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McDonald’s to Exit from Russia

382 pointsby richardboegliabout 3 years ago

34 comments

mupuff1234about 3 years ago
Can you sell the Russian business without violating the sanctions?
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eatonphilabout 3 years ago
This is a surprisingly well-written, engaging corporate statement. Most statements are pretty bland and purely to the point but after reading this I thought I was reading news coverage of their exit not their own statement.
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avakandabout 3 years ago
It seems that McDonald&#x27;s closed stores that operated directly under their control. As a result, only stores in westert part of Russia were closed (in Moscow, Saint-Petersburg). The stores in Siberia (i.e. Novosibirsk) and in Moscow airports continued operating as usual, as they are working under franchaising. Even the mobile app continued functioning.<p>So not much is going to change, I think. Hell, McDonalds is even open in DNR&#x2F;LNR &quot;republics&quot; under the name &quot;DonMac&quot;.
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boomboomsubbanabout 3 years ago
They never had an issue operating in Saudi Arabia despite the invasion of Yemen. They still maintain their Guantanamo Bay location. How is operating in Russia inconsistent with their values?
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vondroabout 3 years ago
Something that has been bugging me for some time (genuine question, please forgive me lack of geopolitics&#x2F;economy understanding) is this:<p>Supposing we want to hurt Russian economy - how are we hurting it by stopping selling them licenses&#x2F;branding&#x2F;machines to make and sell burgers and fries? Are we not ripping them off money if we sell to them? As in: we gain, they lose?<p>I understand we don&#x27;t want to sell advanced technology, or weapons. And we also want to stop buying oil&#x2F;gas or other goods produced in Russia. But burgers?<p>If you understand what&#x27;s going on, please share it :-)
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philshemabout 3 years ago
Also in the press release<p>&gt; McDonald’s restaurants in Ukraine remain closed while the Company continues to pay full salaries for its employees in the country…
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klausjensenabout 3 years ago
I remember the evening news on TV when the first McDonald&#x27;s restaurant opened in 1990 at Pushkin Square. There was a huge crowd of Russians outside, wanting to try the burger.<p>It was a sign of a more open world, something resembling an end of the cold war. There was a sense of optimism in the West about a peaceful future with Russia.<p>It does not matter that McD itself is closing in Russia, but it does tell us something about what the political and security-climate has reverted to.
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GekkePrutserabout 3 years ago
&gt; The Company intends to initiate the process of “de-Arching” those restaurants, which entails no longer using the McDonald’s name, logo, branding, and menu, though the Company will continue to retain its trademarks in Russia.<p>Obviously they&#x27;d want to keep the trademark, otherwise they have no way to prevent those sold restaurants from &quot;re-Arching&quot; after the &quot;de-Arching&quot; :)
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AltruisticGapHNabout 3 years ago
Wow thatt&#x27;s pretty rough. Just recently I saw some old footage of when Russia opened to the West and all those 90&#x27;s kids in Russia going to the first Mc Donalds opening there.<p>Then again McDonalds is a good example of a lot of things that are just plain wrong about western culture... so no loss for Russia I guess.
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have_faithabout 3 years ago
The biggest takeaway (...) for me was the stats about how they are still growing by a decent amount. I haven&#x27;t paid attention to them in a long time but<p>&gt; expects... over 1,300 net restaurant additions in 2022.<p>suprised me.
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wazooxabout 3 years ago
Renault did that last month. They sold their car factories and operations building and selling more than 500,000 cars a year in Russia at a very significant profit for <i>one rouble</i>. The Russian state company who bought it promised that it will sell back the company for the same price when the sanctions are lifted, BUT for the &quot;enhancements&quot; they could make until then...
das_keyboardabout 3 years ago
Related: A Message from Chris Kempczinski: An Update On Our Operations in Russia <a href="https:&#x2F;&#x2F;corporate.mcdonalds.com&#x2F;corpmcd&#x2F;en-us&#x2F;our-stories&#x2F;article&#x2F;BusinessModelAndStrategy.chris-russia-update.html" rel="nofollow">https:&#x2F;&#x2F;corporate.mcdonalds.com&#x2F;corpmcd&#x2F;en-us&#x2F;our-stories&#x2F;ar...</a>
throw0101aabout 3 years ago
A bit of history:<p>&quot;How a Canadian Opened the First Soviet McDonald’s&quot;<p>* <a href="https:&#x2F;&#x2F;medium.com&#x2F;exploring-history&#x2F;how-a-canadian-opened-the-first-soviet-mcdonalds-cb269232ae24" rel="nofollow">https:&#x2F;&#x2F;medium.com&#x2F;exploring-history&#x2F;how-a-canadian-opened-t...</a><p>* <a href="https:&#x2F;&#x2F;www.cbc.ca&#x2F;archives&#x2F;first-mcdonalds-moscow-1990-1.4980247" rel="nofollow">https:&#x2F;&#x2F;www.cbc.ca&#x2F;archives&#x2F;first-mcdonalds-moscow-1990-1.49...</a><p>Someone should interview George Cohon:<p>&gt; <i>George Alan Cohon, CC OOnt (born April 19, 1937) is an American-born Canadian businessman who is the founder and senior chairman of McDonald&#x27;s Canada and McDonald&#x27;s of Russia.</i><p>* <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;George_Cohon" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;George_Cohon</a>
Budabout 3 years ago
I visited the USSR in 1990 and ate at that first McDonald&#x27;s in Moscow. People were deliriously happy. It was a hopeful time. And such a beautiful country. The most amazing architecture; shockingly incredibly museums.<p>We seem to have lost those times of hope. It&#x27;s tragic.
paraditeabout 3 years ago
The end of the &quot;Golden Arches theory&quot;:<p><a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;The_Lexus_and_the_Olive_Tree#Golden_Arches_theory" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;The_Lexus_and_the_Olive_Tree#G...</a>
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JeromeLonabout 3 years ago
I would keep the business open, add a 20% Ukraine war fee to all sales (call it special operation fee if needed), and give it to a Ukraine war relief fund.
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throwaway121415about 3 years ago
bet they still doin biz in china and shanghai though
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divbzeroabout 3 years ago
Does McDonald’s exit from Russia count as a partial restoration of the “Golden Arches Theory of Conflict Prevention” [1]?<p>[1]: <a href="https:&#x2F;&#x2F;foreignpolicy.com&#x2F;2020&#x2F;11&#x2F;26&#x2F;mcdonalds-peace-nagornokarabakh-friedman&#x2F;" rel="nofollow">https:&#x2F;&#x2F;foreignpolicy.com&#x2F;2020&#x2F;11&#x2F;26&#x2F;mcdonalds-peace-nagorno...</a>
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nerdjonabout 3 years ago
I don&#x27;t really have much to add to the topic that hasn&#x27;t already been said here. It will be interesting to see if this continues and what it does to Russia.<p>But on a tech side of things, why is the corporate section of McDonalds trying to request my location?!? Glad Safari prompted me and I blocked it but this is ridiculous.
0898about 3 years ago
Can anybody explain why the rouble is at a five-year high? Or is there something in the intricacies of currency pairings that means this high isn&#x27;t quite like other &quot;highs&quot;?
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nikolayabout 3 years ago
How is this bad news for Russia though?! MickeyDees is a thing only outside of the States nowadays.
throwaway290about 3 years ago
What does &#x27;Arching&#x27; (&#x27;de-Arching&#x27;) mean in this context?
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ushakovabout 3 years ago
Russian propaganda will use this news as a tool<p>they already say “we don’t need McDonalds”
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selimthegrimabout 3 years ago
Is Russia going to reclaim the Moon Man from the fascis…oh wait.
wiz21cabout 3 years ago
If only McDonald&#x27;s could exit my country...
paganelabout 3 years ago
Thought they had already left. Good decision for Russia and for Russians&#x27; health, to be honest.
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wly_cdgrabout 3 years ago
::gulp::...I guess WWIII it is, then
mothsonaslothabout 3 years ago
What I want to know is what a Quarter Pounder burger is called in Russia:<p>A McPutin? A McSputnik? рояль с сыром?
ibobevabout 3 years ago
This will result in less junk food for the Russians. :)
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zabzonkabout 3 years ago
Has Putin not seen the fate of Beria in the film &quot;The Death Of Stalin&quot;? How long will it take before the Red Army takes him out into the back yard and shoots him?<p>Edit: Usual Putinista downvotes. Get a life. Why do you support this evil man?
alaricusabout 3 years ago
And nothing of value was lost!
rubyist5evaabout 3 years ago
This actually sounds like a positive. Can they exit from Canada next?
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ThinkBeatabout 3 years ago
Russian people: (Much like in every country) &quot;Oh no, we wont be able to buy s*itty industrial hamburgers anymore.&quot;<p>I would be happy if mcD would pulled out of my counry.
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konstmonstabout 3 years ago
Russia is a vassal state of china and shows the direction emperor Xi wants to go, but can&#x27;t afford to. They wanted to show that dictatorships are more powerfull and efficent than democracy but even the market (inkl Mc. Donalds) showed that they aren&#x27;t. I wonder if humanity will survive the next maybe indiect conflict with China...
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