Arkady Novikov has become the latest Russian entrepreneur to launch a thinly rebranded Western hospitality concept following the exit of international companies from the country earlier this year
Novikov was the sole franchisee of Krispy Kreme in Russia until the US donut and coffee chain ended the agreement in May 2022 | Photo credit: Krispy Kreme Doughnut Corporation
Russian restaurateur Arkady Novikov has launched a chain of ‘Krunchy Dream’ cafés on the sites of former Krispy Kreme stores in Russia.
Novikov owns the Novikov Group of Companies, which operates 265 restaurants across Russia under 14 hospitality brands.
Novikov was the sole franchisee of Krispy Kreme in Russia until the US donut and coffee chain ended the agreement in May 2022 in response to the invasion of Ukraine. In August 2022, Krispy Kreme said it had closed 30 franchise stores in Russia.
Krunchy Dream is the latest thinly rebranded Western concept to launch in Russia after the invasion of Ukraine prompted an exodus of Western companies to exit the market earlier this year.
Most notably, Russian restaurateur Anton Pinskiy and rapper Timati opened the first Stars Coffee outlet in Moscow in August 2022 following the rebranding of 130 sites the pair purchased from Starbucks after the US coffee chain ceased operations in the country.
Similarly, after more than 30 years of operations in Russia, US fast-food chain McDonald’s sold its business in the country to existing licensee Alexander Govor in May 2022. Gorov has since opened a new ‘It’s Tasty’ brand on the former McDonald’s sites.