The operator of Domino's Pizza in Russia is considering selling its business there, 10 months after the Kremlin started war in Ukraine.
DP Eurasia, which owns the franchise for Domino's Pizza in Russia, is one of a handful of Western firms that have not suspended or removed services there.
The London-listed firm said it is "evaluating its presence in Russia".
"The company is considering various options which may include divestment of its Russian operations."
DP Eurasia owns 171 Domino's Pizza stores in Russia; It owns 68 sites, while 103 are franchised to local operators.
It also operates Domino's franchises in Turkey, Azerbaijan and Georgia.
• There can be five types of conflict in 2023
In the days following Russia's invasion of Ukraine. On 28 February 2022, DP Eurasia said that "it is too early to quantify any potential impact to the group's Russian business".
The firm later said: "The safety and well-being of all employees and customers of the Group remains its primary priority and DP Eurasia is shocked and saddened by the conflict and the impact it has had on all innocent civilians across the region.
"The ongoing situation at this stage has not caused any material disruption to the group's operations," the statement concluded.
At the time, DP Eurasia said it would suspend royalty payments from Russian business and limit investments in the country.
'potential transaction'
Many Western fast food companies exited their operations in Russia when the war broke out.
McDonald's closed 850 of its restaurants, citing the "humanitarian crisis" and "unpredictable operating environment" caused by the Ukraine war. The majority of the chain was bought by Russian businessman Alexander Govar, who has rebranded the restaurant "Vakusno i Tochka", which translates to "Tasty and That's It".
KFC-owner Yum! Brands – which also owns Pizza Hut – exited the Russian market, selling their sites to local businesses that already operated franchises there.
Restaurant Brands International, which owns Burger King, operates in Russia through a joint venture. It said it wanted to suspend trading but the Russian operator of 800 stores "refused" to close them.
On Wednesday, DP Eurasia responded to speculation it would leave Russia, saying it was "evaluating its presence in Russia, the impact of sanctions and its continued ability to serve its customers in Russia".
Pointing to a possible sell-off of the Russian operation, it added: "While the potential transaction is being worked out, there can be no certainty as to the outcome."
Source link bbc news
No comments:
Post a Comment