The restart will begin on Russia Day, a patriotic celebration of the country’s independence, at the same iconic site on Moscow’s Pushkin Square, where McDonald’s first opened in Russia in January 1990. In the early 1990s, as the Soviet Union collapsed, McDonald’s embodied the thaw of the Cold War and became the vehicle for millions of Russians to taste American food and culture. The exit of the brand is now a powerful symbol of how Russia and the West once again turn their backs on each other. Sign up now for FREE unlimited access to Reuters.com Register McDonald’s announced last month that it was selling its restaurants in Russia to one of its local franchisees, Alexander Govor. The deal marked one of the highest business withdrawals since Russia sent tens of thousands of troops to Ukraine on February 24. read more McDonald’s iconic “Golden Arches” have been removed from locations in Moscow and St. Petersburg, where they will make room for a new logo featuring two french fries and a hamburger burger on a green background. The reopening will initially cover 15 sites in Moscow and the surrounding area. The name of the new chain remains a closely guarded secret. A change in the name of McDonald’s app on “My Burger” on Friday caused a stir on the internet, but the chain’s press team said it was only temporary, the daily RBC reported. A slogan on the app’s home page read: “Some things are changing, but steady work is here to stay.” The Russian media, citing images leaked from the new menu, reported the renaming of dishes such as Filet-O-Fish to “Fish Burger” and Chicken McNuggets to simply “Nuggets”. Reuters could not verify the changes.
WINDS
Govor said he plans to expand the brand to 1,000 locations across the country and reopen all of the chain’s restaurants within two months. But there may be some headwinds. It takes decades to build a brand, said Peter Gabrielsson, Professor of International Marketing at Vaasa University in Finland, and the new release is vital to the brand’s future success. “The launch day is important because it’s the first time consumers can really feel, touch and see the brand and what it stands for,” he said. “It’s important what the reaction will be and obviously people will compare it to McDonald’s.” McDonald’s, the world’s largest hamburger chain, owned 84% of its nearly 850 restaurants across Russia and was charged up to $ 1.4 billion after selling it to Govor, which GiD LLC previously owned 25 restaurants. Oleg Paroev of McDonald’s Russia said other franchisees would have the option of working under the new name, but the traditional McDonald’s brand would leave the country. McDonald’s has said it will retain its brands. McDonald’s last year gained about 9%, or $ 2 billion, of its revenue from Russia and Ukraine. McDonald’s has the right to buy its Russian restaurants within 15 years, but many terms of the sale to Govor remain unclear. The TASS news agency reported Wednesday that McDonald’s will remain open as usual at airports and train stations in Moscow and St. Petersburg until 2023, citing a source close to Rosinter Restaurants (ROST.MM), another franchisee. “Rosinter has a unique agreement under which the US company cannot withdraw the franchise. They can operate peacefully,” the source told TASS. Rosinter declined to comment. McDonald’s did not respond immediately. Sign up now for FREE unlimited access to Reuters.com Register Report by Reuters Edited by Matt Scuffham and Gareth Jones Our role models: The Thomson Reuters Trust Principles.
