Jiumaojiu Sold Control of 2 Eggs Pancake for RMB 509,400

This is an English adaptation of a FoodBud historical article originally published on June 17, 2022.

On June 17, Jiumaojiu announced that its wholly owned subsidiary Guangzhou Pinxin had signed an agreement with Ms. Chen Rui to sell an 80.85% equity stake in 2 Eggs Pancake for RMB 509,400.

According to Jiumaojiu's annual report, 2 Eggs Pancake generated RMB 12.608 million in revenue from self-operated stores in 2021. Franchise-store sales revenue was RMB 16.399 million, while Jiumaojiu recorded RMB 2 million in franchise fees and related income from franchisees.

As of the end of 2021, the brand had 8 self-operated stores and 17 franchised stores.

Why the brand was divested

Within Jiumaojiu's brand portfolio, 2 Eggs Pancake appeared to sit in an awkward position: neither a major growth engine nor fully aligned with the operating model of the group's core brands. It was also a franchised store format, unlike the battlefields where Jiumaojiu was concentrating its main brand-building effort.

For the group, separating and selling the brand was more logical than continuing to carry a business with limited strategic fit.

Jiumaojiu's stronger focus at the time was on developing Song Hot Pot and Lai Meili Grilled Fish, two brands positioned in categories that appeared to offer broader growth potential.

Note: the equity-sale figures and operating data above are historical, based on the June 17, 2022 announcement and 2021 annual-report information.