Operations

McDonald's, other QSRs can't shut down all Russian business

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March 18, 2022

McDonald's and other QSR chains in Russia haven't quite ceased operations yet. That's because some franchisees refuse to shut their doors, according to a Business Insider report.

McDonald's corporate owns the majority of its Russian stores, but about 100 of its 850 are franchise owned. Those franchisees are staying in business for now, including opening McDonald's in transit locations like airports and train stations, the report said.

Other QSRs are facing the same predicament. Burger King and Papa John's have both withdrawn corporate support from Russian franchisees, but some doors remain open.

"Would we like to suspend all Burger King operations immediately in Russia? Yes. Are we able to enforce a suspension of operations today? No," due to a "complicated legal process," Burger King President David Shear wrote in a memo to employees early last week.

Parent company RBI only owns 15% of its Russian stores, allowing Russian franchisees to stay in business.

Papa John's is facing similar push back from a Russian franchisee.

Colorado-based Christopher Wynne operates 190 Papa John's locations in Russia, according to a report in the The New York Times. While Papa John's International has ceased Russian business, Wynne's Russian franchise stores will stay in business. He plans to open 20 to 40 locations in Russia as well.