Jollibee’s Tony Tan Caktiong Sees Net Worth Fall Nearly 40% Amid Sluggish Sales

This story is part of Forbes’ coverage of Philippines’ Richest 2020. See the full list here.

­Fast food billionaire Tony Tan Caktiong suffered a pandemic-induced blow to his wealth this year. While nearly 90% of his Jollibee eateries had reopened by the end of June, most were limited to delivery and takeout. The lack of dine-in services cut sales by nearly half and sent Jollibee’s shares down more than 40%, dropping Tan Caktiong’s net worth by 37% to $1.9 billion.

That’s a far cry from 2018, when Tan Caktiong was quoted as saying he wanted Jollibee to be the world’s largest food company. While the company operates more than 3,300 outlets in the Philippines and over 2,500 overseas—including U.S.-based chains Smashburger and Coffee Bean & Tea Leaf—it’s had to shutter close to 70 outlets overseas. His home market is also suffering. “Lockdowns significantly affected the Philippine business where the bulk of revenues still come from dine-in sales,” says DBP-Daiwa Capital Markets analyst Renzo Candano in Manila.

“We have a lukewarm view on Jollibee and other consumer companies that are dependent on discretionary spending and nonessential foot traffic,” says Philippine National Bank research head Alvin Joseph Arogo. The bank forecasts Jollibee’s net loss at 7.8 billion pesos ($159 million) this year. The company declined to comment. To offset its challenges, Jollibee hopes to expand its use of cloud kitchens—after opening its first one in the UAE in March.