This move follows similar actions by McDonald’s, Pizza Hut, and PepsiCo.
Burger King, a fast-food chain with about 800 full franchise stores in Russia, joins other companies taking similar retaliation measures following Moscow’s invasion of Ukraine and suspends support for all domestic companies. I decided to do it.
and statement On March 10, Burger King’s parent company, Restaurant Brands International (RBI), said it had no Burger King business base in Russia.
“The business is fully franchised and managed by the local master franchisee. Burger King refuses to approve investment and expansion, as well as to the Russian market, including operations, marketing and supply chains. We have stopped all corporate support, “the company said.
Earlier, RBI announced that it would divert the profits from its franchise business in Russia to humanitarian efforts. This begins with a $ 1 million donation to the United Nations High Commissioner for Refugees (UNHCR).
Burger King has promised $ 3 million to help Ukrainian refugees. The brand also announced that franchises in more than 24 European countries will partner with local non-governmental organizations to distribute $ 2 million worth of free food vouchers to refugees.
Several other American fast food restaurants have already announced a pause operation in Russia. Burger King’s rival McDonald’s has declared the temporary closure of all restaurants and has closed domestic operations.
McDonald’s has approximately 850 offices in Russia, most of which are owned by the company. This means that McDonald’s is ready to incur significant losses by shutting down its business there.
McDonald’s CFO Kevin Ozan said at a recent UBS Global Consumer Retail Conference that the boycott would cost the company about $ 50 million a month.
“We expect this to be temporary and do not underestimate this decision, but for us this is right for both global business and local people. Is to do what you think, “says Ozan.
McDonald’s has promised to continue to pay about 62,000 employees who live and work in Russia during the holidays. The company also pays employee rent and other expenses.
Yum Brands, the parent company of KFC and Pizza Hut announcement Shutdown in Russia. The company has promised a $ 1 million donation to the Red Cross to help those affected by the Russian-Ukraine War. Russia has about 50 Pizza Hut locations and 1,000 KFC locations.
PepsiCo Inc. has stopped selling Pepsi-Cola, Mirinda, and 7UP soft drinks in Russia. The company will suspend all domestic advertising and promotion activities, as well as capital investment. However, PepsiCo Inc. said it will continue to offer other products such as baby food and dairy products.
Ramon Laguarta, CEO of PepsiCo, said: letter March 8th to Associates.
follow
Naveen Athrappully is a news reporter on business and global events in The Epoch Times.