On April 25, 2023, American fast-food company Yum. Brands Inc sold its popular chain KFC in Russia to a local operator. As a result, former KFC restaurants are being rebranded as Rostic’s and re-opened under the new name. Reuters photographer Maxim Shemetov captured images of employees at a rebranded Rostic’s location in Moscow, Russia, on the day of its re-opening.
This news is significant for several reasons. For one, it represents a major shift in the fast-food industry in Russia. As a well-known foreign brand is replaced by a local one. It also speaks to the growing trend of localization in the global business landscape, where companies are increasingly seeking to tailor their products and services to local markets.
The decision to sell KFC in Russia to a local operator likely stems from Yum. Brands’ desire to streamline its operations and focus on core markets. By selling the chain to a local operator. Yum! Brands is able to offload some of the operational and financial burdens associated with running a business in a foreign market, while still maintaining a presence in Russia through its other brands, such as Pizza Hut and Taco Bell.
For the employees at the rebranded Rostic’s location in Moscow. The transitions may have been bittersweet. On the one hand, they are able to keep their jobs and continue working at the same location. On the other hand, they are now working for a different company and may need to adjust to new policies and procedures.
Overall, the sale of KFC in Russia to a local operator and its subsequent rebranding as Rostic’s represents an interesting development in the fast food industry and the broader business landscape. It will be interesting to see how the Rostic’s brand fares in Russia, and whether Yum! Brands’ decision to sell its KFC chain in the country will pay off in the long run.
