JOLLIBEE Foods Corp. (JFC), operator of homegrown fast food brand Jollibee, is set to operate and manage Dunkin’ Donuts stores in China over the next 20 years through a joint venture with an Asian investment firm.
JFC, through its international unit, Jollibee Worldwide Pte. Ltd. (JWPL), has signed a joint venture agreement with Jasmine Asset Holding Ltd. to franchise the Dunkin’ Donuts brand in China.
JPWL will hold 60 percent of the business while Jasmine will own the remaining 40 percent.
Both companies have also inked a master franchise agreement with Dunkin’ Donuts Franchising LLC, owner and operator of Dunkin’ Donuts, to export and develop the brand across China.
In a disclosure to the Philippine Stock Exchange, JFC said the joint venture between JPWL and Jasmine will execute the opening and operations of a minimum of 1,459 Dunkin’ Donuts stores in China over 20 years, based on an agreed development plan.
The two firms will invest $300 million to the joint venture, with JPWL contributing $180 million.
The joint 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 baked goods and coffee chain that serves 5 million customers daily. Its products include 52 donut varieties, more than a dozen coffee drinks, and an array of bagels, breakfast sandwiches and other pastries.
As of end-September, Dunkin’ Donuts had 11,123 stores worldwide, 7,941 of them in the United States while 3,182 outlets are spread across 34 countries.
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 energy, financial institutions, consumer, food and environmental sectors particularly in China, North America and Europe.
Besides Jasmine, Jollibee Group also has a 50 percent interest in other joint venture businesses including the 75 shops of Highlands Coffee in Vietnam and Philippines; 55 stores of Pho 24 in Vietnam, Philippines, Indonesia, Cambodia, Macau and Korea; as well as 19 outlets of the 12 Sabu brand in China.
JFC has programmed a P9.1-billion capital expenditure for 2015, which is 42 percent higher than the P6.7 billion it set aside in 2014. The increase in the 2015 capex is mainly due to commissary investments and expansion.
The company recorded an 18 percent increase in its January to September net income to P3.7 billion from P3.13 billion a year ago. Sales grew by 13 percent to P65.75 billion from P57.83 billion last year on sustained same store sales and growth in store network.
To date, JFC has 2,886 stores worldwide—2,283 in the Philippines and 603 abroad across China, Vietnam, Brunei, Saudi Arabia, Qatar, Kuwait, Singapore, Oman, United Arab Emirates, and the United States.