The Franchisor, RBI, Will Seek New Local Partner to Grow in China
Restaurant Brands International Inc. (RBI), the parent franchisor of quick-service brands including Burger King, has acquired nearly 100% ownership of all Burger King locations in China. RBI purchased the equity in TFI Asian Holdings BV and Pangaea Two Acquisition Holdings XXIII Ltd., also known as “Cartesian,” for $158 million in cash.
RBI, which also owns Firehouse Subs, Popeyes Louisiana Kitchen and Tim Hortons, plans to expand Burger King’s footprint in the Asian nation. In a news release from RBI, the franchisor stated that it will work with advisers to find a new local partner that will “inject primary capital into the business and become the controlling shareholder.”
Burger King is a major player in the highly competitive and huge fast-food marketplace. According to MarketWatch, the value of the global fast-food market was more than $788.7 billion in 2024 and will reach $1.25 trillion by 2033. MarketWatch projected that the fast-food market should notch a compound annual growth rate of about 5.8% between 2025 and 2033.
Burger King’s China Market
“We are thankful for TFI’s and Cartesian’s partnership over the years and their role in expanding the brand in China,” Rafael Odorizzi, president of Asia Pacific for RBI, said in a news release about the China purchase. “This transaction marks the beginning of a new chapter for Burger King in China and reinforces our commitment to long-term growth in the region as we identify a new local operating partner. We are committed to offering our guests high-quality food and exceptional experiences in welcoming restaurants across China.”
TFI fostered Burger King’s growth from about 60 China locations in 2012 to 1,500 now. In its news release, RBI praised TFI as a valued partner in Burger King’s expansion in China, and said TFI will continue expanding its operations in Turkey as one of RBI’s largest business partners worldwide. Cartesian also contributed to Burger King’s presence in China, and Nation’s Restaurant News reported that it will continue to work with RBI in growing the Tim Hortons business in China.
RBI had aimed for more than 5% net restaurant growth in 2024 but downgraded that forecast to mid-4% because its Chinese franchise partners did not invest adequately, according to QSR Magazine. And Reuters reported that Burger King had suffered from softening demand in China, which is the fast-food brand’s second-largest market.
Shift to Local Owners, More Owners
RBI stated that the China purchase and resale there aligns with the parent company’s overall goal of working with “experienced local operators while maintaining a primarily franchised business.” To that end, in January 2024, RBI spent $1 billion to acquire its largest American franchisee, Carrols Restaurant Group, which owned approximately one in every seven Burger Kings in the nation, according to QSR. RBI bought Carrols with an eye to expediting Burger King restaurant remodels – featuring store kiosks and double drive-thru lanes – and then refranchising the locations.
QSR reported that last week, Burger King ramped up its franchise resales efforts, about two years ahead of schedule. The brand is expected to continue pushing ahead with remodels and resales through next year.
The Carrols purchase also reflects RBI’s new preference for operators to have no more than 50 units, QSR reported. Burger King currently has about 300 franchisees, the QSR article said, but that total could increase to 400, or possibly as many as 500, during the next few years.
About RBI and Burger King
Based in Toronto, RBI is the parent company of more than 32,000 restaurants in over 120 countries and territories worldwide. The umbrella franchisor had 1,474 Burger King locations in China as of Dec. 31, 2024, Reuters reported in an article about the China buyout. There are more than 6,600 Burger Kings in the United States, and the brand ranked seventh in the annual QSR 50, the magazine’s August 2024 report ranking the nation’s largest fast-food restaurants. It finished behind McDonald’s, Starbucks, Chick-fil-A, Taco Bell, Wendy’s and Dunkin’. But Burger King landed one spot ahead of No. 8 Subway.
