Jollibee Foods Corporation, one of the largest Asian food service companies, is expanding its majority-owned Milksha bubble tea brand in the United States by opening it to franchising in three more states.
In a disclosure to the Philippine Stock Exchange, Jollibee said its subsidiaries Milkshop Japan Inc. and MKSA LLC (MKSA) have entered a license agreement whereby MKSA has been granted the right to open and operate Milksha branded stores in California, New York, and Texas in the United States (USA).
Franchising opportunities for other locations in the USA outside of the three states are likewise available through Milkshop Japan Inc.
In November 2021, JFC signed a deal to acquire 51 percent of Milkshop International Co. Ltd. for USD12.8 million. Milkshop Japan Inc., a Japanese corporation, was part of this acquisition deal.
MKSA LLC, a Delaware, USA limited liability company, was formed to be the license holder to open and operate Milksha® branded stores in the USA.
Milksha is positioned as a craveable high quality specialty beverage which gives JFC the opportunity to participate in the fast-growing beverage category globally and, especially, in the USA.
Since the completion of JFC's acquisition of Milksha in February 2022, its store network, which is 93 percent franchised, has grown by 24 percent to 327 outlets as of July 2024.
The stores are mostly in Taiwan (305) with the rest in Hong Kong (14), Australia (6) and the United Kingdom (2). Through another licensing agreement, covering Philippines, Milksha branded products are also being sold in around 162 Chowking stores in the Philippines (26 percent of global Chowking network).
In 2023, Milksha generated ~USD96Mn Systemwide Sales (about 30 percent increase from pre-acquisition period), a healthy net profit after tax margin and an Operating Cash positive position.
“Further, noteworthy to mention that Milksha delivered cash dividends less than one year from acquisition date. This once again proves JFC’s success in growing and scaling its acquired brands,” Jollibee said.
At the end of July 2024, the Jollibee Group’s store network increased by 4.8 percent compared to a year ago.
JFC operated 6,965 stores worldwide: Philippines (3,341) and International (3,624): 564 in China, 382 in North America, 357 in EMEA, 797 with Highlands Coffee mainly in Vietnam, 1,197 with CBTL and 327 with Milksha. Its largest brands by store outlets worldwide are Jollibee with 1,702, CBTL 1,197, Highlands Coffee 797 and Chowking 615.