McDonald's gives Rosinter subsidiary right to develop chain in transport hubs
MOSCOW. April 10 (Interfax) - McDonald's, which has until recently been developing a chain of corporate fast food restaurants in Russia, has decided to use a franchise system.
"We have signed an agreement giving our partner the right to develop our business in transport hubs," President of McDonald's in Russia and Eastern Europe Khamzat Khasbulatov said at a press conference in Moscow on Tuesday.
The partner is LLC Razvitie Rost, which is part of the Rosinter Restaurants Holding .
Asked why the company rejected this system in Russia for such a long time, Khasbulatov said "it did not make sense in economic terms. Now the priority for us is to develop the corporate business in Russia," he said. "Franchising is a small stage to see how effective this model is in Russia," he added.
When selecting a partner the company was looking first at reputation, the level of staff training and how ready it was to observe the standards and requirements by which corporate McDonald's restaurants operate. "Our customers should not feel the difference between corporate and franchise restaurants," he told Interfax.
The agreement envisages various restrictions for the partner, Khasbulatov said. These concern restrictions on the territory where restaurants are located. "The partner cannot build and open restaurants outside the agreed territory," he said.
Khasbulatov did not give details about the deal, but did say that the number of restaurants that the Rosinter subsidiary can open will be discussed further. "We have outlined the potential of this business and we would like the first restaurant to be opened in Moscow but where it will really happen is difficult to say for now," he added.
Asked whether the franchises might open outside transport hubs, Khasbulatov said "a decision about this might be taken based on the experience gained."
There are 314 McDonald's restaurants in Russia. The chain opened 37 new restaurants in 2011 and plans to open 45 in 2012.
McDonald's is developing franchising in Europe, Latin America and Asia. Around 80% of the restaurants around the world are working by this system.
McDonald's first came to Russia in 1990 when it created a joint venture with the Moscow government, in which it owned 49%. It later bought the city's stake.
According to SPARK-Interfax, Razvitie Rost was set up last December. Rosinter Restaurants Holding has a 90% stake in it and the other 10% is held by founder and main Rosinter owner Rostislav Ordovsky-Tanayevsky Blanko.
