Coffee Bean & Tea Leaf (US) Coming After Starbucks, Luckin in Asia?
29 Jul 2019 - Jollibee Foods Corp. is buying California-based Coffee Bean & Tea Leaf for $350 million, according to CNN. The coffee chain has 1,200 stores across 25 countries.
Jollibee, the Philippine’s biggest restaurant company that purchased Smashburger last year, will invest $100 million for an 80% stake in a Singapore venture set up with Vietnamese partners to acquire Coffee Bean, according to a stock disclosure. The rest will be in the form of advances.
JFC, which operates 4,000 restaurant units globally, will go head to head with Starbucks and China-based Lukcin by trying to expand Coffee Bean's footprint in Asia.
Luckin has been loudly coming after Starbucks in China, claiming it will have 4,500 stores by the end of the year there compared to Starbucks' current 3,600 locations.
Starbucks CEO Kevin Johnson, however, told CNBC earlier this year that Luckin's claim is "unlikely," noting his company's 18% growth in new China stores as of the fourth quarter of 2018.