Amid Russia’s ongoing invasion of Ukraine, many multinational companies have withdrawn from Russian territories due to sanctions and the country’s tarnished reputation. One notable exception was McDonald’s, which initially suspended its Russian operations when the conflict started in March but did not completely pull out. However, it appears that even McDonald’s cannot continue business as usual in Russia.
McDonald’s has confirmed that it is in the process of selling off all its business assets in Russia. The 800+ McDonald’s outlets in Russia will be sold to local entrepreneurs and rebranded, with all McDonald’s logos and products removed from the stores.
The company stated that the “humanitarian crisis resulting from the war in Ukraine, along with the increasingly unpredictable business environment, have led McDonald’s to believe that maintaining ownership of its Russian business is no longer sustainable or in line with its principles.”
Over 60,000 Russian employees work at McDonald’s locations. CEO Chris Kempczinski has assured that these employees will continue to be paid during the transition period and will be given priority for employment under the new ownership. Kempczinski acknowledged that the decision was tough, stating, “Our commitment to our global community and principles dictates that we can no longer operate under the Golden Arches there.”
Experts believe that while the restaurants might be attractive acquisitions under normal circumstances, the current economic challenges in Russia, combined with the lack of support from McDonald’s, would make owning and operating these locations very challenging. As of now, no information has been released regarding the new owners of the restaurants.
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