this post was submitted on 02 Oct 2023
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You don’t own franchise partners by definition. They are individually owned restaurants that pay you a fee to use your brand (name, menu, marketing, etc.).
„Shutting down“ here means: Don’t renew these franchise contracts. The restaurants will continue to exist, but they will have to rebrand and be less lucrative.
And what do you do if those Russian franchise owners refuse to rebrand and continue using the BK name, supplies and signage?
Do you stop providing logistical support? Do you cut them off the BK supply chain (shut that down too) and not provide any new menu items / marketing materials?
Has BK done that?
Yes, obviously you should cut supply lines, duh. Why would you supply products to someone who isn't paying for them.
So what is burger king doing wrong here?"
Edit: At least 10 people didn't read the fucking article, BK did cut the supply line. This place is just like Reddit, all hurr durr without reading the article.
They are telling you, literally. They should revoke the branding licence, cut every supply lines, and sue them if they continue using the brand (as they would surely do if I just started to have a Burger King without a licence). They don't do these things. Which is wrong. And that's what they are doing wrong.
This is how I know you didn't read the article.
BK did cut the supply chain logistics. It's mentioned in the article.
Sue the franchisees? Where? In Russia? In the middle of an economic war with the west? Even if the suit proceeded for some reason, who do you expect the court to rule in favor of?
BK did everything to severe ties. The only thing that remains is to sell their share of the franchise. If they sell now (even if they find a buyer), they likely won't be paid in anything other than rubles which is useless.
Lol dude, take your own advice. Read the article, about how they're dragging their feet and didn't even want to exit in the first place. How much that BK PR team paying you lol.
Also they didn't say they were cutting supply chain, it says "The spokesperson for RBI said the company was refusing new investment and supply chain support." Refusing NEW investments is not the same as killing the existing supply chain. Jesus, read.
What imaginary supply line are you talking about? Do you think that any food there is not supplied locally? That they import paper wrappings with a logo from the US? Actually the ones probably importing their stuff are sitting in the US, even if it's just plastic trash from China.
It's a name. And if they got told not to use it anymore or they just don't pay anything anymore... what is supposed to happen? Someone goes to Russia and sues them there?
Burger King corporate supplies the wrappers, the branding, the marketing, and the damn product. These franchises don't "make" anything in house. They reheat par-cooked food that, in this case, BK corporate has delivered to them via truck. BK corporate has had over a year to cut that supply line. They own the branding, and therefore the wrappers.
By truck? From the US?
Nothing, because you just hallucinate supply lines. The franchise pays for the fucking name and that's it. And if they are not allowed to do so anymore, who's going to Russia and sue the owning oligarchs there?
They continue operating in russia as if everything's fine.