Carrying on with my brother's observations, I agree that there was a conscious effort to portray Jollibee as Filipino: that was obviously what spurred interest in it in the first place.
(First of all, both businesses operating in the Philippines are owned by Filipino-Chinese businessmen.)
Remember, Pinoys don't eat fries and hamburgers, but McDonalds', spending oodles in advertising and building stores on every commercial block helped stoke the interest of Filipinos in fast food. Around this time, most shopping malls were just barely the size of a basketball courts.
Enter Jollibee, which, admits one of their pioneers, "piggybacked" on the growth of the market, but accidentally stumbled on a two key discriminating factors that spurred it's success, and sustains it to its day: one is that it is Filipino, and was conspicuously so. While the McDonald's folk took your order in complete English, Jollibee greeted customers with a "Magandang Umaga!". The folks at Jollibee figured out what McDonald's should have known from the start: fries and hamburgers, just like anywhere, is a mass sell. So appeal to that taste. Which segues nicely to the taste factor: more sugar, more Filipino. Outside of signature items like Pancit Palabok, and today's absurdly popular Shanghai Rolls, Jollibee puts the Filipino pallette on the griddle. A McDonald's executive back in 1995 went so far as to say that if they (McDonald's) added one tablespoon of sugar to every burger they make, they'd be just as popular as the Bee. With Jollibee's size, they can all but make a few cents on a some of their items (like Wal-Mart), and still make a profit, consequently drawing their competitor into a price war that Jollibee seldom loses. All things equal, which is just about where it is now, taste is what makes Jollibee number one.
How bad is the "trouncing"? By 2001, Jollibee was outselling McDonald's 4:1. A friend who works as an area manager for Jollibee (no not Ziegler) says that the busiest store (Guadalupe) grosses nearly half a million pesos a day. At an average of receipt of 42 that's more than 11,000 visitors. She says on any given time of the day, no seat is vacant.
Not so fast. There are two more things that boosted Jollibee sales. This is pure conjecture on my part, btw. One is that during the time Jollibee and McDonald's were neck to neck, we were kicking the U.S. bases out of Clark and Subic. There is an unmeasured backlash on the Big Mac, beginning with the fact that they even recycled advertisements from the U.S. to show on local media (the nerve!). A colleague who used to work at McDonald's (head office, not the kitchen) said that it was unremarkable for McDonald's to portray themselves as a popular U.S. import. Colonial mentality, as they say back then, was waning. Soon, McDonald's took in Dolphy and Richard Gomez (who used to work at McDo, stressing that McDonald's was cleaner), but all was too late.
At that time, there was another key ingredient (again pure conjecture). Purposely hiring students from Maryknoll, La Salle, Assumption, Ateneo and St. Scholastica as parttime cashiers did a few things to McDonalds: it prettied up their store, and it did nothing for sales except alienate the average Pinoy who just wants a hamburger. That said, I really didn't mind, but I could clearly see why others would.
All told, time and again, Jollibee has innovated and set the standards for fastfood excellence in the Philippines. When they started losing ground to KFC (Filipinos love their fried chicken), they offered their own (Chickenjoy), and it was a hit. (They tried boneless bangus, but I heard the demand for it was so high, they had to kill the product because they were always out of stock!) What McDonald's in the Philippines learned is that they need to adapt themselves to the local culture, and more importantly, never market themselves as a U.S. product (unfortunately, despite all their efforts, they are often seen as THE American icon and are made targets of anti-anything american almost anywhere). Thus, McPao and McSushi. I heard there was a McSamosa but that would be a lie now would it?