Burger King to enter China joint venture, plans to double stores
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
BEIJING: US fast-food chain Burger King will rapidly expand its China operations in coming years, its parent company said, selling its controlling stake to form a new joint venture powered by hundreds of millions of dollars in local investment.
International brands have in recent years sought to pivot their strategies in the world's number two economy, where a persistent spending slump and increasingly digitalised services shape new consumption habits.
The Florida-based hamburger giant - owned by Canadian multinational Restaurant Brands International (RBI) since 2014 - entered the Chinese market in 2005.
Two decades later, Burger King still trails global rivals McDonald's and KFC in the vast consumer market.
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners.
Loading
The new joint venture, Burger King China, will receive US$350 million in investment from Beijing-based private equity firm CPE, according to a statement by RBI on Monday.
The funds will be used to "support restaurant expansion, marketing, menu innovation, and operations", the statement said.
Under the new blueprint, Burger King China will seek to double the chain's number of restaurants in the country "within five years" and reach more than 4,000 locations by 2035, it added.
By contrast, key competitor McDonald's had more than 6,800 stores in mainland China last year, according to data released by the company.
Fried chicken chain KFC had over 12,600 stores in China as of the end of September this year, according to the website of Yum China, its local operator.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app