The parent company of Burger King said that the fast-food chain's attempts to shut down its operations in Russia are being stymied by a rogue franchisee.
McDonald's Corp., Starbucks Corp., and other global brands suspended their Russian operations in response to the invasion of Ukraine.
The main operator of Burger King in Russia was demanded by the company to shut down the 800 locations across the country.
David Shear, the president of the international business of the Reserve Bank of India, wrote an open letter to employees on March 17.
The founder of Russia's Shokoladnitsa coffee chain has been involved with Burger King since the chain entered Russia a decade ago. The company confirmed in an email that it has been telling suppliers to stop sending approved products to the Russian operations.
If the Russian Burger Kings stopped serving Burger King products, they wouldn't say what they were serving.
Shear said in the letter that there are no legal clauses that allow us to change the contract or allow one of the partners to walk away.
Burger King's Russian operations are run through a joint-venture partnership with a bank and a company. It is clear that it will take some time to do so based on the terms of the joint venture, according to the company.
The company stopped supporting Burger King Russia and refused any request for investment or expansion in the country. All profits from the operations, including our ownership stake, will be donated to the UN refugee agency. Burger King is giving $2 million in free meal coupons.
Is it possible to suspend all Burger King operations in Russia? Yes. Is it possible to enforce a suspension of operations today? Shear said no.