The Russian fast food market has seen a significant shift as the largest KFC franchisee in the country forms a new joint venture with a major ownership group. Konstantin Kotov, a co owner of Smart Service, sits at the center of this strategic move. Through a partnership with International Restaurant Brands, Kotov aims to expand his brands by leveraging a shared platform that strengthens operational scope and market reach for fast casual concepts.
According to filings in the Unified State Register of Legal Entities, a new subsidiary emerged in July 2023 under International Restaurant Brands. The venture, titled Fast Food Restaurants, is controlled with a 50.1 percent stake by International Restaurant Brands and a 49.9 percent stake held by Andrey Oskolkov, who is a co owner of Smart Service. The acquisition marks a continuation of a notable transition in Russia’s quick service segment, as the group acquired a cluster of KFC locations previously owned by the American multinational Yum Brands. The strategic buyout signals a broader initiative to consolidate fast food assets under the Rostik brand family that has a familiar footprint for Russian diners.
Executives from International Restaurant Brands emphasized that the joint venture will focus on accelerating the growth of Rostic, a brand with historical resonance in Russia. The new entity is positioned to expand the Rostic network while maintaining the quality and brand standards that customers expect. Kotov, speaking through a company representative, confirmed the intention to pursue further collaboration between International Restaurant Brands and Smart Service, highlighting synergies in franchising, supply chain, and site development that can drive more openings and greater customer access.
In late April, a flagship Rostic restaurant opened near the Mayakovskaya metro station in Moscow as part of the rebrand process. Plans call for transferring roughly 100 KFC locations into the Rostik brand by the end of the summer, signaling a bold step in brand realignment. Yum! Brands, the owner of KFC, completed its exit from the Russian market on April 17, after finalizing an agreement with the new local operators. The deal encompassed Russian KFC assets, the operating platform, core franchise rights, and the Rostik brand trademark, representing a full migration of assets under new ownership. Yum! Brands continues to oversee the transition by guiding the renaming process from KFC to Rostik’s, a return of a familiar name to the Russian dining scene after a 17 year absence. Rostik’s once ran in Russia from 1993 to 2006, and the reintroduction marks a notable chapter in the country’s quick service history.
Observers note that the broader market strategy centers on leveraging established franchise networks and local management teams to accelerate growth, while preserving consistent customer experiences across locations. The transition has implications for supplier relationships, marketing calendars, and menu adaptation to Russian consumer preferences, all of which are being coordinated under the banner of Rostik’s within the new joint venture. The industry has watched closely as these changes unfold, given the potential for further consolidation in the fast food segment and the revival of a familiar brand in a transformed corporate environment.
Previously reported coverage highlighted the name changes taking place in Moscow as KFC outlets begin to adopt Rostik’s branding, signaling a practical execution of the broader strategic alignment. Stakeholders anticipate a carefully managed rollout to minimize disruption while maximizing brand continuity for patrons who associate Rostik’s with a generation of Russian fast food culture. The evolving structure reflects a shift in ownership and brand stewardship that could influence future store openings, promotional campaigns, and regional menu variations as the market responds to renewed interest in domestic brand provenance.