Timati, together with partners, wants to buy the Domino`s Pizza chain in Russia
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Applicants were found for the Russian business of the Domino`s Pizza network – artist Timur Yunusov and restaurateur Anton Pinsky, who jointly restarted the Starbucks coffee chain in the country. If the transaction goes through, its value could reach 1.5 billion rubles, but due to the high debt load, buyers may receive a discount. Experts doubt the success of restarting Domino`s.
Artist Timur Yunusov, known as Timati, is considering the possibility of acquiring the Domino’s Pizza pizzeria chain in Russia together with restaurateur Anton Pinsky, follows from his Instagram post (part of Meta, banned in Russia as extremist). “In connection with the departure from the country and the bankruptcy procedure of Domino’s Pizza, I ask the management to contact us, with Anton Pinsky and discuss the possibility of buying a pizzeria chain with subsequent rebranding,” Mr. Yunusov wrote on the social network.
Yesterday, August 21, the Dutch DP Eurasia, which manages the Domino`s Pizza brand in Russia, announced that it had stopped trying to sell the Russian business and began the process of bankruptcy of the Russian division of Pizza Restaurants LLC. The holding explained that this decision was caused by “an increasingly complicated situation.” The external debt of the Russian division of 520 million rubles. was fully repaid by the Turkish subsidiary from available cash. In 2022, according to Kartoteka.rurevenue of Pizza Restaurants LLC decreased by 21.8% year-on-year, to 3.1 billion rubles, net profit amounted to 1.7 billion rubles.
In March 2022, after the start of the Russian special operation in Ukraine, DP Eurasia refused royalties and investments in the Russian market, but 188 points in the country continued to work. By October, the number of establishments of the network had decreased to 171.
Domino`s manages about 100 of its own restaurants, the rest are franchised, which are likely to stop using the brand and will not be the subject of interest in the transaction, Mikhail Burmistrov, CEO of Infoline-Analytics, believes.
Based on the portfolio of lease agreements and the cost of equipment and other tangible assets, a fair valuation of the business may be at least RUB 1.5 billion.
This does not take into account the 50% discount provided for transactions with foreign companies, the expert believes.
Timur Yunusov and Anton Pinsky already have a joint business in the restaurant market. Last year, the entrepreneurs, in partnership with Senator Arsen Kanokov’s company Sindika, bought out the Russian assets of the Starbucks chain in Russia for 500 million rubles, according to Mr. Pinsky. The deal included the rights to lease 130 points of the network, and the brand had to be changed to Stars Coffee. Pinsky also claimed that several outlets were “deliberately closed due to the terms of the lease,” but cafes are being opened instead “in new locations where Starbucks has never been.” Now, according to the Yandex.Maps service, 92 network facilities are operating.
Observing the experience of transforming the Starbucks business, one can assume that businessmen will be able to buy out the Domino`s business for little money and revive it, says Sergei Rumyantsev, founder of the One Price Coffee chain. According to him, it was not possible to return Starbucks visitors to the rebranded chain, but they have already gained new customer traffic. True, some solutions were not always effective, for example, adding Japanese coffee to the menu, which is not entirely appropriate in establishments of this format, Mr. Rumyantsev believes.
Entrepreneurs are unlikely to be able to repeat the success of restarting the Starbucks business in the pizzeria segment, Mikhail Burmistrov believes. Now there is very high competition in this format, the share of the market leader Dodo Pizza is constantly growing, he adds. If the success of coffee houses lies in the choice of location, then delivery prevails in the revenue structure of pizzerias, where aggregators and Dodo Pizza are now the leaders, the expert explains. In addition, vice-president of the Federation of Restaurateurs and Hoteliers Sergey Mironov sums up, the large debts of Domino`s in Russia will contribute to the complete transformation of the business model.
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