McDonald's opens a franchise restaurant in Russia and has a bright future in the Russian market.

Beijing, April 11 (Xinhua) according to the Economic Voice of the World, the prospect of the Russian market is active, and McDonald's has opened a franchise restaurant in Russia. McDonald's announced that it has reached a franchise agreement with Rosinter, Russia's largest restaurant holding company, to open a restaurant in Russia for the first time through a restaurant holding company.

Although McDonald's relies heavily on chain restaurants in mature markets such as the United States, it has so far expanded only through its own stores in Russia. McDonald's Russia president says the deal with Rosinter is aimed at growth and expansion. If this model proves to be successful, we will start to try to promote it. Our focus is on long-term prospects. He added that this model could help McDonald's expand its business in remote areas of Russia, such as the far East.

The most important thing here is the difference between the two words. One is a direct camp, the other is to join. Direct marketing, as the name implies, is operated directly by manufacturers, and some strong brands often like to use direct marketing to invest directly in counters or prime locations in large shopping malls to set up specialty stores for retail. Usually only powerful enterprises dare to operate directly.

Franchise stores are a way to operate the market together with relevant partners. In general, there are two main ways for enterprises to recruit chain stores, one is for manufacturers to find franchisees directly, and the other is to develop subordinate franchisees through agents and middlemen. Usually the franchisee has to pay a certain fee or deposit to join, and the enterprise will provide some image props, design, decoration support and concept guidance to the franchisee to ensure the unity of the chain store image and management.

Under the agreement between McDonald's and Rosinter, Rosinter will start opening McDonald's restaurants at airports and train stations in Russia. But he declined to give further details, saying only that expanding the market through proprietary restaurants would remain a priority for Russian business.

McDonald's opened its first restaurant in Moscow in 1990 before the collapse of the Soviet Union. The company now has 314 stores in Russia and plans to open 40 to 45 new stores a year.

Rosinter, Russia's largest restaurant holding company, has previously won the Russian franchise of T.G.I. Friday, an American leisure restaurant chain, and has formed a joint venture with British restaurant chain Whitbread to jointly develop the Costa coffee brand. Many international catering giants, including McDonald's, have made Russia a priority market, as growth in national income and consumer spending makes the growth prospects of this emerging market more attractive.

From the concept just now, we can see that the mode of operation of franchisees shows the activity of market development. At this time, McDonald's opened a franchise restaurant for the first time in Russia through a restaurant holding company. is it from the perspective of the company's own development, or does it predict the arrival of the market development environment? Kuang Jie, an expert in crisis management and investment and financing of well-known enterprises, analyzed it from three angles.

Kuang Jie: I also checked some relevant information. McDonald's entered Russia in 1990 and is very popular, but he has opened more than 300 restaurants in recent years, which is not fast enough. In addition, McDonald's has recently encountered some bottlenecks in its development in Russia. For example, it has been reported by foreign media that it treats its store as a supermarket rather than a restaurant in Russia, and the Russian tax authorities require it to pay more taxes. in addition, it has also exposed food quality problems, so it may be plagued by some development problems. Therefore, in order to continue development, we must rely on Russian local partners. This time, the announcement of the opening of franchise stores is focused on airports and stations. Perhaps its own power to open stores in airports or stations as well as in the remote far East is subject to some restrictions. So I think perhaps a more important reason is to use franchisees to gain greater benefits in Russia with the help of partners.

In March, Quiznos, an American sandwich restaurant chain, announced a partnership agreement with local Russian company QRL to open more than 20 restaurants in Russia by 2014. Last June, American hamburger chain Wendy reached a partnership agreement with a Russian company, while Burger King BK entered the market in 2010. In addition, Subway has announced plans to increase its number of restaurants in Russia to 1000 by 2015. If a number of catering companies enter the Russian layout and development, what changes will it bring to the development of the Russian market? Kuang Jie, an expert on crisis management and investment and financing of well-known enterprises, said that there is bound to be a more fierce market competition.

Kuang Jie: the demand in the Russian market is gradually increasing. The entry of many foreign fast food chain giants into Russia will first make the market bigger. Second, the competition is also very fierce. For example, locations such as airports and stations are the prime locations for opening stores, which are relatively rare. It should be said that the competition in such location selection will become increasingly fierce, so it depends on who opens faster, or who has a better cooperation situation. Occupy these better positions.

(responsible Editor: Leo)