Homegrown fast-food chain Jollibee Foods Corp. (JFC) is bringing its milk tea brand to the United States.
JFC subsidiaries Milkshop Japan Inc. and MKSA LLC (MKSA) signed a license agreement giving MKSA the right to open and operate Milksha branded stores in California, New York and Texas.
JFC said in a disclosure to the stock exchange Friday this allows franchising opportunities to be available for those locations in the US through Milkshop Japan Inc.
It acquired a 51-percent stake in Milkshop International Co. Ltd. (Milksha) for $12.8 million in November 2021. Milkshop Japan, a Japanese corporation, was part of the acquisition deal.
MKSA, a Delaware, USA limited liability company, was formed to be the license holder to open and operate Milksha branded stores in the US.
“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,” JFC said.
Since JFC acquired controlling stake in Milksha brand, its store network grew by 24 percent to 327 outlets as of July 2024. As much as 93 percent of Milksha stores are franchised.
The stores are mostly located 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).
Milksha generated $96 million in systemwide sales in 2023, representing a 30-percent increase from pre-acquisition period. It also posted a healthy net profit after tax margin and an operating cash positive position.
It also delivered cash dividends less than a year from acquisition date, indicating JFC’s success in growing and scaling its acquired brands.
Jollibee Group’s store network as of end July increased 4.8 percent from a year ago. It operates 6,965 stores worldwide, of which 3,341 stores are in the Philippines and 3,624 stores are overseas.
