Chinese fast food chain Yonghe King is now trying a new business model. Its major shareholder, Jollibee Food Corporation, plans to bring Chunshuitang Tea Bar into China and develop franchises.
Chunshuitang is one of the biggest tea and beverage brands in Taiwan, where it has 24 stores.
Jollibee will take the charge of the expansion and investment of Chunshuitang on the Chinese mainland. It expects to open about 30 Chunshuitang tea bars in major cities like Shanghai, Guangzhou and Beijing in the coming five years.
Chuishuitang will first be run under a direct-operational mode to compete with Starbucks, and later franchisees will have an opportunity to expand the business.
Jollibee Food Corporation acquired 85% of Yonghe's stock in 2004. It has 400 branches around the world.