Burger King is experiencing a resurgence in China, spurred by the operator’s rapid outlet expansion.
The operator has unveiled an ambitious plan to introduce 200 additional Burger King outlets every year in China starting from 2023.
Burger King ventured into the Chinese market in 2005 and is managed by TFI TAB Food Investments. Having opened close to 300 new establishments in 2019, the worldwide fast food franchise encountered a setback in its expansion endeavours due to the pandemic.
Consequently, Burger King’s outlet count stagnated at 1,400 stores in 2020. However, the fast food chain operates 1,528 establishments across 188 cities in mainland China as of July 2023, opening twice the number of stores per year now compared to the preceding years.
Quick service restaurants (QSRs) are indeed popular among young Chinese consumers. The fast-paced lifestyle of urban areas in China has led to a growing demand for quick and convenient dining options, making QSRs a favoured choice. The operator would aim to target 46% of Chinese consumers who stated that they order food at quick service restaurants at least once a week*.
Burger King entered the Chinese market 15 years after QSR competitors, McDonald’s and KFC. Subsequently, Burger King expanded at a moderate pace. To overcome challenges in establishing a base among Chinese consumers, the fast food chain is localising its menu with cost-effective offerings appealing to a wider spectrum of consumers.
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By GlobalDataThe economically priced menu can appeal to 35% of Chinese respondents in GlobalData’s Q2 2023 consumer survey who are cutting back on eating and drinking out on social occasions to make savings compared to 3 months ago*.
In the future, TFI TAB Food Investments plans to expand to 200 cities through franchises. The company is also actively exploring alternative investment prospects within the catering sector, including cloud kitchens that focus on delivery and self-pickup of food.
Within China’s foodservice sector, burger QSRs were among the largest restaurant format by cuisine type in 2022, after Chinese full-service restaurants. GlobalData forecasts the overall transaction value of burger QSRs will expand by more than 5% CAGR over 2023-27. Burger King will be better positioned to tap this growth by expanding its network of outlets.
*GlobalData Q2 2023 Consumer Survey—China, published in August 2023
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