BreadTalk Group's joint venture company BTG-Pindao Venture has formed a partnership with Song Fa Holdings to operate and manage the Song Fa restaurant brand in Shenzhen and Guangzhou.

The role was originally covered by BTG-Song Fa Venture, a joint venture between BreadTalk unit Together and Song Fa Venture.

The new entity will be 90 per cent owned by BTG-Pindao and 10 per cent owned by Song Fa.

BreadTalk said in a statement yesterday: "Through this unique tripartite alliance, BreadTalk Group and Song Fa can leverage Pindao's resourcefulness in sourcing strategic locations in Shenzhen and Guangzhou as well as their demonstrated capabilities in developing sustainable talent pipelines through effective recruitment strategies.

"This will enable Song Fa to focus on delivering quality bak kut teh cuisine to its consumers in both cities."

BTG-Pindao Venture was formed in May between BreadTalk's wholly owned unit Together and Shenzhen Pindao Food & Beverage Management to operate and manage popular tea brands Nayuki and Tai Gai in South-east Asia.

After the launch of Song Fa's first restaurant by BTG-Song Fa Venture in Shanghai on Jan 26, BreadTalk has been looking to introduce the Song Fa Bak Kut Teh brand of restaurants in south China.

BreadTalk group chief executive Henry Chu said: "Shenzhen Pindao is hugely successful in guiding their brand towards explosive growth in the last three years.

"We observed that their success was primarily attributed towards creative and quality products, securing choice locations and building highly motivated teams.

"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."

The investment is not expected to have any material impact on BreadTalk's earnings per share and net tangible assets for the financial year ending Dec 31.