Last week, Papa John's announced the suspension of all of its corporate operations in Russia in the wake of the Russia-Ukraine crisis. The pizza chain followed suit of several other high-profile American brands like McDonald's, KFC, and Starbucks.
But Papa John's U.S. franchise operator in Russia had other plans, choosing to keep the 190 Russian outlets up and running. The controversial decision drew swift backlash on social media from netizens.
Why Russia's Papa John's stores remain open
Christopher Wynne, 45, is the owner of the company that controls Papa John's nearly 200 Russian outlets. In an interview with The New York Times, Wynne justified his bold move and said,
"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."
Clearly demarcating between the general public and the politicians at the helm of the state, he continued,
"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."
The decision to cease operations in Russia was much easier for an MNC like McDonald's since it owns 84% of the 847 outlets in the country. The burger joint also assured investors of a compensation of $50 million a month for all consequent losses on leases, employee salaries, and other expenses.
In contrast, Papa John's was majorly owned by Wynne's company PJ Western, until last year, when the company sold its stores to local franchisees.
A political stance from the pizza joint, though laudable on humanitarian grounds, would mean financial ruin for these local franchisees and smaller operators who would bear the brunt of the loss of business.
Papa John's had previously claimed to cease all support to Russia
In a statement released on March 9, the brand said it had ceased all support and engagement with the Russian market, operational or otherwise. It also clarified that it was no longer receiving any royalties from the Russian stores.
CEO Chris Kempczinski said in a statement,
"Our values mean we cannot ignore the needless human suffering unfolding in Ukraine."
The company's previous sentiment that their decision was supported by the majority of their team members and franchisees was proven wrong by Wynne's defiance of the same.
Advocating on behalf of the franchise's 9000 employees, Wynne emphasized how imperative it is for his business to keep running,
"I have a perspective where my interest is first and foremost my employees and franchisees and keeping the lines of cultural exchange with the Russian people open. Papa John's is worried about the corporate and political winds that, on a day-to-day basis, I cannot focus on."
He added,
"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."
While the pizza chain did not immediately respond to requests for comment, it confirmed that it "temporarily" cut ties with Wynne's business in Russia.