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| Philippine Daily Inquirer |
After an exhausting night of refuting the IBON Foundation's wealth tax argument, I read news that Jollibee's acquisition of Shabu All Day has been approved by the South Korean government. This is a detail from the Philippine Star I would like to share:
Jollibee Group International chief executive officer Richard Shin said the company is preparing for the closing of the deal and the integration of the brand into its operations in South Korea.
The acquisition, to be carried out through Jollibee subsidiary Jolli-K, involves a 70% stake in All Day Fresh Co. Ltd.
"Shabu All Day is a strong operational fit for our Korea platform, with a proven format and clear levers to support continued expansion—while maintaining the brand’s quality and guest experience," Shin said.
Once completed, Shabu All Day is expected to account for about 2% of the group’s revenues and contribute around 8% to its global earnings before interest and taxes.
Shabu All Day operates about 170 stores across South Korea and is considered the country’s top hot pot brand in terms of store count. It generates system-wide sales of around $285 million annually and is known for its all-you-can-eat offering featuring premium beef and a range of desserts.
The latest development comes as Jollibee pushes its expansion in both the Korean and Philippine markets.
This reminds me that before Shabu All Day, Jollibee Group International also bought the South Korean company, Compose Coffee. It might be easy to say, "Woohoo! Pinoy pride!" However, we need to think that it's a complete myth to believe the invasion game of FDIs vs. OFWs. If you work in another country, you get the job, you also get the responsibility to do what your boss tells you to do, and to follow the laws of that country. When you invest or do business in another country, you need to follow the rules.
South Korea didn't sell its sovereignty when it allowed Jollibee to acquire both Compose Coffee and Shabu All Day. Jollibee is now an MNC with global outreach. Instead, when the South Korean government gave its approval, it actually means that the 70% responsibility is now with Jollibee. Should Jollibee screw up, the fault will be with Jollibee. If you buy a car, the responsibility goes from the car dealer to you.
South Korea couldn't care less if South Koreans own most of the business or not. What they care more is if the business can serve South Korea as a private enterprise.