Russian+Consumers+Hungry+For+Pizza

Diana Yang March 6, 2012


 * Russian Consumers Hungry For Pizza**

Russia is a nation that has been moving away from their old system of central planning and transitioning into a market-based system with free enterprise. As a result, Russia has begun to see its middle class grow extremely quickly, with Russian consumers becoming more and more affluent. The video mentions briefly how this growing middle class has been the source of some political tension between the United States and Russia, with Russian President Vladimir Putin blaming the U.S. as the source of street protests in Moscow. In fact, though, Russia's middle class is high on American grants and consumers.

//Putin is said to have barely received 50% of the vote in Moscow, showing the discontent of the middle class with him//

Currently, the U.S. is considering removing trade restrictions with Russia that date back to the Cold War. While this would theoretically allow for more American companies to flourish in Russia, it would also create more competition between the different American companies all competing for a share of Russia's market. Papa John's is currently one of the newest franchises that have found major success in Russia. They currently sell more than 30,000 pizzas a week in Moscow alone, which proves that that Russian consumers have a high demand for American products. According to Christopher Wayne, this is because many "Russians associate American products with quality". As well, these already successful franchises are already now focusing on setting up a strong foundation for the business in Russia itself. In the case of Papa John's, they are working to find a way to stop importing so many of its ingredients from outside of the country and trying to find ways to incorporate using materials from local manufactures. Them getting their resources locally would further help Russia's economy.

//Russia's Growing Middle Class//

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@http://www.nytimes.com/2011/08/04/business/global/russia-becomes-a-magnet-for-american-fast-food-chains.html?pagewanted=all
 * Further Information:**


 * Question:** What can a growing middle class indicate about a country's economy?