Jollibee acquires 70% of Taipei restaurant

Fastfood giant Jollibee Foods Corp. has sealed an agreement to acquire 70 percent of the Lao Dong restaurant business based in Taipei, Republic of China for P63.1 million.

The agreement also calls for an additional investment by JFC of P31.6 million to fund the expansion of Lao Dong, which currently has eight stores and a commissary in Taipei.

“This agreement is a finalization of the initial agreement on the principal terms of the joint venture signed on June 18, 2008. The actual payment and consideration and transfer of the 70-percent share to JFC are estimated to take place in December 2008,” JFC said in a disclosure to the Philippine Stock Exchange.

For their part, the present owners of Lao Dong – Liu Cheng Hsiung and Liu Mei Chin will shell out P13.5 million.

Hsiung, a well-known chef in Taiwan who has been representing Taiwan in promoting Taiwan cuisine in several countries, shall assist the Jollibee group in developing food products and processing and preparation techniques for its business units in China, the Philippines and other countries.

Founded in 1950, Lao Dong has annual sales of NT 121.6 million and is generating profit. 

As of Oct. 31, 2008, the group was operating a total of 1,761 stores worldwide. Of the total, 1,491 stores are located in the Philippines — Jollibee 641, Chowking 382, Greenwich 229, Red Ribbon 205, Delifrance 27 and Manong Pepe 7. Overseas, it has 233 stores: Yonghe King in China 129, Hongzhuangyuan 37, Jollibee in the US 20, Red Ribbon in the US 27, Chowking in the US 14, Chowking in Dubai 10, Chowking in Indonesia 5, Jollibee in other countries 27 and Chun Shui Tang in China 1.

In the nine months ending September 2008, Jollibee reported a 9.7-percent growth in net income to P1.64 billion on the back of a 10.9-percent jump in system-wide sales to P41.61 billion.

JFC chairman and chief executive officer Tony Tan Caktiong said same store sales grew in practically all its brands and in all regions.