Burger King Commits to Russia as Economy Contracts.
Burger King’s Jose Cil reaffirmed the U.S. restaurant chain’s commitment to Russia, where it added more stores than its biggest international competitor last year, even as the economy slides into recession amid sanctions.
“Russia is still very attractive for the company,” said Cil, the president of Burger King Worldwide, according to a company statement during his visit to the city of Kazan in the Volga region. “It has a great growth potential, especially across regions.”
The focus this year will shift to quality, rather than the number of outlets, according to Cil.
Restaurants are battling for customers and profit with Russia’s economy forecast to shrink 3 percent this year, the first contraction since 2009, and disposable incomes estimated to decline 6.3 percent. Consumer spending has been slowing since 2011 even before the U.S. and European Union passed punitive measures against President Vladimir Putin’s incursion into Ukraine last year.