Rapid closure hopeless
Burger King must keep Russian branches open
3/18/2022 1:02 am
Like its competitor Mc Donald’s, the fast food chain Burger King also wants to withdraw from business in Russia and close all stores there as quickly as possible. Because of legal difficulties, however, he could not enforce the stoppage, according to CEO Shear.
The parent company of the fast food chain Burger King wants to give up its business in Russia in view of the war against Ukraine. However, this is likely to be a difficult undertaking due to the franchise partners there, Restaurant Brands International (RBI) announced. The withdrawal from the country is planned, but will take some time. “Would we like to suspend all Burger King activities in Russia immediately? Yes,” CEO David Shear wrote in an open letter. “Can we enforce a stoppage today? No.”
The reason that the approximately 800 branches remained open are the franchise partners controlled by businessman Alexander Kolobov. RBI only holds 15 percent of the joint venture in Russia. However, the group has stopped supporting the branch network and is no longer investing in Russia itself. However, it is difficult to do business because of the contracts and will probably require the approval of the Russian authorities. This is not to be expected quickly.
The exit is a complicated legal process that is likely to drag on, according to RBI boss Shear. Burger King’s rival McDonald’s announced last week that it would close its around 850 fast food restaurants in Russia. In Germany, Burger King’s partner Kolobov is still remembered for conflicts about alleged hygiene deficiencies and poor working conditions. In 2014, the chain had therefore terminated his license. It was later agreed that the 84 branches in Germany controlled by his company would continue to operate.