McDonald'shas started the process of selling its Russian business, which includes 850 restaurants that employ 62,000 people, making it the latest major Western corporation to exit Russia since it invaded Ukraine in February.
Key points:
McDonald's plans to sell its stores that have been temporarily closed since March in Russia
The franchise seeks to have a buyer pay their workers until the sale closes
Russia's first McDonald's openedshortly after the fall of the Berlin Wall,a powerful symbol of the easing of tensions
The fast food giantpointed to the humanitarian crisis caused by the war, saying holding on to its business in Russia "is no longer tenable, nor is it consistent with McDonald's values".
The Chicago-based company announced in early March that it was temporarily closing its stores in Russia but would continue to pay employees.
On Monday, it said it would seek to have a Russian buyer hire those workers and pay them until the sale closes.
It did not identify a prospective buyer.
CEO Chris Kempczinski said the "dedication and loyalty to McDonald's" of employees and hundreds of Russian suppliers made it a difficult decision to leave.
"However, we have a commitment to our global community and must remain steadfast in our values," Mr Kempczinski said in a statement, "and our commitment to our values means that we can no longer keep the arches shining there".
As it tries to sell its restaurants, McDonald's said it plans to start removing golden arches and other symbols and signs with the company's name.
It said it will keep its trademarks in Russia.
The first McDonald's in Russia opened in the middle of Moscow more than three decades ago, shortly after the fall of the Berlin Wall.
It was a powerful symbol of the easing of Cold War tensions between the United States and Soviet Union.
McDonald's said it expects to record a charge against earnings of between $US1.2billion ($1.7 billion) and $US1.4 ($2.0 billion) billion over leaving Russia.
Its restaurants in Ukraine are closed, but the company said it is continuing to pay full salaries for its employees there.
McDonald's said exiting Russia will not change its forecast of adding a net 1,300 restaurants this year, which will contribute about 1.5 per centto company wide sales growth.
Last month, McDonald's reported that it earned $US1.1 billion ($1.6 billion) in the first quarter, down from more than $1.5 billion ($2.2 billion) a year earlier. Revenue was nearly $US5.7billion ($8.2 billion).
by The Associated Press | May 17, 2022 at 6:56 a.m. McDonald's is closing its doors in Russia, ending an era of optimism and increasing the country's isolation over its war in Ukraine
war in Ukraine
The Russo-Ukrainian War is an international conflict between Russia and Russian-backed separatists, against Ukraine, which began in February 2014. Following Ukraine's Revolution of Dignity, Russia annexed Crimea from Ukraine and supported pro-Russian separatists fighting the Ukrainian military in the Donbas war.
https://en.wikipedia.org › wiki › Russo-Ukrainian_War
“This has a massive symbolic importance: McDonald's coming to Russia, then part of the Soviet Union, was an implicit signal to the world that Russia is open for business. The company leaving Russia is an explicit signal that the country is no longer a place you want to be in as a business,” Nishanov said.
McDonald's last month said it was selling its restaurants in Russia to one of its local licensees, Alexander Govor. The deal marks one of the most high-profile business departures since Russia's invasion of Ukraine in February.
Thanks to Covid-19, construction dragged into 2022, finishing in February—just in time for Russia to invade Ukraine. The following month, McDonald's suspended operations in Russia, and by May it had exited the market entirely, selling all of its assets there to Alexander Govor, a mining oligarch.
The new logo design shows a red-orange circle and two orange lines against a green background, the image reportedly represents two sticks of yellow fried potatoes and a yellow-orange burger. The green background is reported to represent the quality of products and services.
For Russians, McDonald's was once a symbol of modernity. Its closing feels like a step backward. Heard on: Among the many Western companies that have shut down their operations in Russia is one that was once a symbol of rapprochement between the Soviet Union and the West: McDonald's.
McDonald's has said it will permanently leave Russia after more than 30 years and has started to sell its restaurants. The move comes after it temporarily closed its 850 outlets in March.
Russian businessman Alexander Govor has agreed to operate all of the restaurants owned by McDonald's under a new brand. Part of the deal with Govor entails him hiring and continuing to pay all of the employees working for McDonald's in Russia for the next two years, McDonald's said.
People visit the new restaurant "Vkusno & tochka", which opens following McDonald's Corp company's exit from the Russian market, in Moscow, June 12, 2022.
Both consumers and investors pressured Western companies like Starbucks to cut ties with Russia to show opposition to the Kremlin's war with Ukraine, but unwinding licensing deals takes time. Starbucks has suspended all business activity with the country since March 8.
Rebranded KFC Opens in Russia Following Chicken Chain's Departure Over Ukraine. MOSCOW – The rebranded version of KFC reopened at its first location in central Moscow on Tuesday after the U.S. fast-food chain exited Russia's market over the war in Ukraine.
There were 130 Starbucks locations in Russia when the company pulled its brand from the country. The stores were owned by Kuwait-based Alshaya Group, a Starbucks's licensee.
Alexander Govor replaced the brand with Vkusno i tochka ("Tasty and that's it"). The restaurants offer replacements for all menu items, but most are rebranded.
Employees work at the newly-opened Stars Coffee cafe in Moscow. A restaurateur and rapper duo unveiled Stars Coffee on Thursday, reopening the chain of coffee shops in Russia formerly owned by Starbucks, the latest major company rebranding after a months-long Western corporate exodus from the country.
Recommended. The man bankrolling the venture is Russian billionaire Alexander Govor, who bought the 850 McDonald's outlets in the country for a fee neither side has yet disclosed, retaining all 62,000 staff for at least two years as part of the agreement.
KFC is the most prolific American fast food brand in Russia with over around 1,000 premises across the country. That is followed by McDonalds with close to 847, and Burger King, which operates roughly 800 restaurants in Russia. There are also 130 Starbucks coffee shops and 50 Pizza Hut restaurants in Russia.
A day later, the Toronto-based chain went a step further and suspended all corporate support to the Russian market, meaning Burger King in Russia would no longer receive support for operations, marketing and the supply chain.
At the end of 2021, McDonald's had 847 restaurants in Russia. McDonald's had previously said that its Russian business had helped drive rising revenues in 2021. Ozan, the company's CFO, said that Russian had previously represented roughly 2% of system-wide sales, 7% of revenues, and 2% of operating income.
McDonald's is owned by different shareholders, as it's a publicly traded company. According to CNN Business reports, most of this company's owners are institutional investors, who make up 70.14% of the outstanding shares. Individual owners only make up about 0.31%.
McDonald's reopens in Ukraine, feeding customers' nostalgia — and future hopes All of the chain's 100-plus locations in Ukraine closed after Russia invaded in February.
For Ukrainians old enough to remember the Soviet Union's demise, the opening of the first McDonald's restaurants in their country in 1997 was a symbolic step away from the Soviet past and toward a more hopeful Western future.
Coca-Cola continues to remain top seller in Russia despite withdrawal: Report. The report further said that the top-selling Dobry Cola brand, which is produced in Russian factories, continued to be a top seller among cola drinks and belonged to Coca-Cola HBC Russia, accounting for just over one-third of the market.
Unsurprisingly, this totalitarian regime is pretty averse to American businesses, and McDonald's is no exception. According to the Telegraph, though, some elite members of the North Korean government have had McGoodies smuggled into the country from South Korea for their own personal consumption.
While McDonald's is a global icon, the fast-food giant does not have a presence in many countries worldwide. There are 123 countries where McDonald's has not set up a restaurant yet, including Afghanistan, Bhutan, Iran, Iraq, Libya, and North Korea, among many others.
Starbucks is closing 16 stores around the country because of repeated safety issues, including drug use and other disruptive behaviors that threaten staff. The coffee giant is closing six stores in its hometown of Seattle, six in Los Angeles, two in Portland, Oregon and one each in Philadelphia and Washington.
Despite being inspired on the Italian culture, therefore, it is probable that the Starbucks model would not fly in Italy. The coffee experience for Italians is much more personal and intimate than what any Starbucks store would be able to offer. It is about “slow food” as opposed to the American “fast food”.
Taco Bell exited Russia about 20 years ago after several trial stores failed to draw a following. Yum's fourth restaurant brand, The Habit Burger Grill, has never had a restaurant there.
As background, Subway has no corporately owned restaurant operations in Russia. There are approximately 450 franchised restaurants in Russia which are all independently owned and operated by local franchisees and managed by an independent master franchisee, not Subway corporate employees.
May 23 (Reuters) - Starbucks Corp (SBUX. O) said on Monday it will exit the Russian market after nearly 15 years as the coffee chain joins McDonald's Corp (MCD. N) in marking the end of the presence of some of the top Western brands in the country.
H&M is shutting down its business in Russia. The fashion retailer, which had about 170 stores in Russia, paused sales in March. Now, in what the company described as a “winding down process,” the company will reopen stores for a brief period to sell the leftover inventory before exiting the country altogether.
Its business in Russia makes up less than 1% of its revenue. Starbucks previously said it would donate royalties from its Russia business to humanitarian relief efforts for Ukraine and contributed $500,000 to World Central Kitchen and the Red Cross.
The price of Combo meal in fast food restaurant (Big Mac Meal or similar) in Moscow is руб 386. This average is based on 43 price points. It can be considered reliable and accurate. Latest update: April 26, 2023.
Russian fast food chain Vkusno & tochka, or "Tasty & that's it", on Monday said the Big Hit, complete with a new signature sauce, will be available from February and a similar product to the McDonald's Happy Meal will be making a comeback as "Kids' Combo".
A mysterious, nautical figure called to them, as sirens do. “They really loved the look of it and it kind of tied into what they felt Starbucks stood for,” Steve said. “So we took inspiration from that and created the logo from there. And she became the siren.”
Russian singer and entrepreneur Timur Yunusov, known as Timati, pictured, and a partner bought the Starbucks assets in Russia and reopened as Stars Coffee, with a familiar logo.
Starbucks currently operate more than 6,000+ stores in over 230 cities in the Chinese mainland, employing more than 60,000 partners. Starbucks has been serving local communities and initiating social responsibility programs in different regions and cities after entering the Chinese mainland market.
“This has a massive symbolic importance: McDonald's coming to Russia, then part of the Soviet Union, was an implicit signal to the world that Russia is open for business. The company leaving Russia is an explicit signal that the country is no longer a place you want to be in as a business,” Nishanov said.
The Russian-based fast food chain, 'Vkusno I Tochka' ('Tasty and That's It'), has gone international, expanding into Belarus. "We are entering a new market," said Alexander Govor, owner of the chain. "Now Vkusno I Tochka will operate not only in Russia, but also in Belarus."
"The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values," the company said.
The largest share of consumption (44.3%) still falls on poultry meat: the average Russian ate about 35 kg in 2022. The consumption of this type of meat has also increased, but not at the same pace as pork: ...
Pelmeni is considered the national dish of Russia. They are pastry dumplings are typically filled with minced meat and wrapped in a thin, pasta-like dough. They can be served alone, slathered in butter and topped with sour cream, or in a soup broth.
Due to the 2022 Russian invasion of Ukraine, McDonald's temporarily suspended all operations in the country on 8 March. In May, the company announced that it would sell all of its restaurants in Russia, which were rebranded as Vkusno i tochka.
The reopening of the fast-food outlets is seen as one test of whether and how Russia's economy can withstand Western sanctions imposed after Russia invaded Ukraine on February 24. At the time of its withdrawal from Russia, McDonald's said it employed 62,000 workers across the country.
We entered Russia because of the hope and promise our brand came to signify. For three decades, our presence in Russia inspired adages that went beyond our food — from “burger diplomacy” to a “McDonald's peace theory”— and embodied the greater purpose and impact that brands like ours can have in the world.
Russian fast food chain Vkusno & tochka, or "Tasty & that's it", on Monday said the Big Hit, complete with a new signature sauce, will be available from February and a similar product to the McDonald's Happy Meal will be making a comeback as "Kids' Combo".
On Sunday, McDonald's restaurants reopened their doors in Moscow once again under new Russian ownership and a new name, “Vkusno-i tochka”, which translates as “Tasty and that's it”.
The food is definitely McDonald's quality and honestly it's at least half as cheap as it is in the United States. You can get two meals for the equivalent of five dollars. It's a fun place to come and definitely makes you appreciate what you're familiar with.
Now, Seattle-born Starbucks, the iconic coffee chain, has become the latest American institution to become “Russified.” On Thursday, one of Russia's most popular rappers, Timur Yunusov—more commonly known as Timati—alongside restaurateur Anton Pinskiy, unveiled “Stars Coffee” as the replacement for Starbucks in Russia.
Starbucks pulled its brand from Russia in May, but the coffee shop that's replacing it might conjure familiar feelings. Driving the news: Stars Coffee on Friday opened its doors in Moscow, emblazoning its stores and cups with a logo that doesn't make much of an attempt to forget the American company that left.
Partners, As I communicated Friday, we condemn the horrific attacks on Ukraine by Russia and our hearts go out to all those affected. We continue to watch the tragic events unfold and, today, we have decided to suspend all business activity in Russia, including shipment of all Starbucks products.
McDonald's has reopened its doors under a new name in Russia after the fast food giant pulled out of the country over its invasion of Ukraine. Fifteen branches in and around Moscow reopened on Sunday with their new name Vkusno & tochka, which translates as "Tasty and that's it".
A McDonald's Russia store in the city of Pskov. (Source: Bigstock.) McDonald's is set to take a one-off impairment of US$1.2 billion to $1.4 billion from its decision to sell its Russian business and withdraw from the market in response to Russia's invasion of neighbouring Ukraine.
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