Asia’s F&B Capital Moves: Carlyle Acquires KFC in Japan and South Korea as Global Chains Change Hands

At the end of 2025, global private equity giant Carlyle Group finalized the acquisition of KFC Korea for approximately 200 billion KRW (around 135 million USD). The deal is expected to close in the first half of 2026. With this move, Carlyle now controls KFC operations in both Japan and Korea, with over 1,470 stores combined.

KFC Korea, founded in Seoul in 1984, had long faced operational challenges. Under KG Group’s franchise from 2017, store count fell from over 300 to around 200, and operating profit in 2020 was only 770 million KRW. Over the past three years, with capital injection, menu localization, and delivery expansion, the brand recovered strongly, posting a 469% YoY profit increase in 2024. In less than three years, the company’s valuation nearly tripled, highlighting its successful turnaround.

Carlyle’s strategy in Asia is clear: target leading global F&B brands’ core regional operations, acquire controlling stakes, and leverage capital and operational expertise to improve performance and valuation before eventual exit. From co-acquiring McDonald’s China and Hong Kong in 2017 to fully acquiring KFC Japan and now KFC Korea, Carlyle is building a strategic fast-food footprint across Asia.

The trend extends beyond KFC. Starbucks China formed a joint venture with Boyu Capital, transferring up to 60% ownership to local partners to accelerate market penetration, while Burger King China sold 83% of its stake to local PE CPE Source Peak, aiming to revamp and expand. Globally, Pizza Hut, Häagen-Dazs, and Costa (acquired by Coca-Cola) are also undergoing equity restructuring under market pressure.

Underlying the shift is the rise of local brands leveraging low-cost, small-format stores, community-focused channels, and controlled supply chains. Traditional international chains relying on standardized operations and brand premiums are facing declining effectiveness. To adapt, foreign F&B brands must adjust strategies—through equity transfers, local capital collaboration, or store optimization—to survive and thrive in China and broader Asia.