Happy Lemon Parent to Sell 70% of Mainland China Business and Refocus Overseas

This is an English adaptation of a FoodBud historical article originally published on November 19, 2023.

FoodBud reported on November 19, 2023, that Yummy-Town, the parent company of Happy Lemon, had decided to sell a 70% stake in its Mainland China business as competition in the market intensified.

After the transaction, Happy Lemon’s Mainland China operation was expected to shift toward a brand-licensing model run by agents, while the group would focus more of its attention on the United States and other overseas markets.

Store Footprint

According to Yummy-Town’s 2022 investor briefing materials, Happy Lemon had the following store counts as of September 2022:

• Mainland China: 384 stores
• United States: 86 stores
• Other overseas markets: 86 stores

Data from Canyan Data later showed Happy Lemon’s Mainland China store count had declined to 250 stores.

Happy Lemon’s official website listed its international footprint as:

• Taiwan, China: 2 stores
• United States: 70 stores
• Canada: 5 stores
• Japan: 5 stores
• Philippines: 23 stores
• Malaysia: 8 stores
• Indonesia: 20 stores
• France: 1 store
• United Kingdom: 8 stores
• Australia: 2 stores
• United Arab Emirates: 5 stores

Revenue Mix Shift

Mainland China’s share of revenue fell sharply, from 83.7% in 2020 to 49.5% in the first three quarters of 2022. In the third quarter of 2022 alone, Mainland China accounted for about 35% of revenue.

According to Yummy-Town’s third-quarter financial report, revenue for the first three quarters of 2023 was NT$590 million, equivalent to RMB130 million, down 7% year on year versus the same period in 2022.

Note: stake-sale details and forward-looking market focus described above are historical figures and plans as reported in November 2023.