Global Biz
Philippine fast food giant rearranges businesses
(Xinhua)
Updated: 2009-12-09 16:10
MANILA: Philippine fast food giant Jollibee Foods Corp (JFC) has given up its operations in?Taiwan island?and Shanghai and chosen to focus on "building bigger brands" in other parts of China. ?
In a release sent to the Philippine Stock Exchange on Wednesday, JFC officials said it had signed a deal with some of its overseas partners to withdraw from Lao Dong and Chun Shui Tang restaurant chains.
JFC gave up its 70 percent stake in Lao Dong Pte Ltd which operates Lao Dong restaurants in Taiwan. It also terminated its franchising agreement with Chun Shui Tang Tea House and shut down its stores in Shanghai.
These two businesses account for less than one percent of the worldwide sales of JFC, which has been expanding overseas over the years.
With this divestment, JFC decided to focus on popular?fast food chains Yong He King and Hong Zhuang Yuan in China. These brands have a total of 197 stores as of end-October and now account for 9 percent of the company's worldwide sales and are growing at a double-digit rate.
JFC's offshore business grew by 53 percent in the third quarter of 2009 compared to the same quarter in 2008. It expects to end the year with 35 stores in China and plans to open more stores and acquire new restraurant businesses in the years ahead.
