Yum Brands close to selling KFC business in Russia
08 Jul 2022
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Yum! Brands Inc said on Tuesday that it was in advanced stages of transferring ownership of its KFC restaurants, operating system and master franchise rights, including the network of franchised restaurants in Russia, to a local operator, in order to fully exit the country.
Last month, Yum! completed the transfer of ownership of all Pizza Hut franchise assets to a local operator who has initiated the process of re-branding locations to a non-Yum! concept. The company is also in advanced stages of transferring ownership of its KFC restaurants, operating system and master franchise rights, including the network of franchised restaurants, to a local operator.
The company opened its first KFC restaurant in Russia in 1995 and now has about 1,000 outlets in the country, nearly all of which are operated by independent owners under licence or franchise agreements.
This builds on the company’s prior actions to suspend operations of all company-owned restaurants, halt all investment and restaurant development efforts, and redirect any profits from Russia operations to humanitarian efforts. Following completion of the KFC transaction, Yum! Brands intends to fully exit from Russia.
Western companies leaving Russia over the invasion of Ukraine have sped up the pace of their exits in recent weeks as Moscow is advancing a new law that would allow it to seize assets and impose criminal penalties on foreign firms.
McDonald's Corp, an icon of American capitalism in the dying embers of the Soviet Union, sold its business in Russia earlier this year. Its restaurants opened under new branding last month.
Yum Brands also said on Tuesday that it had completed the sale of its Pizza Hut business in Russia to a local operator who is re-branding the restaurants. The financial details of the sale were not disclosed.
Russian media reported last month the business was bought for 300 million roubles ($4.92 million) by Noi-M, which is linked to the operator of the Russian franchises of Costa Coffee and T.G.I. Friday's.
