MANILA - Jollibee Foods Corp said Tuesday it would reduce its planned capital expenditures for the year as the coronavirus pandemic disrupts operations.
Capex for 2020 was cut by 64 percent to P5 billion from P14 billion due to "operational constraints" and "limited mobility" caused by the COVID-19 pandemic, Jollibee told the stock exchange.
Deliveries accounted for 5 percent of total sales in the early part of 2020, from 3 percent during the same comparable period in 2019, the Philippines' largest fast food operator said.
Select stores in Luzon were closed from mid-March due to the lockdown, which was extended until April 30. Stores that stayed open were limited to drive thru, takeout, delivery and selling ready-to-cook meals.
Jollibee is eyeing “full restoration” after the lockdown is lifted with its delivery business driving recovery, said CEO Ernesto Tanmantiong.
“While the COVID-19 pandemic has brought unprecedented disruption to our operations in the Philippines and other parts of the world, we are already planning for the full restoration of our operations. We expect growth to resume even if gradually, driven by our Delivery, Take-Out and Drive Thru business channels,” Tanmantiong said.
Jollibee has donated P100 million worth of food from its brands to frontliners. It would allot another P120 million in food aid for the marginalized sector, JFC said.