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Yum! Brands, Inc., owner of KFC and Pizza Hut, announced that it will finally leave Russia, although the exit will be gradual.
Russia currently has more than a thousand KFC outlets, so the economic impact could be quite significant for both the company and the country.
In 2021, the number of restaurants associated with the company around the world exceeded 53 thousand.
American multinational company Yum! Brands, Inc., owner of Kentucky Fried Chicken (KFC) Y Pizza Huts, He has announced that he will definitely leave Russia.
This action comes after the acts of violence unleashed as a result of the war between Ukraine and Russia continue without a peaceful resolution. In fact, the firm would have announced its departure a few months ago, however, it seems that it has finally come to fruition.
At your expense, Yum! Brands, Inc. manages the KFC, Pizza Hut and, of course, Taco Bell brands. In 2021, the number of restaurants associated with the company around the world exceeded 53 thousand. Of these, KFC is undoubtedly the one that manages to concentrate the largest number of establishments with about 27 thousand worldwide, operating in 150 countries.
Multinational company that owns KFC and Pizza Hut will leave Russia
The blows to Russia continue and, despite the threat of Yum! Brands, Inc. seemed unlikely, now it’s a matter of time for his departure from the country to materialize.
It was on March 7 when the American multinational decided to break ties with the Russian country. However, it was going through the same uncertainty as McDonald’s and other companies that made the same decision. How to get out without generating millionaire losses?
McDonald’s, for its part, announced on May 20 that it would sell all its establishments in Russia to a local operator. This was successfully completed and, in fact, on June 12 it was announced that the replacement for the “Big M”, Vkusno i Tochka (Delicious, period), even now has a characteristic logo.
The American multinational Yum! Brands, Inc. It was expressed through a statement. “Last month, Yum! finalized the transfer of ownership of all Pizza Hut franchise assets to a local operator. Also, he added that “Following the completion of the KFC transaction, Yum! Brands, Inc. intends to exit Russia completely.”
In the same way that it happened with McDonald’sthe company stressed that the new owner has already started the process of changing the brand seal with respect to pizza hut. Furthermore, he commented that Yum! Brands Inc. would only need to resolve some issues surrounding the transfer of KFC, taking into account the operating system and master franchise rights. For all this, it seems that yes, it would finally be a fact that the departure of KFC and Pizza Hut will happen sooner rather than later.
Other companies that have left Russia
Since the invasion of Russia to Ukraine the past will materialize February 24thMany have been the companies and governments that have condemned this act. For this reason, progressively, not only the European Union (EU) has been in charge of presenting important economic fines to the Russian country. Many are the brands that have decided to unite before what has been presented by the media as an act of solidarity towards Ukraine.
Between them we can mention the case of Netflix. Official data indicates that the company left Russia because it was forced to integrate Kremlin propaganda. By refusing, the platform faced the not-so-outrageous consequences of losing close to a million subscribers. Some of the companies that have stopped operating in Russia are Google, Nike, Apple, IBM and of course the aforementioned Neflix and McDonald’s.
The pressure from the companies could ultimately have a negative impact on a country that has sought to mitigate the damage. However, how much can he endure and what consequences will there be in this regard? Only time will tell. The war has now entered its fifth month of conflict. According to specialized studies such as that of Yale University, the country has seen the departure of over a thousand companies.
Secondly, president putin has declared that the economic blow generated by the companies could be much greater than expected. This fact would not only directly affect Russia, but all the nations that traded with the European country.
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