GS Holdings signs master franchise deal to launch chicken rice, coffee brands in China
GS HOLDINGS’ chicken rice brand, Sing Swee Kee, and its Hainanese-style coffee brand, Raffles Coffee & Toast, are expanding into China.
The Catalist board-listed company on Thursday (Mar 16) signed a master franchise agreement with De Run Elderly Care Property Management (Guangdong) Group to bring the brands into the country.
The signing precedes even Raffles Coffee & Toast’s debut in Singapore. Its first outlet in Singapore is slated to open in May, the company noted.
GS Holdings said that barring unforeseen circumstances, the first Sing Swee Kee outlet in China is expected to open by the third quarter of the year.
Under the agreement, GS Holdings will get a one-time franchise fee for each brand, with a continuing sales-based franchise royalty fee every month. The company is also entitled to a one-time franchise fee for each new sub-franchisee, it said.
The agreement is expected to contribute positively to the group’s current financial year ending Dec 31, it pointed out.
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The master franchisee has other plans to open additional outlets of Sing Swee Kee and Raffles Coffee & Toast over the next 12 months, it added, but no specifics were given.
De Run, established in 2018, is a Foshan-based entity that operates in China’s elderly healthcare industry. Its business model focuses on providing holistic healthcare by combining medical treatments and wellness programmes for seniors to stay active, healthy and socially engaged.
Its agreement with GS Holdings comes amid its push to leverage its growing reputation and business networks in China.
Pang Pok, GS Holdings’ chief executive officer, said: “China’s reopening is fuelling optimism about the recovery of the Chinese economy, and with its ‘dual circulation’ growth strategy, domestic consumption will be the most important pillar.
“We are excited to ramp up our F&B business presence in this strategically important market that will support our long-term growth ambitions.”
GS Holdings acquired Sing Swee Kee’s brand and operations for S$800,000 in May 2019.
The company’s shares closed down 6.5 per cent at S$0.10 on Thursday.
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