From a bold idea to discontinue a three-year-old Magnolia Ice Cream parlor franchise in order to operate a fast-food restaurant, entrepreneur Tony Tan Caktiong built the foundation of a multinational fast-food chain and one of the most powerful brands in Philippine commerce: Jollibee. Its practiced nuance for the Filipino palate enabled the chain to stand against mighty overseas fast-food franchises like McDonalds, and eventually expanding its franchise footstep in Southeast Asia, North America, Europe and Middle East. Recently they have begun investing in other food franchises overseas. The latest chain to get this investment is a Hong Kong dim sum franchise.
CNN Philippines reports that Jollibee Food Corporation (JFC) announced on Wednesday, April 9, its plan to invest 45 million Singaporean Dollars (P1.74 billion) on Singapore-based private equity firm Titan Dining LP. Titan Dining is set to wholly acquire the Asia-Pacific franchise to Hong Kong dim sum brand Tim Ho Wan, its managing company Tim Ho Wan Pte. Ltd. (THWPL), and Dim Sum Pte. Ltd. (DSPL), the owner and operator of Singapore’s Tim Ho Wan fast-food restaurants. THWPL has exclusive master-franchising rights to the Tim Ho Wan name outside Hong Kong, in the rest of the Asia-Pacific, with franchisees found in Australia, Taiwan, Japan and Southeast Asia, including the Philippines.
According to JFC, its planned investment on Titan would give it the largest share in the equity firm at 45 percent of Titan’s SG$100 million (P3.88 billion) fund. Jollibee’s statement says that the company aims to gain a substantial portion of ownership for Tim Ho Wan. As part of the investment move, JFC will act as Tim Ho Wan’s franchisee in the People’s Republic of China. From there, Jollibee hopes to make their investment grow.
The personal statement of JFC chairperson and creator of Jollibee Tony Tan Caktiong further adds, “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 JFC.”
Tim Ho Wan started with one dim sum restaurant in Hong Kong that received the prestigious Michelin star rating within its first year of operation. It already has branches in the Philippines, located in Metro Manila-area malls. JFC would have plenty of experience being Tim Ho Wan’s franchisee in mainland China due to already having three well-known Chinese-cuisine brands under its franchising belt: Chowking, Hong Zhuang Yan and Yonghe King.
Photo courtesy of centrionews.com