Fast-food restaurant company Yum China has completed the acquisition of a controlling interest in casual dining franchise business the Huang Ji Huang group.
Founded in 2004, Beijing-headquartered Huang Ji Huang has more than 640 restaurants in China and internationally. Its brand portfolio consists of San Fen Bao, a newly launched Chinese fast-food concept, as well as simmer pot brand Huang Ji Huang.
Yum China is a spin-off of Yum! Brands, after the multinational restaurant company decided in 2016 to let go of its Chinese operation to form an independent business.
Through this latest acquisition, Yum China hopes to gain a stronger foothold and ‘enhanced know-how’ in the Chinese-style dining space.
The company claims that the deal will marry Yum China’s scale and system capabilities and Huang Ji Huang’s product research and development and franchise management experience, in a move it says it expects to ‘create synergies’.
Yum China now plans to establish a Chinese dining business unit comprising restaurant brands Little Sheep, East Dawning, and Huang Ji Huang.
Financial terms of the deal have not been disclosed.
© FoodBev Media Ltd 2019