STORIES FROM AROUNDTHE GLOBETOP NEWS FOR ONLY $10
Home/News/Burger King partner Russia 'refuses' to close shop.

Burger King partner Russia 'refuses' to close shop.

The owner of Burger King said the operator of his 800 stores in Russia 'refused' to close the premises despite calls to stop trading. Restaurant Brands said it had contacted local partner Alexander Kolobov to close shop after Russia invades Ukraine. But it said that 'complicated' contracts with part

Burger King partner Russia 'refuses' to close shop.
Written byTimes Magazine
Burger King partner Russia 'refuses' to close shop.

The owner of Burger King said the operator of his 800 stores in Russia "refused" to close the premises despite calls to stop trading. Restaurant Brands said it had contacted local partner Alexander Kolobov to close shop after Russia invades Ukraine. But it said that "complicated" contracts with partners from abroad meant that one could not "walk away" from these deals.

Many western companies have closed or closed their Russian stores. However, some, including Burger King and British retailer Marks and Spencer (M&S), cannot do so because franchise partners operate their stores under "complex" legal arrangements.

In a letter to employees, David Shearer, President of Restaurant Brands International, said: "We have contacted the general manager and requested the closure of the Burger King restaurant in Russia. "He refused to do so." Share added that changes to Burger King's local business "will ultimately require support from Russian authorities on the ground, and we know that won't happen anytime soon."

Burger King entered the Russian market ten years ago. He traded there through a joint venture with Mr. Kolobov – the leading operator of day-to-day business – and Russia's VTB Capital and Ukrainian investment brokers.

VTB Capital is a subsidiary of VTB Bank, Russia's second-largest financial institution approved by the United States, United Kingdom, and other European countries. Mr. Sheare said Restaurant Brands holds a 15 percent minority stake in the Russian joint venture, which is closing. "While we want to do this immediately, it is clear that this will take some time due to our existing joint venture agreement," he said.

Meanwhile, Restaurant Brands has discontinued supply chain, operations, and marketing support for Russia. He will also reject new proposals for investment and expansion in Russia. Western companies are still under pressure to withdraw from Russia after the attacks in Ukraine. On Thursday, four Ukrainian lawmakers told British Prime Minister Boris Johnson that M&S ​​was still open in Russia.




Download App
Stay Updated

Get the app now.