On fried wings Rostic’s until it takes off
Earlier, a number of KFC franchisees in Russia asked the government to suspend the sale of the Izhevsk-based Smart Service network. In response, the co-owner of the company said that no one is forcing the chain’s franchisees to change the KFC brand to Rostic’s.
Konstantin Kotov, co-owner of Smart Service LTD LLC, who signed an agreement on the purchase of KFC restaurants from the American Yum! Brands, told RBC that no one is forcing the chain’s franchisees to change their brand to Rostic’s while those already signed with Yum! Brand contracts.
So he responded to a letter from a number of KFC franchisees to the government, in which they asked to suspend the deal to sell the network in Russia due to fears that it could cause serious harm to the restaurant market.
“We communicate with all Yum franchisees! Brands and we ourselves have been partners of the company since the beginning of its work in Russia. All this time, KFC was supported by its Moscow office, which will continue to work in full force <...> Smart Service presented to all partners the strategy for the brand transition from KFC to Rostic’s. The main goal: to preserve the taste, keep prices, not lose guests and show the continuity of both brands. None of the partners are forced to move from KFC to Rostic’s – as long as those already signed with Yum! Brands contracts,” said Kotov.
According to him, in the future, Franchisees can continue to work until the end of their 10-year contracts, and the Smart Service company itself has an obligation to retain all employees.
The press service of the government of RBC confirmed the receipt of a letter from the KFC franchisee and said that it was sent for processing in the prescribed manner to the Ministry of Industry and Trade.
In March Yum! Brands has suspended the operation of its restaurants in Russia and investments in the Russian market in connection with the start of a special operation in Ukraine. In July, the company announced that it had found buyers for the Russian business.
In November, the Federal Antimonopoly Service allowed the Izhevsk company Smart Service Ltd to buy the Russian business of Yum! Restaurants. As a result of the transaction, the company will receive 70 KFC restaurants and become a franchisor for 1,058 partner outlets. According to the Federal Antimonopoly Service, the deal will not affect the state of competition in the public catering commodity markets. The sold restaurants are waiting for rebranding: they will continue to work under the Rostic’s brand.