- Yum! Brands stated it had reached a deal to promote its 1,000 KFC stores in Russia.
- The new owners are Russian businesspeople who already maintain KFC franchises.
- All KFC stores in Russia might be rebranded as fast-food chain “Rostic’s”, The Moscow Times reported.
The KFC model is about to vanish in Russia as greater than 1,000 stores are rebranded as a neighborhood fast-food chain, The Moscow Times reported.
Yum! Brands is promoting a few of its KFC eating places and franchises to Konstantin Kotov and Andrei Oskolkov’s Smart Service, the US firm stated in a statement on Monday.
It stated the patrons, who’re already KFC franchisees, can be “responsible” for preserving the corporate’s Russian workers and for rebranding the stores. The deal is topic to regulatory approval.
“Following the completion of the transaction, Yum! Brands will have ceased its corporate presence in Russia,” the corporate stated.
In March Yum! introduced plans to finish operations in Russia following Vladimir Putin’s invasion of Ukraine.
Other fast-food chains introduced their exits from Russia earlier this 12 months. Starbucks stated it was closing 130 stores in May, as did McDonalds, which offered its 850 stores to a neighborhood businessman who has reopened some under a new name.
Yum is promoting 70 KFC eating places in Russia to Smart Service, with the others remaining independently franchised, per The Moscow Times.
According to Russian enterprise newspaper Kommerstant, Smart Service might be liable for rebranding all 1,000 stores as Rostic’s.
Last month Yum Restaurants Russia LLC registered rights to the Rostic’s model, Kommerstant reported, and the KFC stores will start rebranding in early 2023.
Rostic’s was based by Venezuelan migrant Rostislav Ordovsky-Tanaevsky Blanco, nicknamed Rostik, and its first retailer opened in Moscow in 1993, in accordance to native media outlet Business District. It rivaled American fast-food stores till 2006, per the report.
Yum! Brands didn’t instantly reply to Insider’s request for remark.