Burger King continues its international expansion with the announcement Tuesday of plans to open more than 100 restaurants in Colombia over the next five years.
The Miami fast-food chain signed a development agreement with Fondo Escala Capital and Promotora that will expand Burger Kings presence in Colombia five fold. As part of the deal, the two companies will acquire a majority stake in Kinco, S.A.S, the current Burger King franchisee.
The deal is part of a trend toward exclusive restaurant development agreements Burger King has been signing in various countries. Similar deals on a larger scale were announced for Brazil and Russia.
Fondo Escala Capital is a Colombian private equity fund managed by Promotora, a company based in Medellin, Colombia. The funds managed by Promotora have a value of around U.S. $ 70 million.
Burger King entered Colombia in 2008 and the chain currently has a strong following among consumers throughout Latin America and the Caribbean with a presence in 29 countries and about 1,250 restaurants in the region.
Colombias economy is thriving and we believe this is a valuable market in our strategic mission to expand our footprint in the Latin America and Caribbean region, said Jose Tomas, Burger Kings president of Latin America and Caribbean.
Within the United States, Burger King also announced a deal to sell 42 company-owned Burger King restaurants in the metro-Atlanta area to GPS Hospitality, which is operated by Tom Garrett, former president and CEO of Arbys Restaurant Group Inc. Terms of the deal were not disclosed. The deal includes a commitment to remodcel 29 restaurants over the next three years.