Junirest (formerly Yum! Brands Russia)

Performance indicators

2023: Revenue growth by 17% to RUB 20.17 billion

According to the results of its work in 2023, the Rostic's fast food chain earned 20.17 billion rubles in revenue, which is 17% more than in the previous year. The net profit of the company (legal entity - Unirest LLC) during this time almost tripled and reached 3.54 billion rubles. This is evidenced by the data of the financial statements published in April 2024.

According to Interfax, citing materials from Unirest LLC, in 2023 the company's gross profit reached 15 billion rubles, an increase of one third compared to profit a year ago. The company's commercial expenses increased by 9.7% and amounted to 7.1 billion rubles.

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From the reporting of Unirest LLC, it also follows that in 2023 the fast food chain paid a windfall tax of 35.8 million rubles.

According to Interfax, in April 2023, the legal entity, formerly known as Yam Restaurants Rush LLC, was bought by Smart Service LTD, which is a joint venture of entrepreneurs Konstantin Kotov and Andrei Oskolkov. The financials show the results of the company as under the previous owner of Yam! Brands, and with the "Smart Service," specifies the agency.

In addition to the acquisition of Unirest LLC, Smart Service also bought 215 KFC restaurants from AmRest, a large restaurant holding, in 2023. It is noted that the Rostic's and KFC menus are absolutely identical, with the exception of two names assigned to Yum! Brands, - "Twister" and "Boxmaster," - their rebranded restaurants will not be able to use.^[1]

History

2022

Renaming to "Junirest"

Russian subsidiary of the American YUM! Restaurants (KFC fast food restaurants) changed its name to "Junirest" before the sale. This was announced in November 2022 by Interfax"" with reference to the materials of the Unified State Register of Legal Entities.

Sale plan of 70 KFC restaurants of Smart service LTD

In October 2022, it became known that the American company Yum! Brands will sell all KFC restaurants in Russia, the new business owner will be Smart Service LTD LLC. The buyer will be obliged to gradually rename all retail outlets, including franchised ones.

LLC Smart Service LTD belongs to the owners of the Food Service Group Konstantin Kotov and Andrei Oskolkov. This group of companies operates 41 franchise KFC locations. Yum Division! Brands LLC "Yam Restaurants Rush" operates about 70 Russian institutions under this brand. In total, there are about one thousand KFC restaurants in Russia.

Transfer of rights to KFC restaurants in Russia to local operator

August 3, 2022 Yum! Brands stated that it is completing the transfer of rights to its KFC restaurants in Russia (there are about 70 of them) and master franchises, including a franchise restaurant chain (more than 1,000 KFC operate in Russia). The new operator will rebrand KFC points to a different concept from Yum!.

Burger King and KFC in Russia are switching to drinks from Chernogolovka instead of Coca-Cola and Pepsi

At the end of June 2022, it became known that fast food chains Burger King and KFC in Russia are switching to drinks from Chernogolovka instead of Coca-Cola and Pepsi. Read more here.

2017

Plan to reduce its own restaurants in the Russian Federation by 3.5 times

In February 2017, it became known that Yum! Brands Russia will within two years reduce the number of its own KFC restaurants in Russia by almost 3.5 times, selling up to 180 points to current and future franchisees. The company will keep no more than 50 establishments. For the sale of Yum objects! Brands could fetch a minimum of $100 million.

Yum! By the end of 2018, Brands Russia will sell up to 180 of its own KFC restaurants to its franchise partners, Oleg Pisklov, the company's head, told Kommersant. According to him, refranchization in Russia is part of the new global strategy of Yum! Brands Inc., under which the share of its franchised restaurants in the world should grow from 93% to 98%.

"Owned by Yum! Brands Russia will remain up to 50 restaurants, of which about 30 are in Moscow, "said Mr. Pisklov, adding that both existing points and those under construction will be sold.

At the end of 2016, KFC had 514 restaurants in Russia (80 in Moscow and the region), of which 179 were own. The list of restaurants for sale has not been determined, it is planned to be drawn up during negotiations with buyers.

PwC has been selected as the financial advisor for future transactions. She will have to work with three potential groups of buyers - operating franchisees, investment divisions of banks and specialized investors, as well as funds that manage family welfare.

"It is assumed that the investor will open new restaurants in the regions included in the perimeter of the transaction," said Oleg Pisklov

For 2017 in Russia and the CIS at Yum! Brands 38 franchise partners. There are three large ones:

• AmRest LLC (114 restaurants, mainly in the north-west of Russia, Moscow, Kazan, Nizhny Novgorod),
• The Caspian International Restaurants Company (35 restaurants in Kazakhstan) and
• City Restaurants LLC (34 restaurants, mainly in Moscow).

Under the terms of the sale of the KFC franchise, the lump sum contribution is $48.4 thousand, royalties - 6%, 4% of the turnover are deductions to the marketing fund, 1% - the local marketing budget.

In the "City Restaurants" "Kommersant" reported that they are ready to consider the proposal of Yum! Brands Russia. The former KFC development manager estimates 180 restaurants in the chain at least $100 million.

In 2016, the KFC chain grew by 104 restaurants in Russia (42 of them own). Mr. Pisklov expects that the pace of opening new restaurants will continue and by 2020 there will be about 1 thousand of them.

Concentration on franchising is a popular model for the development of online promoted brands, says Franshiza.ru portal expert Anna Rozhdestvenskaya. Thus, according to her, the company reduces operating costs and earns on royalties. "This makes it possible to predict development, since franchisees undertake certain obligations to open new points of the network," explains Madam Rozhdestvenskaya, recalling that Subway is developing through franchising in Russia and McDonald's has recently begun to operate. On Franshiza.ru, KFC is the second most popular franchise: it receives 80 requests a week from potential franchisees.

Russia becomes the center of a macroregion that includes Central and Eastern Europe

Updated Development Strategy Yum! Brands also provides for a new status of the Russian division - Yum! Brands Russia is becoming a management center for the macro-region, which, in addition to Russia and the CIS, will include Central and Eastern Europe. There, as of the end of 2016, there are 498 restaurants.

The decision to make Yum! Brands Russia management center for East and Central Europe was largely determined by the record financial results of the Russian division over the past five years. In this regard, the company will have a new position - Director, Russia, CIS, Central & Eastern Europe (Managing Director for Russia, CIS, Central and Eastern). To Europe Oleg Pisklov, the former CEO of Yum! Brands Russia&CIS. Pisklov will develop business in the markets of Russia, the CIS, Central and Eastern Europe.

"Oleg Pisklov is the permanent champion in business development at KFC, the main driver of unprecedented growth in the Russian market. I am sure that its impact will quickly spread to a new major region, "comments Roger Eaton, CEO of the KFC brand

Raisa Polyakova has been appointed General Director of KFC in Russia and the CIS. She has been with the company since 2011. "I have no doubt that Raisa's high professionalism, her strategic thinking and desire for innovation will make a significant contribution to the development of KFC's business in Russia and the CIS," comments Oleg Pisklov, Managing Director, Russia, CIS, Central & Eastern Europe. "

2016:33% sales growth

Sales of Yum! Brands Russia in 2016 grew by 33%, which, according to the company, was the best result among all other regions.

Yum! Brands Russia is a company operating a chain of restaurants in Russia. Representation of the American Yum! Brands Inc., Louisville (Kentucky, USA).

Yum! Brands Russia is developing KFC restaurants and Pizza Hut restaurants in Russia. For 2016, Pizza Hut has 47 restaurants here, of which 16 are of their own, the rest are franchised.

2013:48% sales growth

According to the results of 2013, sales in the Russian market increased by 48% compared to the previous year^[2]

2011: 5,000 employees at Yum! Restaurants

For 2011, Yum! Brands in Russia and the CIS has a Yum! Restaurants International Russia & CIS employs 5,000 people. YRI owns the KFC chain and Pizza Hut restaurants operating in Russia. The main emphasis is on the development of KFC. The launch of an independent brand took place in September 2011^[3]. The Taco Bell brand is also registered in Russia, but so far the company does not plan to open dots under this^[4].

2010: Takeover of the Rostik's-KFC network

In June 2010, it became known that Yum! Brands has agreed to acquire the Rostik's-KFC network (previously separated from Rosinter). The deal was closed in early July of that year.

2005: Launch of 300 restaurants "Rostik's-KFC "

In June 2005, Yum! Brands and Rosinter Restaurants Holding signed an investment agreement on the joint opening in Russia of a chain of 300 restaurants under the sign of Rostik's-KFC. In the same year, Pizza-Nord bought a franchise to open Rostik's-KFC restaurants in the cities of St. Petersburg, Kazan, Nizhny Novgorod.

Notes