How did the Russians react to the closure of McDonald's?
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(Reuters) --
McDonald's has registered potential brand names in Russia for the company to take over its fast-food restaurants in that country, including "Fun and Tasty" and "The Same One," the report shows. patent filing made on Friday.
The company said on Friday that trademarks registered with Russia's Rospatent agency, from which it ultimately planned to choose a brand, also included "Just Like That" and "Open Checkout."
The world's largest hamburger chain has about 850 restaurants in Russia, and will sell them to local licensee Alexander Govor, who runs a 25-restaurant operation.
Govor will operate the brand under a new name in Russia, and other franchisees will have the option to work under the new brand.
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McDonald's had announced earlier this month that it would leave Russia entirely in response to the country's military campaign in Ukraine and the subsequent wave of outrage and sanctions from the West.
The company, which owns 84% of its restaurants in Russia, is one of the biggest international brands to have shut down operations in the country since the invasion began in February.
Initially, in March, shortly after the start of the war, McDonald's followed other Western companies in temporarily closing its restaurants in Russia.
The decision ends McDonald's three-decade relationship with Russia.
McDonald's opened the doors of its first restaurant in Moscow on January 31, 1990. At its opening they served more than 30,000 people and the Pushkin Square location had to stay open hours later than planned due to the influx of people.
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32 years later, McDonald's says goodbye to Russia 1:03
His arrival in Moscow involved more than just Big Macs and French fries, said Darra Goldstein, a Russia expert at Williams College.
It was the most prominent example of Soviet President Mikhail Gorbachev's attempt to open up his ailing country to the outside world.
"There was a really visible crack in the Iron Curtain," he said earlier.
"It was very symbolic about the changes that were taking place."
About two years later, the Soviet Union would collapse.
McDonald's will suffer a significant loss as a result of its exit from Russia: between US$1.2 billion and US$1.4 billion.
These are the companies that have left Russia due to the invasion of Ukraine
In its latest earnings report, McDonald's said closing its restaurants in Russia had cost it $127 million in the last quarter.
Nearly $27 million came from personnel costs, lease payments, and supplies.
The other 100 million came from food and other supplies that he will have to dispose of.
McDonald's had 847 restaurants in Russia at the end of last year, according to an investor filing.
Along with 108 others in Ukraine, they accounted for 9% of the company's revenue in 2021.
-- Jordan Valinsky and Danielle Wiener-Bronner of CNN Business contributed to this report.
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