The Moscow Times 7 June 2012
Burger King announced Tuesday that it plans to open several hundred new restaurants in Russia with the help of its franchise operators.
The deal is another confirmation of the vitality of franchising in Russia, which has seen the number of outlets grow 30 percent in recent years.
Burger King Europe, VTB Capital and Alexander Kolobov, the owner of the Shokoladnitsa chain and franchisee of 54 Burger King restaurants in Russia, agreed on a deal that would make them co-shareholders in the restaurant’s franchise, said Tim Demchenko, head of private equity and special situations at VTB Capital.
The investment bank would act as a partner rather than a creditor. It plans to invest up to $100 million in the first five years of the deal in an effort to increase the number of franchised Burger King restaurants in Russia to over 300, Demchenko said.
“As a whole, this segment of the market looks good, Burger King particularly, but other franchises as well,” Demchenko said. “Russian buyers have a good perception of brands and respond well to quality products.”