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Business

Despite a commitment to leave Russia, Burger King remains open in the country.

Restaurant Brands International (RBI), which controls 15% of the fast-food franchise sector in Russia, informed the BBC that it has “no new updates to share at this time” regarding its pullout.

In March 2022, the company announced that it had begun the process of leaving Russia.

Western corporations have been under pressure to leave Russia since the commencement of the conflict in Ukraine.

RBI has been accused of “sustaining Putin’s regime” by neglecting to divest its share in its Russian operations.

RBI, one of the world’s major fast-food restaurant corporations, has highlighted its tough exit from the country as a result of its convoluted franchise deal.

The agreement is a joint venture for 800 restaurants with three other partners.

In Russia, a new homegrown business has taken the place of Starbucks.
The Burger King Russia’s partner’refuses’ to close its doors.
RBI President David Shear stated in March 2022 that Burger King’s principal operator in Russia “refused” to close the locations following the first attacks on Ukraine.

However, he noted that the corporation has “begun the process” of selling its 15% ownership position and that it would take “some time.”

When asked about progress 18 months after the vow, a spokeswoman for the Canadian-American company stated there were no updates.

Steven Tian, a Yale University scholar who tracks what corporations do in response to the Ukraine war, stated that using franchise agreements as a “excuse” was a “convenient smokescreen.” He mentioned how Starbucks was able to cancel its contract in the country and leave.

“Saying they [RBI] want to leave but then dragging their feet is not the same as actually exiting Russia, and by continuing to do business in Russia 18 months into Putin’s invasion of Ukraine, they are sustaining Putin’s regime,” he stated.

According to an RBI spokeswoman, the business is refusing additional investment and supply chain support, and has not turned a profit from Burger King in Russia since early 2022.

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