Philippines-based fast food giant Jollibee Foods has teamed with a Malaysian private equity investor to launch the Dunkin’ Donuts chain in China.
RRJ Capital, the private equity investment vehicle of Malaysian businessman Richard Ong are about to sign a US$300 million deal with the doughnut brand giving them exclusive rights to China’s southern and eastern provinces.
The partners will open 1459 stores over 20 years – at an average rate of 73 a year. Dunkin’ Donuts already has 19 stores operating in China and these will not be part of that deal. Early this year it signed a franchise agreement with another party to open 100 stores in Shanghai and surrounding provinces.
The new deal gives the joint venture exclusive rights to the brand in Hong Kong, Macau and Beijing and a long list of mainland provinces including Hunan, Guangdong, Fujian and Jianxi.
The partnership will be controlled by Jollibee which will have a 60 per cent share and bring operational expertise to the business.
Jollibee has about 3000 fast food restaurants throughout Asia Pacific in its home country, China, Singapore, Vietnam and Australia, along with stores in the US and the Middle East. It also has a majority interest in Vietnam’s Highlands Coffee chain, operates Burger King in the Philippines and the Chinese fast food concepts Chowking and Yonghe King.
