Jollibee Takes Full Control of Tim Ho Wan at a RMB 2.3 Billion Valuation

This is an English adaptation of a FoodBud historical article originally published on August 18, 2022.

Philippine restaurant group Jollibee completed its acquisition of the remaining stake in Hong Kong dim sum chain Tim Ho Wan, bringing its ownership to 100%.

Tim Ho Wan became known in Hong Kong for relatively affordable Hong Kong-style dim sum with solid taste credentials.

Deal Details

According to information disclosed by Jollibee, the group paid SGD 71.56 million, equivalent to RMB 350 million, to acquire the remaining 15% stake in Tim Ho Wan held by Singapore private equity fund Titan Dining.

The transaction valued Tim Ho Wan at RMB 2.3 billion.

Jollibee had been increasing its exposure to Titan, Tim Ho Wan's parent company, since 2018:

• 2018: Jollibee bought 45% of Titan for SGD 45 million and obtained Tim Ho Wan's Asia-Pacific franchise rights.
• 2019: Jollibee increased its Titan stake to 60%, bringing its investment in Titan to SGD 120 million. In the same year, Titan acquired the Tim Ho Wan brand and trademarks.
• 2020: Jollibee bought another 25% of Titan for SGD 36.3 million.
• 2021: Jollibee announced the acquisition of Tim Ho Wan's remaining 15% stake.

Brand Background

One of Tim Ho Wan's co-founders, chef Mak Kwai Pui, had previously served as chef at Lung King Heen, the Michelin three-star restaurant at Four Seasons Hotel Hong Kong. He founded the dim sum shop with fellow chef Leung Fai Keung.

In 2009, the two chefs opened the first Tim Ho Wan premium dim sum restaurant in Mong Kok, Hong Kong. The store had only 20 seats at the time. One year later, it received a Michelin one-star rating.

Store Footprint and China Expansion Plans

Tim Ho Wan started in Hong Kong and had 6 stores there. In mainland China, it had 9 stores: 8 in Shanghai and 1 in Hangzhou.

Globally, Tim Ho Wan had more than 40 stores. The brand planned to continue expanding in China, targeting 100 stores in the Chinese market within the next 4 years. It also planned to open 10 stores first in Beijing and Jiangsu in the second half of the year.

Jollibee's Portfolio and Scale

Jollibee was founded in 1975 by Tony Tan Caktiong, a Filipino-Chinese entrepreneur. In addition to operating the Jollibee fried-chicken brand, the group had accelerated overseas expansion in recent years through acquisitions, including Yonghe King and Hong Zhuang Yuan.

With the Philippines as its home market, Jollibee had grown into a global restaurant-chain group with more than 6,000 stores. Its brand portfolio included:

• Jollibee: Western-style fast food
• Chowking: Chinese-style fast food
• Greenwich: pizza and pasta
• Yonghe King

As of March 22, Jollibee had 6,246 stores globally.

In 2021, Jollibee reported systemwide sales of RMB 25.86 billion, up 20% year on year; revenue of RMB 18.7 billion, up 18.8%; and net profit attributable to the listed company of RMB 700 million, compared with a loss in 2020.

In the first quarter of 2022, systemwide sales reached RMB 7.3 billion, up 25.5% year on year; revenue was RMB 5.2 billion, up 23.6%; and net profit attributable to the listed company was RMB 280 million, up 1,412.3%.

Note: valuation, acquisition, financial and forward expansion figures are historical, based on the article's August 18, 2022 publication context.