Burger King plans to double its China restaurants within five years through a new joint venture backed by USD 350 million investment.
BEIJING: Burger King will rapidly expand its China operations through a new joint venture backed by hundreds of millions in local investment.
The US fast-food chain’s parent company Restaurant Brands International announced the strategic shift on Monday.
Private equity firm CPE will invest USD 350 million to support restaurant expansion, marketing, menu innovation and operations.
Once completed, CPE will hold approximately 83% of Burger King China while RBI retains the remaining stake.
The joint venture aims to double Burger King’s restaurant count in China within five years.
It targets reaching more than 4,000 locations by 2035.
Burger King currently trails significantly behind major competitors in the Chinese market.
McDonald’s operated over 6,800 stores in mainland China last year.
KFC had more than 12,600 stores in China as of September this year.
RBI CEO Joshua Kobza said China remains one of the most exciting long-term opportunities for Burger King globally.
“Our recent investments and this joint venture underscore our confidence in the Chinese market,” he added.
The move follows Starbucks’ recent announcement to sell a controlling stake in its China retail operations.
International brands are adapting strategies amid China’s spending slump and digitalised services shaping new consumption habits.
Burger King entered the Chinese market in 2005 but has struggled to match rivals’ scale over two decades. – AFP
