Filipino fast-food restaurant company Jollibee Foods Corporation (JFC) and its Hong Kong partner Jasmine Asset Holdings have announced the termination of the master franchise agreement with Dunkin’ Donuts Franchising, based in Delaware, US, for the Dunkin’ coffee venture in China due to difficulties expanding its footprint in the region.

The agreement covered certain territories in the Chinese mainland, as well as Hong Kong and Macau.

The partnership, which commenced in 2015, aimed to open more than 1,400 outlets across China within a span of two decades.

However, the partnership only opened seven outlets in Beijing over the past seven years, reported Nikkei Asia.

The operations of Beijing Golden Cup Corporation, which runs the seven Dunkin’ restaurants in Beijing, have now been terminated.

This move could lead to the US chain exiting the Filipino market completely, reported World Coffee Portal.

Last month, Jollibee CEO Ernesto Tanmantiong told Nikkei Asia that the company was ‘reviewing’ the Dunkin’ venture.

Despite terminating the franchise deal with Dunkin’, JFC will still maintain a presence in the coffee business segment. The company holds an 80% stake in US-based The Coffee Bean & Tea Leaf business, which competes in the global coffee market with Starbucks.

With the end of the Dunkin’ partnership, the Philippine fast-food group intends to focus on Yonghe King, a Taiwanese-inspired restaurant business, as well as Hong Zhuang Yuan, a restaurant chain known for congee and other hot dishes.

Yonghe King currently operates 418 restaurant locations while Hong Zhuang has 55 outlets.

JFC also intends to expand the footprint of Tim Ho Wan dim sum in China by opening 100 restaurants over the next five years. This move comes after JFC announced that it would acquire the remaining 15% stake in Titan Dining, the fund that owned Tim Ho Wan, in August 2021.