Yum Brands' KFC partners with Russian restaurateur
Breakthrough Business Alliance to Provide Millions of Russian and CIS Consumers with Rostik's and KFC Products under One Roof
Rostik Restaurants Ltd to Invest up to $100 Million to Create Leading Quick Service Restaurant Business in Russia and the CIS
Yum! Brands to Provide Financing in Form of Loans and Guarantees for Portion of Development
Yum! Brands, Inc., (NYSE: YUM), the world's largest restaurant company in terms of units, owner of the KFC Brand, and Rostik Restaurants Limited (RRL), owner of Russia's top chicken restaurant chain, are teaming up in a unique strategic business alliance to establish market leadership in the quick service restaurant sector in Russia and the Commonwealth of Independent States (CIS), it was announced today.
Yum! Restaurants International, the Dallas-based international division of Yum! Brands, and RRL today signed an agreement whereby RRL would make an investment of up to $100 million over the next five years to support the development of some 300 co-branded Rostik's/KFC restaurants. Yum! will provide financial support including the provision of loans and guarantees up to $30 million to support this development. The highly-recognizable and much-loved Rostik's brand name will remain prominent, while the world-renowned KFC brand also will be strategically positioned on restaurant signage. The restaurants will serve both Rostik's local favorites and KFC's world famous chicken products like Original Recipe®, Twister® and Zinger® to Russian and CIS consumers.
At the conclusion of this five-year business alliance, Yum! and RRL will have the option to transfer ownership of the Rostik's business to Yum! Alternatively, both parties may choose to maintain the current business arrangement.
Today Rostik's manages 80 restaurants in Russia and CIS. Yum! Brands has 12 licensed KFC restaurants in Moscow and St. Petersburg. Under the agreement, RRL will retain day-to-day operational management, while Yum! Brands will provide strategic support through its experience and technologies in managing international quick service brands.
"Rostik's is a highly successful and respected brand, led by a great entrepreneur Rostislav Ordovsky, which makes this the perfect business partnership as we bring KFC products to even more consumers in this important part of the world," said Yum! Brands Chairman and CEO David Novak. "We are very excited about this growth opportunity for Yum! Restaurants International. KFC and Rostik's will now offer two great brands under one roof, with more choice and convenience, and a combined menu of great tasting products, excellent value and world-class service."
RRL Chairman and CEO Rostislav Ordovsky-Tanayevsky Blanco added that: "This is an ideal combination of the best from the East and West. By joining forces with such a global partner, Rostik's is not only getting the financial support for growth, but also the access to Yum! Brands' years of international experience and technology. I am confident that our cooperation will bring both parties important synergy for growth. We will unite our best practices to accelerate our growth in Russia and the CIS. The first ones to benefit from this cooperation are our customers. This innovative alliance will enable us to provide the services and wide variety of products our customers want."
Deputy Prime Minister of Russia Alexander Zhukov welcomed the signing of the deal, saying that this event is a significant development for local small and medium enterprises in Russia. "A Western company investing in the development of a Russian brand is a unique development in itself," he said. "It also demonstrates the strength of our country's economy in attracting foreign investment."
The agreement covers Russia and all other CIS countries, and RRL plans on opening both company-owned and franchised Rostik's/KFC restaurants in as many as 30 cities throughout the region.
Yum! Restaurants International (YRI), based in Dallas, Texas, is the largest division of Louisville, Ky.-based Yum! Brands, Inc., in terms of system units. Currently, YRI has more than 11,000 international system restaurants in 100 countries and territories outside the United States and Yum! China Division (mainland China, Thailand and KFC Taiwan). In each of the last five years, YRI has opened over 700 new restaurants. At year's end 2004, the company generated $2.1 billion in revenue at 11,000+ restaurants - primarily KFC and Pizza Hut.
Yum! Brands Inc., based in Louisville, Kentucky, is the world's largest restaurant company in terms of system restaurants with nearly 34,000 restaurants in more than 100 countries and territories. Four of the company's restaurant brands - KFC, Pizza Hut, Taco Bell and Long John Silver's - are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories, respectively. In 2005, Yum! Brands began separately reporting the company's China Division business due to its size, unique strength and importance. Prior to this, the China Division was part of YRI. Yum! China Division includes mainland China, Thailand and KFC Taiwan. In 2004, Yum! China Division had approximately $205 million in operating profit and more than 1,900 restaurants. Yum! Brands is the worldwide leader in multibranding, which offers consumers more choice and convenience at one restaurant location from a combination of KFC, Taco Bell, Pizza Hut, A&W or Long John Silver's brands. The company and its franchisees today operate over 2,900 multibrand restaurants. Outside the United States in 2004, the Yum! Brands' system opened about three new restaurants each day of the year, making it one of the fastest growing retailers in the world. The company has been recognized in Black Enterprise Magazine as one of the "30 Best Companies for Diversity" and for the past two years in Fortune's top 50 "Best Companies for Minorities," claiming the number-one spot for "managerial diversity."
Rostik Restaurants Limited (Rostik Group Corporation) has been present in the Russian market since 1990. It operates and franchises casual dining units under the well known brands - Il Patio, Planet Sushi, TGI Friday's, American Bar & Grill, Benihana, Cafe des Artistes, Moka Loka (Coffee shops), and Sibirskaya Korona among others. In the quick service segment it owns the popular Russian chain Rostik's. Based on 2005 projected results, Rostik Group continues to be Russia's leading restaurant company with a turnover approaching $200 million and close to more than 200 restaurants operating under its various brands in Russia and CIS. Rostik Group has operations in cities across Russia and Central/Eastern Europe, including Moscow, St. Petersburg, Lyubertsy, Mytyshchi, Odintsovo, Podolsk, Solnechnogorsk, Balashikha, Omsk, Novosibirsk, Kiev, Alma-Ata, Nizhny Novgorod, Ekaterinburg, Samara, Riga, Urmala, Novokuznetsk, Barnaul, Krasnoyarsk, Minsk, Gomel, Prague, Bratislava, Vienna, Budapest.
"Rostik's" with 80 restaurants is the largest Russian quick service chain serving Russians of all walks of life with famous chicken recipes and other successful dishes coming from Russian and former CIS countries traditions. A special menu for children is also available in Rostik's restaurants. The average check is 100-120 rubles. Rostik's restaurants are developed as stand-alone units in close proximity to large supermarkets, in food courts, in gasoline stations and in high traffic city center locations. The chain has also been a pioneer in the use of franchising as a means to expand its presence in Russia. The first Rostik's opened in 1993.
Yum! Brands to Provide Financing in Form of Loans and Guarantees for Portion of Development
Yum! Brands, Inc., (NYSE: YUM), the world's largest restaurant company in terms of units, owner of the KFC Brand, and Rostik Restaurants Limited (RRL), owner of Russia's top chicken restaurant chain, are teaming up in a unique strategic business alliance to establish market leadership in the quick service restaurant sector in Russia and the Commonwealth of Independent States (CIS), it was announced today.
Yum! Restaurants International, the Dallas-based international division of Yum! Brands, and RRL today signed an agreement whereby RRL would make an investment of up to $100 million over the next five years to support the development of some 300 co-branded Rostik's/KFC restaurants. Yum! will provide financial support including the provision of loans and guarantees up to $30 million to support this development. The highly-recognizable and much-loved Rostik's brand name will remain prominent, while the world-renowned KFC brand also will be strategically positioned on restaurant signage. The restaurants will serve both Rostik's local favorites and KFC's world famous chicken products like Original Recipe®, Twister® and Zinger® to Russian and CIS consumers.
At the conclusion of this five-year business alliance, Yum! and RRL will have the option to transfer ownership of the Rostik's business to Yum! Alternatively, both parties may choose to maintain the current business arrangement.
Today Rostik's manages 80 restaurants in Russia and CIS. Yum! Brands has 12 licensed KFC restaurants in Moscow and St. Petersburg. Under the agreement, RRL will retain day-to-day operational management, while Yum! Brands will provide strategic support through its experience and technologies in managing international quick service brands.
"Rostik's is a highly successful and respected brand, led by a great entrepreneur Rostislav Ordovsky, which makes this the perfect business partnership as we bring KFC products to even more consumers in this important part of the world," said Yum! Brands Chairman and CEO David Novak. "We are very excited about this growth opportunity for Yum! Restaurants International. KFC and Rostik's will now offer two great brands under one roof, with more choice and convenience, and a combined menu of great tasting products, excellent value and world-class service."
RRL Chairman and CEO Rostislav Ordovsky-Tanayevsky Blanco added that: "This is an ideal combination of the best from the East and West. By joining forces with such a global partner, Rostik's is not only getting the financial support for growth, but also the access to Yum! Brands' years of international experience and technology. I am confident that our cooperation will bring both parties important synergy for growth. We will unite our best practices to accelerate our growth in Russia and the CIS. The first ones to benefit from this cooperation are our customers. This innovative alliance will enable us to provide the services and wide variety of products our customers want."
Deputy Prime Minister of Russia Alexander Zhukov welcomed the signing of the deal, saying that this event is a significant development for local small and medium enterprises in Russia. "A Western company investing in the development of a Russian brand is a unique development in itself," he said. "It also demonstrates the strength of our country's economy in attracting foreign investment."
The agreement covers Russia and all other CIS countries, and RRL plans on opening both company-owned and franchised Rostik's/KFC restaurants in as many as 30 cities throughout the region.
Yum! Restaurants International (YRI), based in Dallas, Texas, is the largest division of Louisville, Ky.-based Yum! Brands, Inc., in terms of system units. Currently, YRI has more than 11,000 international system restaurants in 100 countries and territories outside the United States and Yum! China Division (mainland China, Thailand and KFC Taiwan). In each of the last five years, YRI has opened over 700 new restaurants. At year's end 2004, the company generated $2.1 billion in revenue at 11,000+ restaurants - primarily KFC and Pizza Hut.
Yum! Brands Inc., based in Louisville, Kentucky, is the world's largest restaurant company in terms of system restaurants with nearly 34,000 restaurants in more than 100 countries and territories. Four of the company's restaurant brands - KFC, Pizza Hut, Taco Bell and Long John Silver's - are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories, respectively. In 2005, Yum! Brands began separately reporting the company's China Division business due to its size, unique strength and importance. Prior to this, the China Division was part of YRI. Yum! China Division includes mainland China, Thailand and KFC Taiwan. In 2004, Yum! China Division had approximately $205 million in operating profit and more than 1,900 restaurants. Yum! Brands is the worldwide leader in multibranding, which offers consumers more choice and convenience at one restaurant location from a combination of KFC, Taco Bell, Pizza Hut, A&W or Long John Silver's brands. The company and its franchisees today operate over 2,900 multibrand restaurants. Outside the United States in 2004, the Yum! Brands' system opened about three new restaurants each day of the year, making it one of the fastest growing retailers in the world. The company has been recognized in Black Enterprise Magazine as one of the "30 Best Companies for Diversity" and for the past two years in Fortune's top 50 "Best Companies for Minorities," claiming the number-one spot for "managerial diversity."
Rostik Restaurants Limited (Rostik Group Corporation) has been present in the Russian market since 1990. It operates and franchises casual dining units under the well known brands - Il Patio, Planet Sushi, TGI Friday's, American Bar & Grill, Benihana, Cafe des Artistes, Moka Loka (Coffee shops), and Sibirskaya Korona among others. In the quick service segment it owns the popular Russian chain Rostik's. Based on 2005 projected results, Rostik Group continues to be Russia's leading restaurant company with a turnover approaching $200 million and close to more than 200 restaurants operating under its various brands in Russia and CIS. Rostik Group has operations in cities across Russia and Central/Eastern Europe, including Moscow, St. Petersburg, Lyubertsy, Mytyshchi, Odintsovo, Podolsk, Solnechnogorsk, Balashikha, Omsk, Novosibirsk, Kiev, Alma-Ata, Nizhny Novgorod, Ekaterinburg, Samara, Riga, Urmala, Novokuznetsk, Barnaul, Krasnoyarsk, Minsk, Gomel, Prague, Bratislava, Vienna, Budapest.
"Rostik's" with 80 restaurants is the largest Russian quick service chain serving Russians of all walks of life with famous chicken recipes and other successful dishes coming from Russian and former CIS countries traditions. A special menu for children is also available in Rostik's restaurants. The average check is 100-120 rubles. Rostik's restaurants are developed as stand-alone units in close proximity to large supermarkets, in food courts, in gasoline stations and in high traffic city center locations. The chain has also been a pioneer in the use of franchising as a means to expand its presence in Russia. The first Rostik's opened in 1993.
