Restaurant chain operator Jollibee Foods Corp. said Thursday it is finalizing a joint venture deal that will enable it to build 120 stores in Kuala Lumpur, Malaysia over the next 10 years.
Jollibee said in a disclosure to the stock exchange wholly-owned Singapore-based subsidiary Golden Plate Pte. Ltd. signed a partnership with Beeworks Investment Pte. Ltd. to own and operate Jollibee stores in West Malaysia.
Under the agreement, the parties will form a company in Malaysia with an initial investment of $8 million. The joint venture company will be 70-percent owned by BIPL and 30-percent held by GPPL.
BIPL is majority-owned by Patrick Chong, who is also a franchisee for Jollibee East Malaysia which covers Kota Kinabalu. His company, The Luxasia Group, is an omni-channel leader in luxury beauty and lifestyle brands in Malaysia.
Jollibee said the creation of a new company in West Malaysia would enable it accelerate growth and help make Southeast Asia a more significant business for the group.
JFC’s business in Southeast Asia outside the Philippines is its fastest growing region with 885 stores. JFC has presence in Vietnam with 621 stores, Singapore with 72, Malaysia with 104 and Indonesia with 88.
Southeast Asia business accounts for 6.7 percent of JFC’s global system-wide sales. The Jollibee group operates 17 brands in 33 countries.
The Jollibee group had 5,816 stores globally, including 3,192 in the Philippines and 2,624 in other countries as of end-June. It had 353 stores in North American and 407 in China.
The group plans to resume its aggressive store expansion with the opening of 450 new branches as it expects overall international and domestic businesses to continue to improve despite the pandemic.
It budgeted P12.2 billion in capital expenditures this year, up 22 percent from the 2020 level, primarily for store expansion and upgrade of existing branches.
The share price of Jollibee rose 3.4 percent Thursday to close at P197.