McDonald’s Corporation Exits Russia After More Than 30 Years of Operation

McDonald’s, one of the largest global fast-food giants will now be pulling out their business in Russia after more than three decades of operation in the country, as stated by the company last Monday. Although all its 850 branches in the country had already stopped their operations last March, the company has now announced its exit in an official statement.

The company says, “After more than 30 years of operations in the country, McDonald’s Corporation announced it will exit the Russian market and has initiated a process to sell its Russian business. The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values.”

McDonald’s Corporation now has its sights on selling “its entire portfolio of McDonald’s restaurants in Russia to a local buyer”. Around 80% of McDonald’s branches in Russia were previously managed by the company directly and contributed 3% of the company’s operating profit and 9% of its total revenue. The country’s McDonald’s branches previously employed about 62,000 citizens. The company also notes that after the final turnover of their sale, the restaurants will no longer be allowed to use the McDonald’s name, logo, menu, and branding.

“We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald’s make today’s announcement extremely difficult,” Chief executive Chris Kempczinski states. The chief executive also comments on “having a commitment to the global community and their values”.

Last February, Russian President Vladimir Putin announced the ordering of troops into Ukraine, garnering various sanctions from the West such as foreign corporations like Starbucks, Ikea, and H&M pulling out their businesses from the country.

Source: ABS CBN News