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Jollibee and Dunkin’ end overseas partnership
In a surprising turn of events, Jollibee and Dunkin’ have announced the end of their partnership overseas. This decision comes after a series of challenges and setbacks that made it difficult for the two iconic brands to expand their presence in Southeast Asia, especially in China. Let’s take a look at the reasons behind the split and what it means for both companies.
The Rise of Dunkin’
Dunkin’ has established itself as one of the most successful coffee chains in the United States, second only to Starbucks. With more than 11,300 locations worldwide, including 8,500 in the United States and the rest in 36 other countries, Dunkin’ has built a strong global presence.
Recognizing the potential of the Southeast Asian market, Dunkin’ partnered with Jollibee Food Corp. in 2015 to expand its reach in the region. The plan was to open more than 1,500 Dunkin’ locations, with a particular focus on China, where demand for international coffee chains was growing.
The Challenges
Unfortunately, the partnership faced numerous challenges that hindered its progress. Despite its ambitious plans, Jollibee was only able to open seven Dunkin’ locations in Beijing, China. This was a far cry from the original goal of more than 1,500 locations, highlighting the difficulties the companies faced in expanding their footprint.
In an interview with Nikkei Asia, Jollibee’s chief financial officer cited financial reasons for ending the partnership. The expansion efforts did not generate enough revenue to justify the investment, leading Jollibee to reallocate its resources. In addition, the market’s preference for tea over coffee in the region played a role in Dunkin’s struggle to gain traction.
The aftermath
With the termination of the partnership, Jollibee will close its Dunkin’ locations and focus on other franchises within its portfolio. Brands such as The Coffee Bean & Tea Leaf, Tim Ho Wan and Yonghe King will receive more attention as Jollibee looks to grow and thrive in the competitive Asian market.
While the breakup may be disappointing to fans of Dunkin’ and Jollibee, it serves as a reminder that business decisions are often driven by financial considerations. Companies need to prioritize investments that provide the greatest return and align with market preferences.
In conclusion, the breakup of Jollibee and Dunkin’ overseas marks the end of a partnership that aimed to capitalize on the growing demand for international coffee chains in Southeast Asia. Despite the initial ambitions, the challenges faced and the lack of profitability led to the termination of the partnership. Jollibee is now shifting its focus to other franchises, leaving Dunkin’ fans to explore alternative coffee options in the region.
FAQS
Why did Jollibee and Dunkin’ decide to end their partnership overseas?
The decision to end the partnership was primarily driven by financial considerations. The expansion efforts were not generating enough revenue to make it worthwhile for Jollibee. In addition, Dunkin’ faced challenges in the region due to the market’s preference for tea over coffee.
How many Dunkin’ locations have been successfully opened as part of the partnership?
Despite ambitious plans to open over 1,500 Dunkin’ locations, Jollibee was only able to open seven locations in Beijing, China.
What will happen to the existing Dunkin’ locations operated by Jollibee?
With the termination of the partnership, Jollibee will close its Dunkin’ locations and focus on its other franchises such as The Coffee Bean & Tea Leaf, Tim Ho Wan and Yonghe King.
Will Dunkin’ continue to operate in Southeast Asia without Jollibee?
Yes, Dunkin’ will continue to operate independently in Southeast Asia. While the partnership with Jollibee has ended, Dunkin’ is free to explore other opportunities for expansion and growth in the region.
How will Jollibee reallocate its resources after the partnership ends?
Jollibee plans to redirect its resources to its other franchises within its portfolio. This includes focusing on brands such as The Coffee Bean & Tea Leaf, Tim Ho Wan and Yonghe King.
Will the separation affect Jollibee and Dunkin’s operations in other regions?
The separation primarily affects their partnership in Southeast Asia. Jollibee and Dunkin’ will continue to operate independently in other regions and markets where they are present.