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Burger King increases its Russian fleet

The global fast-food chain look set to branch out across Russia as part of a continued expansion across emerging markets
 Burger King announce Russian expansion plans
 
 

The world’s second largest fast-food outlet has earmarked Russia as the next building block in its continued efforts to branch out in areas largely untouched by western dining.

The USA, the UK and much of mainland Europe is recognised as a hub of hamburger chains, including the likes of McDonald’s and KFC also. East Asia, similarly, has also become fast-food-centric over recent years as the modern culture continues to expand globally.

However, Burger King continues to extend its reach into less prevalent markets in the hope of increasing its market share internationally. In the last year alone, 80 percent of the company’s new openings have occurred in less dominant areas, such as Eastern Europe, the Middle East and Africa.

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The latest big move is now being turned towards the Eastern European superpower, where the franchise already oversees 57 outlets. In a country as vast as Russia though, this is merely a drop in the ocean, and the company has now announced it expects to open a few hundred more over the coming years.

Burger King is not alone in this initiative, with its biggest competitors also attempting to take advantage of the untainted, un-westernised regions, including a large push into China most recently. Both Pizza Hut and KFC have made this transition into the world’s largest nation, while McDonald’s has also earmarked the East Asian giants as a potential money-maker.

For Burger King, this latest initiative comes as part of a general overhaul being undertaken by the company following a slide in market share in the US. New York investment firm, 3G Capital bought the company and took it private in 2010 to try and resurrect the situation, and although the franchise has recently announced a return to the New York stock exchange, many transformations have been made within the wider company as a result of its perceived struggles.

Across its 12,500 restaurants across the world, overhead expenses were cut as well as store renovations being undertaken and advertising campaigns being invested in.

In regards to the latest deal with its Russian franchisee, Burger Rus and VTB Capital, the details have not yet been disclosed, but it is thought it will follow on in a similar fashion to the expansion deal negotiated in Brazil last year.

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