Papa Johns Franchisee 'Russian's appreciate a good pizza!' Vows to stay open

American pizza boss Christopher Wynne plans to keep his Russian Papa John's restaurants open despite the corporate office severing ties with the nation
His company operates 190 Papa John's restaurants in Russia, which are owned by independent traders, who buy stock from his head office
Wynne sought out local suppliers after Russia annexed Crimea in 2014, and now gets everything bar olives from within his adopted homeland
Wynne said his 'interest is first and foremost my employees and franchisees and keeping the lines of cultural exchange with the Russian people open'
He believes Papa John's is 'worried about corporate and political winds' whereas he is focused on doing what's best for his employees and community members
Papa John's is just one of several fast-food chains to halt or limit operations in Russia in wake of the war
Some analysts allege the suspension of operations could destroy franchisees

An American Papa John's boss living in Russia plans to keep all the country's pizza shops open despite the brand announcing last week that it was suspending all of its corporate operations in the country over the war on Ukraine.

Christopher Wynne, a Colorado native who has lived and worked in Russia part time since the early 2000s, said Papa Johns will continue to operate all 190 of its stores there, even after the US-based head office said they'd be closing.

He is able to ignore that edict because the Russian outlets are owned by franchisees, who buy their supplies from an independent company that he owns. Wynne began working with local suppliers when Russia annexed Crimea in 2014, and now gets almost all of his produce from within the country - except for olives.

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That means he does not have to rely on the US brand for supplies to keep the stores running.

Wynne said his 'interest is first and foremost my employees and franchisees and keeping the lines of cultural exchange with the Russian people open'.

'The best thing I can do as an individual is show compassion for the people, my employees, franchisees and customers without judging them because of the politicians in power,' he told the New York Times on Monday.

'The vast majority of Russian people are very clearheaded and understand the dark gravity of the situation they're in. And, at the end of the day, they appreciate a good pizza.'

Wynne's company, PJ Western, operates 190 Papa John's restaurants in Russia and despite the pizza cooperation's decision to suspend operations, he and his fellow franchisees do not plan to follow suit.

The pizza company is just one of several quick-service restaurant chains to halt or limit operations in Russia. Burger King on Thursday became the latest to do so, following the footsteps of McDonald's, KFC, Pizza Hut and Papa John's International.

Wynne said Russia's Papa John's shops are primarily owned by Russian through a franchise agreement controlled by PJ Western, which reported $59million in revenues in 2020.

Papa John's International cut ties with PJ Western when it announced two weeks ago that it would no longer 'provide operational, marketing or business support to the Russian market.'

'Our perspectives diverged fairly quickly,' Wynne said of the brand's decision.

Extremely capitalist and libertarian pilled. You don’t catch flies with vinegar.

'Papa John's is worried about the corporate and political winds that, on a day-to-day basis, I cannot focus on.'

He instead is focused on the needs of his workers, noting that his company oversees franchisees that employ 9,000 people.

'The current situation will increase the challenges we are faced with, but I believe that what we are doing is the right thing to do,' Wynne explained, noting that he prefers to prioritize business rather than politics.

Wynne, who is married to a Russian woman with whom he shares a two-year-old daughter, claims it 'has never been my responsibility or right to comment about the politics in Russia' and that he instead is focused on how his businesses can provide opportunities to residents of the country.

He also noted that American businesses shuttering Russian locations 'will face increased scrutiny from the [local] government,' but reiterates his companies 'will not fall in this category since the business continues to operate.'

The franchise owner also explained that although retailers have stopped selling goods in Russia, little has changed with his pizza operations.

'In 2013, about 92 percent of my supply chain was imported,' he said, before adding that in 2014 - when the U.S. imposed sanctions on Russia for annexing Crimea - he began working with Russian farmers and manufacturers to get the ingredients necessary for his stores to operate.

'We switched to an entirely localized supply chain,' Wynne said. 'The only thing we import is olives.'

He also shared that despite the war and widespread anxiety for their loved ones in Ukraine, Russian 'customers were showing up as usual.'

Additionally, Wynne said that despite the various sanctions that have made it difficult to conduct international financial transactions, internal credit card payment systems and the internet remain functional.

Dozens of companies pulled out of Russia, with video game makers Nintendo and Sony halting all product shipments, packaged food giants Nestle and Mondeleze International halting investment, and tobacco groups scaling back operations.

Just last week, Burger King's parent company Restaurant Brands International chain said it will halt corporate support for the 800 franchisee-owned Burger Kings in Russia, as well as refuse any new investment or expansion.

The announcement followed similar moves from McDonald's, KFC, Pizza Hut and Papa John's.

Analysts allege that although temporarily closing restaurants may not have much of an impact of large corporations like Papa John's International or Yum Brands Inc, the parent company of KFC, it could cause financial ruin for franchisees.

These are Russian-owned businesses, owned primarily by Russians or Russian institutions, that don't share our beliefs or requirements,' Michael Seid, the founder of global franchise advisory firm MSA Worldwide, told the Times.

'The Russian franchisee has debt, has to pay the employees. They're going to do what is in their best interest, and it will all get sorted out later.'

Meanwhile, in a statement emailed to the newspaper, Papa John's International claimed its decision to pause operations in Russia was 'supported by the vast majority of our team members, franchisees, customers and communities around the globe.'

The company also said in a regulatory disclosure last week that it could end up having to absorb the cost of $15.2million of receivables associated with its master franchisee in Russia, which runs all of its 188 restaurants there.

Royalties from the franchisee made up less than 1 percent of Papa John's total revenue in 2021, the company said.

The pizza chain also said noted that it ceased all operational, marketing and business support to - and engagement with - the Russian market, and that it is not receiving any royalties from restaurants there.

based pizza merchant

With most of his competition leaving, he’s gunna be killing it

WTF I now love Pizza fast food chains!

A Jewish company that kicked its owner out for using the word NIGGER, now they are supporting an Asiatic enemy of Europe. I'm not surprised that all the Americans here (another enemy of the European race) supports this company.