BurgerFuel pulls out of Iraq
posted on 24th October 2014
BurgerFuel and its Iraqui partners have decided to cease operations in Iraq as a result of the increasing threat from the Islamic State (Isis) to the country's geopolitical environment. The company was operating one store in Norther Iraq, but this was already in the process of being relocated when the decision was made.
BurgerFuel has always felt that its positioning as a New Zealand burger company rather than a US one gave it an advantage in building relationships in the volatile Middle East/North Africa region. However, the deal announced in January with Franchise Brands, which is an investment vehicle for the American founders of Subway, may have affected that perception.
"We only had one low volume store [in Iraq], so this is not material to our position," chief executive Josef Roberts told shareholders at the firm's annual meeting last month. "It's unfortunate that Iraq has slipped back into this situation as it was a country with enormous potential, but as we can longer enter that country for safety reasons, its best we cease activity there, which we have now done."
He said the situation in Libya was similar to Iraq.
"We haven't proceeded to enter that country and with recent bombings there - again, it's off the radar for future activity and like Iraq this will have little effect on our earnings."
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