- A chain of new donut shops called Krunchy Dream has sprung up in Russia, where Krispy Kreme once stood.
- They are owned by the Novikov Group, whose owner Arkady Novikov is Krispy Kreme’s only former franchisee in Russia.
- Krispy Kreme had terminated the franchise agreement following Russia’s invasion of Ukraine.
A new version of donut chains have sprung up in Russia where Krispy Kreme once stood, as the country’s businesses seek to replace exiting Western brands with homegrown labels.
The new donut shops — called Krunchy Dream — are operating under the Novikov Group. The group is owned by Arkady Novikov, who is Krispy Kreme’s former franchisee in Russia, Russia’s RBC business news outlet reported on November 21. He applied to trademark the name in late September, per RBC.
The cult donut chain is one of the many international companies that have pulled out of Russia after the country’s invasion of Ukraine earlier this year. Krispy Kreme said in April it halted imports of donut-making supplies and ingredients into Russia, and terminated its franchise agreement with its sole partner in the country.
It then proceeded to shutter all Russian Krispy Kreme shops. Krispy Kreme said in its second-quarter earnings results release that it had closed 30 franchise shops in Russia.
Despite the rebrand, a Krunchy Dream employee told RBC “the donuts remain the same.” Krispy Kreme and the Novikov Group did not immediately respond to Insider’s requests for comment which were sent outside regular business hours.
It’s not just Krispy Kreme, McDonald’s has also reappeared in Russia as the rebranded “Vkusno & tochka” — which translates to “tasty and that’s it.”
The American fast food giant exited the Russian market in May after 32 years in the country, citing “the humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment.” It then sold the Russian business to its local licensee and businessman Alexander Govor.
The rebranded McDonald’s restaurants feature superficial changes to the Golden Arches’ signs, logos, and uniforms, Insider’s Mary Meisenzahl reported on June 15. Most of the items on the new menu are still made from ingredients and equipment that the US fast-food chain used.
Similarly, former Starbucks coffee shops reopened in Moscow in August under the brand “Stars Coffee.” All 130 Starbucks businesses in Russia were bought by Russian businessman Anton Pinskiy, Russian rapper Timur Yunusov— known as Timati — and Sindika Company.
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