Smart Service LTD

History

2023: Purchase of 215 KFC restaurants in Russia

The Polish restaurant holding AmRest Group has agreed to sell 215 KFC restaurants in Russia operated by it to the Izhevsk company Smart Service instead of Almira LLC. This was announced at the end of February 2023.

Amrest terminated the sale and purchase agreement concluded with Almira LLC on December 6, 2022, and signed a new sale and purchase agreement with Smart Service on February 25, 2023, mainly on the same terms of the agreement between Amrest and Almira LLC, the franchisee said in a statement quoted by RBC.

Izhevsk company "Smart Service" bought 215 KFC restaurants in Russia

AmRest reports that Unirest LLC, an affiliate of Yum! Brands Inc., exercised its first waiver right under the major franchise agreements for itself or for the benefit of a third party and appointed Smart Service as the buyer of the business.

The new agreement is subject to approval by the antimonopoly services of the Russian Federation. The financial terms of the transaction were not disclosed by February 27, 2023. Earlier, AmRest reported that by selling 215 KFC restaurants in Russia to the Russian company Almira, the group expects to receive at least 100 million euros.

By February 2023, there are about 1,000 KFC restaurants in Russia. The structure of Yum! Brands operated about 70 KFC establishments in the Russian Federation. The American company in Russia has many local franchisees who are unhappy with the new owner of the master franchise. In January, franchisees asked the government to stop selling the chain's Russian business. They were embarrassed that the KFC brand in the country will no longer be, and royalties and marketing fees for them will remain the same - 11%, notes Kommersant"."

Prior to the deal, LLC Smart Service LTD operated 41 KFC establishments in Izhevsk under the franchise. The legal entity belongs to Konstantin Kotov and Andrei Oskolkov (by February 2023).^[1]

Notes