Papa John's Owner Reveals Reason for Not Closing American Stores in Russia Amid Ukraine Invasion

While many American brands like McDonald's and Starbucks have suspended all operations in Russia after President Vladimir Putin ordered an invasion of Ukraine last month, Papa John's locations are still serving pizza. Papa John's International stopped all corporate operations there last week, but since many of the stores are owned by Russians through franchising agreements, 190 Papa John's restaurants are still operating. Colorado native Christopher Wynne defended keeping his stores among those running during the crisis.

"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," Wynne, 45, told the New York Times on Monday. Although anxiety spread throughout Russia when the invasion began, customers "were showing up as usual," Wynne said. "The vast majority of Russian people are very clearheaded and understand the dark gravity of the situation they're in," Wynne continued. "And, at the end of the day, they appreciate a good pizza."

Wynne has a home in Moscow and has split his time between the U.S. and Russia since the early 2000s. He hopes to open 20 to 40 more restaurants in Russia, but he understands the collapse of the Russian economy caused by international sanctions could hurt his plans. He also worries the Russian government will take action against American and European brands that stopped operating there. Wynne hopes his business, PJ Western, would not be sanctioned since it's still operating. His company earned $59 million in revenues in 2020 and employs 9,000 people.

In 2007, Wynne bought a stage in Papa John's Russian franchise and later formed PJ Western. The company is now the master franchisee for Papa John's in Russia, and that gives Wynne the power to sign sub-agreements with others who want to open Papa John's restaurants there. In 15 years, Papa John's has become increasingly popular in Russia, and Wynne told the Times he plans to open locations in Germany and Poland. PJ Western collects royalty payments from franchisees in exchange for marketing, operating websites, and handling the supply chain, Wynne explained.

Although Wynne is keeping his Russian restaurants operating, Papa John's in the U.S. temporarily cut ties with his business last week. The company said it would no longer "provide operational, marketing or business support to the Russian market." Wynne admitted their perspectives "diverged fairly quickly" after the invasion. Papa John's International told the Times in a statement it believed its decision to stop business in Russia was "supported by the vast majority of our team members, franchisees, customers and communities around the globe."

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

Wynne said it was not his "responsibility or right to comment about the politics in Russia," and pointed out the opportunities his company has provided Russians with. "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," he told the Times. Wynne also noted that after Russia annexed Crimea in 2014, his company started working with Russian manufacturers on pizza products, and now the only thing they still import is olives.

Papa John's International announced last week it would suspend operations in Russia during the invasion of Ukraine, but its stores would all stay open because they are operated by independent franchisees. "Papa John's stands with much of the globe in condemning aggression and violence," the company said. "We hope for a peaceful resolution to the crisis in Ukraine, which today is hurting millions of innocent people, who are losing their homes, communities, and people they love."