In 1979, Amalia Hizon Mercado, husband Renato Mercado together with their five children, Consuelo Tiutan, Teresita Moran, Renato Mercado, Ricky Mercado and Romy Mercado established Red Ribbon as a small cake shop along Timog Avenue in Quezon City. The cakes developed by Teresita Moran are what gave Red Ribbon its prominence in the dessert market of the Philippines. By 1984, it opened its first overseas outlet in West Covina, California. The company began franchising in 1999. Today, there are more than 200 branches all over the Philippines; 32 stores all over California; two branches in Las Vegas; two in New Jersey (Jersey City and Bergenfield); one in Metropolitan Phoenix; one in New York City; one in Virginia Beach, Virginia; and one in Houston, Texas. Other expansion plans continue to be worked out.

In 2005, Red Ribbon was acquired by Jollibee Foods Corporation.] Red Ribbon Bakeshop, Inc. is managed through JFC's holding company, RRB Holdings.