LICENSING/ LHC GROUP

LHC Secures a 10-Year Master Franchise Licensing Deal With K2 Capital For Six-Country Rollout

By K2 Capital Press | Feb 14, 2021

Hong Kong, February 14th, 2021 — In a landmark move poised to accelerate the global speciality coffee market, Life Health Concept (LHC) has signed a 10-year Master Franchise Licensing Deal with K2 Capital for an ambitious rollout across six countries. The deal marks a significant expansion milestone for the Hong Kong-based premium coffee and tea brand and reinforces K2 Capital’s growing investment portfolio in high-performance, high-integrity consumer brands.

A Strategic Alliance Between LHC and K2 Capital

LHC, known for its vertically integrated farm-to-table coffee and tea company, currently operates four locations in Hong Kong (Wan Chai, Lai Chi Kok, and Tsim Sha Tsui) and Kyoto, Japan. More than just a café chain, LHC is also a global distributor of specialty coffee beans, partnering with iconic Japanese roasters such as Cafe Paulista, Sarutahiko, Ogawa, and Marufuku. Each partnership embodies LHC’s commitment to delivering artisanal coffee crafted with heritage, sustainability, and unmatched quality.

With this deal, K2 Capital will spearhead the brand’s expansion into six new international markets over the next decade, leveraging its global network and franchise expertise to scale the LHC experience while preserving its premium standards.

Why K2 Capital Chose LHC

K2 Capital’s decision was driven by LHC’s exceptional financial and operational performance. With high operating cash flow, above-industry-standard margins, impressive ROE, and consistent EBITDA growth, LHC has demonstrated the rare ability to scale without compromising on product quality or brand integrity. This level of performance, combined with its deeply-rooted sourcing philosophy and authentic coffee craftsmanship, positioned LHC as a clear candidate for global growth.

According to a spokesperson at K2 Capital:
“LHC represents everything we look for in a partner—proven unit economics, a premium yet scalable model, and a brand story that resonates globally. With the specialty coffee market booming, this 10-year master franchise agreement sets the stage for LHC to become a leading name in international coffee culture.”

Whats Next

Under the terms of the agreement, the rollout will begin in key strategic markets across Asia-Pacific and the Middle East, followed by entries into North America and Europe. Each location will maintain LHC’s hallmark quality control standards, Japanese roasting heritage, and exclusive bean sourcing partnerships. The goal is to introduce a new level of sophistication to the global coffee scene while honouring the spirit of traditional Japanese and Hong Kong coffee craftsmanship.