Russians have been increasingly drawn to opening catering franchises, a trend highlighted by coverage from RIA News. In 2023, investment activity in franchise catering saw a notable uptick as more individuals joined the ownership pool, according to TanukiFamily. The share of franchise cafes and restaurants launched with participation from private investors rose by 4 percent over the year, reaching 23 percent. This shift marks a broader move toward diversified income streams within the food service sector and reflects a growing appetite for business ownership among ordinary citizens, not just established operators.
Industry watchers point to several factors behind this growing interest. With traditional financial instruments like stocks exhibiting higher volatility and less predictable returns, many investors seek more stable, domestic avenues for passive income. Local markets have also shown resilience in certain segments, encouraging people to explore franchise models as a practical way to participate in the economy while limiting some of the risk associated with starting a pure, independent business from scratch. Experts note that the appeal lies in the combination of proven brand recognition, structured operating models, and the potential for steady cash flow in a market where consumer demand remains solid in many regions.
From a regulatory perspective, some observers connect the appeal of franchise investments to the evolving tax landscape. In particular, the temporary removal of value-added tax in this area has been cited as a factor that makes franchise opportunities more accessible and comparatively safer for new investors. This shift reduces some of the upfront costs and ongoing tax considerations that can otherwise burden small business ventures, thereby enhancing the appeal of franchising as a route into the market for food retail and quick-service concepts.
There have been cautionary notes as well. Public health concerns and safety incidents related to food service have a lasting impact on investor sentiment. For instance, a recent issue in Buryatia involved multiple customers experiencing intestinal illness after consuming shawarma in a public dining setting. Such cases underscore the importance of rigorous food safety protocols, quality controls, and transparent supplier practices for franchisees. They also highlight how public health events can influence consumer trust and, by extension, investor confidence in the sector.
Additionally, leaders within the catering industry have repeatedly stressed the importance of staffing stability. Persistent shortages in qualified personnel can affect service levels, consistency, and the overall performance of franchise operations. In response, many franchisors are emphasizing standardized training, improved staffing pipelines, and stronger on-site supervision to ensure brand standards are upheld across locations. The focus on people—the bottleneck and the backbone of any hospitality venture—remains central to sustaining growth in the franchise market.