Lotte GRS on Sept. 1 announced that it has sold its stake in Burger King Japan to Hong Kong-based global private equity firm Anchor Equity Partners for around 10 billion won ($8.7 million).
“We decided to sell our loss-making business to improve the profitability of our overseas operations,” Lotte GRS official said in a statement.
Burger King Japan has been losing money for the last 10 years as it failed to compete against other fast-food franchise operators such as Japan-based Mos Burger. It posted an operating loss of around 8.3 billion won in 2017 and accumulated losses from 2010 to last year reached more than 100 billion won.
According to Anchor Equity Partners, it plans to invest around 50 billion won by 2020 to expand the number of outlets from around 100 to more than 300.
According to sources, the PEF, which also acquired Burger King’s Korean unit for 210 billion won in 2016, hopes to tap into its know-how here, which also faces fierce competition.
Burger King Korea’s sales last year increased 16 percent to 402.7 billion won, and operating profit increased by 535 percent to 8.9 billion won.
By Song Seung-hyun (firstname.lastname@example.org)