The owner of the Burger King brand announced on Thursday that it was unable to close 800 restaurants in Russia as it was refused by an independent operator. Points are franchised.
–
Restaurant Brands International Inc., the global franchisor of the Burger King brand, pointed out that it would need the Russian government to enforce its demands under the franchise agreement with Alexander Kolobov, but “we know it won’t happen anytime soon.” This information was provided by the president of Restaurant Brands International, David Shear, in a letter to employees.
–
Burger King in Russia
The Reuters agency said Shear’s letter drew attention to the many complications faced by some American brands in trying to suspend operations in Russia following the invasion of Ukraine. The branches operate on a franchise basis and the franchisees own the business in Russia.
–
According to Reuters, the current situation shows the weakness of the international franchise, which is the way most US fast food restaurants are growing overseas.
–
Restaurant Brands entered Russia a decade ago through a joint venture with entities controlled by Kołobov. Restaurant Brands owns 15 percent. of shares in the company – said Shear. The company has started the process of divesting its shares, although this may take “some time”.
–
“Would we like to suspend all Burger King operations in Russia immediately? Yes. Are we able to enforce the suspension today? No,” he wrote.
–
McDonald’s earlier last week announced that it would temporarily close its restaurants in Russia. She announced that she would continue to pay salaries to her employees in this market. The American chain employs about 62,000 people in this country.
–
McDonald’s has almost 850 points in Russia, 84 percent. is owned by the company. Most of the remaining premises are run by the Moscow franchisee, Rosinter Restaurants Holding.
–
Live TVN24 – watch on TVN24 GO:
–
photo-source">Main photo source: EPA / YURI KOCHETKOV
—
