McDonald's withdraws from Russia: All stores are to be sold

Created: 05/16/2022, 02:35 p.m

By: Daniel Dillman

McDonald's withdraws from Russia.

(symbol photo) © Jakub Porzycki/Imago Images

Fast-food giant McDonald's has announced it will close all of its branches in Russia, more than 30 years after the first burger joint opened in Moscow.

Moscow – Cheeseburgers, Big Macs and whatever they're called.

There is hardly a country in the world where the fast-food group McDonald's is not available for purchase.

But in the course of the Ukraine war, the US food company wants to completely shut down its business in Russia.

McDonald's even goes one step further.

As the group announced on Monday, all shops in Russia should disappear.

The holdings will be sold to local companies.

However, the 62,000 employees who work for McDonald's in Russia do not have to worry about their pay in the short term.

That said Chris Kempczinski, CEO and President of the group, to the news portal Axios.

However, it is "impossible to predict when we may be able to start opening restaurants in Russia again."

McDonald's withdraws from Russia - It's about 1.4 billion dollars

Kempczinski justified the step with the escalation of the Ukraine conflict by Russia: “The conflict in Ukraine and the humanitarian crisis in Europe have brought unspeakable suffering to innocent people.

We join the world in condemning aggression and violence and praying for peace."

A McDonald's branch in Saint Petersburg.

That too will have to close soon.

© Maksim Konstantinov/Imago Images

Overall, McDonald's withdrawal from Russia is worth $1.4 billion.

This is reported by the New York Times, citing corporate circles.

Fast Food Worldwide

McDonald's operates over 39,000 restaurants in more than 100 countries.

The group is banned from opening branches in some countries: These include Bermuda, Bolivia, Iceland, Iran, Macedonia, North Korea, Yemen and Zimbabwe.

In Russia, by the end of 2021, the company had 847 stores.

84 percent of these branches are controlled by the group itself.

The rest of the restaurants are franchised.

McDonald's ends more than 30 years of involvement in Russia

McDonald's has enjoyed great popularity in Russia for over 30 years.

In 1991, the US company opened its first branch in Moscow, but according to Kempczinski, the group's entry dates back to 1976. At the Olympic Games in Montreal (Canada), the chain allowed the Russian Olympic team to use its Big Mac bus .

"This was one of our proudest and most exciting milestones in McDonald's history," said Kempczinski.

"After nearly half a century of Cold War hostility, the image of the Golden Arches blazing over Pushkin Square heralded the beginning of a new era for many on both sides of the Iron Curtain." Now that era seems to be coming to an end .

(Daniel Dillman)