordability remains central to its brand identity.

“When we did the math and the calculation, we don’t need to tip the scale too far in terms of price increase to really be able to absorb that,” Mr Shin explained. He added that affordability is key to sustaining consumer loyalty in competitive quick-service markets.

Cost containment plan takes center stage

The company’s cost containment strategy includes streamlining procurement, optimizing store operations, and reviewing promotional spending.

“There is a cost containment plan, both at the corporate office but also at the business units… we’re going to be smart about it,” Mr Shin noted.

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President and CEO Ernesto Tanmantiong reinforced this approach, saying: “We are taking disciplined steps to manage near-term volatility through measured price increase beginning in Q2, alongside thoughtful and targeted cost management initiatives, while continuing to advance sustainable growth and long-term shareholder value.”

Future prospects hinge on cost control

Industry analysts note that Jollibee’s brand strength and consumer appeal remain intact despite financial headwinds. Signature products such as Chickenjoy continue to drive sales, while localized offerings bolster relevance in diverse markets.

The company’s ability to attract franchise partners in the US underscores confidence in its long-term growth trajectory. Still, the near-term outlook hinges on how effectively Jollibee manages rising costs without compromising its expansion strategy.

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