When did Burger King first open in China? The first outlet opened in Shanghai on June 28, 2005. This comes fifteen years after KFC and McDonald’s first opened their first China outlets. Before that, both companies had an extensive network of takeaway joints and restaurants. However, in 2005, the Ministry of Commerce implemented a new law governing business franchising. The new rules allowed foreign companies to enter the Chinese market and open their own outlets.
63 burger king restaurants in china
In a joint venture with a Turkish family and a global private equity group, Burger King plans to open a thousand new restaurants in China. The US fast-food chain currently has 63 locations in China. The deal represents Burger King’s largest multi-unit development deal ever. The deal will allow Burger King to capitalize on the growing middle class in China. In a statement, Burger King said the new restaurants will offer customers a more convenient dining experience and help the company expand its brand across the world.
The Chinese government is encouraging the fast-food chain to expand its operations by opening more restaurants. However, the company has not yet decided on which cities will be the next location for Burger King. The company is focusing on the younger diners in large cities, where it believes it can gain an advantage over competitors. Beijing restaurants, for example, feature an MP3 music corner and an art gallery wall. This strategy is based on research that shows that Chinese consumers prefer chicken over beef.
In addition to expanding its operations in China, Burger King announced a joint venture with the Kurdoglu family in Turkey. The Kurdoglu family operates 450 Burger King restaurants in Turkey, making them the largest franchisee outside the United States. The new partnership will also double the number of Burger King locations in Turkey. The new business will rival the Turkish company, Carrols Corp., which owns 574 Burger King restaurants globally.
The relisting of Burger King on the New York Stock Exchange will provide the company with new investor capital. It was previously owned by 3G Capital, a UK investment vehicle. ThreeG Capital purchased Burger King in September 2010 for $3.26 billion, and retained 71% of the company. In fact, the number of Burger King outlets in China has surpassed that of Paris. So, China has become a global hub for fast-food chains.
As the fast-food industry becomes increasingly competitive, Miami-based Burger King is expanding its operations in other countries to expand its presence. In 2011, the company signed joint ventures with Russia’s second largest bank, VTB Capital. The Russian joint venture will be led by Alexander Kolobov, who owns Russia’s largest coffee chain. In Brazil, Burger King has also signed joint ventures with Coca-Cola, the Brazilian coffee chain.
CP+B reorganization
A recent reorganization at Burger King saw the firm replace the former Chief Marketing Officer, Natalia Franco, with a new chief. The restructuring was necessary to regain the brand’s market share, which has fallen below ten percent over the past several years. In the interim, the company has opted to retain the same agency. A recent survey of Burger King customers shows that consumers prefer CP+B to TBWA.
As a result of the reorganization, BK lost market share and began to slip into the red. The new ownership group dropped CP+B after seven years and replaced it with rival firm McGarryBowen. This new agency reorganized the marketing plan, reinforcing the brand name, and relaunched the brand’s advertising program with a new campaign.
As part of the reorganization, Pillsbury had implemented a policy that allowed the company to take over struggling franchises and evict the owners who did not comply with its policies. Pillsbury also scaled back construction on new locations, which caused the brand to stagnate. This neglect caused financial harm to the BK franchises, and strained relations between the Burger King and the new owners.
In the United States, Burger King operates through subsidiaries in each region. In some countries, it has established strategic alliances and partnerships to expand its reach. For example, in the EMEA region, Burger King Europe GmbH is responsible for licensing, while Burger King AsiaPac, Pte. Ltd. oversees franchising in East Asia. In addition, BK AsiaPac, Pte. Ltd. is responsible for developing BK franchises in APAC. Burger King also has franchise operations in Japan, Taiwan, South Korea, and other countries around the world.
Hungry Jack’s
As McDonald’s’ top rival expands into China, the company is battling the rival brand Hungry Jack’s. The new burger has similarities to the Big Mac and is named “Big Jack”. In fact, the name of the burger is a play on the Big Mc name, as it rhymes with “Hungry Jack’s”.
Since its purchase by 3G Capital in 2011, Hungry Jack’s has had mixed results. It has struggled to expand in China, and its initial expansion has been limited. The new owners have reportedly made some significant changes, including selling corporate locations and expanding into new markets. Hungry Jack’s has also made strategic changes to its operations. While the company has fewer than 20 foreign subsidiaries, it still boasts more than one hundred thousand outlets in 96 countries, including the BRIC nations. In the United States, there are approximately 17,800 Hungry Jack’s franchised locations, with about 98% being owned by independent franchisees.
In 1971, Burger King began eyeing the Australian market. But its parent company was already trademarked, and it couldn’t use the brand name. So, they chose the name Hungry Jack, which had been used by a competitor in Australia. However, they didn’t do business under the name Burger King. As a result, the relationship between Hungry Jack’s and the Burger King Corporation was strained. However, the name’s trademark in Australia expired in the mid-90s, and the chain has since expanded to China.
The company also announced that it will increase its number of stores in China in 2014. In April 2014, the chain announced that it would open 10 outlets in the country by 2021. However, this plan was not enough. The brand had to face a huge legal battle before it could start expanding its business. And now that they are expanding, they need to open more overseas. In fact, a recent lawsuit by Hungry Jack’s revealed that they had breached the franchise agreement.
Although it is a late entrant in the QSR market, Burger King has already opened twelve restaurants in Shanghai. This new Chinese brand provides a more affordable alternative for Chinese white-collar workers and families, who may not otherwise have the money to purchase beef. Its Chinese equivalent of Hungry Jack’s has also recently opened in Australia. A third of the new Burger King restaurants will be outside the U.S.
Plant-Based WHOPPER
During the last few years, burger chains have sought to become more eco-friendly. In response, many have turned to plant-based meat and dairy alternatives. But is this possible? The answer is a resounding yes. In fact, the plant-based WHOPPER is closer to meat than the vegetarian meat ball that is served at IKEA Restaurants. And although the meat ball is often served on its own, it is not as palatable as the original beef WHOPPER. Despite this, plant-based meat products are still affordable fast-food options.
The company recently expanded its partnership with Burger King to China, Europe, and Latin America and the Caribbean. The Plant-Based Whopper is expected to debut in China, under the name Zhi Wu Ji “Huang Bao.” The new burger contains patties from Vegetarian Butcher, a brand of plant-based burgers that Unilever acquired in 2018. It will be available in more than 2,500 Burger King restaurants across the country.
The company has announced that it will launch its plant-based WHOPPER in 325 Burger King restaurants across the country by the second quarter of 2021. The launch will help to tap into China’s growing plant-based meat market, which is expected to hit $12 billion by 2023. Its rollout will continue throughout 2021, with additional markets following. Additionally, The Vegetarian Butcher has already launched in the Middle East and entered China.
In addition to the US, Burger King has expanded its partnership with Vegetarian Butcher in China. It has been a long-term effort by the fast-food chain to incorporate plant-based foods into its menu. In December 2018, the company announced that it was acquiring a Dutch brand called Vegetarian Butcher, which produces vegan meat substitute patties. This new plant-based burger will be available at three25 Burger King locations in China. It is expected to roll out to other countries in the second quarter of 2021.
About The Author
Mindy Vu is a part time shoe model and professional mum. She loves to cook and has been proclaimed the best cook in the world by her friends and family. She adores her pet dog Twinkie, and is happily married to her books.