Fast-food lovers to go hungry in Moscow?
Published 19 October, 2007, 14:28
Moscow’s kiosk industry is looking for new survival tactics, as fast-food vendors face a street ban. The city's Mayor wants to clean up the streets by 2009, and street retailers, including Russia's third largest fast-food chain, face a choice – either to move into pricey shop premises, or go out of business.
Now you can go roaming for an hour or two in search of, for example, a fast-food kiosk from a well-known chain specialising in baked potatoes. Before, they used to stand next to every metro station.
Moscow Mayor Yury Luzhkov
The disappearance of Moscow’s kiosks is part of Mayor Yury Luzhkov's plan to improve the city’s appearance, raise food quality and lower tax evasion.
The kiosks may look like gypsy caravans, but in fact many of them are major national brands with standard products, supplied by broad distribution networks and served by staff in corporate uniform. But will the Mayor’s plan to clean the streets actually put them out of business?
Kiosks account for 20 per cent of food retailing in Moscow – and there is not enough shop space to move into. Some fast-food operators could afford to rent a spot in an arcade of a shopping centre. But for hot dog or pastries vendors, that can be a problem. Industry insiders say, even some of the biggest food chains may not survive the reforms.
Street retailers are on the lookout as city officials close about 20 per cent of stalls each year. The first to be chased from the city’s pavements are wheeled kiosks. Some pop up in other locations, others diversify into stationary cafes.
Russia’s leading street-food retailer Kroshka-Kartoshka (translated as “Pretty Little Potato”) has taken a different tack, striking an alliance with Poland’s Amrest Holding and gaining access to East-European markets.
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