Burger King Worldwide Holdings Inc. said on Friday it plans to open 1,000 of its namesake restaurants in China over the next five to seven years under a newly-formed joint venture.
China is the world’s fastest growing major economy and U.S. restaurant companies such as Yum Brands Inc., McDonald’s Corp., and Starbucks each plan to build hundreds of restaurants there in the coming years. Miami-based Burger King said the deal represents the largest multi-unit development agreement in company history.
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Below you can find the News Release of Burger King Worldwide Holdings Inc. regarding the China expansion:
Burger King Worldwide Holdings, Inc. ("BKW") today announced the establishment of a new joint venture in China focused on aggressively expanding the BURGER KING(R) brand's presence in this high-growth market. BKW has entered into an agreement with members of the Kurdoglu family, a long-time BURGER KING(R) master franchisee and Cartesian Capital Group, a global private equity firm. This new joint venture is planning to open one-thousand BK(R) restaurants in China over the next five to seven years. This deal represents the largest multi-unit development agreement in the brand's history and will make the Kurdoglu family the system's largest franchisee, globally.
"Expanding our brand's presence in China further exemplifies our company's commitment to strengthening our global restaurant portfolio and establishing a strong brand presence in key growth markets around the world," said Elias Diaz Sese, president, BK(R) Asia Pacific. "We have partnered with solid investors and experienced restaurant operators to accelerate our net restaurant growth in China, while introducing our signature great-tasting, fire-grilled menu items to millions of consumers in the country."
By capitalizing on the Kurdoglu family's strong operational experience and leveraging Cartesian Capital Group's significant financial resources, this new joint venture in China positions the BURGER KING(R) brand for rapid expansion in the country. The Kurdoglu family, which was advised by Ata Invest, Istanbul, operates TAB Gida, currently the BK(R) system's largest franchisee internationally. Under their operational leadership, they have grown the BURGER KING(R) brand in Turkey from just one restaurant to more than 450.
"We are very excited to expand our relationship with BURGER KING(R) and further establish the brand's presence in such an exciting, active market with a vibrant economy and substantial growth potential," said Erhan Kurdoglu, chairman of the new venture.
"BURGER KING(R) is a world-renowned brand with tremendous growth potential, especially in China. We are proud to be part of this joint venture and to expand our partnership with the Kurdoglu family. Our shared commitment to high-quality food, world-class service, and solid operations will propel our growth in the country," said Peter Yu, Managing Partner of Cartesian Capital Group.
Under the terms of the partnership, the new venture has signed a long-term master franchise and development agreement with BKW and has obtained the exclusive rights to expand the BURGER KING(R) brand in China, where there are currently 63 BURGER KING(R) restaurants.
BKW's expansion plans in China are aligned with the company's long-term global growth strategy. Earlier this month, BKW announced a joint venture in Russia to rapidly expand the brand's presence in the market with several hundred BK(R) restaurants expected to open in the next several years. Last July, BKW also announced a similar venture in Brazil to add several hundred restaurants in South America's fastest-growing economy.
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