The Americans will open the network of fast food restaurants in Kharkov
On December 17 during the presentation of the project in Kharkov Chamber of Commerce the regional franchising manager in Ukraine Aleksey Ershov informed that the international restaurant holding “Yum! Brands Inc” will open ф network of fast food restaurants in Kharkov. According the Ershovб ‘Yum! Brands Inc” owns the brand KFC and, according to the conditions of franchising, the new restaurants in Kharkov will open under this name. There are already four restaurants KFC in Kiev.
As Ershov noted, at the moment they were looking for the investors, who would suggest their projects. “The payback term is 4-5 years that is why the investors, who will be ready for the long-term investments, are needed. The investments into one restaurant amount to $ 800,000 - $1,5 million. Several locations need to be created at a time in order to have the systematic effect,” Ershov informed.
He has also informed that the payback term could decrease (about 3,5 years) if the restaurant functioned in a good location. The subway station Geroev Truda, where the reconstruction is being held, is considered to be promising. In the city with the population of a bit more than one million it is reasonable to open 10-14 restaurants (on the basis of the calculation: 1 restaurant for 100,000 people). It is planned to build 7 restaurants in the first 3 years; the volume of the investment will comprise $8-9 million.
As Ershov noted, KFC helps the investors with the business consultation, provides the network of the suppliers with agreed prices and also delivers some specialized equipment. Moreover, there are managers responsible for each restaurant, who will advise and control the upkeep of the standards of the network. In case of severe violations the restaurant may be closed, but such cases never happened.
The headquarters of “Yum! Brands Inc” is located in Louisville (Kentucky, the USA). The company owns the brands KFC (Kentucky Fried Chicken), Pizza Hut and Taco Bell. The company manages about 40,000 restaurants in 130 different countries. The restaurants offer chicken, Mexican cuisine and pizza. The net profit of the company in 2012 was $1,6 billion. 79% of the restaurants operate based on franchising, the rest are owned by the company. Investors give 6% of their profit for the trade mark and are obliged to spend 5% for the advertising of a certain restaurant.