Jollibee Buys Korean Coffee Brand for $340M, Opens 101st Store in Seattle - EconoTimes (2024)

Jollibee Foods Corporation has acquired a 70% stake in Korean coffee brand Compose Coffee for $340 million, expanding its global presence. Additionally, Jollibee opened its 101st North American store in Seattle, Washington, furthering its growth in the fast-food market.

Jollibee Acquires 70% Stake in Korea's Compose Coffee for $350M, Expanding Coffee Market Presence

Jollibee Foods Corporation has disclosed that its wholly-owned subsidiary is Jollibee Worldwide Pte. Ltd has acquired a 70% stake in the Korean coffee brand Compose Coffee for $350 million.

Titan Dining II LP (Titan Fund II) and Elevation Equity Partners Korea Limited (Elevation) will hold the residual shareholdings, with effective shareholdings of 5% and 25%, respectively.

Elevation is a private equity firm that concentrates on mid-market buyouts and growth capital opportunities in the consumer sector of Korea and the rest of Asia. Titan Fund II is dedicated to strategic investments in food and beverage concepts.

Compose Coffee is the industry leader in brand satisfaction and the number of franchised stores, and it has the highest growth rate among Korean coffee brands. According to QSR Media Asia, the largest in-house coffee roasting plant in Korea, Compose Coffee, entirely supports its 2,470 100% franchised stores, allowing for the provision and distribution of high-quality specialty beans at a low cost.

This acquisition is consistent with JFC's dedication to franchising initiatives and the Coffee and Tea Segment. JFC's strategic, financially advantageous investment, characterized by rapid growth, unlocked the fast-growing international value coffee market in South Korea.

In 2014, Compose Coffee and its roasting facility, JMCF Co. Ltd., was established in Busan. It is a prominent coffee franchise in South Korea, with over 2,600 stores as of June 2024, and it is a leader in the rapidly expanding value coffee segment.

Jollibee Expands U.S. Presence, Opens 101st North American Branch in Seattle

As the company continues to expand in the world's largest quick service restaurant (QSR) market, Jollibee Foods Corp., the homegrown fast-food giant founded by magnate Tony Tan Caktiong, has introduced its cherished Chickenjoy meals to an additional city in Washington State.

On June 28, Jollibee announced the official opening of its 101st North American branch in Seattle, which attracted hundreds of customers during the early hours of the day.

Just eight months after the Tacoma branch was inaugurated, Jollibee opened its third Washington store at Rainier Valley Square. Tukwila's inaugural Washington branch opened its doors in 2010.

“We are glad to become part now of such a diverse yet close-knit community that has also become a culinary destination in its own right,” Maribeth dela Cruz, Jollibee North America president, said in a statement.

Jollibee Expands Global Footprint with New Seattle Branch, Plans 750 New Stores Worldwide

According to Jollibee (via INQUIRER.net), the Rainier Valley branch will offer chicken sandwiches, peach mango pie, and the Chickenjoy meals that are popular with the audience.

In January of this year, Jollibee opened its 100th store in North America in Surrey, British Columbia. Currently, the organization operates more than 1,600 stores worldwide.

The Chickenjoy manufacturer maintains a portfolio of 18 brands, including global brands such as Smashburger, headquartered in Colorado, and Hong Zhuang Yuan and Yonghe King, headquartered in Beijing.

Jollibee intends to establish up to 750 new stores within the year, both domestically and internationally, with a capital expenditure budget of P20 billion.

According to Richard Shin, Jollibee's chief financial officer, eighty percent of the 750 stores will be located in foreign countries to compete with its competitors and expand its international presence.

Shin had previously stated that they intended to utilize franchisees to penetrate cities where Jollibee had not yet established stores, primarily in the United States.

Ernesto Tanmantiong, the president and CEO of Jollibee, stated that the company aspired to become "the franchiser of choice in the QSR industry."

“We aim to achieve this by partnering with financially strong, capable, and culture-fit master franchisees that bring significant scale, access to capital, and deep local market expertise,” Tanmantiong said during the company’s annual stockholders meeting.

He also stated that they would continue to broaden their network in countries with a strong presence, such as the United States, by utilizing company-owned stores and franchises.

In the first quarter, Jollibee's earnings increased by 27% to P2.62 billion due to increased sales from both domestic and international branches.

Similarly, systemwide sales increased by a tenth to P86.8 billion, resulting in an 11.3 percent increase in revenues to P61.3 billion.

Photo: Microsoft Bing

Jollibee Buys Korean Coffee Brand for $340M, Opens 101st Store in Seattle - EconoTimes (2024)
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