Jollibee investing P2.1 billion in Tim Ho Wan franchisor

MANILA, Philippines — Jollibee Foods Corp., the Filipino-owned food conglomerate, is getting a bite of the popular Chinese dim sum restaurant chain Tim Ho Wan.

In a disclosure yesterday, the listed food giant said it is investing up to $45 million (roughly P2.1 billion) in Titan Dining LP, a private equity fund which is acquiring 100 percent of the Asia Pacific master franchise holder of the Tim Ho Wan brand, Tim Ho Wan Pte. Ltd. (THWPL) and its affiliate Dim Sum Pte. Ltd. (DSPL).

JFC chairman Tony Tan Caktiong said the investment gives the conglomerate the opportunity to have a significant interest in the Tim Ho Wan franchise in the long term and will bring very healthy financial returns to JFC.

THWPL holds the exclusive long-term master franchise to operate “Tim Ho Wan” food and beverage business within the Asia-Pacific region excluding Hong Kong. It has franchisees in Cambodia, Indonesia, Japan, Macau, Taiwan, Thailand, Vietnam, Australia and the Philippines with further development planned in the Asia-Pacific region.

Titan has a fund size of $100 million, with JFC’s planned investment constituting 45 percent the total committed investments in Titan, and the balance coming from other investors.

It may eventually add other brands in the food service sector to its portfolio, with the objective to grow strong Asia Pacific food service brands across multiple geographies and markets, and to bring strong global food service brands to Asia Pacific.

The agreement provides JFC the opportunity to acquire a substantial ownership in Tim Ho Wan’s master franchise in the Asia Pacific region when the term of the fund ends in seven years through a purchase mechanism that is provided for in the agreement with Titan Dining LP.

To prepare for this eventuality, JFC will operate as a franchisee of Tim Ho Wan in Shanghai,  China.

Tim Ho Wan is a Michelin-star dim sum restaurant chain which originated in Hong Kong in 2009 and which has been dubbed as the world’s most affordable Michelin-star restaurant.