MANILA, Philippines - Fastfood giant Jollibee Foods Corp. (JFC) is breaking into the hot pot business through a partnership with Wowprime Corp., Taiwan’s largest restaurant chain group, to operate the 12 Sabu restaurant brand in China, Hong Kong and Macau.
In a disclosure to the Philippine Stock Exchange yesterday, JFC said its wholly-owned subsidiaries Jollibee Worldwide Pte. Ltd. (JWPL) and Golden Plate Pte. Ltd. signed an agreement with Wowprime unit Hoppime Ltd. to form a joint venture company to own and operate the 12 Sabu chain, known for its low-priced hot pot dishes served in a clean and bright dining environment.
JFC’s subsidiaries and Wowprime will each own 48 percent of the joint venture, giving them equal control and management in the firm. The remaining four percent will be held by certain individuals with experience in the retail sector in China.
JFC is expected to shell out around $8 million this year until 2015 for the joint venture.
As of end 2011, there were 18 12 Sabu stores operating in Taiwan with revenues of about NT$200 million.
This marked the first time for Wowprime to enter into a joint venture.
“The joint venture aims to tap into the very popular hot pot dining market in China with the benefit of the combined experience and expertise of Wowprime and JFC,” JFC said.
Founded in 1990, Wowprime is a publicly-listed company in Taiwan that currently owns and operates 210 stores under 11 brands in Taiwan, 46 stores under two brands in China, and two stores under one brand in Thailand
JFC, on the other hand, is the Philippines’ biggest food service company with 2,022 stores as of end-June 2012. The stores consist of flagship brand Jollibee (756), Chowking (385), Greenwich (201), Red Ribbon (207), Mang Inasal (448) and Burger King (25).
In China, the JFC Group has 367 stores under three brands (Yonghe King, Hong Zhuang Yuan and San Pin Wang). It also owns research and development and food processing facilities in the world’s most populous nation.
Started in northern China during the Tang dynasty, hot pot is a type of dish where soup is boiled in a metal pot of stock. Various meat and vegetables are placed into the hot pot and cooked at the table.
The hot pot dining industry in China has been growing by an average of more than 20 percent in the past five years. Typical hot pot dishes include thinly sliced meat, leafy vegetables, mushrooms, wontons, egg dumplings and seafood.