Burger King Gives Up China: A New Chapter for Foreign Brands in the East

From McDonald's and Starbucks to Burger King: Global Giants Are Not Retreating—They're Repositioning for China's "Second Half"

November 2025’s consumer landscape will be remembered in history. Just as the dust hasn’t settled from Starbucks selling 60% of its China business to Boyu Capital, Burger King followed suit. On the evening of November 10, it announced a far more drastic move.

Burger King’s parent company, RBI, reached a strategic agreement with CPE Funds, under which CPE will inject 2.5 billion RMB into a new joint venture: Burger King China. Once the deal is completed, CPE will hold 83% of the company, becoming the absolute controlling shareholder, while RBI retains only 17%.

Burger King, once the world’s No. 2 burger chain, has now officially "sold itself" to Chinese capital.

A Pre-Meditated "Change of Hands"

On the surface, this is a “strong partnership.”

RBI CEO Joshua Kobza praised China as “one of the most exciting long-term opportunities globally,” and hailed CPE as a well-funded and experienced operator with strong local expertise.

But if you examine Burger King’s performance in China, it’s clear that this move is more like a strategic cut-loss than a joint venture.

Yes, RBI is globally shifting toward an asset-light strategy, and this sale aligns with its plan to simplify operations and rely more on franchising. But the deeper reason is: RBI is no longer able to keep up with the brutal competition in China.

Despite being one of RBI’s largest international markets (by store count), Burger King China posted only 5 billion RMBin systemwide sales — far behind Burger King France’s 14.2 billion RMB.

Even more dramatically, back in February 2025, RBI had just spent 1.12 billion RMB to buy back full control of Burger King China from its previous joint venture partner. At the time, RBI explicitly stated it was looking for a new local partner to take over control.

So, within nine months, RBI completed a "buy back, then sell high" capital maneuver — regaining full control only to pass it to a better-suited Chinese powerhouse.

When Burger King Struggles, "Tastien" Thrives

While Burger King has been hovering around 1,250 stores, a local Chinese burger brand called Tastien added over 2,000 new stores from March 2024 to February 2025 — reaching over 9,000 in total.

In such a fiercely competitive, fast-moving market, RBI’s global headquarters no longer has the appetite or agility to fight head-on. Giving up 83% control in exchange for local operational strength is the most pragmatic decision.

Who Is CPE Funds?

CPE Funds is not a traditional restaurant operator, but a major player in Chinese private equity, with a proven track record in the consumer space.

According to local reports, CPE has invested over 10 billion RMB in the chain-service sector. Its portfolio includes Mixue Ice Cream, Pop Mart, Aier Eye Hospital, and Laopu Gold — all runaway consumer hits.

More importantly, CPE is a backer of Mixue, a brand that has redefined how to scale in China’s lower-tier cities via extreme supply chain control, wild franchising, and hyper-localized marketing.

CPE doesn’t care about Burger King’s current store count — it wants the global IP value and the potential to “China-fy” the brand for explosive growth.

Their plan: grow Burger King from 1,250 to 4,000+ stores in China by 2035. The 2.5 billion RMB investment is just the start — funds will go into store expansion, local marketing, menu innovation, and operational upgrades.

From McDonald's to "Boyu Starbucks": Why Foreign Chains Are Letting Go

Burger King is not the first, and won’t be the last.

From McDonald’s, Yum China, to Starbucks — global F&B giants are collectively stepping back from directly operating their China businesses.

This is no coincidence. It’s a strategic trend — a wave of ownership transitions that marks the end of the “first half” for foreign brands in China.

Behind the curtain, three trends drive this shift:

1. The competition has changed. Foreign brands no longer compete with each other — they now face homegrown disruptors like Tastien and Luckin Coffee.

2. The speed of competition has changed. Headquarters in Toronto or Seattle simply cannot match the lightning-fast pace of Chinese market shifts.

3. The winning formula has changed. It’s now about localized capital + localized execution. Foreign brands are unwilling or unable to invest billions of dollars and run massive expansions themselves.

   
   

So what’s the smarter option?

Hand over majority control to a local "gold master" — like CITIC, Boyu, or CPE — who can provide funding, take on risk, and drive operations.

Meanwhile, the global brand retains minority equity, continues to collect royalties, and enjoys future upside from Chinese growth.

🧩 Final Thought: This Is Not a Retreat — It’s a New Ticket

Burger King’s sale of 83% stake is not a retreat. It’s an entry ticket to China's second half in the food service game.

Global IP + Local Capital + China SpeedThis is the only formula for winning the next decade in China.