In accordance with the agreement, RRL is expected to make an investment of up to $100 million during 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.
RRL chairman and CEO Rostislav Ordovsky-Tanayevsky Blanco says the deal will allow Yum! to bring its KFC brand name into a new market, while RRL benefits from the retailer's proven success. "This is an ideal combination of the best from the East and West," Blanco says. "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."
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—with nearly 34,000 restaurants in more than 100 countries and territories—provides strategic support.
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.
Rostik Restaurants Ltd. has been present in the Russian market since 1990. It operates and franchises casual dining units under several brands including Il Patio, Planet Sushi, TGI Friday's, American Bar & Grill, Benihana, Cafe des Artistes, Moka Loka (Coffee shops), and Sibirskaya Korona. 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.
"We are very excited about this growth opportunity for Yum! Restaurants International," said Yum! Brands chairman and CEO David Novak in a statement. "KFC and Rostik's will now offer two great brands under one roof."
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