In 1975 Tony Tan and his family opened a Magnolia Ice Cream parlor in Cubao. Sometime in 1978, Tony Tan and his brothers and sisters engaged the services of a management consultant, Manuel C. Lumba. Lumba shifted the business focus from ice cream to hotdogs, after his studies showed that a much larger market was waiting to be served. Lumba became Tan's last business and management mentor.
The Jollibee mascot was inspired by local and foreign children's books. Lumba created the product names "Jollibee" and "Chickenjoy". He had the company incorporated and leased a house on Main St. in Cubao, Quezon City as the first headquarters. Lumba formulated a long-term marketing strategy: listing up a number of consumer promotions and traffic building schemes. Tan stressed that developing internal strengths was critical. The stores were re-designed, the service transformed into a full self-service, fast-food operation with drive-throughs. Not long after, Tan and Lumba went on an observation tour in the United States, attending food service and equipment conventions. Tan placed Lumba in charge of franchise development.
In 1978 and 1979, in its first years as a burger chain, Jollibee launched its first successful products, the Jollibee Yumburger and Jollibee Spaghetti, both having tastes that suit to Filipino palates.
In 1980, Jollibee successfully launched its iconic fried chicken product called "Chickenjoy" and its version of French fries called "Jolly Crispy Fries.
Despite the entry of McDonalds in the country in 1981, Jollibee was able to thrive (due to the success of the Yumburger, Jollibee Spaghetti and Chickenjoy) and subsequently, beat McDonalds to become the number one fast food chain.
In 1982, Jollibee strengthened itself in the hearts of Filipinos by launching its own version of the popular Filipino dish palabok as "Palabok Fiesta".
In 1984, Jollibee launched its version of McDonalds' famous Big Mac, the Jollibee Champ. Not only does it also