After Starbucks and Burger King, the China operators of DQ and Papa John’s may be sold.

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Private equity firm FountainVest Partners is considering selling its Chinese franchise operator CFB Group, which operates Papa John's and Dairy Queen (DQ) brands in Greater China. This would mark another case of international restaurant brands restructuring their China operations, following Starbucks and Burger King.

According to Bloomberg, FountainVest is in discussions with financial advisors regarding a potential sale of CFB Group. The deal could value CFB at around $500 million. Since these discussions are confidential, the individuals requested anonymity.

The report, citing sources, indicates that the deliberations are still in their early stages, and a formal sale process may not start until later this year. FountainVest also may decide not to sell the asset for now. FountainVest did not respond to requests for comment.

This move continues the trend of international restaurant brands reevaluating their China business. Starbucks has agreed to sell its China operations to private equity firm Baring Private Equity Asia, while Restaurant Brands International is selling control over Burger King China to acquisition firm CPE.

Over 1,800 Stores in Operation

According to CFB’s official website, the company operates more than 1,800 stores in Greater China, including DQ’s Blizzard & Burgers business, with nearly 10,000 full-time and part-time employees.

The DQ brand is owned by Warren Buffett’s Berkshire Hathaway Inc. and has about 7,000 stores in over 30 countries worldwide. The brand entered the Chinese market in 1992.

CFB Group also owns Chinese restaurant brands Brut Eatery and Jin Ya Ju. The company was founded in 2003, and in 2013 EQT AB acquired a majority share. FountainVest acquired CFB’s shares from EQT in 2022, with the transaction amount undisclosed.

Many well-known global brands are reassessing their China operations. On November 4 last year, Starbucks officially announced a strategic partnership with Baring Private Equity Asia, with both sides establishing a joint venture to operate Starbucks’ retail business in the Chinese market.

Restaurant Brands International also chose to sell control of Burger King China to acquisition firm CPE, showing that international restaurant chains are adjusting their operational strategies in the Chinese market.

FountainVest’s Investment Map

Founded in 2008, FountainVest specializes in investments in consumer, industrial, business services, and healthcare sectors. The firm has supported multiple companies including Amer Sports Inc. (listed in the U.S.) and New Zealand-based pet food manufacturer Ziwi.

In July last year, FountainVest agreed to acquire shares in EuroGroup Laminations SpA, headquartered in Milan. The company has offices in Hong Kong, Shanghai, Beijing, Singapore, and Frankfurt.

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