Potential Buyers Emerge for Alsea‘s Burger King Argentina Operation
Buenos Aires, [Date of Request – based on article content, likely late 2023/early 2024] – Alsea, the mexican restaurant operator currently streamlining its portfolio, is attracting interest from several potential buyers for its Burger king franchise in Argentina.BBVA,the bank managing the sale,is actively probing investment funds and gastronomic operators,according to sector sources.
This move comes after alsea previously sold its Starbucks and Domino’s operations in the country to Cinven, a British investment firm, as part of a strategy to simplify its brand portfolio and increase profitability. As stated during the announcement, the transaction aligns wiht “the strategy of simplifying the portfolio of brands with the aim of growing seeking efficiencies to increase the profitability of the company.”
Alsea’s former director and current Board President, Armando Torrado, has also indicated the company intends to eliminate catalog brands that no longer fit its current growth strategy, with ongoing negotiations underway. Alsea currently also operates Chili’s Grill & Bar and PF Chang’s, though these brands have no presence in argentina.
Among those being considered as potential buyers,BBVA is expected to approach Hind,a company with significant experience in the fast-food sector,owning Wendy’s,KFC,Havana,and Fenoglio.However, Hind’s participation in the process remains undefined.
Other potential candidates include Gastronomic developer,the holding company behind Kentucky,Sbarro,chicken Chill,and Around,and the Ecuadorian group Int Food Services,which manages KFC in other countries.
Notably, the sale of Burger King will not signify Alsea’s complete exit from Argentina. The company plans to continue operating its 133 starbucks locations across the country, which have demonstrated strong local performance.
burger King, once the second most vital fast-food chain in Argentina after McDonald’s (until being surpassed by Mostaza in 2018), currently holds the third position. Alsea has faced challenges in maintaining burger King’s growth in Argentina,contrasting with the success of Starbucks. Indicators for Burger King were already declining before the pandemic, leading to branch closures, including the flagship location on Corrientes and Florida streets in January 2019.
Since then, Burger King has attempted to revitalize its business through location reconfiguration, new attention formats, and a focus on a more “gourmet” experience emphasizing quality over volume, alongside innovation in healthier products and digital channels.
