Pizzeria according to a local recipe – Newspaper Kommersant No. 42 (7487) dated 03/14/2023
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According to Kommersant, the Russian owner of the master franchise of the Papa John`s pizzeria chain has decided on a business development strategy, taking into account the military operations in Ukraine. The company can continue to work separately from the American holding, updating the concept and brand. The democratic nature of the format, experts say, allows pizzerias to show better results than classic cafes and restaurants. But a break with the head structure, they fear, could lead to lower quality.
The Papa John`s pizzeria chain in Russia plans to develop separately from the American Papa John`s International, changing the description, history and brand concept, a source familiar with the discussion of the process told Kommersant. The Papa John’s logo has already changed on the network’s Russian website. Since the end of 2022, instead of the structure of the Cypriot PJ Western LLC 4 Papas, the Moscow-based Como LLC has become the operator of the network’s domain names, follows from SPARK-Interfax. The owner of “Como” in the Unified State Register of Legal Entities is Karina Selezneva. In the Russian “Papa John’s” did not answer the questions of “Kommersant”, it was not possible to contact “Como”.
Papa John`s is the third network of pizzerias in the world with 5.5 thousand establishments. There are 198 outlets in Russia. After the outbreak of hostilities in Ukraine in March 2022, Papa John`s International suspended support for Russian businesses. Later, 4 Papas registered a number of new domains, including papinapizza.rf, superpapa.rf and nashpapa.ru, which experts associated with a possible name change
Then, in the Russian office of the network, they told Kommersant that they continued to work in the Russian Federation under an international brand, and the creation of new domains was explained by “protection against fraudulent sites.” As follows from the data of Rospatent, at the end of February 2023, another structure of PJ Western, PJ Eurasia LLC, applied for the registration of the NashPapa brand in several classes, including restaurant services.
According to Kommersant’s source in the restaurant market, since the end of last year, the owner of the network’s master franchise in the Russian Federation and the global office of Papa John`s could not decide in what scenario the company could leave the Russian market. According to him, most likely, there will be no sale of the business, and the current team led by the American Christopher Wynn will continue to manage the network. RestCon CEO Elena Perepelitsa believes that the termination of relations with the parent company can lead to network optimization, as well as a change in standards, which threatens to increase consumer complaints.
Franshiza.ru expert Anna Rozhdestvenskaya says that companies that develop in Russia through master franchises without direct brand representation in the country are in a better position. She cites the example of Burger King, which operates on the same model and is the only one of the three largest fast food chains to continue business in the same format.
The restaurants that the American McDonald’s sold to its partner Alexander Govor now operate under the banner “Tasty – and that’s it”, and the buyer of KFC establishments can change the name to Rostic’s. The Polish Amrest, which developed the Pizza Hut chain in Russia, transferred to the top management of the Rostik restaurant group the outlets, which are now listed on the site under the names Pizza Hut and Pizza N.
As Ms. Rozhdestvenskaya notes, keeping the brand in the familiar sound for the consumer is the main task of the chain, and for partners who have bought the Papa Johns franchise for a certain city, it is important to have access to the business support system, IT product, management and general marketing policy. If the brand does not change, then the conditions for royalties most often do not change, the expert says.
According to Elena Perepelitsa, in general, the pizzeria segment feels better than classic cafes and restaurants. According to Focus Technologies, the traffic of such establishments in Moscow in 2022 grew by 5%, and revenue – by 22% year-on-year, while the number of orders in classic cafes and restaurants was 1% lower year-on-year, and revenue exceeded the level the previous period only by 11%. Mikhail Vasiliev, head of research and consulting at the company, explains the dynamics of the pizzeria segment by a more democratic format, which plays an additional role in attracting guests in the conditions of limited free funds of consumers.
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