Mom’s Touch and Burger King sales expected as private equity expands its presence in South Korea’s restaurant franchise sector

Private equity is becoming increasingly prominent in South Korea’s restaurant franchise sector. On 27 September 2026, The Korea Economic Daily reported that private equity investment in food and beverage franchise businesses was continuing, with mergers and acquisitions involving Mom’s Touch, Burger King and Norang Tongdak expected in the second half of the year. While the ownership of major brands illustrates investor interest, franchisees and prospective business owners need to distinguish between current controlling shareholders and potential future deals.

Private equity holds the largest stakes in three of five leading burger brands

Burger chains offer the clearest example of private equity’s influence in the report. Of the five leading burger brands in South Korea identified by The Korea Economic Daily — McDonald’s, Lotteria, Burger King, Mom’s Touch and KFC — three have private equity firms as their largest shareholders.

Affinity Equity Partners controls BKR, Burger King’s South Korean operator; KL & Partners controls Mom’s Touch; and Carlyle controls KFC Korea. These ownership arrangements show how several familiar consumer brands have become private equity investments.

However, the figure ‘three out of five’ refers only to ownership within the group of leading brands selected in the report. It should not be interpreted as a share of all burger outlets in South Korea, total burger sales or franchised locations. The material provided contains no figures from which to calculate those measures.

Identifying a brand’s largest shareholder is also a separate exercise from assessing its operating performance. The material does not include comparisons of recent revenue, operating profit, outlet-level profitability or franchise agreement terms.

The key point is therefore not that any particular brand has outperformed another. Rather, the report identifies the investors controlling major burger brands and indicates which of those brands are expected to be involved in transactions.

Investment extends to coffee, tea and desserts

Private equity ownership is not confined to burgers. The report named Carlyle as the owner of A Twosome Place and Bain Capital as the owner of Gong cha. It also cited London Bagel Museum as a business owned by JKL Partners.

Sulbing and Terarosa were reported to be owned by UCK Partners, while Mammoth Coffee was identified as being owned by Orchestra Private Equity. Private equity investment thus spans brands serving coffee, tea, bakery products and desserts, as well as burgers.

This list provides a guide to the links between private equity firms and brands in South Korea’s restaurant franchise sector. It does not, however, mean that every brand mentioned is currently undergoing a sale process. Information about ownership must be distinguished from information about businesses up for sale.

For example, the brands mentioned as prospective merger and acquisition targets in the second half of the year included Mom’s Touch, Burger King and Norang Tongdak. The fact that A Twosome Place and Gong cha appeared in the same article provides no basis for assuming that they, too, are due to be sold during that period.

The material provided also does not allow a meaningful comparison of investment dates, acquisition prices or ownership stakes. Being listed together does not imply similar investment sizes or holding periods, nor does it mean that all the investors run their brands in the same way.

Readers in the franchise sector should first identify each brand’s owner, then separately check whether any transaction details have actually been announced. Evidence of investment across a broad range of brands is different from information about the specific terms of an individual deal.

Cash generation and growth potential underpin investment

The Korea Economic Daily attributed continued private equity investment to franchise businesses’ steady cash generation and potential for stable growth. It explained that these characteristics align with private equity investors’ appetite. The investment rationale therefore rests not only on consumer interest in the brands, but also on the financial appeal of the businesses themselves.

It is important to recognise that the investment case for a company is not the same as the business outlook for an individual franchise outlet. A positive assessment of a franchisor’s cash generation does not, in itself, demonstrate that every franchisee earns stable profits. The material contains no outlet-level profit and loss information.

Likewise, ‘potential for stable growth’ should not be read as a guaranteed growth rate. Although the report explains investor demand, it provides no figures or forecasts showing how much outlet numbers or sales might increase.

Nor does having a private equity firm as the largest shareholder necessarily mean that franchisee support will expand or, conversely, that franchisees’ costs will rise. The material does not establish how supply terms, advertising cost contributions or operational support have changed following investment.

Prospective franchisees should therefore treat the investor’s identity as a starting point for assessing a brand, rather than as a conclusion about its commercial viability. Separating questions about ownership from questions about actual start-up costs and operating terms makes the limits of the reported facts clearer.

Expected second-half deals are not completed acquisitions

The report said that mergers and acquisitions involving Mom’s Touch, Burger King and Norang Tongdak were expected in the second half of 2026. That is a reason to follow developments, but it is not news that sales of all three brands have been completed.

The material provided does not identify confirmed buyers, final acquisition prices, signing dates or completion dates. It would therefore be wrong to replace the current ownership picture with an assumed new structure, or to state definitively that ownership will change at a particular time.

Existing franchisees should look for clear confirmation of the counterparties and the stage each transaction has reached in subsequent reports. A sensible next step is to check whether the franchisor has issued separate guidance to franchisees and whether there are any confirmed changes to contractual or operating terms.

Prospective franchisees should likewise avoid relying solely on hopes or concerns about a possible acquisition. During discussions with the franchisor, they should obtain written confirmation of the terms currently on offer. The key is not to confuse an unconfirmed transaction outlook with the contents of the franchise agreement they are considering signing now.

This news shows that private equity ownership extends across several brands in South Korea’s restaurant franchise sector, with further transactions expected for some of them. Any subsequent changes will need to be confirmed through follow-up announcements. In practical terms, check the current largest shareholder, the stage of any transaction, and official communications affecting franchisees separately.