Burger King is set for a major expansion in China thanks to a new joint venture with private equity firm CPE. Restaurant Brands International (RBI), the parent company of Burger King, has announced the deal, which will see CPE take a controlling 83% stake in Burger King China. RBI will retain a 17% stake and a seat on the board.
This partnership comes with a hefty $350 million capital injection from CPE. This investment will be used to fuel the opening of new Burger King restaurants across China, enhance marketing efforts, drive menu innovation, and support general operations.
Ambitious Growth Plans for Burger King China
The deal aims to significantly increase Burger King's presence in China. Currently, there are around 1,250 Burger King restaurants in the country. The goal is to reach over 4,000 restaurants by 2035, with a plan to double the current number within the next five years. This represents a significant commitment to the Chinese market and a belief in the brand's long-term potential.
Why CPE is Investing in Burger King
CPE managing director Mark Mao highlighted the enduring appeal of Burger King among Chinese consumers. He stated that their investment reflects confidence in the brand's long-term potential and that they aim to bring Burger King's flame-grilled burgers to even more guests across the country.
A wholly owned affiliate of Burger King China will enter a 20-year master development agreement, granting it exclusive rights to develop the brand within the country. This long-term commitment signals a strong belief in the future of Burger King in China.
RBI's Strategy: A More Franchised Model
This transaction aligns with RBI's strategy to return to a more simplified, highly franchised model. RBI CEO Joshua Kobza stated that China remains one of the most exciting long-term opportunities for Burger King globally. He also emphasized that CPE's experience and resources make them an ideal partner to fuel the next chapter of Burger King China's growth.