- McDonald’s has been extremely popular in Russia since the early 1990s
- He is among the Western companies leaving Russia for Ukraine
- The company has operated nearly 850 restaurants across Russia
- McDonald’s restaurants will reopen on Sunday with a new property
June 10 (Reuters) – Sunday marks a new dawn for fast food lovers in Russia as former McDonald’s Corp (MCD.N) restaurants reopen under a new brand and property, more than three decades after the arrival of the hugely popular Western chain. for fast food.
The reboot will begin on Russia Day, a patriotic holiday celebrating the country’s independence, at the same leader in Pushkin Square in Moscow, where McDonald’s first opened in Russia in January 1990.
In the early 1990s, when the Soviet Union collapsed, McDonald’s began to symbolize the thawing of Cold War tensions and was a means for millions of Russians to taste American food and culture. The brand’s release is now a powerful symbol of how Russia and the West are turning their backs on each other again.
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McDonald’s announced last month that it was selling its restaurants in Russia to one of its local licensees, Alexander Govor. The deal marks one of the strongest business departures since Russia sent tens of thousands of troops to Ukraine on February 24th. Read more
McDonald’s iconic Golden Arches have been removed to sites in Moscow and St. Petersburg, where they will make room for a new logo, including two french fries and a hamburger patty on a green background. The reopening will initially cover 15 locations in and around Moscow.
The name of the new chain remains a closely guarded secret. The change in the name of the McDonald’s application on Friday to “My Burger” caused some excitement on the Internet, but the chain’s spokesman said that this is only temporary, writes RBC Daily.
The motto on the homepage of the application is: “Some things are changing, but solid work is here to stay.”
Russian media, citing leaked images of the new menu, announced the renaming of dishes such as Filet-O-Fish to “Fish Burger” and Chicken McNuggets to simply “Nuggets”. Reuters could not verify the changes.
INITIAL WINDS
Speech said it plans to expand the new brand to 1,000 seats nationwide and reopen all of the chain’s restaurants within two months. But there may be crosswinds.
It takes decades to build a brand, said Peter Gabrielson, a professor of international marketing at the University of Finland in Vaasa, and the new launch is crucial to the brand’s future success.
“Opening day is important because for the first time, consumers can really feel, touch and see the brand and what it means,” he said. “It’s important what the reaction will be, and obviously people will compare it to McDonald’s.”
McDonald’s, the world’s largest burgers chain, owned 84% of its nearly 850 restaurants in Russia and took a fee of up to $ 1.4 billion after the sale of Govor, whose GiD LLC previously operated 25 restaurants.
Oleg Paroev of McDonald’s Russia said other franchisees would have the opportunity to work under the new brand, but the traditional McDonald’s brand would leave the country. McDonald’s said it would keep its brands.
Last year, McDonald’s generated about 9% or $ 2 billion in revenue from Russia and Ukraine. McDonald’s has the right to buy back its Russian restaurants within 15 years, but many conditions for the sale of Govor remain unclear.
TASS reported on Wednesday that McDonald’s will remain open as usual at airports and stations in Moscow and St. Petersburg until 2023, citing a source close to Rosinter Restaurants (ROST.MM), another franchisee.
“Rosinter has a unique agreement, according to which the American corporation cannot take away the franchise. They can work peacefully,” the source was quoted as saying by TASS.
Rosinter declined to comment. McDonald’s did not respond immediately.
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