It eyes developing the Song Fa brand as a market leader in South China.
BreadTalk Group-Pindao Venture (BTG-Pindao) will acquire 90% of diner Song Fa (SF). The deal will transfer the operations and managing of restaurants from Song Fa subsidiaries Song Yu in Shenzhen and Guangzhou to the new BTG-SF-Pindao joint venture, an announcement revealed.
The tripartite alliance is expected to leverage on Pindao in sourcing strategic locations in Shenzhen and Guangzhou. According to the announcement, this will enable Song Fa to focus on delivering quality Bak Kut Teh cuisine to its consumers in both cities.
“Shenzhen Pindao is hugely successful in guiding their brand towards explosive growth in the last three years,” BreadTalk Group CEO Henry Chu said.
“Through this alliance, we are confident of scaling new heights and bringing sustainable success through Pindao’s experience to develop the Song Fa brand as a market leader in South China,” he added.
The BTG-Pindao has been exploring on leveraging on Pindao’s business development and outlet expansion capabilities in South China. Pindao has 70 stores in Shenzhen and over 100 across Shanghai, Beijing, Hangzhou, Nanjingm, Wuhan and Chongqing.
“As a start-up, it took us three years to grow from one to more than 100 stores in China; of which 70 are in Shenzhen and 10 in Guangzhou alone,” Pindao CEO Zhao Lin commented.
“Through our partnership with BreadTalk Group, we are confident of revolutionising the tea-drinking culture beyond China and into new markets such as Singapore and Thailand,” Lin added.
Meanwhile, Song Fa launched its first restaurant in Shanghai back in January following the establishment of BTG-Song Fa Venture. The JV firm is looking into opening the Song Fa Bak Kut Teh brand of restaurants in South China.
“With this unique collaboration, we are confident in Pindao’s strengths in securing strategic locations and their versatile human resource capabilities,” Song Fa managing director Yeo Hart pong said.
Song Fa operates eight outlets in Singapore, four in Jakarta and two more in Shanghai.
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