Yum Brands leaves Russia completely
Like many restaurant brands in the wake of the ongoing Russian invasion of Ukraine, Louisville, Kentucky-based Yum Brands is in the process of ceasing operations in Russia.
In March, the company confirmed that it would suspend operations of KFC-owned restaurants in Russia and work on an agreement to suspend all operations of Pizza Hut restaurants in Russia. Now, in an update to this previous statement, Yum Brands announced that it has completed the transfer of ownership of all Pizza Hut locations to a new owner, who will convert the stores to non-Yum branded restaurants.
Yum also confirmed that it was “at an advanced stage” of transferring ownership rights to all of its KFC sites in Russia, operating systems and master franchise rights to a local operator. Once that happens, Yum Brands will be completely out of Russia, as there are currently no Taco Bells operating in Russia.
“This builds on the company’s previous actions to suspend operations of all company-owned restaurants, halt all restaurant investment and development efforts, and redirect all profits from Russian operations to efforts humanitarian aid,” Yum Brands said in a statement.
Other major restaurant brands that pulled out of Russia altogether include Starbucks and McDonald’s, both of which announced a complete shutdown of operations in response to Russian aggression in May. Last month, renowned McDonald’s stores began reopening in Russia according to CNN under the name which roughly translates to “Tasty and that’s it.”
However, other restaurant companies like Burger King and Subway were unable to terminate franchise agreements in Russia because they are not under company ownership.
Contact Joanna Fantozzi at [email protected]
Follow her on Twitter: @JoannaFantozzi