“At the stage of transferring rights to a local operator”: the owner of the KFC brand leaves Russia

American corporation Yum!

Foodservice brand Brands is in talks to sell Russian KFC restaurants to a local operator.

"The company is in an advanced stage of transferring ownership of its KFC restaurants, operating system and core franchise rights, including a chain of franchised restaurants, to a local operator," the press release said.

At the same time, after the completion of the Yum!

Brands intends to leave the Russian market completely.

According to the President of the Union of Restaurant Managers of Russia, public ombudsman in the restaurant business in Moscow Sergey Mironov, a global reorganization of the KFC brand is not worth waiting for, since the vast majority of establishments operate on a franchise basis.

There are over 1,000 KFC restaurants in Russia.

“The franchisees did not violate the terms of the commercial concession agreement.

That is, those franchisees who work in the Russian market can continue to do so, even if they do not agree with the new operator, ”TASS quotes him.

This information was confirmed by the press service of the company itself.

“Most of the restaurants operating under the KFC brand in Russia are managed under franchising agreements and owned by Russian legal entities.

These restaurants continue to operate as usual.

The KFC brand will continue its work on the Russian market, ”RIA Novosti quotes the text of the message.

In March, after the start of a special operation in Ukraine, the American corporation suspended all investments and development, as well as the operation of restaurants in Russia, adding that it redirects profits from activities in the Russian market "for humanitarian purposes."

Georgy Ostapkovich, director of the Center for Business Research at the Institute for Statistical Research and Economics of Knowledge, NRU HSE, believes that the Russian consumer will not have problems due to the departure of KFC.

“There will be no problems with the departure of the KFC brand.

They will release the occupied space, and there will be an actual replacement.

People will be just as busy, they will earn income, but there will be no more KFC products.

It is likely that the new brand will be able to achieve the same success, and even better, ”he told RT.

According to the professor of the Department of State and Municipal Finance of the Russian University of Economics.

Plekhanova Yulia Finogenova, increased attention to such brands as KFC and McDonald's, especially among young people, is a specificity of the CIS countries.

She noted that for any Russian company, a deal to buy a brand of a restaurant chain owned by the American corporation Yum!

Brands, will be "a very good acquisition."

“There will be a different name, while all technologies will remain.

The promotion of the past brand will also, of course, affect its attractiveness in the future, even if it is called differently.

Most likely, the number of sales will not suffer from this, ”she said in a conversation with RT.

It should be noted that in early June, the Pizza Hut pizzeria chain (this brand is also owned by Yum! Brands) was sold to a local operator, the Noy-M company, founded by top managers of the Rostik holding, which is already developing IL Patio restaurants in the Russian Federation. , Planet Sushi, TGI Friday's.

At the same time, the former owner of the Pizza Hut master franchise in Russia, the Polish holding Amrest, received 300 million rubles as part of the deal, Kommersant reported.

Sale of McDonald's

Earlier, McDonald's, one of the main competitors of KFC in the fast food restaurant market, left Russia.

Russian businessman Alexander Govor became the new owner of the network.

On June 12, restaurants began operating under the Vkusno — i dot brand, while maintaining the established menu and service standards.

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As Alexander Govor noted, in the next five or six years about 1,000 Vkusno - and that's the point restaurants will operate in Russia.

In addition, McDonald's franchise chains in the Russian Federation may enter the new brand.

“Three days ago, the McDonald's brand suspended its activities in Russia, all franchisees stopped their work - in Kazan, Siberia, airports.

Will they continue to operate under the McDonald's brand?

Of course not.

If they work, then we will begin to receive applications from them for consideration in order to draw up an agreement with them under our brand.

We will sign, the conditions will not be worse - only better.

We will be very happy if franchisees continue to work under our brand,” he said.