Jollibee in joint venture to run Dunkin' Donuts in China
MANILA, Philippines – Jollibee Foods Corporation entered into a joint venture with an Asian investment fund to create a firm that will own and operate Dunkin’ Donuts in China.
“The Dunkin' Donuts deal provides us with an excellent opportunity to operate and expand one of the leading global coffee chain brands in the 2nd largest economy in the world,” Jollibee said.
In a disclosure to the stock exchange Friday, December 19, Jollibee said that it will own 60% interest in the joint venture company, while 30% will be owned by investment firm, Jasmine Asset Holdings Inc.
Both companies will have a combined, committed investment of $300 million, with Jollibee contributing $180 million and Jasmine adding $120 million.
Jollibee’s wholly-owned subsidiary, Jollibee Worldwide Pte. Ltd., will be responsible for the day-to-day business operations.
Jollibee and Jasmine also signed on Friday an agreement with Dunkin’ Donuts Franchising L.L.C. to execute a master franchise agreement between the American donut chain and the joint venture company.
Dunkin’ Donuts is an established baked foods and coffee chain, serving more than 5 million customers per day globally and selling more than 52 varieties of donuts and more than a dozen coffee beverages, including bagel, breakfast sandwiches, and other baked goods.
There were 11,123 Dunkin’ Donuts stores worldwide as of the third quarter this year.
Jasmine, meanwhile, is a wholly-owned subsidiary of RRJ Capital Master Fund II L.P. of RRJ Capital.
RRJ Capital, founded in 2011, is an Asian-based investment firm with offices in Hong Kong and Singapore and currently manages two funds with an aggregate size of $5.9 billion.
It also has significant investments in the food and consumer sector in China, and also invested in companies in North America and Europe.
Jollibee, to date, operates the country’s largest food service network in the Philippines.
As of November 2014, Jollibee is operating 2,283 stores in the Philippines and 603 stores overseas. – Rappler.com
Shenzhen, China shopping district image from Shutterstock