Burger King Stays Small in China, Despite Big Goals

Burger King Holdings says that it is not eager to become the biggest burger chain in China. With 25 outlets in the country as of four months ago that it has built up in the past five years, the company doesn't have to worry about being #1. It will take time to catch up with McDonald's 1,100 quickly expanding outlets. But the company thinks big.

It [Burger King Holdings] has not ruled out the possibility of setting up a joint venture in the country... Burger King, which entered the Chinese market in 2005, said it would have 1,000 stores in the country by 2015. Burger King's bigger rival McDonald's reportedly plans to increase its capital expenditure in China by 25% and to open 150 to 175 new stores this year. - Alibaba

Let me translate.

"We at Burger King are looking for a company that wants to form a joint venture to teach us how to crack this major market. Our old master franchise relationship hasn't worked out so hot.  In neighboring Japan, McDonald's has set up thousands of franchised and company-owned stores. Sadly, BK had to pull out of the world's second largest economy and franchise market in 2001. It entered Japan once more in 2007 and now can brag that it has under 20 stores around Tokyo. But obviously, China is not Japan. Any Chinese joint venture partner will have to pay more since we have set a goal of 1,000 stores in four and a half years to show you how big this market is. Call us if that sounds nice."