KFC and McDonald’s suspend operations in Russia

KFC suspends development in Russia

“This action builds on our decision to suspend all investment and restaurant development in Russia and to redirect all profits from operations in Russia to humanitarian efforts,” said Yum! Brands in a press release.

These humanitarian efforts, says Yum! Brands, include a US$1 million donation from Yum! Brands Foundation at the Red Cross to support those affected by the crisis, by activating the Yum! Disaster Relief Fund to support employees of Ukrainian franchises and matching employee donations to various charities bringing relief to Ukraine. “In addition, our franchisees in surrounding areas provide food to refugees,” the company said.

Yum! Brands is also in the process of finalizing an agreement to suspend all pizza hut catering operations in Russia, in partnership with its master franchisee.

Yum! Brands would have at least 1,000 KFC and 50 Pizza Hut locations in Russia which are almost all independent franchisees. Some 70 KFC locations are company-owned restaurants.

Reuters, meanwhile, reports that Russia is a key market that has helped the brand achieve record development in 2021. “Last year was a record year of development for KFC, led by the opening of new restaurants in China, India and Russia,” he reported, adding that in Russia the company was opening around 100 new restaurants a year and expected to pursue “a similar expansion strategy in the future. “.

McDonald’s temporarily closes restaurants and suspends operations in Russia

In an email originally sent by McDonald’s CEO, Chris Kempczinski, to its employees and franchisees, the company said, “We join the world in condemning aggression and violence and praying for peace.”

Kempczinski went on to say that the company provided immediate financial support to its team in Ukraine and would continue to pay full salaries to Ukrainian employees. In addition, US$5 million was donated to the company’s employee relief fund.

Additionally, “McDonald’s has decided to temporarily close all of our restaurants in Russia and suspend all market operations. We understand the impact this will have on our Russian colleagues and partners, which is why we stand ready to support the three legs of the stool in Ukraine and Russia. This includes maintaining salary for all McDonald’s employees in Russia.

The company has been operating for more than 30 years in Russia and, at the start of 2022, in 850 communities in the country.

About Robert Moody

Check Also

I’m a McDonald’s employee – why you should ALWAYS check the price before ordering

MACCIES is popular for its cheap food – but a McDonald’s employee has revealed four …