Jollibee Invests P290 M to Operate Tim Ho Wan Franchise in China
Jollibee Foods Corporation (JFC) has entered into a joint venture to run the Tim Ho Wan franchise in China.
In a disclosure released November 13, the two parties involved in the deal are Jollibee’s wholly owned subsidiary Golden Plate Pte. Ltd. (GPPL) and Dim Sum Pte. Ltd. (DSPL), which operates the Singapore franchise of the popular dim sum restaurant.
JFC, which will own 60 percent of the venture, will also be tasked with developing and operating the Tim Ho Wan stores in Shanghai and other cities in China. Jollibee, through GPPL, will contribute S$7.8 million (or around P290.1 million) to the overall S$13 million (or P484.6 million) investment to the venture.
The franchise venture into China is a prelude to Jollibee’s eventual ownership of Tim Ho Wan Pte. Ltd. It was previously announced that Jollibee plans to acquire the master franchise, which will occur in 2025, seven years after Jollibee’s investment deal with Tim Ho Wan in 2018. Jollibee previously invested P1.74 billion in private equity fund Titan Dining LP in return for the eventual acquisition of 100 percent of the master franchise holder of Tim Ho Wan Pte. Ltd. and Dim Sum Pte. Ltd.
In the Philippines, Tim Ho Wan is franchised by Foodee Global Concepts, which is also behind the local franchising of Hawker Chan, Kam’s Roast, and Pound.
The Tim Ho Wan restaurant chain began with its first branch in Hong Kong in 2009, where it was awarded one Michelin star in 2010. The popular restaurant has since expanded into other countries, including Japan, Macau, Taiwan, Australia, and the Philippines. In 2018, Tim Ho Wan was named the Best Value dim sum restaurant in Hong Kong by CNN.
Jollibee now adds Tim Ho Wan to its growing food service network. In the Philippines, Jollibee operates Chow King, Greenwich, Red Ribbon, Mang Inasal, Burger King, and PHO24. Abroad, it runs Yonghe King, Hong Zhuang Yuan, and Dunkin’ Donuts in China, as well as a number of other restaurants and food outlets in Vietnam, Brunei, Singapore, Macau, Malaysia, Saudi Arabia, Watar, Kuwait, United Kingdom, United States, and more.
Earlier this year, it was announced that Jollibee had acquired 100 percent of US-based The Coffee Bean and Tea Leaf and its 1,174 outlets worldwide.