Jollibee Plans to Buy Coffee Bean & Tea Leaf

Jollibee Foods Corp., the largest fast-food chain in the Philippines, plans to purchase the struggling Coffee Bean & Tea Leaf coffee chain for $350 million.

Jollibee, which will have an 80% stake in a new ownership group, intends to expand the US-based coffee brand across Asia competing with Starbucks, Luckin Coffee, and others. The acquisition will allow the company to "become an important player in the large, fast-growing and profitable coffee business," Jollibee chairman Tony Tan Caktiong said in a statement.

The move is projected to add about 14% to Jollibee’s worldwide sales. Coffee Bean & Tea Leaf has 1,189 stores in 25 countries. It serves brewed coffee and blended coffee and tea drinks. It reported a net $21 million loss in 2018 on revenue of $313 million.