Burger King's Partner 'Refuses' To Close 800 Restaurants In Russia
By Jason Hall
March 18, 2022
Burger King is attempting to temporarily shut down all 800 of its restaurants in Russia amid the ongoing invasion of Ukraine, but claims its business partner has "refused" to allow it to do so.
Restaurant Brands International (QSR) -- Burger King's parent company -- has an ongoing joint venture partnership in Russia with businessman Alexander Kolobov, who is tasked with "day-to-day operations and oversight."
RBI only controls 15% of the Russian Burger King business, which allows Kolobov to prohibit the American company from ceasing operations.
"We started the process to dispose [of] our ownership stake in the business," said David Shear, president of RBI's international operations, in anĀ open letter shared on RBI's website. "While we would like to do this immediately, it is clear that it will take some time to do so based on the terms of our existing joint venture agreement."
Burger King's conflict comes weeks after McDonald's announced plans to temporarily shut down all restaurants in Russia on March 8 amid the ongoing invasion of Ukraine.
"McDonald's has decided to temporarily close all our restaurants in Russia and pause all operations in the market," CEO Chris Kempczinski said in a statement obtained by CNN.
The global fast food chain was reported to have 847 locations in Russia at the end of 2021, according to an investor document obtained by CNN.
The majority of McDonald's global locations are run by franchise operators, however, 84% in Russia are operated by the company itself.
Russia, along with the 108 restaurants in Ukraine, accounted for 9% of McDonald's global revenue in 2021, the document confirmed.
Earlier this month, President Joe Biden announced a ban on all imports of Russian oil due to the ongoing conflict in Ukraine.
The decision followed several others attempts by the U.S. to increase pressure on the Russian economy amid the Ukrainian conflict.
"Today I am announcing the United States is targeting the main artery of Russia's economy. We're banning all imports of Russian oil and gas and energy," President Biden said at White House on Tuesday via CNN. "That means Russian oil will no longer be acceptable at US ports and the American people will deal another powerful blow to Putin's war machine."
More than 2 million people have reportedly evacuated Ukraine amid Russia's ongoing invasion of the neighboring country as both sides agreed to a cease-fire to allow more civilians to escape, NBC News reported.
Russian President Vladimir Putin announced his country would conduct military operations in Eastern Ukraine during an NBC News translation of a speech addressing the Russian population prior to sunrise on February 24 in Moscow.
The announcement served as the final action ahead of an attack by Putin and the Russian military, which the U.S. and European allies to the neighboring Ukraine have attempted to prevent from taking place through diplomatic discussions.
A Ukraine interior minister confirmed to NBC News via text message that "cruise and ballistic missile strikes" were already underway shortly after Putin's announcement.
NBC News correspondent Erin McLaughlin said explosions could be heard from her live shot in Kyiv, Ukraine's capital city, at 6:00 a.m. local time.
More than 1,000 protesters were reportedly arrested during anti-war protests throughout Russia amid President Putin's announcement to conduct military operations and ensuing attack on Ukraine, BNO News reported.