By James A. Loyola
Jollibee Foods Corporation (JFC), through wholly owned subsidiary Golden Plate Pte. Ltd. (GPPL), is acquiring a majority stake in a joint venture that will be the authorized master franchisor of Tim Ho Wan in China.
In a disclosure to the Philippine Stock Exchange, the Jollibee said GPPL has entered into a Joint Venture Agreement with Dim Sum Pte. Ltd. (DSPL) to form a Company (the JV) in the People’s Republic of China (PRC).
After the incorporation of the JV, it shall sign a Unit Franchise Agreement with Tim Ho Wan Pte. Ltd. (Franchisor), authorized master franchisor of Tim Ho Wan in the Asia-Pacific, to develop and operate Tim Ho Wan stores in Shanghai and other cities within the PRC as may be agreed with the Franchisor.
DSPL, a company incorporated in Singapore, is a wholly owned subsidiary of Titan Dining Holdings Pte. Ltd. The primary activities of DSPL is owning and operating Tim Ho Wan restaurants in Singapore.
GPPL will own 60 percent of the business and DSPL will own the remaining 40 percent. GPPL and DSPL have committed to invest up to US$13 million to the JV, of which up to US$7.8 million will be contributed by GPPL in proportion to its ownership in the business.
The JV shall have its own resources and personnel to operate and manage the business.
Tim Ho Wan is a dim sum restaurant chain which originated in Hong Kong in 2009. Its Sham Shui Po, Hong Kong restaurant located at 9 Fuk Wing Street has been awarded one Michelin star since 2010.
Its restaurants are typically full-packed with long waiting line at lunch and dinner. In April 2018, Tim Ho Wan was rated by CNN as offering the Best Value among Hong Kong’s best dim sum restaurants.