Japan's Yoshinoya Holdings Co. has announced that it has entered into an agreement with fast food giant Jollibee Foods Corp. of the Philippines and that together, they plan to open 50 Yoshinoya "gyudon" beef bowl stores over the next 10 years across the Philippines.
In its official news release, Yoshinoya said that Yoshinoya International Philippines Inc., a local Yoshinoya subsidiary, and Jollibee have entered into a join-venture agreement, with initial capital of $2.7 million USD. Both Yoshinoya and Jolibee will each own 50% of the new joint venture.
Yoshinoya said that the joint venture with Jollibee will allow their Philippine operations to optimize Jollibee's procurement and distribution networks while providing management, marketing and operational know-how to the new venture.
Jollibee Philippines is the owner of its own brand chains and also has the franchise rights for Burger King and many other foreign brands in the Philippines. At the end of 2020, Jollibee's network of group stores numbered 3,217 in the Philippines and 2,607 internationally.
The Philippines restaurant industry has been hit hard by the coronavirus pandemic, but Jollibee sees a bright future for the joint venture will Yoshinoya and believes there is a strong growth potential for the delivery of Yoshinoya products to companies and homes.
Yoshinoya first entered the Philippines market in 1992 through a franchise agreement and later switched to a wholly owned, local operation, which includes direct management of the company’s three stores.
The partnership with Jollibee will give Yoshinoya a key opportunity to expand its business in Southeast Asia with the target of opening 50 stores in the Philippines in the coming decade, while continuing to grow add stores in other countries. The company currently has around 170 outlets in the region, including 127 in Indonesia.