Restaurant Brands International and CPE Launch Burger King China Joint Venture

Restaurant Brands International (RBI), the parent company of Burger King, Tim Hortons, Popeyes, and Firehouse Subs, has announced a major joint venture with Chinese investment firm CPE Capital (CPE) to accelerate Burger King’s growth across mainland China. The partnership, valued at around $350 million, is designed to reignite the brand’s expansion in one of the world’s fastest-growing quick-service restaurant markets.

Expanding Burger King’s Presence in China

Under the agreement, CPE will invest approximately $350 million of fresh capital into the business to support aggressive restaurant expansion, new product innovation, and operational upgrades. The goal is to grow Burger King’s restaurant base in China from roughly 1,250 locations to more than 4,000 by 2035.

The joint venture represents one of RBI’s most significant regional initiatives in recent years. By partnering with a strong local investor, RBI aims to combine its global brand expertise with CPE’s market insight and financial capability. The collaboration will focus on unlocking new growth opportunities in major Chinese cities and emerging regions alike, building on the increasing appetite for branded quick-service dining among younger consumers.

Structure of the Joint Venture

Once the deal is finalized, CPE will hold a majority stake of around 83 percent in the new business, while RBI will retain approximately 17 percent and a seat on the board. The agreement also grants the newly formed company exclusive rights to develop and operate the Burger King brand in mainland China for 20 years.

The transaction is expected to close in the first quarter of 2026, pending regulatory approvals. Following completion, RBI will begin to recognize royalty income from the China venture under its International segment, gradually scaling up to the brand’s standard royalty rate as operations grow.

Why China Is a Strategic Market

China has long been viewed as a key strategic priority for Burger King’s international growth. Despite having entered the market over a decade ago, the brand’s scale has lagged behind competitors such as McDonald’s and KFC. The joint venture with CPE aims to change that dynamic by providing the capital and local agility necessary to compete at scale.

With more than 1.4 billion consumers and a rapidly growing middle class, China continues to be one of the most dynamic quick-service restaurant markets in the world. Urbanisation, rising incomes, and an increasing preference for branded and digitally enabled dining experiences have made international QSR brands particularly appealing. Burger King’s leadership believes that pairing its global menu appeal with local execution will allow it to achieve a much stronger market position over the next decade.

Key Objectives of the Partnership

The joint venture outlines a clear set of priorities for the next several years:

• Accelerate Store Openings: Double the number of Burger King restaurants in China within five years and surpass 4,000 locations by 2035.
• Enhance Local Relevance: Develop regionally inspired menu items, strengthen delivery networks, and leverage local supply chains to reduce operational costs.
• Invest in Digital Growth: Expand mobile ordering, loyalty programs, and app-based engagement to reach China’s highly digital consumer base.
• Build Sustainable Operations: Adopt eco-friendly packaging, energy-efficient equipment, and responsible sourcing practices aligned with RBI’s global sustainability goals.

A Strategic Fit for Both Companies

For Restaurant Brands International, this partnership supports its long-term plan to shift toward a more franchised, asset-light model while maintaining steady royalty income from global operations. By collaborating with experienced local partners, RBI can accelerate market penetration without over-extending its corporate resources.

For CPE, the deal represents a major opportunity to invest in a globally recognized brand with substantial room for growth. As one of China’s leading alternative investment firms, CPE brings strong market understanding, operational experience, and a network that can help Burger King navigate real-estate selection, supply chains, and local marketing.

According to RBI’s leadership, the venture provides a “win-win” structure where both partners share a long-term vision for brand expansion, localised product innovation, and enhanced customer experience.

Competitive Landscape and Growth Potential

The quick-service restaurant market in China is highly competitive, dominated by major international and domestic players. KFC and McDonald’s currently operate thousands of restaurants across the country, setting a high benchmark for speed, delivery, and customer experience. Burger King’s renewed expansion plan positions it to close that gap by focusing on quality, digital convenience, and strategic partnerships.

China’s QSR industry is projected to grow steadily over the next decade as consumers seek convenient, consistent, and affordable meal options. Burger King plans to differentiate itself through flame-grilled product quality, localized menu variations, and a refreshed store design tailored to younger, tech-savvy diners.

Potential Challenges

Despite strong potential, the joint venture faces several challenges common to large-scale expansions in China. These include regulatory approvals, supply-chain optimization, real-estate competition, and shifts in consumer spending. The venture will also need to ensure that rapid growth does not compromise food quality or operational standards.

Additionally, fluctuations in currency exchange rates, inflation, and evolving market conditions could impact profitability. Both RBI and CPE are expected to mitigate these risks through strong financial management, local partnerships, and adaptive strategy.

Long-Term Vision and Impact

Beyond restaurant count, the long-term vision is to position Burger King as one of China’s most trusted quick-service brands. The company aims to create thousands of new local jobs, expand training programs, and introduce innovative restaurant formats such as digital-first kitchens and drive-through concepts.

The partnership will also enhance brand visibility through digital marketing, influencer collaborations, and regional sponsorships. With the Chinese dining landscape increasingly influenced by online engagement, Burger King plans to integrate data-driven marketing tools and localized social-media campaigns to strengthen customer loyalty.

Globally, the success of the China joint venture could serve as a model for how RBI approaches other emerging markets—balancing capital efficiency with local expertise. The company’s broader goal is to maintain sustainable double-digit growth across its international portfolio.

What’s Next

The Burger King China joint venture is expected to close in early 2026. Once operational, the partnership will begin rolling out new store formats, modernized restaurant designs, and technology-driven customer experiences. Consumers can expect to see an expanded presence across both Tier-1 cities and fast-developing regional hubs.

For Restaurant Brands International, the move underscores its commitment to international expansion and marks another step in transforming Burger King into a true global leader in quick-service dining. For CPE, it provides a strong foothold in one of the most promising consumer growth stories of the next decade.

Conclusion

The new Burger King China joint venture signals a fresh era of opportunity for both RBI and CPE. Backed by strong capital investment, clear expansion targets, and deep local expertise, the partnership sets out to transform Burger King’s presence in China from a modest network to a powerful nationwide brand.

As the venture moves forward, it will test how effectively global brands can adapt and scale within China’s complex consumer landscape. If successful, the Burger King China joint venture could redefine what international growth looks like for the quick-service industry in Asia.