Homegrown Jollibee Foods Corp. will no longer operate its Dunkin' venture in Beijing, China following the recent termination of its master franchise deal.
In a stock exchange report on Wednesday, JFC said that Jollibee Worldwide Pte Ltd. Jasmine Asset Holdings Ltd. and Dunkin' Donuts Franchising LCC terminated the Master Franchise Agreement for Dunkin' — covering select territories in China. Hong Kong and Macau, JFC told the stock exchange. The franchise deal was signed on 5 January 2015.
The conclusion of the deal likewise affected the operations of Beijing Golden Cup, which manages seven Dunkin in Beijing.
Despite halting the business, JFC said it "looks forward to building a significant business in the Chinese mainland, Hong Kong and Macau" by expanding other brands.
To date, the company operates 418 Yonghe King stores, 55 Hong Zhuang Yuan, and 13 Tim Ho Wan stores in China. In Hong Kong, it runs 21 Jollibee stores and three in Macau.
Historical record high
During the third quarter of the year, JFC said its revenues surged by 49 percent, to a historical record high of P55.4 billion. Operating income, on the other hand, grew faster at 219.6 percent — or a
third-quarter historical record high of P3 billion.
The company also posted P77.8 billion in system-wide sales — representing a 51.3 percent increase from a year ago. System-wide sales of the Philippine business grew by 54.2 percent from July to September — with all brands registering double- to triple-digit growth compared to last year's figures.
System-wide sales pertain to all sales to consumers both from company-owned and franchised stores.
As of the end of September, JFC has a network of 6,351 stores globally.
