The foodservice giant Jollibee Foods Corporation is set to cut ties with Dunkin’ across China after there has been difficulty in expanding the operation.
The previously agreed joint venture has begun life in January 2015 when Jollibee had planned to launch over 1,400 outlets over 20 years across select China regions. Despite this optimistic number, the company has only opened seven stores in the last seven years.
Jollibee’s partner Jasmine Asset Holdings and the US-based Dunkin’ Donuts Franchising organisation have now terminated the partnership and the seven stores that had opened will permanently close, with the longer-lasting effect possibly being that the US chain exit the market completely.
Richard Shin, Jollibee’s Chief Financial Officer, said it was the right decision to ‘reallocate’ the company’s resources. He added that Dunkin’ was not a core Jollibee business in China, stating that the market is more accustomed to tea than coffee.
