MANILA, Philippines (Xinhua) – Fast-food giant Jollibee Foods Corp. has given up its operations in Taiwan and Shanghai in mainland China to focus on "building bigger brands" in other parts of mainland China.
In a release sent to the Philippine Stock Exchange Wednesday, company officials said it had signed a deal with some of its overseas partners to withdraw from Lao Dong and Chun Shui Tang restaurant chains.
Jollibee gave up its 70 percent stake in Lao Dong Pte. Ltd, which operates Lao Dong restaurants in Taiwan. It also terminated its franchising agreement with Chun Shui Tang Tea House and shut down its stores in Shanghai.
These two businesses account for less than one percent of the worldwide sales of Jollibee, which has been expanding overseas over the years.
With this divestment, Jollibee decided to focus on popular China-based fast-food chains Yong He King and Hong Zhuang Yua. These brands have a total of 197 stores as of end-October and now account for 9 percent of the company's worldwide sales and are growing at a double-digit rate.
Jollibee's offshore business grew by 53 percent in the third quarter of 2009 compared to the same quarter in 2008. It expects to end the year with 35 stores in China and plans to open more stores and acquire new restaurant businesses in the years ahead.