Burger King joins Starbucks in selling majority stake in China operations to local private equity firm

Burger King has become the latest American food and beverage giant to hand over control of its China business to a local investor, following a similar move by Starbucks earlier this month. The transaction highlights the shifting balance of power in China’s food service sector, where domestic investors and brands are increasingly taking the lead amid post-pandemic economic headwinds.

According to Hong Kong media outlets including Ming Pao, Burger King’s parent company, Restaurant Brands International (RBI), signed a deal to sell an 83% stake in its China operations to CPE Yuanfeng, a Chinese private equity firm, for approximately $350 million (about ₩660 billion). RBI will retain 17% ownership in the venture.

CPE Yuanfeng, an influential investor across China’s technology, consumer goods, and industrial sectors, was an early backer of art-toy giant Pop Mart and holds stakes in well-known Chinese brands such as Mixue Bingcheng (ice cream and tea chain), Aier Eye Hospital Group, and Lao Feng Xiang Jewelry.

The firm announced plans to double Burger King’s China footprint from 1,250 to 2,500 stores within five years and expand to over 4,000 outlets by 2035.

Analysts say the deal represents a growing trend of “localization through acquisition,” where Chinese investors reshape the strategies of Western consumer brands to better suit domestic market dynamics.

Burger King entered China in 2005 and partnered with Cartesian Capital Group and TFI Asia Holdings in 2012 to accelerate market growth. However, the COVID-19 pandemic and China’s sluggish consumer spending have since hit the restaurant industry hard, forcing major international brands to reassess their expansion strategies.

The deal follows Starbucks’ recent sale of a 60% stake in its China business to Boyu Capital, another major Chinese private equity firm. Despite operating more than 8,000 stores across China, Starbucks has faced declining profits due to competition from lower-cost domestic chains and changing consumer preferences.

China’s homegrown coffee chain Luckin Coffee, headquartered in Xiamen, surpassed Starbucks in store count two years ago, becoming the country’s largest coffee chain.

The rise of such local players underscores the rapid transformation of China’s consumer landscape, where affordability, speed, and localization increasingly outweigh global brand prestige.

Experts suggest that Burger King’s divestment is not merely a financial decision but part of a broader global shift in which Chinese capital now drives the evolution of Western-origin food franchises in Asia.