Income doubles at Russian McDonald`s substitute
Date
3/20/2024 8:07:51 AM
(MENAFN) Following the departure of McDonald's from the Russian market due to sanctions, Russian fast-food chain Vkusno i Tochka has reported a remarkable surge in revenues, more than doubling its earnings last year, as revealed in an earnings report cited by Interfax.
The earnings report disclosed that Vkusno i Tochka witnessed a substantial increase in revenues, soaring to 155.7 billion rubles (USD1.68 billion) in 2023, marking a 2.1-fold rise compared to the previous year. Sales similarly experienced a significant boost, reaching 128.3 billion rubles, representing a 1.7-fold increase over 2022 figures. Moreover, the annual net profit surged to 14.2 billion rubles, a substantial climb from 11.6 billion rubles in 2022 and a stark contrast to the mere 2 billion rubles reported in 2021.
The impressive growth trajectory was attributed to various strategic initiatives undertaken by Vkusno i Tochka, including the expansion of its restaurant network with the addition of 37 new outlets. Furthermore, the chain highlighted the operational continuity of all its restaurants throughout the year, a significant departure from 2022 when many outlets remained inactive during the transitional period following McDonald's departure and the subsequent rebranding process.
Additionally, Vkusno i Tochka emphasized the successful relaunch of its customer services, particularly its delivery operations, which contributed to enhancing customer satisfaction and driving sales growth.
Vkusno i Tochka, which translates to 'Just Tasty' in English, assumed the mantle from McDonald's in Russia after the American fast-food giant announced its withdrawal from the market in March 2022. McDonald's decision to exit Russia was attributed to escalating international pressure and sanctions imposed on the country in response to the Ukraine conflict.
Following the departure of McDonald's, all of its Russian outlets were acquired by the company's local licensee, Aleksander Govor, who subsequently rebranded the chain as Vkusno i Tochka. The transition proved to be a lucrative endeavor for the Russian company, with McDonald's later revealing the financial toll of its exit from Russia, amounting to USD1.3 billion.
The exponential growth of Vkusno i Tochka underscores the resilience and adaptability of the Russian fast-food industry amidst shifting market dynamics and geopolitical challenges. As the chain continues to expand its footprint and consolidate its position in the Russian market, it remains poised for further success in the years ahead.
MENAFN20032024000045015687ID1108000256
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.