Yoshinoya teams up with Jollibee, hopes to open 50 stores in Philippines
TOKYO, NNA - Japan's Yoshinoya Holdings Co. has joined hands with fellow fast food giant Jollibee Foods Corp. of the Philippines with an eye to opening 50 of its "gyudon" beef bowl stores over the next 10 years in the Southeast Asian country.
Yoshinoya International Philippines Inc., a local Yoshinoya subsidiary, and Jollibee have signed a deal to set up an equally owned joint venture with an initial capital of 130 million pesos ($2.7 million), the Tokyo-based company said in a news release Tuesday.
The alliance enables the Yoshinoya group to optimize Jollibee's procurement and distribution networks while providing operational know-how for the new venture, Jollibee Yoshinoya Inc.
The owner of its own brand chains as well as the franchise rights for Burger King and many other foreign brands, Jollibee's group stores numbered 3,217 in the Philippines and 2,607 abroad as of the end of 2020.
The country's restaurant industry has been hit hard by the coronavirus pandemic. But Jollibee sees a bright future for the latest tie-up, particularly in light of the growth potential for delivery services of Yoshinoya products.
Yoshinoya made a foray into the Philippines market in 1992 and later switched its local operation from franchise to direct management. It currently operates only three stores in the country.
The partnership with Jollibee appears likely to give Yoshinoya a key opportunity to expand its business in Southeast Asia with its target of opening 50 stores in the Philippines in the coming decade.
The company has about 170 outlets in the region, including 127 in Indonesia. The number accounts for nearly 20 percent of its overseas outlets. (NNA/Kyodo)