Jollibee Group brews growth in coffee and hot pot with twin Korea moves

Jollibee is sharpening its focus on scalable, high-growth categories, announcing plans to launch Compose Coffee in the Philippines while moving to fully acquire Korea’s leading hot pot chain, Shabu All Day.

The back-to-back deals underscore the group’s strategy to deepen its exposure to beverages and experience-led dining formats, while reinforcing its growing Korean platform.

Through its subsidiary Fresh N’ Famous Foods, the Jollibee Group has signed a master franchise agreement to bring Compose Coffee to the Philippines in 2026. The move forms part of its push to strengthen its position in the high-growth coffee and tea segment.

Don't miss: Compose Coffee's breakneck expansion strengthens Jollibee Group's global growth engine

In a separate transaction, Jollibee Group announced that its 70%-owned subsidiary, Jolli-K, has signed definitive agreements to fully acquire All Day Fresh, operator of Shabu All Day. The total consideration is approximately US$87 million, representing an estimated 4x EV/EBITDA multiple.

Compose Coffee enters the Philippines

Founded in South Korea in 2014, Compose Coffee has expanded to more than 3,000 stores, building its scale on an accessible pricing model and operational efficiency. Its menu combines staples such as Americanos and flavoured lattes with Korean-inspired innovations, while its smart roasting system enables consistent flavour control across its network. In its home market, the brand is recognised as the No. 1 coffee chain in customer satisfaction.

“We are extremely excited to introduce Compose Coffee to the Philippines this 2026, aligned with its mission of making high-quality coffee more accessible to consumers. This planned launch strengthens one of our key strategic growth pillars – the coffee and tea segment – and positions the Jollibee Group to play a more meaningful role in our customers’ daily routines. We look forward to bringing more moments of joy to Filipinos through innovative, world-class beverage experiences,” said Joseph Tanbuntiong, CEO of Jollibee Group Philippines.

“Compose Coffee’s entry into the Philippines reflects the Jollibee Group’s commitment to scaling brands with strong global potential. In every market where it operates, we’ve seen a disciplined operating model and deep focus on product quality that creates a repeatable formula for growth. We’re excited to bring that momentum to the Philippines and introduce more consumers to a brand that delivers both excellence and accessibility in every cup,” Richard Shin, chief financial and risk officer and CEO of Jollibee Group International, added.

Compose Coffee is expected to complement the group’s existing beverage portfolio, which includes majority stakes in The Coffee Bean & Tea Leaf, Highlands Coffee and Milksha.

Acquiring Korea’s leading hot pot brand

Shabu All Day, established in 2014 and headquartered in Seoul, operates 169 stores across South Korea. The brand ranks first in store count among hot pot chains in the country and generates system-wide sales of approximately US$285 million annually, with average per-store revenues of US$2.4 million.

The chain differentiates itself through an all-inclusive, eat-all-you-can format combining hot pot, premium beef, complementary hot dishes, desserts and alcoholic beverages at competitive price points. Its capital-efficient, highly franchised model delivers high double-digit EBITDA and EBIT margins, alongside a reported two-to-three-year payback period and around 40% return on invested capital.

The acquisition further strengthens Jollibee Group’s cuisine segment and provides entry into the global hot pot category, which continues to expand amid demand for interactive and communal dining formats. According to Euromonitor, the global hot pot segment is projected to reach US$90 billion by 2029, with chained operators increasing their market share.

“With Compose Coffee and now Shabu All Day, Jollibee Group continues to demonstrate its strengthened ability to acquire high-quality, profitable businesses that align squarely with our strategic pillars and deliver meaningful long-term value to our shareholders. These investments reflect Jollibee Group’s disciplined approach to capital allocation, prioritising opportunities that are both financially accretive and operationally scalable,” said Tony Tan Caktiong, chairman and founder of Jollibee Group.

Elevation Equity Partners Korea Limited will remain a strategic partner in the deal, retaining a 30% effective shareholding in Jolli-K.

Backed by record momentum

The expansion comes as Jollibee Group reports record preliminary results for 2025. System-wide sales rose 12% year-on-year in the fourth quarter to an all-time high of 122.3 billion pesos (US$2.1 billion), while full-year SWS increased 16.6%, supported by strong performances across both Philippine and international markets.

International brands including Compose Coffee and Highlands Coffee posted robust growth, reinforcing beverages as a key growth pillar. The group ended 2025 with 10,341 stores globally – its highest level of gross store openings to date.

Taken together, the launch of Compose Coffee in the Philippines and the acquisition of Shabu All Day signal a clear playbook: double down on scalable formats with strong unit economics, cultural relevance and franchise potential – from coffee to hot pot – as the Jollibee Group builds a more diversified, globally weighted portfolio.

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