Burger King on Friday said its business partner, which controls about 800 restaurants in Russia, “refused” to suspend operations in the country.
Lead news: “We contacted the main business operator and demanded to suspend the operation of the Burger King restaurant in Russia. They refused to do so,” David Shire, president of Restaurant Brands International, which owns Burger King, said in a statement.
- Burger King has three joint venture partners in Russia: Alexander Kolobov, “who has extensive restaurant experience and is responsible for the day-to-day operations” of the restaurants, Investment Capital Ukraine and VTB Capital, the statement said.
- Burger King has begun the process of selling its ownership stake, but “it’s clear that this will take some time, based on the terms of our existing joint venture agreement,” Shear said.
- Meanwhile, Restaurant Brands International has suspended all corporate support for the Russian market, including operations and supply chain support.
Big picture: Other global food chains, including McDonald’s and Starbucks, have closed stores in Russia due to its unprovoked invasion of Ukraine.
- Shire said the process of Burger King leaving Russia would take longer due to master franchise agreements and joint ventures.
What he says: “There are no legal provisions that would allow us to unilaterally change the contract or allow any of the partners to simply walk away or cancel the entire agreement,” he said.
- “Any ongoing attempt to enforce our contract will eventually require the support of the Russian authorities on the ground, and we know that this is practically not going to happen anytime soon.”
Go deeper: Which global companies are leaving Russia and why