This is why Burger King continues to operate in Russia

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This is why Burger King continues to operate in Russia

This article was translated from our US edition using AI technologies. Errors may occur due to this process.

The conflict in Ukraine has been going on for 22 days and many companies and franchises have made the decision to leave the Russian market despite the impact it is having on their business. Sporting goods brands, hotel chains, media and restaurants have left Russia.

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However, a well-known fast-food brand continues to operate its more than 800 branches. This is Burger King. Restaurant Brand International (RBI), the parent company, today issued a press release entitled Burger King Shares in Russia informing the media of the letter that David Shear, its President, had sent to all employees to explain the complex situation , in which you find yourself.

RBI has a three-partner joint venture controlled by Alexander Kolobov (businessman with extensive experience in restaurant management and responsible for running all Burger King stores in Russia) who owns only 15% of the shares, so he does not make decisions alone can. In his letter, Shear explains: “We have contacted the main operator of the business and requested that the Burger King restaurant in Russia be suspended. He refused to do so.”

Faced with the impossibility of shutting down operations, the company has explored other avenues, such as B. the surrender of his shares, but the contract does not allow to do this immediately. RBI has suspended all corporate support for the Russian market and stopped new investments, but the restaurants will continue to operate. To support those affected by the conflict, the company made a donation to the United Nations High Commissioner for Refugees (UNHCR).

David Shear closes his letter with a sentence that explains everything: “Do we want to immediately stop all activities of Burger King in Russia? Yes. Can we force a stop trading order today? No. But we want to be transparent about our actions and the steps we have taken to support the international business community in response to Russia’s attack on Ukraine and its people.”