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“Burger King UK Owner Sets Sights on Whopper Success with Exciting New Franchise Deal”

admin by admin
August 12, 2023
in Fast food, Franchise, Uncategorized
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“Burger King UK Owner Sets Sights on Whopper Success with Exciting New Franchise Deal”
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Bridgepoint and Restaurant Brands International in Talks for New Franchise Agreement

Bridgepoint, the owner of Burger King’s UK operations, is reportedly in advanced talks with Restaurant Brands International (RBI) for a new master franchise agreement. The agreement aims to reduce the number of new restaurants that Bridgepoint is obligated to open each year.

According to sources, the new agreement, which is expected to run until 2034, will require Bridgepoint to invest in a minimum of 20 new restaurant openings annually, with the number increasing to nearly 40 over time. An official announcement regarding the deal is likely to be made in the coming weeks.

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Bridgepoint has expressed concerns about the financial returns it has been seeing in the current highly inflationary cost environment. However, industry sources indicate that Burger King’s UK sales growth has been strong, surpassing that of its competitors. The management team is confident in extending this positive trend.

Bridgepoint currently owns approximately 290 of the 600 Burger King sites in the UK, with the remaining sites owned by other franchisees. The new master franchise agreement could potentially pave the way for a future sale or stock market flotation of the business, although no immediate plans for either option have been disclosed.

Burger King UK has been under the ownership of Bridgepoint since 2017. The company is chaired by Martin Robinson, a veteran of the leisure industry, and led by CEO Alasdair Murdoch. Despite the challenges faced during the pandemic, Burger King UK has shown strong recovery, despite concerns about consumer confidence.

Bridgepoint declined to comment on the matter, while RBI did not respond to requests for comment.

Conclusion

The potential new master franchise agreement between Bridgepoint and Restaurant Brands International for Burger King’s UK operations could lead to a reduction in the number of new restaurant openings required each year. This agreement, expected to be announced in the coming weeks, aims to address concerns about financial returns in the current cost environment. Burger King UK has experienced robust sales growth and is confident in extending this positive trend. The agreement may also open doors for future business opportunities, such as a sale or stock market flotation. Bridgepoint has owned Burger King UK since 2017 and has shown strong recovery despite the challenges posed by the pandemic.

Disclaimer: This article is for informational purposes only. The information provided does not constitute investment advice, and any reliance on the information provided is at your own risk. Please consult with a professional advisor before making any investment decisions.

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