{"id":11337,"date":"2022-03-20T03:35:28","date_gmt":"2022-03-20T03:35:28","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2022\/03\/20\/thats-why-burger-king-will-not-close-its-800-russian-restaurants\/"},"modified":"2022-03-20T03:35:28","modified_gmt":"2022-03-20T03:35:28","slug":"thats-why-burger-king-will-not-close-its-800-russian-restaurants","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2022\/03\/20\/thats-why-burger-king-will-not-close-its-800-russian-restaurants\/","title":{"rendered":"That’s why Burger King will not close its 800 Russian restaurants"},"content":{"rendered":"
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Burger King has yet to close its 800 Russian restaurants, even if the president of its parent company really likes it.<\/p>\n

David Shear of Restaurant Brands International, the parent company of Burger King, wrote an open letter to employees on March 18, explaining why they did not close the store in Russia. <\/span><\/p>\n

“Should we suspend all Burger King operations directly in Russia? Yes. Can we enforce a suspension of operations today? No,” he wrote.<\/p>\n

“But we want to be transparent with our actions and explain the steps we have taken to stand with the international business community in response to Russia’s attack on Ukraine and its people.”<\/p>\n

They started doing business with Russia 10 years ago through a joint venture partnership between them, operations manager Alexander Kolobov, firm Investment Capital Ukraine, and banking affiliate VTB Capital, which is currently under sanctions.<\/p>\n

Neither party has a majority in their agreement, so it’s hard to get something done with everyone on board.<\/p>\n

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Aware @BurgerKing<\/a> is NOT closing its restaurants in Russia. Like when you boycott RBI brands: @BurgerKing<\/a> @TimHortons<\/a> @FirehouseSubs<\/a> @Popeyes<\/a> Shame on a Canadian company #StopPutin<\/a> #StandWithUkraine\ufe0f<\/a><\/p>\n

– Professor Olga Chyzh (@olga_chyzh) March 18, 2022<\/a><\/p>\n<\/blockquote>\n

Kolobov is responsible for the execution and oversight of the approximately 800 Burger Kings in Russia, and Burger King owns only 15% of the venture.<\/p>\n

So far, Burger King has done what it can to dispose of its property in the store as quickly as possible.<\/p>\n

They also contacted the main operators of the stores and demanded that they suspend the operation of Burger Kings in Russia, but they “refused to do so.”<\/p>\n

This is problematic because there are no legal clauses in their agreement that allow Burger King to unilaterally change or kill the contract “or allow any of the partners to simply leave.”<\/p>\n

“No serious investor in an industry in the world would agree to a long-term business relationship with weak clause clauses. That’s exactly why we say it’s a complicated legal process when asked why we can not simply close the business unilaterally,” he said. of Shear.<\/p>\n

He added that any attempt to implement their contract would require the support of Russian authorities on the ground, which he doubted would happen soon.<\/p>\n

“This is also why you can see other brands in Russia with similar structures continuing to operate in the market,” he said.<\/p>\n

Nevertheless, Burger Biz has stopped providing operations, marketing and supply chain support to the Russian market.<\/p>\n

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They also refuse permits for new investment and expansion there, and redirect any profits they receive from the venture to the United Nations High Commissioner for Refugees.<\/p>\n

Burger King has already donated $ 1 million to the fund, and has worked with franchises “from more than 25 countries to distribute $ 2 million free food vouchers for Burger King restaurants to NGOs supporting Ukrainian refugees.”<\/p>\n<\/div>\n