Moscow, First Published May 30, 2022, 2:26 PM IST
The first day was expected to have a thousand customers. But before the establishment opened, there were about 5,000 people in front of it. It was later revealed that food was served to 30,000 people that day. Many dignitaries, including President Boris Yeltsin, came to dine that day.
McDonald’s, like many other Western companies, is leaving Russia in the wake of the Ukraine invasion. Then, the successor of McDonald’s in Russia is looking for a new name. It is reported that several names are being considered. Maybe Fun and Tasty, or maybe The Same One. McDonald’s does not give the new owner the right to use the brand name.
McDonald’s arrived in Russia shortly before the collapse of Soviet Russia under former President Mikhail Gorbachev. It was read as a symbol of the breaking of the Soviet barrier, the opening of Russian borders and the infiltration of capitalism into Communist Russia. With McDonald’s decision to leave Russia, Russia is once again in front of the world, alone. McDonald’s is leaving Russia amid some criticism of the Ukrainian occupation. The new owner is Alexander Govor. McDonald’s products will now be available in Russia under the new brand name.
McDonald’s was launched in Russia on January 31, 1990, 30 years ago. George Cotton, founder and CEO of McDonald’s Canada during the 1976 Montreal Olympics, began discussions with Soviet officials. It took a quarter of an hour for that to become a reality. That arrival was awesome. 900 seats, 600 employees. In a country where there are no unemployed, 35,000 people have applied for jobs at McDonald’s.
The first day was expected to have a thousand customers. But before the establishment opened, there were about 5,000 people in front of it. It was later revealed that food was served to 30,000 people that day. Many dignitaries, including President Boris Yeltsin, came to dine that day. At that time the average salary in Russia was 150 rubles. McDonald’s Big Mac is priced at 3.75 rubles.
The number of people coming to eat every day was increasing. People came from all over the neighboring states for a burger. Many stood in line for food for up to eight hours. Those who queued for days for tea and sugar, which were available as rations in Russia at the time, said it was not an issue. There are stories that the Russians were amazed at the size of the Mac milkshake and the burger.
The Soviet Union collapsed in 1991. But McDonald’s continued. There are more than 800 McDonald’s restaurants in hundreds of Russian cities. It is now closed. The month after the war in Ukraine began in February, many foreign companies began to withdraw from Russia. McDonald’s also announced a temporary shutdown.
It was then that McDonald’s decided to sell its entire business in Russia. In fact, it’s a loss for McDonald’s. McDonald’s does not give brand name. And so on
Decision to rename.
The current situation in Russia, the embargo on billionaires, the change of brand name – all these will reduce profits. McDonald’s has 847 restaurants in Russia. In Ukraine 109. 9% of total revenue came from this. That too is a loss.
It marks the end of a 30 – year relationship between Russia and McDonald’s. Moreover, for a period of time. The arrival of McDonald’s was a sign of glassnost and cracks in the iron wall. Russia’s borders, which Gorbachev opened, are closing again. Western observers believe Putin is pushing the country back to its former glory in an attempt to bring the Soviet Union back.
Last Updated May 30, 2022, 2:26 PM IST