Jollibee invests in U.S.-based Mexican chain Tortas Frontera
The globalising fast food giant will buy a 47% stake in the chain for US$12.4 million.
Jollibee Foods Corporation (JFC) has announced that it has signed a venture with Tortas Frontera, aiming to enter the US$40-45 billion Mexican restaurant business in the United States.
This partnership will be formalized through an investment by JFC of US$12.4 million in Tortas Frontera in consideration for a 47% stake. The remaining 53% membership interests shall be held by its founder Rick Bayless and other stakeholders.
Bayless, also a chef, currently has 4 Tortas Frontera restaurants in the United States.
“We at Jollibee Foods Corporation are very excited about this new partnership. We have great admiration for Chef Rick Bayless for being a top chef, for being a successful restaurateur and for his philanthropic endeavors,” Tony Tan Caktiong, Jollibee Foods Corporation chairman, said in an announcement.
“Together with his organization and brand Tortas Frontera, we will build a significant business in the large and fast-growing Mexican food category in the United States. This venture is very much in line with JFC’s mission: to serve great tasting food and spread the joy of eating to everyone!”
Prior to the partnership, Jollibee previously said that it was eyeing a Mexican chain to either acquire to have a venture with to bolster their global expansion plan.
As of June, Jollibee Foods Corporation has over 4,000 stores worldwide. In North America, they have a total of 436 stores comprised of combination of its namesake brand, Smashburger, Red Ribbon, and Chowking.
(Also read: Jollibee says UK a ‘key market' for its global growth)
(Photo credit: Jollibee Philippines Facebook)
