From Starbucks to Burger King: Why Foreign F&B Giants Are Partnering with Local Capital

On November 10, CPE Capital Fund announced a strategic cooperation with the Burger King brand. In this transaction, a wholly-owned affiliate of Burger King China will sign a 20-year Master Development Agreement, granting it the exclusive right to develop the Burger King brand in China. Upon completion of the transaction, CPE Capital Fund will hold approximately 83% of the equity in Burger King China, while RBI will retain approximately 17%.

From Starbucks to Burger King, in recent years, several foreign consumer brands have sold partial equity in their Chinese operations to local capital, entrusting management to them and further deepening "localization." What considerations lie behind this trend?

On November 10, CPE Capital Fund announced a strategic cooperation with the Burger King brand, which is wholly owned by Restaurant Brands International Inc. (RBI). The two parties will establish a joint venture ("Burger King China") to initiate the next phase of Burger King's growth in the Chinese market.

As part of this transaction, CPE Capital Fund will inject an initial capital of $350 million into Burger King China to support its restaurant expansion, marketing, menu innovation, and operational capability enhancement, seizing opportunities in China—the world's fastest-growing consumer market. In this transaction, a wholly-owned affiliate of Burger King China will sign a 20-year Master Development Agreement, granting it the exclusive right to develop the Burger King brand in China. Upon completion of the transaction, CPE Capital Fund will hold approximately 83% of the equity in Burger King China, while RBI will retain approximately 17%.

Moving forward, CPE Capital Fund will fully empower Burger King China post-investment, focusing on key operational areas such as product upgrade and iteration, brand marketing enhancement, offline store expansion, online channel restructuring, digital system development, and financial optimization. According to the overall plan, the two parties aim to expand Burger King's store count in the Chinese market from the current approximately 1,250 to over 4,000 by 2035, achieving sustainable same-store growth.