Burger King operator refuses to close Russia estate

By BigHospitality

- Last updated on GMT

Burger King operator refuses to close Russia estate

Related tags: Burger king, Russia

The parent company of Burger King said it has been unable to close its 800 restaurants in Russia as its joint venture partner has 'refused'.

Restaurant Brands International (RBI) said last week said it had suspended all corporate support for its business in the country, after rivals including McDonald’s suspended operations in the country​ over Russia’s invasion of Ukraine.

In a letter to employees, David Shear, RBI’s president for international operations, highlighted the complications involved in trying to stop operations.

Shear said: “We contacted the main operator of the business and demanded the suspension of Burger King restaurant operations in Russia.

“He has refused to do so.”

Shear said that in order to enforce its contracts with Alexander Kolobov, the franchisee, it would need the help of the Russian government but 'we know that will not practically happen anytime soon'.

RBI has begun the process of disposing of its 15% ownership stake in the joint venture.

Shear said it wants to do so immediately, but that it will take 'some time' based on the terms of the agreement.

He added that there are no legal clauses that allow us to unilaterally change the contract or allow any one of the partners to simply walk away or overturn the entire agreement.

“Would we like to suspend all Burger King operations immediately in Russia? Yes,” he wrote.

“Are we able to enforce a suspension of operations today? No.”

Related topics: Business & Legislation, Casual Dining

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