MANILA, Philippines – Competition in the coffee chain business in the Philippines just got stiffer. 

The Jollibee Group announced on Monday, February 16, that it would soon open Compose Coffee branches in Metro Manila. 

Jollibee Foods Corporation (JFC) bought a 70% stake in Compose Coffee in mid-2024. It was then the fastest growing coffee chain in South Korea with 2,470 franchised stores and has V of BTS as its brand ambassador.

Compose Coffee was founded in Busan in 2014 or over a decade ago, and most of its outlets are in Busan, Seoul, Gyeonggi-do, Gyeongsangnam-do. It operates the largest in-house, smart coffee roasting factory in South Korea. It now has over 3,000 stores in South Korea. 

“The introduction of the brand to the market through its franchising network forms part of the Jollibee Group’s strategy to strengthen its position in the high-growth coffee and beverage segment,” the company, founded by Filipino tycoon Tony Tan Caktiong, said. 

JFC said that its subsidiary, Fresh N’ Famous Foods Incorporated, has entered into a Master Franchise Agreement to bring Compose Coffee to the Philippines. 

“We are extremely excited to introduce Compose Coffee to the Philippines this 2026, aligned with its mission of making high-quality coffee more accessible to consumers,” Jollibee Group Philippines chief executive officer Joseph Tanbuntiong said. 

“This planned launch strengthens one of our key strategic growth pillars — the coffee and tea segment — and positions the Jollibee Group to play a more meaningful role in our customers’ daily routines. We look forward to bringing more moments of joy to Filipinos through innovative, world‑class beverage experiences,” he added.

Richard Shin, chief financial and risk officer and CEO of Jollibee Group International, added: “Compose Coffee’s entry into the Philippines reflects the Jollibee Group’s commitment to scaling brands with strong global potential. In every market where it operates, we’ve seen a disciplined operating model and deep focus on product quality that creates a repeatable formula for growth. We’re excited to bring that momentum to the Philippines and introduce more consumers to a brand that delivers both excellence and accessibility in every cup.”

JFC’s coffee and tea business has been a key driver of the group’s global growth. JFC has three other business units in the coffee and tea segment: Coffee Bean and Tea Leaf, Highlands Coffee, and Milksha. 

In its third quarter 2025 earnings presentation, JFC had described its collaboration with BTS’ V as “impactful” due to “sustained expansion momentum drive performance.” 

It said revenue was up 413% year or year from Q3 2024 to Q3 2025, and that the “sales uplift from [the] campaign exceeded interal targets coupled with aggressive rollout of over 300 franchised store openings YTD (1 new store/day).

Heavyweight competitor

The opening of Compose Coffee branches could give American coffee chain giant Starbucks a more serious run for its money in the Philippines.

According to JFC, in South Korea “Compose Coffee is recognized as the No. 1 coffee brand in customer satisfaction — a testament to its strong consumer relevance and consistent operational excellence.” 

Starbucks was brought to the Philippines by the Tantoco family of the Rustan’s Group. Rustan Coffee Corporation opened the first Starbucks in the Philippines at 6750 Ayala Avenie in Makati City on December 4, 1997. The Philippines was the third market to open Starbucks outside North America. (READ: Why Starbucks chose to expand in Philippines)

Starbucks now has around 500 stores throughout the Philippines. According to Euromonitor 2021 cited in the Philippine Coffee Industry Roadmap 2021 to 2015, Starbucks had a two-thirds share of the chained cafés/bars in the Philippines from 2016 to 2020, based on percentage of food-service value. In 2020, the JFC group’s share was only 6.5% and McDonald’s at 5.7%; WS&Landin Inc. or Bo’s Coffee at 5.4%, Mary Grace Foods Inc. at 5.3%; and Figaro Coffee at 3.1%. 

But the coffee chain business has radically changed today with the significant growth of a number of coffee brands in the Philippines. The chained cafés and coffee brands that have opened over the past five years include Malaysian brand ZUS Coffee with over 100 outlets, and local brand PickUp Coffee with 420 outlets nationwide as of August 2025.

The demand is being driven by mainly by young people who are using cafés as their work places and go-to places for socials. K-dramas that show Korean stars in cafés have also played a key role in influencing consumer behaviour worldwide, including in the Philippines.

But with so many coffee chains and local cafés sprouting in most urban centers nationwide, it’s possible that the market could soon reach saturation point, leading to closures of small shops that can’t compete. – Rappler.com