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Rebranded Russian ‘McDonalds’ sees drop in turnover after opening under new label

Sergey Mironov noted that a similar situation will occur with restaurants operating in Russia under the KFC label after their rebranding

© Alexander Shcherbak/TASS

MOSCOW, December 2. /TASS/. Vkusno I Tochka, formerly McDonalds in Russia, has seen its turnover decrease by 15-20% after it opened under the new brand, ombudsman for the restaurant business in Moscow and the capital’s suburbs, Sergey Mironov, told TASS.

"Vkusno I Tochka turnover has decreased by 15-20%, according to our estimates," he revealed.

McDonald's shut all its restaurants in Russia on March 14. On May 16, the global fast-food giant, whose share of this market reached 7%, announced its withdrawal from Russia and, through the mediation of the Industry and Trade Ministry, sold the business to Alexander Govor. Since June 12, the chain has been operating under the brand Vkusno I Tochka (which translates to Tasty and That’s It).

Mironov noted that a similar situation will occur with restaurants operating in Russia under the KFC label after their rebranding.

According to the expert, small franchisees "who have single outlets" will continue to function. It will be more difficult for large franchise holders. But they will also operate when bank financing is provided.

Earlier, the Federal Antimonopoly Service (FAS) greenlighted the petition of Smart Service Ltd LLC to acquire the Russian business of KFC. The company will own 70 restaurants and become a franchisor for more than a thousand partner outlets. After the deal is concluded, both the chain's own restaurants and partner restaurants will continue to operate under the Rostic's brand, the rights to which are also transferred under the deal, the FAS added.

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