Polish KFC franchisee closes deal to sell 215 restaurants in Russia

The Polish restaurant holding AmRest Group has completed the sale of 215 KFC restaurants under its franchise in Russia to the Izhevsk company Smart Service. notification companies on the website of the Spanish National Commission for the Securities Market.

The amount of the transaction, as planned, amounted to 100 million euros.

“Thus, AmRest permanently ceases all its activities and corporate presence in Russia,” the document says.

Smart Service Ltd. is owned by Konstantin Kotov and Andrey Oskolkov. They own the Food Service Group of Companies, which previously operated a franchise of 41 KFC establishments.

In December 2022, AmRest announced its intention to sell the restaurants to Almira, but after the FAS approved the deal, in February, it terminated the sale and purchase agreement with Almira and concluded On February 25, an agreement on mostly the same terms with Smart Service Ltd.

American company Yum! Brands, which owns the KFC brand, announced the suspension of investments in Russian assets on March 7, 2022 amid a special operation in Ukraine. In total, more than 1,100 KFC outlets and 50 Pizza Hut outlets were opened in Russia at the end of 2021. Of these, the company owned only 70 KFC restaurants, which were closed in March.

In October 2022, plans for Yum! Brands to sell its establishments in Russia to Smart Service. The Federal Antimonopoly Service, which approved the deal, noted that it would save jobs, as well as ensure the company’s continued operation in Russia. Prior to this, the company similarly sold the Russian assets of the Pizza Hut franchise to a local operator.

April 17 Yum! Brands reported about closing the deal. As a result of the transaction, the company receives 70 restaurants and becomes a franchisor for 1,058 partner outlets, which it is obliged to rebrand as Rostic’s.