Papa John’s International, Inc. recently announced it has partnered with FountainVest Partners to open more than 1,350 new locations across South China by 2040.
FountainVest, a leading private equity firm in Asia, also announced it has obtained a majority stake in franchisee CFB Group, which operates roughly 160 restaurants in China, according to a Jan. 7 news release. The company focuses on partnering with industry leaders to invest in businesses that will serve the growing Chinese middle class.
"This partnership with FountainVest marks another major milestone in achieving Papa Johns global growth potential, reflecting both the scale of our brand’s global opportunity and the quality of franchisees that are investing in our future," Rob Lynch, president and CEO of Papa Johns said in the release. "Papa Johns has enormous global development whitespace in the U.S. and in attractive growth markets, especially relative to our peers."
The agreement is the largest of its kind in Papa Johns history and will significantly increase the company's presence in China. The deal with FountainVest is projected to grow the pizza chain's current global unit count by 25%, Lynch said.
"At FountainVest, our investment process begins by identifying growth-oriented, industry-leading enterprises that are aligned with the growth dynamics of the Chinese marketplace," Andrew Huang, managing director of FountainVest said in the release. "Papa Johns premium position offers an attractive opportunity in the QSR sector, which has already been proven in China and which we believe will continue to thrive. We look forward to working with the Papa Johns team as we rapidly scale the brand’s presence across China."
The last nine financial quarters have delivered positive sales and unit growth for Papa Johns. The company has been increasing its global footprint significantly in recent years, entering 15 new countries including Spain, Portugal, Germany, Cambodia, Pakistan, France and Poland, the release stated.