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restaurants in Russia will be remodeled with a combined menu featuring Rostik's local favorites such as Shashlyk, Cheburek and Pelmeny and KFC's world famous chicken like Original Recipe® Chicken, Twister® Sandwich and Zinger® Sandwich. New logos, state-of-the-art exterior and interior designs, new uniforms and packaging will also be introduced. Over the next five years, RRL will make an investment of up to $100 million to support the development of some 300+ co-branded KFC-Rostik's restaurants in Russia and the CIS. At the conclusion of this five-year business alliance, Yum! Brands and RRL will have the option to transfer ownership of RRL's co-branded restaurants to Yum!. Alternatively, both parties may choose to maintain the current arrangement. Under the parties' agreements, RRL will retain day-to-day operational management of its restaurants, while Yum! Brands will provide strategic support through its experience and technologies in managing international quick-service brands. Also under the umbrella company Yum! are other very recognizable brands in the US such as Pizza Hut, A&W, Taco Bell and Long John Silvers.

Baskin Robbins is one the largest franchises in Russia. It has the draw of a recognizable brand name and a local factory which employs citizens from the area to appease the Russians love of ice cream. Baskin-Robbins is one of the most successful franchises in Russia. In 1994, it had 30 company stores and one franchisee; in 1996, this rose to 50 corporate units and 67 franchisees. It now has a total of 82 in Russia and 93 throughout the Commonwealth of Independent States.

“According to restaurant consulting group RestCon, Russia's fast food market is growing 25 percent annually, and was worth $1.5 billion in 2006, $600 million in Moscow alone.”(Claus) Moscow’s fast food market is estimated at between $400-700 million per year, with per annum growth of perhaps 20 percent. The market is far from saturated and, despite problems, will likely continue to expand steadily over the next several years. Working in the market’s favor are, first, the rapid expansion of shopping malls in Russia, which are creating new real estate for fast food and, second, Russia’s broad-based, young, not-so-picky clientele. “According to a recent survey of U.S. companies by the American Chamber of Commerce in Russia 50% of companies surveyed reported sales increases of 200% from 2001-2005, and 97% projected continued growth for the next 3 years.”

As long as a company takes the time to learn about the culture and makes good choices for a business partner to aid in the process it seems that there are unlimited opportunities for profit. People will always be hungry and the more choices there are the more companies stand to make a profit.

references

Allison, Melissa. Russians to sip Starbucks java this Thursday.' Seattle Times 04 Sep 2007, Business & Technology

Claus, Dietwald. Fast Food Giant Enters Russia .' Moscow News Weekly 31 May 2007, No 21

Willmer, Karen. 'PepsiCo to open second snack plant in Russia.' CEE - Foodindustry.com 11 Jun 2007 05 Mar 2008 .
Doing Business in Russia.' Buy USA.gov. 2001-2008. United States of America Department of Commerce. 5 Mar 2008