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Thursday, March 28, 2024

Jollibee buys 47% of Bayless restaurant

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Jollibee Foods Corp., the biggest fast-food chain, is investing $12.4 million for a 47-percent stake in Tortas Frontera, a Mexican food venture owned by award-winning chef Rick Bayless, in a bid to take a bite of the rapidly growing Mexican food business in United States.

Jollibee said in a disclosure to the stock exchange it entered into a business venture with Bayless to build a Mexican fast-casual restaurant business in the US.

Jollibee under the partnership agreement will invest $12.4 million in Tortas Frontera LLC, which owns the Tortas Frontera business founded by Bayless.

Bayless and other shareholders will hold the balance of 53 percent. 

The transaction is subject to the fulfillment of agreed closing conditions.

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Jollibee said Mexican food was a rapidly-growing and very popular segment in the United States restaurant industry with estimated sales of $ 40 billion to $45 billion in 2017.

“We at Jollibee Foods Corp. are very excited about this new partnership. We have great admiration for chef Rick Bayless for being a top chef, for being a successful restaurateur and for his philanthropic endeavors. Together with his organization and brand Tortas Frontera, we will build a significant business in the large and fast-growing Mexican food category in the United States. This venture is very much in line with JFC’s mission: to serve great tasting food and spread the joy of eating to everyone,” Jollibee chairman Tony Tan Caktiong said.

Bayless is the founder of Tortas Frontera restaurants, which feature hand-crafted tortas, fresh-made guacamoles and hand-shaken margaritas.

Tortas Frontera, with headquarters in Chicago, Illinois, has four restaurants in the US—three in Chicago O’Hare International Airport and one at The Arc in the University of Pennsylvania. 

Tortas Frontera investment is the second significant investment made by Jollibee in the US. Jollibee in 2015 invested in US-based burger chain Smashburger for $99 million.

The latest acquisition is expected help the company achieve its target of having a 50:50 revenue contribution from overseas and domestic stores by 2023.

Only 20 percent of the group’s revenues so far come from overseas stores.

Jollibee had 4,279 stores worldwide as of end-June this year.

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