Burger King Worldwide announced a joint-venture partnership with South Asian private-equity firm Everstone Group to bring the quick-service hamburger chain to India.
According to terms of the partnership, Everstone has signed a long-term master franchise and development agreement for India, which includes sub-franchise rights.
“After a very thorough process, we chose Everstone as our partner based on its history, business acumen, and command of the massive and complex India market,” Elias Diaz Sese, president of BK AsiaPac Pte. Ltd., said in a statement. “Everstone’s operating capabilities and significant experience within the food and beverage space make it the ideal partner.”
For its Sept. 30-ended third quarter, Miami-based Burger King reported a 0.9-percent increase in global same-store sales, led by a gain of 3.7 percent in its Asia-Pacific region.
Burger King opened 39 net new restaurants in Asia-Pacific during the third quarter, giving it a total of 1,114 units in the region. The area still trails other international divisions in terms of unit count, including Latin America and the Caribbean, with 1,451 locations, and the Europe, Middle East and Africa segment, with 3,290.
India remains a key international growth market for many chains, and its economy is expected to keep growing over the next several years. According to data from Euromonitor, India’s commercial foodservice market is projected to expand by $12.7 billion to $106.3 billion by 2017.
Global powerhouse Yum! Brands Inc. spun off its India division into a separate reporting company in 2011, projecting a similar growth trajectory that could match the once high-flying China division, before food safety concerns and slower growth cooled down that market significantly the past 12 months.
Burger King’s Diaz Sese called India “a market with huge potential for Burger King restaurants.”
“We have the chance to offer the unique Burger King brand proposition to its consumers with our own local twist to the menu,” he said. “I am very excited about this venture and have no doubt that with Everstone’s management expertise and hands-on experience, this venture will be a tremendous success.”
Burger King’s mostly franchised system of 13,259 restaurants includes 7,404 locations in the United States and Canada.