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.
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.
