McDonald’s could be the first brand that entered(Former) USSR and trained its employees to smile!! unlike the soviet culture ! Ever since McDonald’s has served the Russians across their 11 time zones for over 30 years !! As McDonald’s are “de – Arching” from big Market Russia, what it means to the brand is not simple. The historical entry of the brand, after 14 years of negotiation in the (Former) Soviet Union, just before the fall of Berlin wall , in 1990, where 34 thousand burgers were sold on the first day, has come to a temporary or even permanent end! The statistical(reported) impact behind this closure is not easy . 850 restaurants , out of which 84% operated directly by McDonald’s and rest by it’s franchisees, contribute to 9% of McDonald’s Global Revenue! Parallelly McDonald’s also closes 108 restaurants in Ukraine for safety reasons! As of now, McDonald’s reportedly is continuing to pay its 62 thousand employees in Russia, which is estimated to be a 50m$ per month ! For now in Russia, the golden arches will shine no more. Being one of the world’s largest companies, they not only have responsibility “to provide long term, sustainable, value creation but also take meaningful actions on some pressing social challenges”!
As McDonald’s are “de – Arching” from big Market Russia, what it means to the brand is not simple. The historical entry of the brand, after 14 years of negotiation in the (Former) Soviet Union, just before the fall of Berlin wall , in 1990, where 34 thousand burgers were sold on the first day, has come to a temporary or even permanent end! The statistical(reported) impact behind this closure is not easy . 850 restaurants , out of which 84% operated directly by McDonald’s and rest by it’s franchisees, contribute to 9% of McDonald’s Global Revenue! Parallelly McDonald’s also closes 108 restaurants in Ukraine for safety reasons! As of now, McDonald’s reportedly is continuing to pay its 62 thousand employees in Russia, which is estimated to be a 50m$ per month !
For now in Russia, the golden arches will shine no more. Being one of the world’s largest companies, they not only have responsibility “to provide long term, sustainable, value creation but also take meaningful actions on some pressing social challenges”!