Owners of licenses – franchisees – to do business in Russia under the trademark KFC asked the authorities to suspend the process of selling the Russian division of American Yum! “Smart Service” brands of the Izhevsk company. This was expressed by the Ombudsman Sergey Mironov in the field of the Moscow restaurant market, Wrote agency RIA Novosti.
American Yum in October! Brands signed An agreement on the sale of 70 restaurants in the KFC network to the franchisee of the Smart Service company Izhevsk, subject to rebranding and the continuation of work for the entire Russian team. It was later reported that the chain would change its name to Rostic’s.
Yummy! The brands (one of the owners of Smart Service Konstantin) compel Kotov to work under the Rostiks brand, which the company bought from Rostislav Ordovsky-Tanaevsky in 2009,” Mironov stressed.
According to him, the franchisee is not particularly pleased that no one has spoken to them about the terms of the agreement. They were told they only had to pay the same 11% royalty and marketing, but for Rostics, not KFC.
However, licensees will actually have to spend money promoting a new venture because KFC is a global brand with almost 100% recognition and “about 20% of the country’s population remembers Rostix”. Also in Dallas, a large team is working on KFC’s technology and promotion, and newcomers with a unique budget will work for the Rostics brand.
The Ombudsman added that the agreement is currently being approved by a government commission.
Last week reportedHe said that the Polish conglomerate AmRest, which owns 20% of all KFC restaurants in Russia, has decided to sell the restaurants to Russian Almira for at least 100 million Euros.