McDonald's declares plans to leave Russia after nearly 3 decades of continued service, the Global fast food giants exit from the country will mark the end of a golden age for Moscow when it had briefly embraced the West.
Photo Source : Fox News.
McDonald’s set to end operations in Russia completely, after nearly 30 years of service.
Global fast food giant, McDonald’s is set to end operations in Russia and has begun to sell its branches within the country to local buyer’s.
After nearly thirty years of service to people of the Soviet Republic, McDonald’s had ceased its operations across 859 outlets across Russia in the light of Russia’s invasion of Ukraine.
The spokespersons for the fast food giant have cited “Humanitarian Crisis” and “Unpredictable Working Environment” as the reasons behind ceasing operations in the country.
When the first McDonald’s outlet had opened in Russia’s Pushkin Square in January 1990, for many it represented a long awaited hope of Unity between Russia and the West.
When McDonald’s had started serving Russian consumers, it had turned to be a huge trend for everyday Russians to eat out in Western Styled fast food joints. Photo Source : Reuters.
But those glory days have come to an end now. And now McDonald’s is prepared to leave behind its Russian consumers, as is evident by the fast food giants actions indicating that things will not be the same anymore.
Official response from McDonald’s
McDonald’s chief executive in Russia Chris Kemczinski told press correspondents that the issue is a complicated one without precedent and with profound implications for the continuance of McDonald’s sales operations in the country.
He also added, “ it is impossible to ignore the humanitarian crisis caused by the war in Ukraine and it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago.”
The chain has confirmed plans to sell the outlets to local buyer’s and is about to initiate the decommissioning of the golden arches – trademark of every McDonald’s outlet worldwide.
The menu, branding and the trademark of the outlets will also be retained as they belong to McDonald’s under copyright acts.
Officials have given statements in which they prioritized to ensure the livelihoods of its 62,000 employees across Russian Federation.
According to reports from higher up authorities of the global fast food giant, McDonald’s is prepared to write up to $ 1.4 Bn (£ 1.1 Bn) as tax write off for covering the exit out of the country.
The move comes as yet another shock for Russian consumers
Three decades ago when McDonald’s started operation in the country, millions were overjoyed. For many it marked the end of the cold war as everyday Russians greeted hot American burgers and French fries with open arms.
People queued for hours in front of newly opened McDonald’s outlets, for ordering and eating their preferred dishes from the iconic menu of McDonald’s.
When McDonald’s had opened its first outlets for Russian consumers, everyday Russians had queued for hours to get a bite to eat from the popular western establishment. Photo Source : Reuters.
The hunger which people of the Russian federation had expressed was symbolic of Moscow embracing the West and it’s values.
The service provided by McDonald’s in exchange of a stable security environment has been compromised by what Russia calls “ a special military operation “ in Ukraine.
It seems Russia and The west have lost their appetites for each other. As McDonald’s is set to end operations in Russia, it is evidence of the fact that it anticipates that situation will not be normalized anytime soon.
Other western MNC’s also pack up to leave
McDonald’s announcement comes after global Automobile company Renault announced to cessation of operations and exits from the country.
The French origin company has announced that all shares under “Renault Russia” will go to the city of Moscow and it’s 68% stakes in carmaker Avtovaz will be sold to the Russian Institute of science.
Renault announced the cessation of operations in Russia and gears up exits from the country in the face of Russia’s supposed “Special Military Operation” in Ukraine. Photo Source : BBC News.
Moscow has declared that all shares of “Renault Russia” has become state property- marking the first time Russia has nationalized and claimed a major foreign business since the beginning of the Invasion of Ukraine.
Many MNC’s such as Apple, Levi’s, Starbucks and Coca Cola have either left the country altogether or ceased operations partially inside the country.
As McDonald’s is set to end operations and leave the country , other global MNC’s are expected to follow in its footsteps. Last year business in Russia and Ukraine constituted nearly 9% of McDonald’s global sales.
Across Ukraine, McDonald’s 108 outlets remain closed due to the ongoing Invasion, but company officials have been continuing to pay full salaries of the employees in the country.
Conclusion
As McDonald’s is set to end operations and exit the country, many say that economic recession in Russia will worsen further.
In the face of its aggression, Russia has faced widespread condemnation from democratic nation’s across the world.
The exit of global MNC’s from the country ,may spell business ruined for Moscow. As Western trends and Companies had become an important part of Russian Culture, habits and lives as well.
As McDonald’s has started to withdraw from the country, nearly 62,000 McDonald’s employees across Russia are still getting their pays. McDonald’s is prepared to spend nearly $1.4 Bn to cover the exit from Russia. Photo Source : The Economist.
For the Russian civilians the golden arches of McDonald’s will no longer provide the warmth and sustenance ever again. As many mourn the exit of the global fast food giant, many Russians mark the end of a glory age – when Moscow had briefly embraced West.
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