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Hospitality operators including Jamie Oliver pull out of Russia

Hospitality operators including Jamie Oliver Group are pausing their business operations in Russia or pulling out of the country altogether following the invasion of Ukraine.

 

A Jamie Oliver Group spokesperson confirmed the company was exiting its franchise agreement and operations in Russia will cease trading. According to The Telegraph, the business is scrapping an agreement with franchisee Ginza Project, which will see the Jamie’s Italian restaurant in Moscow (pictured) remove its branding.

 

Hotel groups including IHG, Hilton, Hyatt and Marriott International have announced they will suspend future investments, development activity and new hotel openings in Russia as well as closing corporate offices in Moscow, but will continue to support staff. Hilton said it would donate any profits from business operations in Russia to the humanitarian relief efforts for Ukraine.

 

In a statement, Marriott said its properties in Russia were owned by third parties, “and we continue to evaluate the ability for these hotels to remain open”.

 

Hyatt said: “As this complex situation unfolds, we will continue to evaluate our existing management agreements with the third-party entities that own Hyatt hotels in Russia, while complying with applicable sanctions and US government directives, and keeping our purpose of care at the centre of any decision we make.”

 

Radisson has temporarily suspended new partnerships and new investments. A statement from the company said: "All our Radisson Hotel Group properties in Russia are owned by third parties and we continue to operate in some capacity as we play a key role in supporting employees and local communities.

 

"While we continue to evaluate the hotel operations in Russia against the backdrop of applicable sanctions and government directives, we remain committed to our people and the communities we serve."

 

Kevin Johnson, chief executive of Starbucks, announced earlier this month that the company had decided to suspend all business activity in Russia, including shipment of all Starbucks products, while its licensed partner had agreed to pause store operations and would provide support to the nearly 2,000 employees in Russia.

 

McDonald’s has decided to temporarily close all its restaurants in Russia and Yum! Brands is suspending operations of KFC company-owned restaurants in the country. At the time of writing, the company was also finalising an agreement to suspend all Pizza Hut restaurant operations in Russia.

 

A statement from Accor, which has 57 hotels in Russia, said: “Accor has made the decision to suspend all planned openings and all future developments in Russia as well as loyalty partnerships with Russian counter parties. In addition, the group is fully complying with the list of sanctions enforced by the EU, the US and the UK. All management booking distribution loyalty and procurement services to hotels, to which owners are included on this list of sanctions, are suspended.

 

“However, Accor will continue to operate in Russia in some capacity as the group plays a key role in supporting its 3,500 employees, their families and local communities. In times of turmoil, Accor hotels remain shelters to many people, including foreign citizens, NGOs and media, as has been the case for the past 50 years.”

 

Photo: Zoltan Tarlacz/Shutterstock.com

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