YouTube: https://youtu.be/EB2uzt0Iv1g
When McDonald's opened its first store in Moscow 30 years ago, it became a symbol of glasnost in action. Now, McDonald's has chosen to quit Russia entirely, after temporarily closing over 800 restaurants in the aftermath of the invasion of Ukraine.
The humanitarian catastrophe created by the war in Ukraine, as well as the resulting unpredictable operating environment, are cited as reasons by the burger business.
The Russian restaurants will be "de-Arched" once the sale is completed, which means they will no longer be able to use the McDonald's name, emblem, or menu.
McDonald's three-decade connection with Russia comes to an end with these sales. On January 31, 1990, McDonald's launched its first outlet in Moscow. More than 30,000 people were served, and the crowds forced the Pushkin Square site to stay open hours later than intended.
It wasn't only about Big Macs and fries when it arrived in Moscow. It was the most visible manifestation of Soviet Union President Mikhail Gorbachev's efforts to open his collapsing country to the outside world.
According to some, McDonald's leaving signals a new isolationism in Russia, which will have to turn inward for investment and consumer brand growth.
McDonald's will suffer a $1.2 billion to $1.4 billion write-off because of its pullout from Russia. Additionally, given the sale's circumstances, potential Russian buyers' financial difficulties, and the fact that McDonald's will not license its brand name or identity, the sale price is unlikely to be anywhere near the business's pre-invasion book value.
At the end of last year, McDonald's had 847 locations in Russia. They amounted for 9% of the company's sales in 2021, together with another 108 in Ukraine.
