Burger King, the second-largest United States hamburger chain, plans to open 10 stores in China in 12 months, aiming to catch up with McDonald's and Yum! Brands.

''China is huge and could be one of the most important market for Burger King in the next five years,'' said chief executive Greg Brenneman in Shanghai, where China's first Burger King opened Monday.

Burger King says there's still potential in China's fast-food market, which the China Cuisine Association estimates is worth 120 billion yuan (HK$112.68 billion).

McDonald's, which has 666 restaurants in about 100 mainland cities, plans to add at least 100 a year in the country. Yum, operator of Taco Bell, Pizza Hut and KFC, had 1,758 KFC outlets and 261 Pizza Huts in China in March and plans to add 300 restaurants a year.

''It's still early days for the market in China,'' said Steve DeSutter, president of Europe, Middle East, Africa and Asia-Pacific for Burger King. ''The Chinese market has grown and has demonstrated a demand for Western fast food. We think it's a big and ready-made market for Burger King.''

Burger King is entering China 18 years after Yum! and 15 years after McDonald's. Restaurant sales in the country jumped 18 percent 334.6 billion yuan in the first five months from a year earlier, the commerce ministry said, as rising incomes allowed more people to eat out.

Surging consumer spending is helping sustain growth in China which expanded 9.5 percent last year. China's per capita disposable incomes in urban areas, home to a third of the 1.3 billion population, rose 11 percent in the first quarter from a year earlier to 2,938 yuan. Those in the countryside increased 16 percent to 967 yuan.

The first 10 Burger Kings, known for flame-broiled Whopper burgers and onion rings, to open in Shanghai and nearby cities in the 12-month span will be wholly owned by the company.

In the United States, it would cost US$700,000 to US$750,000 (HK$5.46 million to HK$5.85 million) to build a free-standing restaurant, Brenneman said. After the first year of operations, Burger King plans to move into franchising, DeSutter said.

``Franchising is in our future and will be a key part of our growth,'' DeSutter said. The company is in talks with potential franchisees.

About 90 percent of Burger King's restaurants are owned and operated by independent franchisees.

Under mainland rules, companies need to be in operation for at least a year before they are allowed to sell franchises, said Guo Geping, chairwoman of the China Chain Store & Franchise Association. There were more than 120,000 franchisees in China spanning 50 industries last year, according to the association.

Burger King's menu in China will be customized for local tastes. The store will offer a Whopper burger using spicy sauce from Sichuan for 10.5 yuan and spicy chicken wings, in addition to its basic Whopper and onion rings.

McDonald's in China also offers items tailored for local taste. For example, it has a triangular tortilla sandwich filled rice and chicken or beef and vegetables for 12 yuan.

Separately, Burger King said it may float shares as early as next year as it returns to growth after years of restructuring.

BLOOMBERG