The Fast-Food Industry in Russia

The Fast-Food Industry in Russia

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Joined: Oct 2022

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The fast-food industry has persisted in Russia despite the country’s ongoing economic difficulties. due to the fact that it is both inexpensive and readily available. Subway ceased all investments and development of new locations in Russia; nonetheless, the company is unable to terminate independently owned and operated franchises. This is typical of franchises.

McDonald’s

McDonald’s first Moscow outlet debuted on Pushkin Square in 1990, sparking a national obsession. The franchise expanded rapidly, opening hundreds of company-run eateries from the Baltic Sea to Southwest Siberia. McDonald’s second-busiest market by 2022.

After Russia invaded Ukraine, many Western corporations cut back or left. McDonald’s sold 850 restaurants to Russian entrepreneur Alexander Govor and exited.

On Sunday, Moscow’s former McDonald’s outlets reopened as “Vkusno-i Tochka,” or “Tasty, Period.” The makeover reassures Russians that they may live Western lifestyles without Big Macs and fries. A Washington data analyst who examines Russian business’s global impact argues it’s also political. She said Putin wants to prove the West is still prepared to do business with him.

Burger King

Since Russia invaded Ukraine, several Western corporations have left Russia. Except for Burger King. Restaurant Brands International (RBI) owns 15% of the joint venture that runs the company’s 800+ US locations. Alexander Kolobov, a Russian businessman and venture partner, runs the eateries.

According to Kolobov, he lacks the authority to close the eateries in response to the attack on Ukraine. Restaurant Brands International president David Shear wrote an open letter to employees about that claim.

Shear said the firm “demanded that he immediately suspend Burger King restaurant operations in Russia” from Kolobov. Shear said the enterprise will take time to dissolve due to legal arrangements. RBI has halted new investment and expansion and withdrew all corporate backing from the market, including marketing and supply chain support. The business will donate income from its Russian shareholding to the UN refugee agency.

Subway

Subway has not left Russia after Vladimir Putin invaded Ukraine, unlike scores of US corporations. This prompted social media calls to boycott the sandwich chain.

Subway’s 450 Russian stores are owned and operated by local franchisees, unlike McDonald’s 850 Russian sites, which were closed under pressure. Subway has “limited insight into their day-to-day operations” and doesn’t control them.

This makes closing them all difficult for the corporation. It will devote income from its Russia operations to humanitarian activities aiding Ukrainians, working with franchisees worldwide. The eateries are losing operational and marketing support. It also halted restaurant development nationwide. Its market share will drop from 9% to 6% next year.

KFC

After Yum Brands left Russia after the invasion of Ukraine, Smart Service bought 1,112 KFC locations. Rostik’s has the same menu, buckets, and red-white logo. The new name excludes Colonel Sanders.

The restaurants still attract consumers despite the new name. Infoline Analytics reported that network fast-food restaurant sales climbed 4.5-5% in 2022 compared to 2016, which is strong for the Russian market.

The fast-food revenue increase is not miraculous. Due to monetary constraints, many Americans are choosing cheaper meal options. Thus, people prefer affordable restaurants over McDonald’s and Subway. This will likely continue.

Fast food in Russia is popular and convenient. Despite the abundance of fast and processed foods, it is crucial to recall the joy and satisfaction of home-cooked meals. If you’re looking for a new dish, “How to Make Homemade Noodles From Scratch” is a fantastic place to start. It leads you through the steps of creating delicious noodles at home. This article will teach you how to make wonderful homemade noodles, from the dough through the rolling and cutting.

 

 

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