Why Subway isn’t closing its Russian locations and what they’re doing instead (2024)

(NEXSTAR) – Over 200 Western businesses have changed their dealings with Russia since the country invaded Ukraine in late February. Still, there are some businesses that haven’t announced any change.

Among those is Subway. Unlike McDonald’s, for example, which has closed 850 stores in Russia, Subway doesn’t appear to be closing any of its locations in the country.

In a statement released Monday, Subway explained it “has no corporate operations in Russia” and its roughly 450 restaurants “are all independently owned and operated by local franchisees and managed by an independent master franchisee.”

“We don’t directly control these independent franchisees and their restaurants, and have limited insight into their day-to-day operations,” the company added. McDonald’s, on the other hand, was able to close so many locations because it owns most of its Russian restaurants.

Instead, Subway said it will “redirect any profits from operations in Russia to humanitarian efforts supporting Ukrainians who have been affected by the war.” It is also working with its franchisees across Europe to provide meals to refugees.

As hundreds of companies have curtailed operations in Russia, President Vladimir Putin has threatened that if foreign companies shut down production in his country, he favors a plan to “bring in outside management and then transfer these companies to those who want to work.”

A draft law could allow Russian courts to appoint external administrators for companies that cease operations and are at least 25% foreign-owned. If the owners refuse to resume operations or to sell, the company’s shares could be auctioned off, the ruling United Russia party has said, calling it “the first step toward nationalization.”

The Associated Press contributed to this report.

Why Subway isn’t closing its Russian locations and what they’re doing instead (2024)

FAQs

Why Subway isn’t closing its Russian locations and what they’re doing instead? ›

Our restaurants in Russia are all independently owned and operated by local franchisees and managed by an independent master franchisee. We don't directly control these independent franchisees and their restaurants."

Why is Subway still operating in Russia? ›

Why is Subway still open in Russia? Why not? Almost ALL Subways are franchised outlets owned and operated by Russians. By contract, they operate as they please because these are their own business.

Is the Subway working in Russia? ›

Subway's 446 local franchises in Russia are still in business, but the US sandwich chain says it is donating its profits from Russia to humanitarian causes. Included in the list of international war sponsors by NACP.

Who owns Subway in Russia? ›

The sandwich maker told the Kyiv Independent that because it has “no corporately owned restaurant operations in Russia,” all of its restaurants are “independently owned and operated by a master franchisee, an independent U.S.-company called Subway Russia.”

How many Subway stores are there in Russia? ›

In Russia for more than 20 years, Subway operates 550 restaurants in 122 cities in the region, making the Subway chain in Russia the third largest in Europe, and putting it on the list of those "financing the murders of Ukrainians," according to the agency.

Is the Moscow subway better than the NYC Subway? ›

The Moscow Metro averaged 47 km/h (29 mph) and had a top speed of 80 km/h (50 mph). In comparison, New York City Subway trains averaged a slower 25 miles per hour (40 km/h) and had a top speed of 45 miles per hour (72 km/h).

Can Russian citizens travel to USA now? ›

Russian citizens must obtain a visa before entry into the United States, where the purpose of your intended travel and length of stay will determine what type of visa is required under US immigration law.

Can Americans go to Russia right now? ›

Russia - Level 4: Do Not Travel.

Can you go to Russia right now? ›

Russia - AVOID ALL TRAVEL

Avoid all travel to Russia due to the impacts of the armed conflict with Ukraine and the risk of terrorism. The armed conflict in Ukraine has led to armed incursions and shelling in areas close to the Russian-Ukrainian border.

Does Russia own Burger King? ›

Who runs Burger King in Russia? The joint venture that holds the Burger King franchise in Russia is made up of RBI and three other parties: Businessman Alexander Kobolov is responsible for day-to-day operations and oversight of the 800 restaurants with a 30% stake in the business.

What country owns Subway? ›

Subway IP LLC, doing business as Subway, is an American multinational fast food restaurant franchise that specializes in submarine sandwiches (subs) and wraps.

What family owns Subway? ›

Neither of Subway's original founders, Fred DeLuca and Peter Buck, are still alive. After his death in 2015, DeLuca left his 50% of the company to his wife, Elisabeth DeLuca, according to Forbes' previous reporting.

How many Wendy's are in Russia? ›

Share All sharing options for: Wendy's Is Closing All of its Locations in Russia. Wendy's will shut down its eight locations in Russia. Bloomberg writes that this is due to a "change in the local franchisee's management." Wenrus Restaurant group was slated to open 180 Wendy's outlets across by 2020.

Does Subway support Ukraine? ›

Ukraine Adds Sandwich Chain Subway to List of 'War Sponsors' - Bloomberg.

Who is buying Subway company? ›

Roark Capital is buying Subway, ending the sandwich chain's more than five decades of family ownership and marking a new era for the struggling company. The announcement Thursday ends the chain's lengthy sale process, which publicly kicked off in February.

Did McDonald's stop operating in Russia? ›

On 18 March, it was reported that McDonald's remained unable to close some locations in airports or transit stations. On 16 May 2022, after temporarily closing its restaurants, the company decided to exit Russia altogether.

Do trains still go to Russia? ›

IMPORTANT UPDATE 2024: All international trains to/from Moscow & Russia remain suspended until further notice, originally due to covid-19 and now due to sanctions and the war in Ukraine. No trains at all now cross the Poland/Belarus or Finland/Russia border.

Does Russia still use steam trains? ›

Russia. In the USSR, although the first mainline diesel-electric locomotive was built in USSR in 1924, the last steam locomotive (model П36, serial number 251) was built in 1956; it is now in the Museum of Railway Machinery at the former Warsaw Rail Terminal, Saint Petersburg.

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