"McDonald's" restaurants and sells its franchise in 13 regions of Russia. Buyer may become Kairat Boranbaev, one of the richest businessmen of Kazakhstan, already owning a franchise network in Kazakhstan and Belarus.
This is McDonald's first major deal in the new franchise development strategy.
The Federal Antimonopoly Service (FAS) approved the sale of 99,99% in the authorized capital of the Moscow Regional Network of Catering Enterprises (OOO "SPP"), the agency said. According to SPARK, SPP was registered in February 2016 of the year and is now owned by McDonald's LLC by 99,99% (it operates the restaurant chain business in Russia). The remaining 0,01% is owned by CJSC Moscow-McDonald's (100-percent subsidiary of American McDonald's). The authorized capital of the company is 6 billion rubles.
As explained by RBC in the press service of McDonald's, SPP will manage the restaurant network franchise in the 13 regions of the Ural and Volga federal districts of Russia.
A source at McDonald's and two sources in the commercial real estate and retail markets told RBC that Kairat Boranbayev will be the new franchisee. This is one of the richest businessmen in Kazakhstan, who has a relationship with the president of the republic, Nursultan Nazarbayev: in 2013, his daughter Alima Boranbayeva married the grandson of the country's leader.
Since 2013, Boranbayev has been developing the McDonald's franchise in Kazakhstan and Belarus. The first McDonald's in Kazakhstan opened in March 2016, a businessman plans to open fast-food restaurants in the Republic of 15 within three to five years, TASS reported. Ten McDonald's operate in Belarus: nine in Minsk and one in Vitebsk.
Official comments from representatives of Boranbayev at the time of publication of the material could not be obtained. "It is necessary to clarify the classification of the contract - whether it will be a franchise or from a legal point of view, it will be decorated differently," - said the interlocutor of RBC, close to the businessman.
“CJSC Moscow-McDonald’s and Regional Network of Food Enterprises signed a commercial concession agreement,” the McDonald’s press service reported, without revealing, however, the last buyer’s name. Under the terms of this agreement, SPP LLC will develop the McDonald's franchise in the Sverdlovsk, Chelyabinsk, Orenburg, Kurgan, Tyumen, Kirov regions, the Republic of Bashkortostan, Udmurtia, Tatarstan, Komi, the Republic of Mari El, Chuvashia, and the Perm Territory.
According to the company's website, 67 McDonald's restaurants are currently operating in these regions. A source close to McDonald's says that they will be transferred to the management of the new franchisee. Previously signed lease agreements are overwritten by OOO SPP, the source of RBC in the commercial real estate market said. McDonald's employees in these regions are being transferred to the new structure, Znak.com wrote. McDonald's is now actively seeking new premises in these regions, and the contracts will be registered at SPP LLC, said the store of consulting company.
Kairat Boranbayev takes 15-e place in the 50 ranking of the richest businessmen in Kazakhstan with a fortune of $ 350 million, writes Forbes Kazakhstan. Previously, he headed Kazrosgaz, a joint venture of the state-owned oil and gas company and Gazprom. In addition, Kairat Boranbayev owns one of the country's largest shopping and entertainment centers, Alma-Ata, the Bekmambetov Cinema cinema chain and Fitnation fitness clubs, the Medeu Resort hotel complex and other assets.
Boranbayev is the president of the public association “Boxing Federation of Kostanay Region”, the President of the National Paralympic Committee, the chairman of the supervisory board of FC Kairat, where, in particular, Russian football player Andrei Arshavin plays.
Around the world, McDonald's is developing mainly in franchise. According to the corporate website of the restaurant chain, it has 36 thousand points and more than 80% of them belong to the franchisee. In Russia, the situation is reversed. More than 20 years, since the opening of the first restaurant on Pushkin Square in Moscow in 1990, the American company has developed independently.
The first franchisee in Russia appeared only in 2012 year. They became the company "Development Growth" (part of the Rosinter holding, which develops the chain of restaurants IL Patio, Planet Sushi, Costa Coffee, etc.), which had the right to work in transport hubs, particularly in Moscow airports.
The second franchise agreement McDonald's concluded only three years later: Inrusinvest and GiD structures of Siberian businessman Alexander Govor became partners (also an investor in the Yaya oil refinery in Kuzbass). Govor was able to develop restaurants in four regions beyond the Urals: in the Novosibirsk, Tomsk, Kemerovo regions and the Altai Territory, at which time the network sold him four restaurants already operating in Novosibirsk.
This transaction fits into the strategy of McDonald's in Russia. According to the plan, in the next three to five years, the share of franchise restaurants in the total number of outlets in Russia will be 20%, said Khamzat Khasbulatov, RBC President of the Russian Federation at the beginning of 2016, in the beginning of 573. Now the network has XNUMX points in Russia.
According to the director of consulting company RestCon Elena Perepelitsa, pressure from the Russian authorities could push McDonald's to the transition to the franchise system. “The sole owner of the company is harder to repel attacks. When business is distributed [between different owners], these attacks become less effective, ”she says.
In 2014, Rospotrebnadzor conducted a massive inspection of McDonald’s restaurants in dozens of regions and temporarily closed four restaurants of the chain in Moscow, including the flagship one, on Pushkin Square. Referring to the words of a federal official, the Kommersant newspaper then reported that network checks were being commissioned by the government. Interlocutors RBC also saw in the actions of Rospotrebnadzor political implications. This was a response to the sanctions, said First Deputy Chairman of the State Duma Committee on Economic Policy, Mikhail Yemelyanov: “This is an allusion to what we can do; for McDonald's, Russia is an important market. ” Vice Prime Minister Olga Golodets, however, denied this information, saying that the government does not have a “total plan” of inspections of restaurants of the chain.
The current deal is of a purely market nature, according to the executive director of the Russian Franchise Association, Yuri Mikhailichenko, is the scheme according to which McDonald's has developed historically. “At first, the company built a restaurant, then transferred it to the management of managers, and then it sold it to them,” says Mikhailichenko. “By the time of sale, McDonald’s had already paid for the costs and then received only royalties. Thus, the company, on the one hand, took off the managerial burden, and on the other - was confident in the team, which the restaurant reports.
Fast food price
According to the American franchise franchise website FranchiseHelp.com, in 2015, the cost of the lump-sum fee for opening the McDonald's restaurant was $ 45 thousand, royalties - 12% of turnover. To open the McDonald's franchise, investments are needed totaling $ 1 – 2,2 million (65 – 143 million rubles at the current rate), according to the website of the aggregator.
Yuri Mikhailichenko assesses investments in the opening of one McDonald’s restaurant in Russia in the amount from 60 million to 120 million rubles. Based on this, the authorized capital of LLC "SPP" - 6 billion rubles. - can be equivalent to the cost of 67 restaurants and be the price of the transaction, the expert believes.
According to Alexandra Romashina, a leading consultant to the consulting company “Shop of Shops,” McDonald's benefit is that the company saves on management costs without losing stable income from restaurants in the form of royalties and, possibly, a percentage of turnover. “Most likely, this decision was made due to the fact that there are certain difficulties in managing such large and remote regions, and the parent company decided that it would be more profitable to transfer them to a partner and receive a steady income,” Romashina says.
Perhaps the regions of the Ural and Volga federal districts were difficult in terms of management or personnel, agrees Frankon’s franchise sales department, Anna Rozhdestvensky. “Kairat Boranbayev is a franchisee of the McDonald’s brand in Kazakhstan and Belarus, so this person is not new to the network,” Rozhdestvenskaya added. - Working with such partners is easier. They already thoroughly know the algorithm for opening new points, have a professionally trained team, which reduces the time and cost of entering the region. ”
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