Some former KFC eating places in Russia started reopening as Rostic’s on Tuesday, as the brand new house owners revive a model born quickly after the collapse of the Soviet Union, though franchise agreements imply the U.S. chain’s model is ready to reside on.
KFC’s U.S. guardian firm Yum! Brands Inc final week finalised its exit from Russia, transferring grasp franchise rights to Smart Service, a neighborhood franchisee led by Konstantin Kotov and Andrey Oskolkov. The deal included all its Russian KFC eating places, working system and the trademark for the Rostic’s model. The worth was not disclosed.
Kotov, flanked by Rostic’s purple, white and black brand at a press convention in Moscow to mark the opening, mentioned his agency would assist franchisees that select to remain as KFC and wouldn’t power them to change.
Originally launched in 1993 whereas Russia was transitioning from communism to capitalism, Rostic’s grew to become KFC’s car for enlargement in Russia, the place it had greater than 1,000 eating places earlier than Yum! Brands introduced plans to exit final 12 months after Russia despatched troops to Ukraine.
KFC partnered with Rostic’s in 2005 earlier than later shopping for it out.
The new house owners mentioned the opportunity of Yum! Brands someday returning to Russia had not been dominated out. Yum! Brands didn’t instantly reply to a request for remark.
Madrid-based AmRest Holdings, a significant franchisee which operated over 200 eating places, in February mentioned it had offered its restaurant business to Smart Service in a deal price round 100 million euros ($110.3 million).
Smart Service, which now controls over 100 eating places, is liable for rebranding and retaining workers.
The revamp mirrors that of former McDonald’s eating places, which had been additionally taken over by a neighborhood licensee final summer season and rebranded as Vkusno & tochka, or ‘Tasty & that is it’. But whereas McDonald’s imposed stringent restrictions on the usage of its model and merchandise, KFC’s model will linger as franchisees with current agreements can stay open, Kotov instructed Russian news outlet RBC. Furthermore, the menu will barely change.
“The dishes we make are completely the same as KFC,” Kotov mentioned. KFC’s Boxmaster is being renamed Rostmaster and the Twister will develop into the Chef-Roll. All suppliers will stay the identical.
“We can no longer open KFC restaurants, unfortunately, but we are obliged to support them,” he mentioned. “Our main goal is to rebrand. We have a plan to finish the whole country in 18 months.”
Source: www.anews.com.tr
