Giant Alsea to stop developing Burger King in MexicoBy Sazi Marroquín
The Mexican company already operates 181 of the 429 Burger Kings in the country
The Mexican company Alsea, franchise operator of the likes of Starbucks and Domino's Pizza, reported that it has decided to stop developing the Burger King brand in Mexico as a master franchisee.
In a statement sent to the Mexican Stock Exchange (BMV), the company said it will continue operating the 181 establishments that already exist in the country, which makes it the biggest franchisee. However any new establishment that is intended to open in Mexico will have a different operator.
Meanwhile Alsea and Burger King Worldwide are in coordination to achieve a successful transition, defining the services that Alsea will be providing on a temporary basis.
"The decision was made not to continue with master franchise rights in Mexico, with the aim of focusing efforts on the continuous improvement of the 181 Burger King stores that are part of the Alsea portfolio in the country," said Renzo Casillo, CEO of Alsea.
The executive added that "Alsea will actively continue with its development plans for Burger King in the other countries where the brand operates (Argentina, Chile, Colombia and Spain)."
"This decision is in line with Alsea's profitable growth strategy, prioritizing our capital investment in the most profitable formats," Casillo said.
There are currently 429 Burger King restaurants in Mexico operated by 17 different franchisees.
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