McDonald's in Russia
The 1980 Summer Olympics in Moscow promised Western tourists a taste of the city, yet no fast food establishments existed to serve them. The Associated Press reported that meals would be taken in proper restaurants where service varied widely and lunch could take hours. Beginning in 1976, McDonald's of Canada attempted to open two portable restaurants near Luzhniki Stadium during the Games. Despite criticism appearing in Soviet magazine The New Times, the plan nearly reached finalization with the Moscow Olympic Organizing Committee. In autumn 1979, Moscow mayor Vladimir Promyslov vetoed the plan entirely. This decision stood even as hundreds of other Western companies were allowed to become official suppliers for the event.
Soviet general secretary Mikhail Gorbachev introduced policies like perestroika in 1985 and glasnost in 1986 to encourage investment from Western countries. McDonald's of Canada president George Cohon aimed to try the market again after these political shifts. Plans became public in November 1987 following the signing of two preliminary agreements with the city council. Employees would be Soviets, but fifty to seventy-five Russian-Canadian or Russian-British employees were hired to relocate. The first restaurant opened on Moscow's Pushkin Square on the 31st of January 1990. Approximately thirty-eight thousand customers waited in lines that stretched for hours, breaking company records at the time. By 1997, there were twenty-one locations of the Russian chain.
The company's operations developed further after the collapse of the USSR in 1991. Decades followed seeing massive expansion across Russia. By 2022, eighty-four percent of locations were corporate-owned through its Russian operating companies McDonald's LLC and CJSC Moscow-McDonald's. The remainder was owned by franchisees. At the beginning of the invasion, over eight hundred restaurants operated across Russia with a total of sixty-two thousand employees. Hundreds of suppliers supported millions of daily customers. The chain hoped to open thirty restaurants in 1998 alone. George Cohon visited the country frequently, making eight visits in 1997.
A BBC reporter attended the closing of the first McDonald's in Moscow and stated the mood was solemn. People flocked to witness the event as it was hugely symbolic. The first store's opening marked when iron curtains were crumbling while Russia embraced the West. Reuters emphasized it had symbolic importance as a symbol of prospering American capitalism amid the collapse of the Soviet system. On the 8th of March 2022, McDonald's announced that it would be temporarily suspending operations due to the Russian invasion of Ukraine. It halted operations of roughly eight hundred fifty restaurants in Russia. In January 2023, McDonald's closed its restaurants in Kazakhstan, believed to be due to supply issues.
Following pressure on social media, McDonald's announced on the 8th of March that it was temporarily suspending its operations in Russia. The company continued to pay its employees based in Russia during this suspension. Ronald McDonald House Charities was originally meant to remain active within the region. After the takeover of former CFO Oleg Paroev, McDonalds Russia's restaurants remained open as of mid March 2022. On the 16th of May 2022, after temporarily closing its restaurants, the company decided to exit Russia altogether. On the 27th of May 2022, it was reported that McDonald's was selling its stores in Russia to a local licensee named Alexander Govor. Patent filings showed Fun and Tasty and The Same One as potential brand names for the firm taking over.
Duma state speaker Vyacheslav Volodin was quoted saying McDonald's announced they are closing and tomorrow there won't be McDonald's but Uncle Vanya's. A trademark was filed under that name using the Golden Arches on their side with a line. Alexander Govor replaced the brand with Vkusno i tochka which means Simply Delicious. The restaurants offer replacements for all menu items, but most are rebranded. In November 2022, McDonald's announced that due to extensive local supply issues its licensee in neighbouring Belarus would stop operating under its name. Restaurants were rebranded as Vkusno i tochka. On the 1st of December 2022, the last nine Russian McDonald's restaurants at train stations and airports in St. Petersburg and Moscow closed.
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Common questions
When did the first McDonald's restaurant open in Moscow?
The first McDonald's restaurant opened on Moscow's Pushkin Square on the 31st of January 1990. Approximately thirty-eight thousand customers waited in lines that stretched for hours, breaking company records at the time.
Who vetoed the plan to open McDonald's restaurants during the 1980 Summer Olympics in Moscow?
Moscow mayor Vladimir Promyslov vetoed the plan entirely in autumn 1979. This decision stood even as hundreds of other Western companies were allowed to become official suppliers for the event.
What date did McDonald's announce it would exit Russia and sell its stores?
On the 16th of May 2022, after temporarily closing its restaurants, the company decided to exit Russia altogether. On the 27th of May 2022, it was reported that McDonald's was selling its stores in Russia to a local licensee named Alexander Govor.
How many McDonald's locations operated across Russia before the invasion of Ukraine began?
At the beginning of the invasion, over eight hundred restaurants operated across Russia with a total of sixty-two thousand employees. Hundreds of suppliers supported millions of daily customers.
Which name replaced McDonald's brand in Russia following the rebranding process?
Alexander Govor replaced the brand with Vkusno i tochka which means Simply Delicious. Restaurants offer replacements for all menu items, but most are rebranded under this new name.