“An extremely difficult decision”
McDonald’s intend It sells its “whole portfolio of restaurants” in Russia to local buyers. The new owner will not be able to use the McDonald’s name, logo, branding and menu, although the company “will continue to protect its trademarks in Russia.”
“The humanitarian crisis caused <...> Increasing uncertainty in Ukraine and the business environment has led McDonald’s to conclude that continuing to have a business in Russia is no longer viable and is inconsistent with McDonald’s values.”
The fast food restaurant chain said it is making efforts to ensure that “McDonald’s Russia employees continue to receive payments until the closing of any transaction.” In addition, the company will try to ensure that its employees can work with any potential buyers in the future.
“We have a long history of creating deep roots wherever arches shine (branded letter “M” – “socialbites.ca”). We are proud of our 62,000 employees at our restaurants and the hundreds of Russian suppliers who support our business. Their dedication and loyalty to McDonald’s makes today’s announcement extremely difficult. However, we are committed to our global community and must stay true to our values. And our commitment to values means our belts can no longer shine there (in Russia. – socialbites.ca),” McDonald’s President and CEO Chris Kempchinski was quoted in a statement.
in a separate report
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At the same time, McDonald’s stressed that restaurants in Ukraine “continue to remain closed while the company continues to pay its employees full wages.” Additionally, Ronald McDonald House Charities “supports local relief efforts.”
“Across Europe, the McDonald’s system supports Ukrainian refugees through donations of food, shelter and employment,” the statement said.
The write-off of assets as a result of leaving the Russian market McDonald’s estimates at $ 1.2-1.4 billion. The volume of investments of the company in Russia exceeds $ 2.5 billion.
McDonald’s company restaurants will open in Russia under a new brand in mid-June, holding businesses, most suppliers, restaurant chains and menus, a company source told TASS.
“McDonald’s will return to Russia in June under a new brand. The chain of restaurants and menus will be preserved, as will businesses. More than 90% of the suppliers are Russian, cooperation with them will continue. In fact, only the name will go,” he said.
32 years in Russia
The company’s first Russian restaurant opened On January 31, 1990 in Moscow on Pushkinskaya Square. According to information on the network’s website, it became the most visited McDonald’s in the world. More than 140 million guests have entered over 30 years. About 1.8 million people visited Russian McDonald’s restaurants every day. And it has been visited by more than 6.25 billion guests over all the years.
After Russia launched a military operation in Ukraine, The Washington Post reported on March 8 that McDonald’s will close all 850 restaurants in Russia, citing CEO Chris Kempchinski.
And the company’s press service announced on March 11 that McDonald’s restaurants will suspend their work in Russia from March 14.
“Due to operational, technical and logistical difficulties, McDonald’s plans to temporarily suspend service in its network businesses across Russia from March 14. The office of the company will continue to operate as before,” he said.
In addition, McDonald’s said the company will cost up to $50 million per month to meet all of its obligations to employees and suppliers.
“In Russia, more than 62 thousand people work in the McDonald’s system, and about 100 thousand people work in the enterprises of suppliers. Taking care of employees is the company’s top priority, so both corporate and franchise businesses all employees remain and will be with the company. We will continue to receive full salary according to the average monthly income.
Source: Gazeta
Barbara Dickson is a seasoned writer for “Social Bites”. She keeps readers informed on the latest news and trends, providing in-depth coverage and analysis on a variety of topics.