U.S. doughnut group Krispy Kreme said Monday that it had signed a franchise deal with restaurateur Arkady Novikov to open 40 Moscow outlets as it seeks to expand into the growing Russian consumer space.
Western restaurant chains have flocked to the Russian capital in recent years as rising incomes and consumer spending have increased growth prospects in the emerging market.
Burger King, Wendy's/Arby's and Chilli's have all opened in Russia during the past three years, as has Krispy Kreme rival Dunkin' Donuts.
Many have chosen to pick local franchisees as a way to boost expansion and leverage their brands. McDonald's said earlier this month that it would franchise out Russian restaurants for the first time in its 22-year history in the country.
Krispy Kreme's international president Jeff Welch said the firm picked Novikov for his "strong organizational structure and years of successful restaurant experience in Moscow."
Novikov has an empire of more than 50 restaurants in Moscow and recently expanded into London.