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Following the lead of fellow fast food chain McDonald’s, Burger King would also love to stop its activities in Russia, but that is not possible for contractual reasons. That says the president of the parent company of the chain on the website of Restaurant Brands International.
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tgSource: The Telegraph
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According to company president David Shear, Burger King opened its first restaurant in a franchise construction ten years ago that included Russian entrepreneur Alexander Kolobov. None of the partners has a majority stake in that joint venture.
That makes unilateral exit impossible, RBI reports. The partners in Russia do not respond to requests to close the restaurants, so this can only be enforced with support from the Russian government, Shear writes. That support is not to be expected, he adds.
Burger King has discontinued all services to its Russian branches: supplies, marketing and day-to-day operations are no longer supported by the parent company. Profits from the Russian company will also be transferred to the United Nations Refugee Fund (UNHCR).
In concrete terms, this means that the Burger Kings will remain open, but that they will soon run out of burgers, sandwiches and other ingredients. But contractually, the company cannot be sued because it is then force majeure.
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