Friday, August 18, 2017

McDonald's to expand in Russia

The McDonald's fast food chain is expanding eastward in Russia, with outlets to be opened at airports and rail terminals.

One of the chain's Russian franchise holders is expected to open McDonald's restaurantsin Siberia, according to the company's Russia development director Viktor Eidemiller. The company is to break ground on a project in Central Siberia's largest city, Krasnoyarsk, with other openings being eyed in Novosibirsk, Barnaul, Tomsk and Novokuznetsk, the Voice of Russia reports.

The Krasnoyarsk locaiton will cost $4 million and will be a detached building with a drive-thru service, children's facility and banquet hall.

The expansion is the result of the development of a logistical chain that would link Siberian outlets to supply bases in European Russia, with main stops and development centers in Kazan and Yekaterinburg, the Voice of Russia reports.

Anton Safonov of Investkafe said that Russia's market for fast food is approximately $3.74 billion a year. Moscow and its surrounding regions account for 40 percent of that number. Sales grew by 17 percent in 2011, with growth reaching nearly 30 percent in Moscow.

Only two global fast food chains currently operate in Siberia - Subway and KFC. KFC is the area's biggest and fastest growing fast food chain and has been present in the country since 2002. Growth is attributed to the chain's new drive-thru services in Siberian cities, the Voice of Russia reports.