The Milford-headquartered company disclosed those changes in an updated version of a statement it issued last week. But, in contrast with several other fast-food giants, Subway did not announce the closing of any of its restaurants in Russia. Instead, Subway reiterated that all of its approximately 450 establishments in the country are independently owned and operated by local franchisees and managed by an independent master franchisee.
“Subway does not directly control these independent franchisees, nor their restaurants, and has limited insight into their day-to-day operations,” the statement said. “The master franchisee in Russia manages all operations, marketing and the supply chain.”
The company has also said it would redirect any profits from operations in Russia to humanitarian efforts supporting Ukrainian refugees and work with franchisees across Europe to provide meals to refugees.
In the past couple of weeks, many people have criticized Subway on social media for keeping its Russian restaurants open. Last Friday, the hashtag #BoycottSubway trended on Twitter.
Before Monday’s announcement, Subway was one of a few-dozen firms that were “digging in — defying demands for exit or reduction of activities” in Russia, according to an online tracker maintained by Yale School of Management. By Monday, Yale had moved Subway into the “buying time — holding off new investments/development” category, which includes about 50 other companies. Yale gives companies in that category a “D” grade compared with an “F” for those in the “digging in” group.
More than 400 companies, including several based in Connecticut, have announced their withdrawal from Russia since the start of the invasion, according to Yale.
Among other fast-food giants, Restaurant Brands International, the company that owns Burger King, said last Thursday that it had begun exiting its 15 percent stake in a joint venture that operates about 800 Burger King restaurants in Russia. Burger King said it contacted the Russian operator of its restaurants and demanded that he suspend operations, but he refused. In the meantime, Burger King said it had suspended corporate support for the Russian market.
McDonald’s announced this month that it would temporarily close its approximately 850 restaurants in Russia — 84 percent of which are owned by the company. It said it would continue paying its approximately 62,000 employees in Russia. At the same time, McDonald’s has temporarily closed 108 restaurants it owns in Ukraine, while continuing to pay those employees.
Yum Brands, the parent company of KFC and Pizza Hut, said this month it planned to temporarily close 70 company-owned KFC restaurants in Russia. It also announced that it was in talks with a franchisee to close all 50 Pizza Hut restaurants in Russia. In addition, it has suspended new restaurant development in the country.
This article contains reporting from The Associated Press.
pschott@stamfordadvocate.com; twitter: @paulschott
