Izvestia, citing market sources, reported that the American fast food chain McDonald’s may return to operate in Russia under a new brand.
The publication notes that no final decision has been announced yet regarding a relaunch in the Russian market. One source from Izvestia indicated that it is a moment to decide on the matter. By March 2022 the network included about 850 locations in Russia, with 132 owned by three main franchisees: Razvitie Rost, GiD, and the Regional Network of Catering Enterprises (LLC SPP). The total revenue in Russia in 2020, counting all franchises, stood at 114.05 billion rubles.
An Izvestia interlocutor explained that the company aims to recover funds already invested in Russia, including investments made to develop the restaurant network, and is therefore exploring a path to achieve that objective.
Igor Bukharov, president of the Restaurant and Hoteliers Federation, believes that McDonald’s would remain profitable even under a different brand since a strong customer attraction framework has already been built. He suggested that franchise partners could negotiate reduced payments to use the name of any new foreign operator.
McDonald’s is gone, but not all
The company suspended activities in Russia on March 14, attributing the move to operational, technical, and logistical challenges that made it impossible to guarantee business continuity, maintain the core product range, and uphold high quality standards.
McDonald’s halted its operation nationwide, yet some venues did not close. Certain sites continued to function as branded cafes across the country, reflecting the gradual winding down of production processes. Even after several weeks, many franchise cafes remained open. These stores were mostly located in the southern regions, the Ural region, and Siberia. Examples include continued activity in Novosibirsk, Tomsk, Kemerovo, Altai Republic, Altai, and Krasnoyarsk regions. In Moscow and Saint Petersburg, openings were largely limited to airport locations and the Leningradsky train station in Moscow, with some exceptions at the capital’s transit hubs.
On March 10, Moscow Mayor Sergei Sobyanin stated that domestic food networks could replace about 250 closed McDonald’s restaurants in the city over the course of a year.
company losses
Reuters reported that the closure of 847 restaurants in Russia cost McDonald’s roughly $50 million per month. Over a year, losses could approach half a billion dollars. The financial impact encompasses more than immediate revenue losses; ongoing expenses such as staff salaries, rent, and other related costs continued to be paid. McDonald’s Russia employed about 62,000 people, with roughly two thirds of their wages paid during the idle period.
Media coverage on March 13 showed videos and photos of long lines at remaining McDonald’s locations after the withdrawal announcement. There were reports of Russians selling items and products associated with the brand, with listings appearing on marketplaces such as Avito at prices reaching tens of thousands of rubles. Earlier, stores such as OBI continued operations in Russia, and there were public statements about plans for IKEA and Inditex to return to the Russian market after logistical challenges and supply issues were resolved.