Sunday, June 26, 2022
HomeBusinessMcDonald's to Permanently leave Russia after 30 years

McDonald’s to Permanently leave Russia after 30 years

McDonald’s has announced it will permanently leave Russia after 30 years and has started selling restaurants in the country.

McDonald’s said it made the decision because of the “humanitarian crisis” and “unpredictable operating environment” caused by the Ukraine war.

The chain opened in Moscow in 1990 as the Soviet Union was opening its economy to Western brands and its exit carries similar symbolic weight.

In March McDonald’s temporarily closed its 850 restaurants in the country.

The company said it was now pursuing the sale of all its restaurants in Russia to a local buyer and intended to start the process of “de-arching” the sites so they no longer use the McDonald’s name, branding and menu.

However, it said it would continue to keep its trademarks in Russia.

McDonald’s said owning a business in Russia was “no longer tenable” or consistent with its values.

The chain said its priorities included seeking to ensure its 62,000 employees in Russia continued to be paid until any sale was completed and that they had “future employment with any potential buyer” .

McDonald’s president and chief executive, Chris Kempczinski, said the announcement was “extremely difficult” but it wanted to stick to its values.

“Our commitment to our values means that we can no longer keep the Arches shining there.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here