MANILA, Philippines - Fastfood giant Jollibee Foods Corp. (JFC) together with an Asia-based investment firm will be pouring in a slew of donut shops over the next two decades in China as they have bagged territorial rights to expand and operate the Dunkin’ Donuts brand in the world’s second largest economy.
In a statement to the local bourse, JFC said it is teaming up with Jasmine Asset Holding Ltd. to form a joint venture company that would open and operate a minimum of 1,459 Dunkin’ Donuts shops across China over 20 years.
Under the agreement, JFC, through wholly-owned subsidiary Jollibee Worldwide Pte. Ltd., will own 60 percent of the business and will be in charge for directing day-to-day operations while Jasmine will own the remaining 40 percent.
The two firms have already committed to invest up to $300 million to the joint venture, in which JFC will be contributing $180 million.
JFC said the joint venture has also inked an agreement with Dunkin’ Donuts Franchising LLC to execute a master franchise agreement between the parties upon the organization of the JFC-Jasmine partnership.
Under the master franchise agreement to be signed, JFC said the joint venture would have the exclusive rights to develop Dunkin’ Donuts in Hong Kong, Macau, Fujian, Hunan, Jianxi, Guangdong, Hainan, Guanxi, Beijing, Tianjin, Hebei, Shangxi, Chongqing, Guizhou, Sichuan, Yunnan, Heilongjiang and Jilin.
Dunkin’ Donuts is one of the world’s leading baked goods and coffee chains, serving more than five million customers a day worldwide.
As of the third quarter of the year, there were a total of 11,123 Dunkin’ Donuts stores worldwide.
The acquisition of the territorial rights of Dunkin’ Donuts in China would further reinforce JFC’s international business.
JFC operates the largest fastfood service network in the Philippines with 2,283 branches locally and 603 stores abroad as of end-November. Its brands include Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King.
Jasmine, meanwhile, is a wholly owned subsidiary of investment firm RRJ Capital Master Fund II, L.P. which has offices in Hong Kong and Singapore.