Burger King Europe Axes Franchise Agreements with Yi-Ko Holding in Germany
Franchisee ordered to stop operating 89 Burger King restaurants after failing to meet labour and management commitments.
In a harshly worded statement Burger King stated that Yi-Ko "repeatedly failed to adhere to contractually agreed upon labor commitments for their 3,000 restaurant employees" and that "Yi-Ko's disregard for the Burger King brand's standards have also put at risk the livelihood of the 165 remaining franchisees and 25,000 employees throughout Germany".
Several of Burger King's managers were sent to work with Yi-Ko after they became aware of operational deficiencies at the franchisee. Despite initial signs of success, apparently standards slipped once again, promoting the move to terminate their agreements.
Andreas Bork, Vice President and General Manager, Burger King Central Europe said "We view termination as a last resort... Due to Yi-Ko's repeated violations of operational and labour standards and the resulting reputational harm, we've determined they cannot be a part of the Burger King family".
