BUSINESS

Burger King Denies Rumors of Russian Entry

The St. Petersburg Times

Burger King on Friday categorically denied a report that it had signed a franchising deal in Russia.

While the fast food chain has been actively working to enter the Russian market for some time, no agreements have been concluded, Brian Johnston, Burger King’s senior director of development for Eastern Europe and emerging markets, told The St. Petersburg Times.

Kommersant had reported that Mikhail Bazhenov, a co-owner of St. Petersburg-based Adamant Holdings, was to open the country’s first Burger King outlet, citing an industry source.

Rumors of a deal with Bazhenov are “a complete fabrication,” Johnston said.

He said Burger King’s entry into Russia would involve “multiple partners” and likely follow the development model used in the Czech Republic, where the company began opening restaurants in November.

“We are aiming to work with local entrepreneurs that are successful and can continue to be successful with the added value of a global brand,” he said.

The U.S. fast food giant, which operates more than 11,900 restaurants globally, has been focusing on putting the necessary infrastructure in place over the past several months and has recruited local development managers in Moscow and other major Russian cities.

In terms of international outlets, Burger King is second only to McDonald’s, which opened its first restaurant in Moscow in 1991 and now operates 240, with another 40 planned to open later this year.

Bazhenov was not available for comment Friday.

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