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The parent of KFC, Pizza Hut and Taco Bell said Tuesday that it’s close to finalizing the transfer of KFC’s operations in Russia to a local party and completing its exit from the once highly desirable market.
Yum Brands did not reveal the party that intends to assume operation of KFC, nor any terms of the arrangement. The deal would include master franchise rights to locally operated KFCs and any restaurants operated by the franchisor.
Nor did Yum indicate if the restaurants would continue to operate under the KFC brand name. Pizza Hut restaurants in Russia are already being converted to another brand by the party that acquired that brand’s Russian franchise assets last month, Yum said in disclosing it plans for KFC operations there. The identity of that new franchisor was not disclosed.
Earlier, Yum had indicated that profits from its operations would be redirected to humanitarian causes until the transfers were done. It also projected that the divestitures would reduce its operating profits for the current year by about 3%.
Taco Bell exited Russia about 20 years ago after several trial stores failed to draw a following. Yum’s fourth restaurant brand, The Habit Burger Grill, has never had a restaurant there.
Yum is the latest U.S. chain operator to decamp from Russia since the former cornerstone of the Soviet Union invaded Ukraine for a second time in February. It illegally annexed Crimea in 2014.
McDonald’s announced its departure from the market as Russian forces started pummeling Ukraine with bombings and marching into the one-time satellite. It immediately closed its restaurants there while continuing to pay its 60,000 Russian employees. In mid-May, it disclosed a deal to sell the operations to its Siberian franchisee, Alexander Grover, for an undisclosed amount.
Starbucks said in the days following Russia’s invasion of Ukraine that it would close all 130 of its restaurants there but keep the employees on the payroll for six months.
Burger King was unable to sunset its operations there because the 800 restaurants are operated under a joint venture with a local majority partner who refused to fire down the grills.
Yum is believed to be the world’s largest restaurant franchisor, with more than 33,000 restaurants within its four chains.
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Peter Romeo has covered the restaurant industry since 1984 for a variety of media. As Editor At Large for Restaurant Business, his current beats are government affairs, labor and family dining. He is also the publication's unofficial historian.
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FAQs
Pizza Hut suspended operations of their 50 Russian outlets in response to the Russian invasion of Ukraine. In the hours following Gorbachev's death later the same year, Pizza Hut became a trending topic on Twitter.
Why did KFC leave Russia? ›
Originally launched in 1993 while Russia was transitioning from communism to capitalism, Rostic's became KFC's vehicle for expansion in Russia, where it had more than 1,000 restaurants before Yum! Brands announced plans to exit last year after Russia despatched troops to Ukraine.
Are KFC and Pizza Hut owned by the same company? ›
Yum Brands Inc., is a restaurant company that owns quick-service chains Taco Bell, Pizza Hut and KFC, as well as fast-casual brand The Habit Burger Grill. It is headquartered in Louisville, Ky. Yum Brands was initially part of PepsiCo, which entered the restaurant business in 1977 with the acquisition of Pizza Hut.
Is Pizza Hut doing business in Russia? ›
Brands Is Suspending Operations of KFC Company-Owned Restaurants in Russia; Finalizing Agreement to Suspend All Pizza Hut Restaurant Operations in Russia. Yum!
Why are people boycotting Pizza Hut? ›
Why the chain is facing a worldwide boycott. Pizza Hut is facing consumer boycotts after the chain reportedly provided free meals to soldiers on Israeli military bases.
How much did Gorbachev get paid for Pizza Hut? ›
In the beginning, Gorbachev declined to take part out of fear for his reputation as a former leader in a post-Soviet world, as per reports. However, he eventually agreed because he needed a new office space for his organisation. He was apparently paid $1 million by Pizza Hut.
Is KFC owned by China? ›
Yum! operates the brands KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, except in China, where the brands are operated by a separate company, Yum China. Yum! previously also owned Long John Silver's and A&W Restaurants. The company was created as a spin-off of PepsiCo in 1997.
Is Burger King still in Russia? ›
While Burger King remains open for business in Russia, its biggest rival McDonald's, which corporately owned most of its restaurants, has managed to leave the country. KFC's parent company Yum! Brands has also sold more than 100 restaurants to a local operator in Russia, which were rebranded as Rostic's in April.
Will Burger King leave Russia? ›
Burger King's roughly 800 Russian restaurants remain open. Its parent company said in March 2022 it had started the process to dispose of its ownership stake. But it noted that this would "take some time" because of the terms of its joint venture agreement.
Does Taco Bell own KFC? ›
Under our parent company, Yum! Brands Inc. Taco Bell is part of a family of fast food powerhouses which include both KFC and Pizza Hut.
KFC was founded by Colonel Harland Sanders (1890–1980), an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression.
What fast food does KFC own? ›
Jollibee is owned by the Jollibee Foods Corporation, which is based in Pasig, Philippines. JFC has operated as a franchisor since 1979. JFC also owns other fast food brands in the Philippines, including Chowking, Greenwich Pizza, Red Ribbon Bakeshop, and Mang Inasal, and it operates Burger King franchises.
What American restaurants are still in Russia? ›
The franchises of Subway, Carl's Jr., Papa John's, Costa Coffee, Burger King, and TGI Fridays have continued to operate, business as usual.
Does Taco Bell have stores in Russia? ›
Prior to these announcements, Yum's Russia presence included approximately 1,000 KFC restaurants and 50 Pizza Hut locations, nearly all of which were operated by licensees or franchisees There are no Taco Bell or Habit Burger Grill restaurants in Russia.
What American food chains are in Russia? ›
KFC is the most prolific American fast food brand in Russia with over around 1,000 premises across the country. That is followed by McDonalds with close to 847, and Burger King, which operates roughly 800 restaurants in Russia. There are also 130 Starbucks coffee shops and 50 Pizza Hut restaurants in Russia.
Did Pizza Hut pull out of Russia? ›
Brands and KFC have ceased their corporate presence in Russia. Yum! Brands previously announced that it had completed the transfer of ownership of all Pizza Hut franchise assets in Russia to a local operator who initiated the process of re-branding locations to a non-Yum! concept.
Has KFC left Russia? ›
Yum! Brands in April finalised its exit from Russia, transferring master franchise rights to Smart Service, a local franchisee led by businessmen Konstantin Kotov and Andrey Oskolkov. The deal included all its Russian KFC restaurants, operating system and the trademark for the Rostic's brand.
How many Pizza Hut are there in Russia? ›
It said it was suspending 70 KFC company-owned restaurants in Russia and finalising an agreement to suspend all 50 Pizza Hut outlets in partnership with its master franchisee.
