Burger King says Russia operator ‘refused’ to shutter its 800 restaurants

 

 

Burger King’s parent company claimed on Thursday that it has been unable to close its 800 locations in Russia due to the “refusal” of its independent operator to do so.

 

According to a letter to staff from David Shear, president, worldwide, of Restaurant Brands International Inc, the firm would require the cooperation of the Russian government to enforce its contracts with the partner, Alexander Kolobov, but “we know it will not practically happen anytime soon.”

In a statement to Reuters, Kolobov stated that he does not have the right or competence to determine whether or not to close the restaurant.

Shear’s long letter and Kolobov’s answer show the numerous challenges confronting certain American fast-food chains as they attempt to discontinue business in Russia in the aftermath of Moscow’s invasion of Ukraine.

It also highlights a potential vulnerability in international franchising, which is how most American restaurant chains operate internationally: connections with independent operators.