What American fast food restaurants are in Russia? (2024)
A huge number of American companies have announced that they are ceasing their operations in Russia in recent weeks, in response to the invasion of Ukraine. The likes of Apple, Nike and Google all announced in early March that they were limiting their service in Russia.
On 8 March, McDonald’s become the first major American fast food chain to suspend activities in Russia. Company CEO Chris Kempczinski released a statement saying: “Our values mean we cannot ignore the needless human suffering unfolding in Ukraine.”
They were followed by Starbucks, Papa John’s, Burger King and Yum Brands, the company that owns KFC, Taco Bell and Pizza Hut, in announcing their own decisions to withdraw from the Russian market.
⚡️KFC, Pizza Hut suspend operations in Russia.
Yum Brands Inc, the parent company of the two fast food chains, said on March 8 it was pausing investment in Russia and halting operations at its restaurants.
Yum has at least 1,000 KFC and 50 Pizza Hut locations in Russia.
— The Kyiv Independent (@KyivIndependent) March 9, 2022
How many American fast food restaurants are in Russia?
In most cases American fast food brands that operate in Russia do so on a franchise basis, meaning that the company does not actually own and control the individual stores. Franchise owners simply license the company name, image and products in return for a percentage of the profits, under the condition that they stick to certain rules set out by the company.
The likes of Starbucks, Papa John’s and Yum Brands all follow this model, allowing them to expand into new markets without assuming any unnecessary risk.
The only brand that deviates from this structure in Russia is McDonald’s, which owns the vast majority of its 847 restaurants in the country.
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.
A man in Russia today, pianist Nikas Safronov, chains himself to a McDonald’s and screams, “They don’t have the right to close down!” before he’s carted off by the police. Someone in the crowd yells back, “In six weeks, they’ll reopen under another name!” pic.twitter.com/FhAwronpiS
When did American fast food chains first arrive in Russia?
For decades the Russian market was entirely off-limits for American companies due to the isolationism of Moscow during the Soviet era. However after the Berlin Wall fell fast food restaurants become one of the first entrants into the new market, taking advantage of a consumer base starved of Western products for generations.
The first McDonald’s restaurant opened in Moscow’s Pushkin Square in 1990 and reports from the time claim that 30,000 people queued to try the famous burgers for the first time.
Expansion into Russia became something of a status symbol for fast food brands looking to spread their products into a new and rapidly-growing market. When Pizza Hut expanded into Russia it produceda commercial for their restaurants using Mikhail Gorbachev, the last leader of the Soviet Union.
The growth of American fast food brands in Russia over the past three decades has been rapid, tip-toeing through a number of political and diplomatic disputes to reach the point where Russia now accounts for 9% of the company’s entire annual revenue. The decision to cease operations there will reportedly cost McDonald’s around $50 million every month.
A small cohort of six American fast-food chains decided otherwise. The franchises of Subway, Carl's Jr., Papa John's, Costa Coffee, Burger King, and TGI Fridays have continued to operate, business as usual.
Up until 2022, Russia was home to hundreds, if not thousands, of fast food restaurants with familiar names, among them Burger King, KFC, Papa John's, Pizza Hut, Starbucks, Taco Bell, and, of course, McDonald's.
McDonald's has a 15-year option to buy its former restaurants back from the new Russian chain. Alexander Govor replaced the brand with Vkusno i tochka ("Simply Delicious"). The restaurants offer replacements for all menu items, but most are rebranded.
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.
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.
It also entered the Russian market for the first time with plans to open 180 restaurants over a 10-year period. However, only three years later, in 2014, Wendy's closed all its restaurants in the country.
Rebranded KFC Opens in Russia Following Chicken Chain's Departure Over Ukraine. MOSCOW – The rebranded version of KFC reopened at its first location in central Moscow on Tuesday after the U.S. fast-food chain exited Russia's market over the war in Ukraine.
As we mentioned on March 8, we have suspended all business activity in Russia, including shipment of all Starbucks products. Starbucks has made the decision to exit and no longer have a brand presence in the market.
Russian fast food chain Vkusno & tochka, or "Tasty & that's it", on Monday said the Big Hit, complete with a new signature sauce, will be available from February and a similar product to the McDonald's Happy Meal will be making a comeback as "Kids' Combo".
Coca-Cola announced it was leaving the Russian market back in March 2022 as part of the global response to the invasion of Ukraine. Coca-Cola HBC, the Greek-owned company that bottled and sold co*ke in Russia, switched to a new brand, Dobry Cola.
#LeaveRussia: TGI Fridays is Doing Business in Russia as Usual. The Dallas, Texas-based restaurant chain in March said it would donate franchisee fees from its restaurants in Russia to Ukraine relief efforts.
Share All sharing options for: Wendy's Is Closing All of its Locations in Russia. Wendy's will shut down its eight locations in Russia. Bloomberg writes that this is due to a "change in the local franchisee's management." Wenrus Restaurant group was slated to open 180 Wendy's outlets across by 2020.
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.
McDonald's made the decision to exit Russia in March 2022 due to significant pressure exerted on the company following President Vladimir Putin's full-scale invasion of Ukraine.
Introduction: My name is Allyn Kozey, I am a outstanding, colorful, adventurous, encouraging, zealous, tender, helpful person who loves writing and wants to share my knowledge and understanding with you.
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