McDonald’s announces to permanently leave Russia after 30 years

The authorities of McDonald’s have made an announcement that it is going to completely leave the Russian market, after over 30 years in the market, as per the company.

The US-based company has made the following announcement in an attempt to completely isolate Russia as part of different other sanctions.

During Soviet Union era, the first McDonald’s restaurant was opened in the nation, with the first location on Moscow’s iconic Pushkin Square in 1990.

At that time, hundreds of people used to stay in the queue for hours outside of the restaurant for a taste of western fast-food flavors.

Russia’s full-scale military operation in Ukraine has pulled Russia fully out of the Western sphere, as some of the largest as well as the most recognizable brands escape the country.

Moreover, before the invasion of Russia against Ukraine was started, there were over 850 branches of the American fast-food giant in Russia.

McDonald’s closed the majority of its restaurants in the nation as well as have started the preparation to leave the market. A decision which has the cost the company about $50 million a month since 8 March, as per CFO Kevin Ozan.

Along with this, McDonald’s stated that the “unpredictable operating environment” as well as the “humanitarian crisis caused by the war in Ukraine” were not consistent with the company’s values and made their business “no longer tenable.”

There are some McDonald’s locations in Russia that are still operating in Russia. These are the franchisee locations, which are owned by private owners.

In addition, McDonald’s will now embark on selling its privately owned locations to local buyers and “de-Arching” restaurants that are held by franchisees.

Furthermore, this means that they will no longer be able to use the company name, logo, branding, and menu.

McDonald’s will keep its trademarks within the nation, likely to prevent their use by former franchisees.

McDonald’s President and CEO Chris Kempdzinski mentioned about permanently leaving Russia and their commitment to the global community.

Their commitment to values means that they no longer support the Russian market, says the CEO.

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