VW’s $5.8B Rivian Deal Hinges on Key Milestone Achievements
Volkswagen Group has invested a substantial $5.8 billion in Rivian, a promising electric vehicle (EV) startup. However, this investment …
Burger King partner refuses to shut down 800 restaurants in Russia
- Industrytech
- March 21, 2022
- 6:18 am
- No Comments
March 21, 2022: -Burger King is moving to divest its 15% stake in its Russian business, but the burger chain said it couldn’t legally suspend operations in the market right away.
The Restaurant Brands International chain announced it was suspending all corporate support for its 800-plus franchised locations in Russia in response to the Kremlin’s ongoing attacks on Ukraine. The suspension is including refusing approvals for more investment or expansion and pausing operations, marketing, and its supply chain.
But the company’s International President David Shear laid out in an open letter to employees that the structure of the company’s Russian business hampers its ability to shutter restaurants in the market, such as some of its competitors.
“Would we like to suspend all Burger King operations immediately in Russia? Yes. Are we able to enforce a suspension of operations today? No,” Shear said.
Burger King entered Russia through a joint venture with businessperson Alexander Kolobov, Investment Capital Ukraine, and VTB Capital, which U.S. sanctions have hit as an affiliate of a Russian central bank.
Shear said the burger chain contacted Kolobov, responsible for the day-to-day operations and oversight of the Russian locations, and “demanded the suspension of Burger King restaurant operations in Russia.” Kolobov refused, according to Shear.
Burger King owns a 15% stake in the joint venture, and none of the partners has a majority stake. According to Shear, Burger King can’t shut down the business on its own.
“There are no legal clauses that are allowing to unilaterally change the contract or allow any partners to walk away or overturn the entire agreement simply,” he wrote. “No serious investor in any industry would agree to a long-term business relationship with flimsy termination clauses.”
Shear said the company had started divesting its stake in the joint venture, but it will take some time to unwind based on the terms of the agreement. He said that Burger King fully complies with all applicable sanctions.
Enforcing Burger King’s contract would require the support of Russian authorities, which is likely to happen anytime soon because of the ongoing conflict and tensions with the West.
- Categories: News
About Us
We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.
Recent Posts
The Lake Companies | Making Manufacturing Easier…Forever! | Greg Lake
The Lake Companies knows that to achieve best practices, specific daily business processes must happen and be done as simply as possible, even without human effort. “That’s how we develop our ERP software products. We strive to completely transform internal business processes and revolutionize the user experience with our software,” says Greg Lake, President of The Lake Companies. “Building the support for best practices in our software allows our customers to achieve far more than they anticipated, while paving the way for growth into advanced IoT and Industry 4.0 technologies. Our Simple, Elegant, and Powerful solutions are built specifically for and seamlessly integrate with Infor’s SyteLine®(CloudSuite®) ERP.”
Omron Automation | A Leading Solution Provider in Industrial Automation | Robb Black
Omron Automation Americas is a division of Omron, an industrial automation leader that creates, sells, and services fully integrated automation solutions including sensing, control, safety, vision, motion, robotics, and more. Established in 1933, Omron’s team of more than 30,000 employees helps businesses solve problems with creativity in more than 110 countries around the world.
Gecko Robotics | Transforming the Manufacturing Industry | Ed Bryner
Sitting in the decommissioned elevator shaft of an old industrial warehouse in the historic Point Breeze neighborhood of Pittsburgh, PA, Ed Bryner and a small team of mechanical engineers watch a robot scale old, rusted piping.
Using Industrial Automation to Revitalize Infrastructure
“We rely so heavily on so many of these industrial assets and a lot of them are getting really old,” said Bryner, Director of Engineering at Gecko Robotics. “You see it with bridges and roadways. But buildings, power plants, pipelines, and more need a lot of infrastructure inspections, too.”
Exel Computer Systems PLC | Offering A Comprehensive & Flexible Business Solution | Rue Dilhe
Exel Computer Systems plc was established in 1985, and today, the company is a leading force in providing comprehensive, AI-enabled solutions for manufacturing companies and field service providers. Exel serves an increasingly diverse customer base, which includes small, medium and large size companies. With hundreds of successful implementations and thousands of users in the UK and worldwide, Exel has a proven track record of working with some of the world’s most well-known companies.
Micro Estimating Systems, Inc | Empowering Manufacturers to Make Informed Decisions | Joseph Rose
Manufacturers often struggle with generating accurate and timely quotes, delaying customer responses and risking profitability. Traditional quoting processes can take days or even weeks, while customers expect responses within 24 hours. Micro Estimating Systems addresses these challenges with advanced software that allows users to generate highly accurate quotes in minutes. By integrating with shop-specific data and automating feature recognition, their solutions ensure precision and speed, empowering manufacturers to make informed decisions and enhance their operational efficiency.