Jollibee Foods Corporation (JFC), one of Asia’s largest food service companies, has raised its stake and investments in its Singapore-based investment arm by S$100 million or about $75.62 million to fund the expansion of Tim Ho Wan and other overseas brands.
In a disclosure to the Philippine Stock Exchange (PSE), JFC said its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) announced its additional capital commitment to Titan Dining LP, the private equity fund which owns the Tim Ho Wan brand and company-owned Tim Ho Wan stores.
Titan also operates Tiong Bahru Bakery (TBB) and Common Man Coffee Roasters (CMCR).
The fund size of Titan will increase from its current S$350 million to S$450 million, to fund the store expansion plans and working capital requirements of Tim Ho Wan and the completion of other projects.
JWPL’s participating interest in Titan will also increase from 90 percent to 92 percent through purchase of two percent participating interest of another limited partner in the fund for a total consideration of S$7.7 million.
With the increase in fund size, JWPL’s total commitment to the fund shall amount to S$414 million.
“These amendments are necessary to support the growth expansion of Tim Ho Wan, other brands and other future food and beverages concepts that will be part of Titan’s portfolio,” said Jollibee.
JFC invested S$45 million in Titan in May 2018 to own a 45 percent participating interest in Titan which was the master franchisee of Tim Ho Wan in the Asia Pacific region.
JFC stated at that time that by investing in the fund, it would have the opportunity to acquire a substantial ownership of Tim Ho Wan’s master franchise in the Asia Pacific region through a purchase mechanism provided for in the investment agreement.
To prepare for this eventuality, JFC set up a franchise operation of Tim Ho Wan in Shanghai, People’s Republic of China (PRC).
In October 2019, JFC disclosed that JWPL’s capital commitment to Titan increased from S$45 million to S$120 million, its participating interest increased to 60 percent and the fund size of Titan increased from S$100 million to S$200 million.
Titan also expanded its assets by acquiring at about this time the Tim Ho Wan brand and trademarks.
In October 2020, JFC’s participating interest in Titan increased further from 60 percent to 85 percent after JWPL purchased the 25 percent participating interest of another investor in the fund for a total consideration of S$36.3 million.
In August 2021, JFC purchased the remaining 15 percent of other investors in Titan. On Nov. 1, 2021, JWPL entered into an amended Limited Partnership Agreement with Titan to increase the fund size to S$250 million.
Additional investors also joined the fund with a 10 percent participating interest in Titan. JWPL’s total commitment increased to S$225 million which comprised 90 percent of the increased fund size and total commitments.
In September 2022, the fund size of Titan increased from S$250 million to S$350 million with JWPL’s commitment to the fund amounting to S$315 million.
JFC has two joint ventures with Titan for Tim Ho Wan in China, and for operations of Tiong Bahru Bakery and Common Man Coffee Roasters in the Philippines.
Tim Ho Wan has 19 restaurants in the PRC, mostly in Shanghai. JFC plans to aggressively expand Tim Ho Wan in Mainland China with a target of reaching 100 restaurant outlets in the middle term.
Tim Ho Wan operates a total of 78 outlets in Asia, mostly franchised stores with the largest concentration in China with 40 (19 in PRC, 16 in Taiwan, five in Hong Kong and two in Macau), Singapore 11 and Philippines with nine.
On Nov. 13, 2019, JFC disclosed its joint venture with Dim Sum Pte. Ltd., establishing Hong Yun Hong (Shanghai) Food and Beverages Management Co. Ltd., which serves as the franchisee operating Tim Ho Wan stores in China.
TBB is famous for being the "Home of the Hand-made Croissants" and for its baked goods and Coffee, with a commitment to producing high quality food and coffee and celebrating traditional techniques and its local neighborhoods.
Common Man Coffee Roasters operates all-day dining restaurants in Singapore and Malaysia, with an aim to be a Champion for Specialty Coffee and the Best all-day dining concept in Asia.
Common Man Coffee Roasters also does coffee roasting, sale of coffee products and operates a Coffee Barista Academy.
On Aug. 3, 2023, JFC announced its joint venture with Food Collective, Pte. Ltd. (FCPL), which serves as the franchisee for Tiong Bahru Bakery and Common Man Coffee Roasters in the Philippines.
Aside from its key brands Tim Ho Wan, Tiong Bahru Bakery and Common Man Coffee Roasters, Titan owns and operates other various businesses. Other brands in the F&B segment are: Open Farm Community, Tippling Club, Noka, Bochinche, The Butcher’s Wife and Drunken Farmer. As of November 2023, Titan’s F&B segment has 34 outlets across seven brands, located in Singapore, and Malaysia and Philippines.
Titan also has investments in non-F&B segment such as: Strip, Browhaus and Spa Esprit with 46 self-operated outlets and 38 franchise outlets. Strip, Browhaus and Spa Esprit all operate physical stores and also offer their products on e-commerce platforms.