Nazarbayev's relative to buy McDonald's franchise in Russia

McDonald's sells its restaurants and franchises in 13 regions of Russia. Kairat Boranbaev, one of the richest businessmen of Kazakhstan, already owning the chain's franchise in Kazakhstan and Belarus, maybe become the buyer. This is the first major deal of McDonald's as part of the new franchise development strategy.
Origin source
Kazakh partner

The Federal Antimonopoly Service (FAS) has approved the sale of 99.99% stake in the Moscow LLC "Regional power network enterprises" ( "CPR" LLC), the ministry said. According to SPARC, WBS company was incorporated in February 2016 and is now 99.99% owned by the "McDonald's" LLC (operated business restaurant chain in Russia). The remaining 0.01% - owned by JSC "Moscow-McDonald's" (100 percent "daughter" of the American McDonald's). The company's authorized capital amounts to 6 billion rubles.

As explained by RBC in the press-service of "McDonald's", CPR will manage a franchise restaurant network in 13 regions of the Ural and Volga federal districts of Russia.

A source in the "McDonald's" and two sources of commercial real estate and markets reteyla told RBC that the new franchisee will be Kairat Boranbaev. This is one of the richest businessmen of Kazakhstan, which is a relative of the president of the republic Nursultan Nazarbayev: in 2013 his daughter Alima Boranbaeva married the grandson of the leader of Artwounds.

Since 2013 Boranbaev develops franchise "McDonald's" in Kazakhstan and Belarus. The first "McDonald's" was opened in March 2016 in Kazakhstan a year, for three to five years, the businessman plans to open in the country of 15 fast food restaurants, TASS wrote. In Belarus, operates ten "McDonald's": nine in Minsk and one in Vitebsk.

Official comments could not be obtained from the representatives of Boranbaeva the date of publication of the material. "It is necessary to clarify the classification of the contract - whether it is deductible or from a legal point of view, it will be processed differently," - said RBC source close to the businessman.

"Between JSC" Moscow-McDonald's "and LLC" Regional power network companies "signed an agreement of commercial concession", - reported the press service of "McDonald's", without revealing, however, the end customer name. Under the terms of this agreement, "CPR" LLC will develop the franchise, "McDonald's" in the Sverdlovsk, Chelyabinsk, Orenburg, Kurgan, Tyumen, Kirov regions, the Republic of Bashkortcamp, Udmurtia, Tatarstan, Komi Republic, the Republic of Mari-El, Chuvashia, Perm Krai.

According to the company website data in these regions now works 67 restaurants, "McDonald's". A source close to the "McDonald's", says that they will be transferred to the management of the new franchisees. Previously concluded lease agreements on perepodpisyvat LLC "CPR," the source said RBC commercial real estate market. In the new structure of the transferred employees and "McDonald's" in these regions, wrote. "McDonald's" is now actively looking for new premises in these regions, and contracts will be recorded on the Company "NGN", - told in the consulting company "Shop stores."

Who is Kairat Boranbaev

Kairat Boranbaev occupies 15 th place in the ranking of the 50 richest businessmen of Kazakhstan to the state of $ 350 million, writes «Forbes Kazakhstan". Previously, he headed the "Kazrosgaz" - a joint venture between state oil and gas companies and "Gazprom". Besides, Kairat Boranbaev owns one of the country's largest shopping centers - Alma-Ata, a networkyu cinema Bekmambetov Cinema Fitnation and fitness clubs, Medeu Resort hotel complex and other assets.

Boranbaev - president of the public association "Federation of boxing of Kostanay region", the President of the National Paralympic Committee, Chairman of the Supervisory Board of FC "Kairat", where, in particular, plays a Russian footballer Andrei Arshavin.

Long start

In the world of "McDonald's" is developed mainly for the franchise. As reported on 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 in Pushkin Square in Moscow in 1990, the American company has developed independently.

The first franchisee in Russia only appeared in 2012. They became Company "Growth Development" (included in the holding company "Rosinter", develops a network of restaurants "of IL Patio", "Planet Sushi", Costa Coffee etc.), Who have the right to work in transport hubs, particularly in Moscow airports.

The second franchise corlashenie "McDonald's" has concluded only three years later, his partners started the structure "Inrusinvest" and "Guide" Siberian businessman Alexander says (also an investor Yaya refinery in Kuzbass). It stated had the opportunity to develop restaurants in the four regions of the Urals:. In Novosibirsk, Tomsk and Kemerovo regions and the Altai Territory At the same time the network had sold him four already operating restaurant in Novosibirsk.

This acquisition fits into the strategy of "McDonald's" in Russia. According to the plan in the next three to five years, the proportion of franchised restaurants in the total number of outlets in Russia will amount to 20%, said the president of "McDonald's" in Russia Khamzat Khasbulatov RBC at the beginning of 2016. The network now has 573 points in Russia.

According to director of consulting company RestCon Elena Perepelitsa, push the "McDonald's" to transition to a franchise system might pressure from the Russian authorities. "The sole owner of the company more difficult to repel the attacks. The allocation of business [between different owners] these attacks stanovyatsless effective ", - she says.

In 2014, Rospotrebnadzor held a massive test, "McDonald's" restaurants in dozens of regions and temporarily closed four restaurants of Moscow, including the flagship, in Pushkin Square. Referring to the words of a federal official, "Kommersant" newspaper then reported that the network test are on behalf of the government. RBC interlocutors also seen in the actions of Rospotrebnadzor political overtones. This is a response to sanctions, considered the first deputy chairman of the Duma Committee on Economic Policy Mikhail Yemelyanov, "This is a hint of what we can do; for McDonald's Russia - an important market. " Deputy Prime Minister Olga Golodets, however, denied this information, saying that the government has no "total plan" checks restaurant chain.

This transaction is purely market-oriented, the executive director of the Russian Franchising Association Yuri Mikhailichenko - a scheme for which the "McDonald's" has developed historically. "At first, the company built a restaurant, then transfer it to the management of managers, and sweatom by him and sold him, - says Mickle. - At the time of sale, "McDonald's" has already recouped the cost, and then received only royalty. " Thus, the company, on the one hand, disclaims administrative burden, and on the other - was confident in the team, which sends a restaurant.

The price of fast food

According to the US site aggregator franchises, in 2015 the value of lump-sum payment for the opening of the restaurant "McDonald's" was $ 45 thousand, royalties -. 12% of turnover. To open a franchise, "McDonald's", requires investments totaling $ 1-2,2 million (65-143 million rubles. At the current rate), according to the aggregator site.

Yuri Mickle estimates investment in opening a restaurant "McDonald's" in Russia in the amount of 60 million to 120 million rubles. From this authorized capital "NGN" LLC - 6 billion rubles. - May be equivalent to the cost of the 67 restaurants and is the price of the deal, he said.

According to a leading consultant consulting company "shop shop" Alexandra Romashina, the benefits of "McDonald's" is hthe company saves on costs related to the management, without losing a steady income from the restaurants in the form of royalties, and perhaps some per cent of turnover. "Most likely, the decision was taken due to the fact that there are some difficulties in the management of such a large and remote regions, and the parent company felt that would be advantageous to convey to their partner and have a stable income," - says Romashin.

Perhaps the regions of the Ural and Volga federal districts proved difficult in terms of management or staff, agrees to head of sales of franchises "Franconia" Anna Christmas. "Kairat Boranbaev is a franchisee of the brand" McDonald's "on the territory of Kazakhstan and Belarus, so it is not new to the network, - adds Christmas. - Work with partners easier. They already know the ropes algorithm opening new outlets are professionally trained team, that reduces the time and exit costs in the region. "