Jollibee sells Delifrance to CaféFrance for P100 million

MANILA, Philippines - Jollibee Foods Corp. (JFC) has deci-ded to sell the assets of its French-style bakery chain Delifrance for P100 million as part of a strategy to “concentrate its resources in building larger quick-service restaurant businesses.”

In a disclosure to the Philippine Stock Exchange, JFC chief finance officer Ysmael Baysa said the sale to CaféFrance Corp., which is expected to be consummated on Dec. 31, 2010, will not impact significantly on the group’s bottom line.

Baysa said CaféFrance, a new company recently established by publicly-listed Euro-Med Laboratories Phils. Inc., intends to operate a café business in all existing Delifrance store locations under a new concept and brand name.

Euro-Med, a leading pharamaceutical manufacturing firm, is controlled by the family of publishing magnate Emilio Yap. 

CafeFrance also intends to hire all the current employees of the Delifrance business unit, Baysa added.

There are currently 23 Delifrance stores in the country, 20 of which are operated by JFC through wholly-owned unit Fresh ‘N’ Famous Foods Inc. and three by franchisees.

With the sale, FNF will terminate its franchise agreement with Singapore-based Delifrance Asia Ltd. by the end of this year.

Delifrance began operating in the Philippines in 1995, first as a joint venture with master franchisee Delifrance Asia and then as an exclusive franchise of JFC since 2006.       

Délifrance offers signature sandwiches and premium French bakery products including a hot meal selection, as well as a self-serve bakery section.

JFC is eyeing double-digit growth in sales and profit this year with the opening of 200 new stores – 100 each both locally and overseas. The expansion, which would require around P4 billion in investments, would bring the group’s total network to 2,000 by yearend.

The fastfood giant posted a net income of P2.66 billion last year, up 14.6 percent, on steady strong sales, lower raw material costs, and efficient marketing spending. Revenues rose 9.5 percent to P48.06 billion while system-wide sales, a measure of all sales to consumers both from company-owned and franchised stores, expanded 9.6 percent to P63.73 billion.

JFC continues to set its sights on new acquisitions. In July, it took a 55 percent stake in San Pin Wang, a noodle restaurant chain in China, for $4.4 million.

San Pin Wangoperates 34 stores in Nanning and Liuzhou in southern China.

JFC is also building its first commissary in China through a joint venture with Singapore firm Hua Xia Harvest Holdings Pte. Ltd. that will require both parties to invest a total of $7.4 million.

The Jollibee Group had a total of 1,944 stores across the world as of July 31, of which 1,582 are based locally while 362 are located abroad.