The parent company of Burger King, Restaurant Brands International (RBI), and CPE源峰 recently announced the successful completion of a previously disclosed joint venture transaction. CPE源峰 injected an initial capital of $350 million into Burger King China, acquiring approximately 83% of its shares, while RBI retains about 17% as a minority stakeholder with a seat on the board.

Earlier, on January 28, Starbucks released its financial results for the first quarter of fiscal year 2026 (ending December 28, 2025). Notably, net revenue in the Chinese market reached $823.4 million, an 11% year-on-year increase, with comparable store sales growing by 7%.

During the subsequent earnings call, Starbucks also discussed a significant transaction in China. Chairman and CEO Laxman Narasimhan stated that the company is increasingly focusing on long-term prospects in the Chinese market. "We have selected Boyu as our partner to help expand our presence in more Chinese cities, deliver a superior coffee experience, create new career opportunities for partners (employees), and further solidify Starbucks' position as a globally growing brand."

Rumors about the potential sale of Starbucks China had previously circulated like the story of "the boy who cried wolf," repeatedly stirring market speculation. By the end of 2025, the announcement of two major partnerships caused a stir in the Chinese market, with Starbucks finalizing its collaboration with Chinese investors, followed closely by Burger King.

"About ten foreign food and beverage companies in the market are either confirmed or rumored to be seeking partnerships with Chinese investors," said Hu Ling, Head of Consumer and Retail Business at AlixPartners Greater China. "This trend is driven by both inevitability and偶然性, along with other factors such as geopolitical tensions between China and the U.S., which have raised concerns for some companies. The process accelerated notably in 2025."

In November 2025, Starbucks announced a strategic partnership with Boyu Investment, establishing a joint venture to operate Starbucks' retail business in China. Boyu will hold up to 60% of the joint venture, while Starbucks retains 40% and continues as the owner and licensor of the Starbucks brand and intellectual property. "We expect the transaction to close this spring, subject to regulatory approvals," added CFO Cathy Smith, providing an updated timeline.

Earlier, Ingka Shopping Centre announced a strategic cooperation with Gaobe Capital to establish a dedicated real estate fund, jointly holding three聚会体验中心 in Wuxi, Beijing, and Wuhan. Notably, in August 2025, Ingka Investment announced an investment in plastic recycling company Rui莫 Environmental, marking the Ingka Group's first circular economy investment in China.

"Looking back at transactions over the past year, besides the food and beverage sector, numerous deals have been completed across various consumer segments, including comprehensive retail and apparel, with cases involving RT-Mart and SKP among them," Hu Ling noted. "The situation in the餐饮 industry is not unique; similar trends are occurring跨行业. However, the餐饮 sector faces greater challenges, accelerating foreign companies' search for partners."

Previously, McDonald's sold 80% of its stake to CITIC Capital, the American sandwich chain Subway was sold to Rock Capital, and KFC had already achieved localization through Yum China.

Data shows that per capita spending on餐饮 continues to decline. In 2024, national per capita餐饮 spending fell to 39.8 yuan, down 6.6% year-on-year. According to the "2025餐饮 Consumption Survey," the proportion of consumers increasing their餐饮 spending dropped from 50.0% in 2023 to 31.3% in 2024, while those reducing spending increased by 4.8 percentage points. Most consumers are becoming more cautious about餐饮 spending, and confidence rebuilding will take time.

This trend is not limited to China; globally, the "2026 Global Consumer Outlook" indicates that consumers' net willingness to spend on dining out has decreased by about 21 percentage points. A significant number of consumers are reevaluating the value of eating out, with 31% globally feeling that dining in restaurants does not provide corresponding value.

"The challenges faced by foreign brands in China's餐饮 market are not simply due to insufficient localization but rather operational difficulties," pointed out a资深餐饮从业者. "Market growth is largely driven by inertia or even泡沫."

On January 19, the National Bureau of Statistics released data showing that the preliminary核算 of China's GDP for 2025 exceeded 140 trillion yuan for the first time, growing by 5.0% compared to the previous year. Total retail sales of consumer goods surpassed 50 trillion yuan, up 3.7% year-on-year. Among these, national餐饮 revenue reached 5.7982 trillion yuan, a 3.2% increase, accounting for 11.6% of total retail sales, up 0.2% from the previous year.餐饮 revenue from限额以上 units was 1.6337 trillion yuan, rising by 2.0%.

In December 2025, national餐饮 revenue was 573.8 billion yuan, up 2.2% year-on-year, while餐饮 revenue from限额以上 units was 146.3 billion yuan, down 1.1%. Hu Ling直言, "As a huge global consumer market, no company would willingly give up on China unless forced. I personally have expectations for the future of China's consumer market."

Many餐饮 companies share this sentiment. CPE源峰 and RBI jointly plan to expand Burger King's store count in China from the current 1,250 to over 4,000 by 2035, achieving sustainable comparable store sales growth.

In November 2025, Yum China stated during its Investor Day that the Chinese餐饮 market still holds significant opportunities: Yum China currently serves only about one-third of Chinese consumers and aims to increase this to nearly half in the future. The penetration rate of chain restaurants in China remains low, at around 20%, compared to over 50% in developed countries like the U.S.

However, the intensity of competition in the餐饮 market is evident. According to Hongcan Big Data, as of March 2025, the total number of餐饮 outlets in China approached 8 million. The entire market has reached an unprecedented scale, entering an era of存量 competition.

"Many foreign companies have gradually come to realize, though they may not admit it openly, that it's better to let Chinese operators manage the business in China," Hu Ling summarized. "In the Chinese market, unless a foreign company excels in localization to slow the decline in competitiveness, most cannot match local Chinese firms. Whether in understanding the local market, agility, or responsiveness, foreign companies lag behind."

The sudden surge in food delivery competition has accelerated this process. In the view of Lan Niao, Brand Director of餐饮品牌人和馆, "The challenges faced by foreign brands stem from drastic changes in the rules of the game in China. Previously, they held advantages through international brand溢价 and standardized approaches. But now, the food delivery battle fueled by internet platforms has completely altered the competitive landscape."

Many餐饮 companies have discussed the impact of the delivery war, yet the growing proportion of sales from delivery channels has created a dilemma. Eventually, several companies could no longer remain passive. While KFC and McDonald's raised prices successively, Saizeriya and multiple coffee and tea brands adjusted prices overtly or covertly. Recently, Cotti Coffee also announced it would scale back its全场 9.9 yuan subsidy.

The资深餐饮从业者 noted that this competition is not a "歼灭战" aimed at eliminating rivals to return to rational pricing but has devolved into a "混战." Continuous new entrants drive prices lower, potentially destroying overall industry profitability.

Lan Niao further explained that against this backdrop, foreign餐饮 brands introducing Chinese investors is essentially a strategic adjustment due to operational difficulties. If operations were smooth, foreign companies would have no incentive to cede profits and partial control.

In his view, foreign餐饮 brands bringing in Chinese partners is a form of "断臂求生"—sacrificing some收益 and operational control in exchange for local teams to stabilize or even expand market share, avoiding continued decline.

Will the addition of "Chinese partners" become a lifeline?

Mao Wei, Managing Director of CPE源峰, stated, "The newly injected $350 million will remain entirely within the Burger King China joint venture and its subsidiaries to support the next phase of development. This funding not only provides confidence for forward-looking布局 but also helps build sustainable long-term competitiveness in the Chinese market."

Notably, CPE源峰 has appointed its operating partner Huang Jinshuan (Johnson Huang) as Chairman of Burger King China. Huang previously held key positions at multinational连锁餐饮 groups, including serving as General Manager for China of a well-known Western fast-food brand from 2017 to 2022, during which he drove significant growth for the brand.

"Understanding local Chinese consumers is key. There's a cultural barrier; foreigners can never grasp it as deeply as Chinese," Hu Ling pointed out. "Another gap lies in the魄力 for revenue growth. For餐饮 companies, expansion often relies on opening new stores. For instance, in lower-tier cities, foreign management may hesitate due to concerns about income levels and brand recognition, leading to cautious assessments. In contrast, local management tends to be more aggressive, not recklessly but supported by strategies like pricing adjustments and product optimization."

Undeniably, McDonald's has become a successful benchmark case. In December 2025, McDonald's entered the Ningxia and Qinghai markets for the first time. "We are delighted to witness this new milestone in McDonald's development in China together with citizens, relevant departments, media, and our franchise partners," said Phyllis Cheung, CEO of McDonald's China. "We are confident in the long-term growth of the Chinese market and will continue to accelerate expansion in the西北 region and more cities nationwide."

However, timing is equally crucial. "The success of McDonald's case relates not only to the transaction timing but also to the company's developmental stage at that time," Hu Ling noted. "Given the scale of the Chinese market, McDonald's was not yet saturated when the deal was made, leaving ample room for growth. Thus, its success was partly due to less intense competition then and its own developmental phase."

"Today, the challenges are undoubtedly greater. Market competition has reached a new level; what required eight分力 before might now demand twelve分力. Success is still possible but not as easily or quickly achieved as in the past."

The intensity of餐饮 competition is evident in the frequency of new product launches. The "2025 Report on New Product Strategies for现制饮品" shows that from January to July 2025, 107 brands launched nearly 2,000 new products.

"We粗略核算 that in 2025, we launched at least 150 new products, maintaining 100 SKUs in the core menu, with new products contributing 60% of annual revenue," introduced Xu Weilun, CEO of CFB Group, in an interview. DQ's product launch pace in China is so rapid that he needs fish oil supplements to remember them all. "Currently, many of our creative desserts are launched first and exclusively in China."

Another international brand CEO in China mentioned that communication efficiency with international headquarters is a frequently discussed topic among multinational companies. Xu Weilun also noted, "As an international brand, everything we do must align with global headquarters. It boils down to execution speed and coordination with the headquarters. Every supplier must be approved by them, so maintaining fast product launch capabilities involves overcoming many challenges and relies on the entire organization's capabilities."

In Lan Niao's view, foreign strategies have shifted from self-operation to "localization," entrusting operations to Chinese capital and teams familiar with the harsh local competition. This is not just a tactical adjustment but a strategic重构. After gaining operational control, Chinese partners' approaches will fundamentally differ from foreign logic, particularly in cost control and decision-making flexibility.

Hu Ling further analyzed that软实力 like execution is a key differentiator. Large foreign companies often suffer from good ideas but slow implementation due to complex internal processes; local firms act quickly, with high tolerance for trial and error. Often, both sides have similar ideas, but foreign companies face more constraints, achieving only three分 out of ten分, and slower. Secondly, profit (bottom line) and cost control capabilities improve significantly once operations transition to local hands, optimizing supply chain efficiency and store operations.

More directly, "Chinese acquirers often guarantee minimum returns, which foreign companies might struggle to ensure now," reminded another餐饮从业者. Chinese operators may implement various "cost-cutting and efficiency-boosting" measures, such as adjusting原材料规格 or product portions, which might push the boundaries of foreign management's底线 but stay within legal limits. When survival is at stake, choosing the lesser of two evils becomes inevitable.

"After proving successful, some foreign companies opt to let local teams take over, competing in the Chinese market alongside local brands," Hu Ling直言. "However, some brands are unwilling to abandon this vast market, choosing to retain minority shares to benefit from market profits while handing operational control and competitive strategy to local firms or competitors. This reflects trust in local capabilities. Foreign companies have come to accept this conclusion after a journey."