Miami-based fast-food chain Burger King has announced that it plans to expand its commercial property empire by opening 1,000 new restaurants in China. The company’s expansion will be conducted through a joint venture with Cartesian Capital Group, a private equity firm, and the Kurdoglu family, which already operates 450 of the company’s restaurants in Turkey.
The company expects that it will take between five and seven years for all 1,000 new restaurants to open in China. Shares in BK stock were up three percent on the first day of trading following the announcement, which is a clear indication that the market is supportive of this aggressive expansion into the country.
The restaurant openings will create 1,000 new commercial property tenancies, which can only benefit the communities where they will be located. This move is an indication that the company feels optimistic about its prospects for success in this market. Since the Chinese Government is receptive to welcoming new businesses to the country, the news about the Burger King expansion will lead to a greater demand for residential and commercial property in China. The influx of money from foreign investment will lead to higher property values in both sectors over time.
Burger King also recently announced plans to expand its global holdings by opening several hundred stores in Russia. The company will open a similar number of stores in Brazil. At present, the fast food restaurant chain has 12,500 commercial property units located in 82 countries and territories.
The market in China is a huge one for Western businesses, and Yum! Brands has announced plans to expand its presence by opening 600 more restaurants in the country. Starbucks, McDonald’s and Dairy Queen will also be following suit in the near future.
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