Jollibee buys China fastfood chain
Posted on May 7th, 2010
Homegrown fastfood giant Jollibee Foods Corp. continues to extend its presence in China as it recently acquired one of the local beef noodle there. In its disclosure to the Philippine Stock Exchange, Jollibee said it will be investing RMB30 million ($4.39 million) to secure 55 percent stake on the San Pin Wang restaurant chain.
Another RMB20 million in investment in anticipation of expansion was sealed in a joint venture agreement signed by Jollibee Worldwide Pte. Ltd. and Guangxi Zong Kai Food and Beverage Investment Co. Ltd. But this would be after the venture becomes fully operation in January 2011.
Jollibee said that San Pin Wang, with a chain of 34 restaurants in Nanning and Liuzhou, Guang Xi Zhuang Minority Autonomous Region in the People’s Republic of China, has projected annual sales of RMB100 million in 2010. It is profitable and without outstanding debt even. The company operates two commissaries.
Jollibee chairman and chief executive officer Tony Tan Caktiong believe that they can make San Pin Wang grow to a very large and successful fastfood chain in China. “San Pin Wang provides food and service of superior value to the consumers of Nanning and Liuzhou. We wish to bring this brand to consumers in many parts of China, beginning with the neighboring provinces in South China,” he added.
At present, Jollibee operates two brands in China. These are Yonghe King, which is based in Shanghai and Hong Zhuang, which is based in Beijing. These operate 165 stores and 46 stores respectively in China. The company’s sales in China account for 9 percent of its system wide sales, or sales both by company-owned and franchised-stores, which amounted to P63.73 billion last year.
Jollibee remains to be the country’s largest fastfood network in the country at present. It has a total of 1,569 stores in the Philippines as March 31, and it has also established its presence in Vietnam, US, Brunei and Dubai. The Jollibee Group also carries the brands Chowking, Greenwich, Red Ribbon, Delifrance and Manong Pepe restaurants.
