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Why some global fast-food chains remain open for business in Russia

Why some global fast-food chains remain open for business in Russia

CBC
Friday, March 11, 2022 09:15:09 PM UTC

There are no Tim Hortons restaurants in Russia, but that hasn't stopped scores of Canadians from sending the restaurant chain angry messages on social media about doing business in the country. 

Their actual target is the chain's owner, Restaurant Brands International (RBI), which also owns Burger King — a fast-food chain that's still open for business in Russia. 

Toronto-based RBI says its 800 Burger Kings in the country remain open because they're stand-alone franchise operations that are independently owned.

But the explanation still doesn't sit well with Canadians who want businesses to suspend all operations in Russia, to protest its invasion of Ukraine. 

"Everything has to be done to try and put an end to this," said Dan Goldstein of Montreal, who has Ukranian-Jewish roots and is a descendant of Holocaust survivors.

He posted multiple complaints about Burger King's presence in Russia on the Tim Hortons Facebook page because of his concern for the people of Ukraine. 

"We're dealing with a despotic regime ... that really has no interest in terms of what's right or wrong," said Goldstein about the Russian invasion. 

"Anybody who has any ability to make an impact has a moral imperative to do what they can."

By Tuesday, several multinational companies, including McDonald's, Starbucks and Coca-Cola, announced they would suspend all business operations in Russia. 

RBI said while its Burger King franchise locations remain open, it will suspend all corporate support for the Russian market and redirect corporate profits from the franchise operations to help support Ukrainian refugees.

"We are watching the attack on Ukraine and its people with horror and are focusing our efforts in the region on contributing to the safety of Ukrainians seeking shelter and security," said an RBI spokesperson in an email. 

Restaurant chains KFC and Subway announced similar plans for their Russian operations. They will redirect profits and support humanitarian efforts in Ukraine, but KFC's approximately 900 franchise locations will stay open as will Subway's approximately 450 franchise locations.

However, other restaurant chains have suspended all operations in Russia, including their independently-owned locations. 

Although franchisee-owned KFCs in Russia remain open, its parent company, Yum! Brands, announced on Tuesday it's finalizing an agreement to temporarily close the company's 50 Pizza Huts in the country, most of which are also franchisee-owned. 

Read full story on CBC
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