TIM HO WAN is set to open its flagship store in China after Jollibee Foods Corp.’s (JFC) Shanghai-based joint venture Hong Yun Hong Food and Beverages Management Co. Ltd. has secured a franchise deal to expand the Hong Kong-based dim sum business in the mainland.
JFC announced on Friday that its joint venture with Dim Sum Pte. Ltd. through its wholly owned subsidiary Golden Plate Pte. Ltd. has signed a unit franchise agreement with Tim Ho Wan Pte. Ltd. to operate a franchised store of the dim sum company in Shanghai.
“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,” the chicken giant said in a disclosure sent to the Philippine Stock Exchange.
But the chicken operator said it is not planning an aggressive expansion in the next three to five years.
“The JV is not expected to have an immediate material impact on the JFC Group’s sales, profitability and balance sheet as it is not planning for an aggressive expansion in 3 to 5 years,” JFC said.
“The first few years will be focused on developing and building the store model and economics,” it added. — Adam J. Ang