Compose was one of JFC’s largest acquisitions when it was purchased in 2024 for about P20 billion, coming in just second to The Coffee Bean & Tea Leaf (over 1,270 global stores), underscoring the fast-food giant’s focus on caffeinated beverages as a core pillar of growth.
It is targeting the takeout-focused value coffee segment, which is led by players such as Pickup (over 420 stores) and Zus (153 outlets in the Philippines and over 1,000 globally).
Compose is a formidable player, with over 3,000 stores, driven by a lineup of sweetened iced beverages popular among millennials and Gen Z.
“It was just a matter of time before they brought the brand to the Philippines. It’s a logical move. Compose Coffee’s image, product offering, and price point have the potential to make them a formidable player in our market,” said Juan Paolo Colet, managing director at China Bank Capital.
“They will take competition in the local coffee scene to a new level,” he added.
Big picture
JFC has a strong foothold in coffee, with CBTL accounting for a sizable share of the current market that spans over 2,100 outlets, led by brands Dunkin and Starbucks occupying the top spots, a recent report from retail intelligence platform GapMaps showed.
It expects another 1,000 new stores to open in 2026, with a larger share going to value-focused offerings.
“For every Filipino who could afford the premium experience, there were many more who couldn’t. This created an opportunity for brands like Pickup and Zus to provide quality products at lower prices that are attractive to the larger middle-income consumer group,” according to GapMaps.
“These new brands have achieved a level of store density not possible for premium retailers, while also operating successful outlets in catchment areas unsuitable for premium retail. They’re also attracting higher-income consumers who aren’t always seeking a premium coffee shop experience,” it added.
JFC competitive edge
For Colet, Jollibee has the network and experience to rapidly expand Compose across the country.
“The odds are stacked in favor of a successful rollout. Jollibee has the expertise, network, and resources to make this work. Moreover, they’ve learned important lessons from the challenges of their CBTL acquisition,” Colet said.
“To me, the only questions are how quickly they can scale this and what margins they can command,” he said.
What’s next?
The cafe craze isn’t going away anytime soon, with demand lifted by a growing population and steady economic growth.
GapMaps said brands will need to keep pace with the fast-growing consuming class, which is rising 3.4 percent annually and adding 4 million potential coffee buyers by 2030.
“The addition of 4 million new potential customers during the next five years will mean each of those brands needs to open a further 160–200 stores just to maintain their current market penetration,” it said.
With Compose arriving this year, competition in this booming industry is about to get extra strong.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
