Magazines Archives - 2008 October

Jollibee forges on with acquisitions worldwide
Story 10 - Food Business Area

PHILIPPINE-LISTED Jollibee Foods Corp (JFC) is forging on with strategic acquisitions worldwide by completing the purchase of a congee chain in Beijing, China, soon after buying into a US restaurant business in New Mexico.

Through wholly-owned subsidiary Jollibee Worldwide Pte Ltd, JFC signed an agreement to acquire the Hongzhuangyuan chain of restaurants in Beijing for RMB379 million (US$55.5 million). The transfer of ownership is scheduled for this month, “subject to the approval by the Ministry of Commerce of [China]”, JFC told the Philippine Stock Exchange.

Hongzhuangyuan operates 37 restaurants, of which 31 are companyowned, in Beijing and other cities in China. It is estimated to make RMB197 million this year and is debt-free.

Only in July this year, the Philippines’ largest fast-food chain had signed an agreement via its subsidiary to acquire a 12% stake in Chow Fun Holdings LLC, US developer and owner of Jinja Bar and Bistro which has a restaurant each in Santa Fe and Albuquerque. Jinja Bar and Bistro serves Asian cuisine adapted to western preferences to mainstream American consumers.

“JFC’s objective in [the US] venture is to enhance its capability in developing Asian-food restaurant concepts for mainstream consumers in the US as part of its long-term strategy,” the parent firm said.

While the company plans to cater to Filipino customers in the US in the short term, “it also aims to attract other minorities who have taste preferences similar to [those of] Filipinos”. Earlier, the company also bought up 70% of Taiwan-based restaurant chain Lao Dong. Going forward, JFC “will continue to form joint ventures and alliances with both institutions and individuals in conjunction with building its internal-organisation capability”, the company added.

JFC operates 1,686 restaurants in the Philippines, China and the US, among other markets.

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