Burger King in China is up for sale. Parent, Restaurant Brands International (RBI), is reportedly close to selling a controlling stake in its China arm. It’s been reported that Sequoia Capital China – which was also said to be eyeing large stakes of Starbucks’ China business – and CPE Capital are circling the sale after about eight months of talks.
Why the sale? February’s buyout wasn’t a long-term bet, it was a reset. Burger King China had been underperforming under its previous joint venture with TFI Asia and Cartesian Capital. By acquiring their shares for about $150 million, RBI regained full control so it could stabilise the business, close weak stores, and refresh its strategy before bringing in a stronger local partner. In other words, RBI bought the unit to fix it up, not keep it and the search for a new investor was always part of the plan.
CEO Josh Kobza and senior executives visited Shanghai in September to meet potential partners, later telling investors they were ‘deeply encouraged by [the partners’] strong interest in the brand and alignment with our business vision.’ The optimism must be welcome: Burger King China has long struggled to match KFC and McDonald’s, despite a strong global footprint of over 20,000 stores.
Under RBI, Burger King China has begun pruning its network and revamping operations. Local media reports that roughly 200 underperforming outlets have closed over the past year as the brand refocuses on efficiency and delivery.
But the scale gap remains glaring. The average Burger King restaurant in China generates around $400,000 in annual sales, according to industry estimates – a fraction of what outlets in mature Western markets bring in. RBI’s latest results also noted the absence of about $10 million in revenue from its China business compared with last year, reflecting the impact of restructuring even as operations begin to steady.
So what does the Burger King sale mean for China-based burger lovers? If Sequoia or CPE takes the crown, Burger King China could finally gain the capital and autonomy it needs to grow on home turf. It’ll still have a long way to go if it wants to secure the same market share as its competitors, but you’ll still be able to get a Whopper in the Middle Kingdom.
