Jollibee Worldwide Pte. Ltd. (JWPL)—the international investment arm of Jollibee Foods Corp. (JFC) is investing $180 million (P8.1 billion) for a joint venture to set up and operate Dunkin’ Donuts stores in China.
Jollibee is one of the two local conglomerates (the other is SM Group) which had successfully penetrated the vast China market.
JPWL and its partner Jasmine Asset Holdings Ltd.’s joint company- Golden Cup Pte. Ltd. has signed the master franchise agreement with Dunkin Donuts Franchising LLC granting exclusive rights to establish the brand in regions across China.
JPWL holds 60 percent of Golden Cup while Jasmine holds the remaining 40 percent.
The two partners have pledged to invest $300 million to the joint venture, of which $180 million will come from JPWL, which will manage the day to day operations of the business.
The venture will open Dunkin’ Donuts shops across China including in Hong Kong, Macau, Fujian, Hunan, Guangdong, Hainan, Guanxi, Beijing, Tianjin, Hebei, Shangxi, Chongqing, Sichuan, Yunnan, Heilongjiang, and Jilin.
Dunkin’ Donuts is a global chain serving 5 million customers daily.
Jasmine is a wholly owned subsidiary of Hong Kong and Singapore-based RRJ Capital Master Fund II, L.P., an investment company that focuses on businesses across the energy, financial institutions, consumer, food and environmental sectors particularly in China, North America and Europe.
JFC programmed capital expenditure of P9.1 billion for 2015, up 42 percent from the P6.7 billion set in 2014, due to higher outlays for commissary investments and expansion.
The company’s January to September 2014 net income grew 18 percent to P3.7 billion from the P3.13 billion a year earlier, while total sales also rose 13 percent to P65.75 billion from P57.83 billion previously on sustained same-store sales and growth in store network.
The Jollibee group has opened a total of 148 new stores as of end-September, composed of 114 stores in the Philippines and 34 abroad.
As of end-September, JFC already has 2,849 stores in its portfolio: 2,258 in the Philippines and 591 outside the country.
In the Philippines, JFC has 847 stores of Jollibee, 404 for Chowking, 208 for Greenwich, 311 for Red Ribbo, 450 for Mang Inasal, and 38 for Burger King.
Outside the country, the company has 309 stores of Yonghe King in China, 43 for Hong Zhuang Yuan in Chiina, 47 for San Pin Wang in China, 111 Jollibee stores in various countries (30 in US, 50 in Vietnam, 12 in Brunei, 10 in Saudi Arabia, 3 in Qatar, 3 in Kuwait, one in Hong Kong and 2 in Singapore), 31 stores of Red Ribbon in US, 47 Chowking stores in various markets, and 3 Jinja Bar in US.
JFC also has 50 percent joint ventures for the following stores: 75 Highlands Coffee shops (Vietnam and the Philippines), 55 Pho 24 stores (Vietnam, Indonesia, Philippines, Cambodia, Macau and Korea), and 18 stores of 12 Sabu in China.