Jollibee (Philippine) Acquires Master Franchise Holder of Tim Ho Wan (Hong Kong)
09 May 2018 - Jollibee Foods Corporation is acquiring the master franchise holder of the Michelin-star dim sum restaurant chain through a private equity fund investment
Filipino fast-food giant Jollibee Foods Corporation (JFC) will invest up to S$45 million (P1.74 billion) in private equity fund Titan Dining LP to buy the master franchise holder of the Tim Ho Wan brand in the Asia Pacific.
Jollibee told the Philippine Stock Exchange (PSE) on Wednesday, May 9, that the private equity fund has executed a binding agreement for the acquisition of Tim Ho Wan Private Limited and its affiliate Dim Sum Private Limited.
Tim Ho Wan Private holds the exclusive long-term master franchise to operate Tim Ho Wan within the Asia Pacific region, excluding Hong Kong. Dim Sum Private, meanwhile, owns and operates Tim Ho Wan stores in Singapore.
"This investment gives JFC the opportunity to have a significant interest in the Tim Ho Wan franchise in the long term and will bring very healthy financial returns to [the company]," said Jollibee chairman Tony Tan Caktiong in a statement.
Tim Ho Wan Private also has franchisees in Cambodia, Indonesia, Japan, Macau, Taiwan, Thailand, Vietnam, Australia, and the Philippines, with further development planned in the Asia Pacific.
Jollibee said there are 40 restaurant outlets under Tim Ho Wan Private Limited and Dim Sum Private, both company-owned and franchised stores.
Titan has a fund size of S$100 million (P3.87 billion), of which 45% comes from Jollibee's planned investment. (READ: Jollibee suspends Chowking, Greenwich, Red Ribbon delivery websites)
Titan is managed by Titan Dining Partners Limited, consisting of individuals with extensive experience in the food and beverage sector in the Asia Pacific. Jollibee will sit in the investment committee of Titan.
Jollibee said the agreement will enable it to have the opportunity to acquire a substantial ownership in Tim Ho Wan's master franchise in the Asia Pacific when the term of the fund ends in 7 years.
To prepare for that, Jollibee will operate as a franchisee of Tim Ho Wan in Shanghai, China.
Tim Ho Wan is a Michelin-star dim sum restaurant chain which originated in Hong Kong in 2009.
As of now, Jollibee has 3 brands serving Chinese cuisine – Chowking, a Chinese fast casual concept with presence mostly in the Philippines; Yonghe King, a Taiwanese food-inspired restaurant chain in China that is famous for its freshly prepared soya milk; and Hong Zhuang Yuan, a full-service restaurant chain in Beijing, China.
JFC's 3 Chinese brands accounted for 23% of its systemwide sales in 2017.