MANILA -- Jollibee said Thursday it formed a joint venture to "expand and operate" the Tim Ho Wan brand in China, as it took another step at expanding its global footprint.
The Philippines' largest fast food operator said its unit, Golden Plate Pte Ltd, would account for $7.8 million (P397 million) of the total $13 million investment in the joint venture, while the rest will be shouldered by its partner, Dim Sum Pte Ltd.
Jollibee said it would own 60 percent of the venture, which would be registered in China. The joint venture will also sign a franchise agreement with Tim Ho Wan Pte Ltd, the master franchise holder of Tim Ho Wan in the Asia Pacific.
"The Tim Ho Wan deal provides JFC with an excellent opportunity to operate and expand one of the known Michelin-starred dim sum restaurant chain brands," Jollibee said in a disclosure.
Jollibee said in July that it would buy Coffee Bean and Tea Leaf in a deal worth a total $350 million (P18 billion), adding specialty coffee and tea to its stable of brands that include Chowking, Greenwhich and Mang Inasal.
The Tim Ho Wan venture in China will not have "immediate material impact" on sales as Jollibee "is not planning for an aggressive expansion in 3 to 5 years," according to the disclosure.
The joint venture will focus on "developing and building the store model and economics" in the first few years, it said.