MOSCOW, RUSSIA, April 04, 2006 – Yum! Brands, Inc. (NYSE: YUM), owner of the KFC brand, and Rostik Restaurants Limited (RRL), operator of Russia’s top chicken restaurant chain, are opening today in Moscow the first of many co-branded KFC-Rostik’s restaurants. The remodeled Rostik’s restaurant, located at Tverskaya-Yamskaya 2 (Mayakovsky Ploshchad), is 682 square-meters large and seats 364 guests. This opening follows the announcement in June last year of a unique strategic business alliance between the two companies to establish market leadership in the quick-service restaurant sector in Russia and the Commonwealth of Independent States (CIS).
At the opening ceremony, Graham Allan, President of Yum! Restaurants International, gave to RRL Chairman and CEO Rostislav Ordovsky-Tanayevsky Blanco a symbol representing Colonel Sanders’ much-coveted blend of 11 herbs and spices. Allan said: “We’re very excited to bring both KFC and Rostik’s products under one roof to 140 million Russian consumers. Providing the best of both Brands to consumers in such a big way must be one of the most innovative and ambitious business alliances done in this part of the world.”
Within the next 18 months, all existing KFC and Rostik’s restaurants in Russia will be remodeled with a combined menu featuring Rostik’s local favorites such as Shashlyk, Cheburek and Pelmeny and KFC’s world famous chicken like Original Recipe® Chicken, Twister® Sandwich and Zinger® Sandwich. New logos, state-of-the-art exterior and interior designs, new uniforms and packaging will also be introduced. Over the next five years, RRL will make an investment of up to $100 million to support the development of some 300+ co-branded KFC-Rostik’s restaurants in Russia and the CIS. At the conclusion of this five-year business alliance, Yum! Brands and RRL will have the option to transfer ownership of RRL’s co-branded restaurants to Yum!. Alternatively, both parties may choose to maintain the current arrangement.
Today over 100 restaurants operate under the Rostik’s brand in Russia and the CIS. Rostik’s provides franchise support services to both KFC and Rostik’s restaurants in Russia and the CIS. Under the parties’ agreements, RRL will retain day-to-day operational management of its restaurants, while Yum! Brands will provide strategic support through its experience and technologies in managing international quick-service brands.
Yum! Brands Inc., based in Louisville, Kentucky, is the world’s largest restaurant company in terms of system restaurants with over 34,000 restaurants in more than 100 countries and territories. Four of the company’s restaurant brands — KFC, Pizza Hut, Taco Bell and Long John Silver’s — are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories respectively. Yum! Brands is the worldwide leader in multibranding, which offers consumers more choice and convenience at one restaurant location from a combination of KFC, Taco Bell, Pizza Hut, A&W or Long John Silver’s brands. The company and its franchisees today operate over 3,200 multibrand restaurants. Outside the United States in 2005, the Yum! Brands’ system opened about three new restaurants each day of the year, making it one of the fastest growing retailers in the world. For the past three years, the company has been recognized as one of FORTUNE magazine’s “Top 50 Employers for Minorities.” It also has been recognized as one of the “Top 50 Employers for Women” by FORTUNE, one of the “Top 30 Best Companies for Diversity” by BLACK ENTERPRISE Magazine, one of the “Corporate 100 Companies Providing Opportunities for Hispanics” by Hispanic Magazine, one of the “Top 50 Corporations for Supplier Diversity” by HISPANIC Trends Magazine and by BusinessWeek as one of the “Top 15 Companies for In-Kind Corporate Philanthropy.”
Yum! Restaurants International (YRI), based in Dallas, Texas, is the largest division of Louisville, Ky-based Yum! Brands, Inc., in terms of system units, with over 11,000 restaurants outside the U.S. (excluding Yum! China Division). One of Yum! Brands’ four key business strategies is to drive profitable international growth. 2005 was the sixth straight year that YRI (excluding Yum! China Division) opened more than 700 new restaurants outside the U.S. In addition to YRI, Yum! Brands is the parent company to the A&W Restaurants, KFC, Long John Silver’s, Pizza Hut and Taco Bell brands.
Rosinter Restaurants Holding operates enterprises under the brands of Rostik’s, IL Patio, Planet Sushi, Friday’s, American Bar & Grill, Moka Loka, Sibirskaya Korona, Santa Fe, Pechki-Lavochki, 1-2-3 Café, etc. Based on 2005 results, Rostik Group continues to be Russia’s leading restaurant company. Last year, the company opened 61 restaurants (37 in Moscow; 24 – in the regions) operating under its various brands — Rostik’s, IL Patio, Planet Sushi, Friday’s, Moka Loka, Sibirskaya Korona, and 1-2-3 Café. By the end of the year the total number of restaurants had been 230, of which 154 are based in Moscow and Moscow Region. The rate of growth was 25% per year. The company entered some new cities — Tula, Kaluga, Novokuznetsk, Barnaul, Surgut, Tolyatti. Today, the company operates locations in 30 cities in Russia, the CIS and Western Europe.