Jollibee takes big bite of Smashburger
Oct 21, 2015
Asia’s largest fast food company, Jollibee, has taken a 40 per cent stake in a fast-rising American burger chain, Smashburger for US$335 million.
Launched in 2007, Smashburger has over 335 corporate and franchised restaurants operating in 35 states and seven countries. Approximately 60 per cent of Smashburger’s outlets are company owned and operated. The company is growing at a rate of 20 per cent annually.
Jollibee, publicly listed in the Philippines, has been actively seeking an investment in a leading US growth brand. It currently operates and franchises a network of more than 3000 restaurants worldwide under the trade names Jollibee, Chowking, Greenwich, Red Ribbon, Yonghe King, Hong Zhuang Yuan, Mang Inasal, Burger King Philippines, San Pin Wang, and Jinja Bar. Jollibee also has a 50 per cent interest in the Super Foods Group, which operates and franchises restaurants under the Pho 24 and Highlands Coffee brands throughout Vietnam.
“We at Smashburger are excited about our new strategic partnership with Jollibee,” said Rick Schaden, chairman and co-founder.
“As founders and entrepreneurs we both have built teams that focus on bringing the highest quality and best tasting food to our restaurant categories. [Jollibee] founder and chairman, Tony Tan Caktiongand I share a true passion for the restaurant business having opened and operated our very first restaurants, we believe our companies still cultivate that spirit today as we initiate this partnership.”
Caktiong described Smashburger as one of the fastest growing restaurant brands in the US.
”We are very excited to work side by side with the owners and management of Smashburger as we continue its growth. This acquisition will make JFC’s presence in the US more significant, going beyond the Filipino market and serving mainstream consumers in the $100 billion US burger market, a food segment which is estimated to be almost three times larger than the pizza, sandwich or coffee segment in terms of sales.
“This acquisition will make the US one of JFC’s most important markets and drivers of long term growth along with the Philippines, China and other Asian markets abroad.”