Similar to fast food chain McDonald’s, Burger King will also like to stop its activities in Russia, but this is not possible for contractual reasons. This is what the chairman of Restaurant Brands International (RBI), the chain’s parent company, said on the restaurant group’s website.
According to David Sher, CEO of RBI, Burger King opened its first franchise-building restaurant ten years ago, including Russian entrepreneur Alexander Kolobov. None of the partners has a majority interest in this partnership. This seems to make unilateral exit impossible. Scheer writes that “partners in Russia are not responding to requests to close restaurants, so this can only be imposed with the support of the Russian government.” He adds that this support is not expected.
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Burger King has discontinued all services for its Russian subsidiaries: supplies, marketing and day-to-day management are no longer supported by the parent company. The profits of the Russian company will also be transferred to the United Nations Refugee Fund (UNHCR).
In a concrete sense, this means that Burger Kings will remain open, but they will soon run out of burgers, sandwiches, and other ingredients. In this case, the company cannot be contractually charged, because it is related to force majeure.