Compose Coffee was founded in South Korea in 2014 with a focus on making quality coffee widely accessible. Since its launch, the brand has grown to over 3,000 stores, offering staples such as Americanos and flavoured lattes, alongside Korean-inspired menu innovations. 

Moreover, the brand operates one of Korea’s advanced smart roasting systems, overseeing bean selection, roasting profiles, and flavour consistency across its outlets. Compose Coffee has also engaged in high-profile branding efforts, including a partnership with V of BTS, which has contributed to its cultural relevance and consumer appeal.

Jollibee Group Philippines chief executive officer Joseph Tanbuntiong said, “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.”

Joseph added, “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.”

Richard Shin, chief financial and risk officer and CEO of Jollibee Group International, added, “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.”

He added, “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.”

Moreover, Compose Coffee is expected to complement the Jollibee Group’s existing portfolio, leveraging the company’s operational expertise, scale, and understanding of the Philippine consumer to strengthen its beverage-led offerings.

Ahead of this launch, Jollibee announced in January its plans to create a standalone international business, with the intention of listing the new entity on a United States securities exchange.

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The Coffee and Tea segment expanded through new store openings from Compose Coffee and Highlands Coffee, where Compose Coffee has grown its network to over 3,000 locations in South Korea, with net openings positioning the brand to reach the same milestone on a net basis. 

The addition of 1,000 stores in under 18 months highlights operational efficiency and consumer demand. The Compose Coffee app has also recorded 17.59 million cumulative users, with an increase of 8.3 million following a collaboration with BTS member V. 

Under CEO Hongsuk Kim, the brand launched its ‘Buyeo Chestnut’ menu, selling more than 400,000 cups in the first week and supported by a digital campaign that achieved 15 million views.

Meanwhile, Highlands Coffee, Vietnam’s leading coffee brand by market share, serves over 100 million customers annually and employs more than 10,000 people. With a store network approaching 1,000 locations, the brand has doubled its footprint in the past three years, maintaining double-digit same-store sales growth and strong operational leverage.

In China, Yonghe King opened 35 new franchised stores in December under an efficiency-optimised model. The brand continues to play a strategic role in the Jollibee Group’s operations in China, where management has highlighted stabilising performance and prospects for sustainable growth.

On the other hand, Tim Ho Wan has expanded under JFC ownership, with operational improvements in product, quality, and service receiving strong customer feedback. In Hong Kong, all stores are now profitable within six months of acquisition, including the first location opened after JFC took full ownership. 

In the US, the Irvine store—the brand’s first company-operated location under JFC—has seen encouraging early customer uptake, providing a model for broader expansion. Management has also indicated plans to scale Tim Ho Wan to 20 locations in North America by 2028.

Across both segments, Jollibee has emphasised disciplined execution, asset-light growth, and scalable store formats. The company also noted accelerated payback periods, franchise-ready store designs, and simplified operations as key factors supporting expansion in both coffee and Chinese cuisine categories.

Recently, the fast-food giant has also announced its plans for an international spin-off, with the intention of listing the new entity on a United States securities exchange.

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Moreover, the total consideration for the acquisition is approximately US$340m (~KRW470b). JFC closed this deal at a more favourable transaction multiple compared to average EV/EBITDA multiple in the coffee industry. Completion of this transaction is subject to closing and financing conditions, final purchase price to be confirmed thereafter.

JFC notes that the acquisition is aligned with JFC’s commitment to Coffee and Tea Segment and franchising initiatives. This strategic, rapid growth, financially lucrative investment serves as JFC’s gateway in unlocking the fast-growing international value coffee market in South Korea which ranks third globally in terms of coffee consumption per capita.

Tony Tan Caktiong, chairman at Jollibee Foods Corporation, said, “The business that Compose Coffee has built in the past 10 years is impressive and we are excited to play a major role in its next phase of growth. We believe that Compose Coffee is a compelling strategic fit for JFC and is on track to becoming the largest, fastest growing and leading value coffee player in South Korea.” 

He added, “Together with Elevation and Titan Fund II, we look forward to working with the Compose Coffee’s accomplished management team to further accelerate the company’s growth in existing and new markets and capture the significant whitespace in South Korea’s value coffee market.”

It is worth noting that JFC has made significant investments to multiple food franchises in Asia, including Singapore’s Tiong Bahru Bakery and Common Man Coffee, as well as China’s Tim Ho Wan.

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