Burger King buys its biggest franchisee in Spain

It pays 100 million euros for Megafood, which has 80 restaurants and annual sales of 95 million euros

Burger King Spain has concluded an agreement to acquire Megafood, its biggest franchisee in Spain. Megafood has 80 of the brand's restaurants in Andalusia, Extremadura, the Canary Islands, Ceuta and Melilla. Until now, its stock was divided between the GED Sur and Diana Capital funds and a group of private investors.

Burger King Spain forms part of Restaurant Brands Iberia, owner of the rights in Spain and Portugal for the Burger King brand, and the chain of Canadian cafeterias Tim Hortons in Spain. The agreement values Megafood at 100 million euros, and is pending approval by the Spanish National Commission for Markets and Competition (CNMC).

Currently there are around 800 restaurants in Spain of the Burger King chain, of which Burger King Spain has 380, including the Megafood restaurants. The number will be 400 at the close of this year, following planned new openings. The deal makes it the biggest restaurant operator in the country. The other 420 brand establishments are managed under a franchise system.

The company has over 8,000 employees
Together with the 80 Megafood restaurants, Burger King Spain will incorporate their 1,800 employees, in addition to the 6,400 who already form part of its workforce. In addition, the company will provide them with access to development and promotion opportunities that the rest of its workers enjoy.

The President of Restaurant Brands Iberia and CEO of Burger King Spain, Gregorio Jiménez, explained: "This operation makes us the biggest restaurant operator in our country, with a total of 380 own restaurants in Spain and a forecast 400 at the close of 2018. Including the 95 million in annual sales from the restaurants managed by Megafood, we will reach estimated sales of 500 million euros at the close of this year."

Burger King has grown considerably in the last four years, with an average of 30 openings a year. The objective following the purchase for Megafood to be integrated into the corporate structure and the network of own restaurants over 2019. In 2020, the strategy will consist of maintaining organic growth and the rate of new openings, reaching a number of 1,000 restaurants on the mainland.

"We are committed to reaching customers in all the towns and cities of Spain, and wherever there is an opportunity, through the opening of new restaurants, whether own or franchises," adds Jiménez. "We are a company of franchisees and this is the model we believe in and that is working in a more than satisfactory fashion."