Plans to Expand Over 4,000 Stores in China by 2035
Initial Investment of Approximately 510 Billion Won
Following Starbucks, Burger King's China division has also been acquired by Chinese investors. Restaurant Brands International (RBI) is selling its stake in Burger King's China business.
According to multiple media outlets including China’s Dasang News on the 11th, Asia-based asset management firm CPE announced a strategic partnership with Burger King's parent company on the 10th. The two sides are reportedly set to establish a joint venture called "Burger King China."
According to reports, CPE will invest an initial $350 million (approximately 510 billion won) in Burger King China to support store expansion, marketing, menu innovation, and the strengthening of operational capabilities.
Burger King China will have exclusive rights to develop the Burger King brand in China for the next 20 years. CPE will hold about 83% of the joint venture, while RBI will retain about 17%. With this partnership, RBI and CPE plan to expand the current number of Burger King stores in China from around 1,250 to more than 4,000 by 2035.
At the same time, Burger King China is expected to carry out restructuring measures, such as closing underperforming or poorly located stores.
Joshua Kobza, CEO of RBI, stated, "China is one of the most attractive growth markets," adding, "By combining RBI’s brand strength and global scale with CPE’s local market resources and operational expertise, we will maximize the growth potential of our business in China."
Dasang News reported, "In recent years, many foreign brands have accelerated localization by transferring stakes in some of their businesses to Chinese capital," adding, "Burger King’s decision also appears to reflect the trend of diversifying risk."
Meanwhile, earlier this month on the 4th, Starbucks announced an agreement to sell a 60% stake in its China business to Chinese private equity fund Baring Private Equity Asia. The sale price is $4 billion (about 5.9 trillion won). The two companies will establish a new joint venture and operate Starbucks stores in China together. However, Starbucks’ stake has been reduced to 40%.
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