McDonald’s has decided to leave the Russian market for good after 32 long years in business. The decision comes after the fast food corporation entered Moscow from Russia in 1990, easing the tension of the Cold War. In March of this year, McDonald’s sold its 850 outlets after citing humanitarian reasons as a factor leading to leaving the country due to the war in Ukraine.
McDonald’s stand against the war in Ukraine
As a global fast food giant, McDonald’s has made this firm decision as it is impossible for them to ignore the humanitarian crisis in Ukraine. McDonald’s CEO Chris Kempczinski went on to say they won’t be able to operate with the same hope they represented when they entered the country in 1990.
McDonald’s chains and employment in Russia
McDonald’s will eventually sell all sites to local shoppers, remove the golden arches, name, brand, logos, and even its menu. First, though, McDonald’s will make sure its 62,000 employees get paid until other shoppers at the store hire them.
McDonald’s entry into Russia is said to have occurred by embracing the West. However, times changed after the start of the Ukrainian war.
Not First To Exit Russian Market
Many other Western companies have also stopped their operations in Russia, thinking that the situation would improve. They hoped they could resume operations at the end. A French company, Renault has also withdrawn its assets from Russia. Other international companies such as Starbucks, Coca Cola, Levis and Apple have also shut down their operations in Russia.
In 2021, Russian and Ukrainian businesses contributed 9% of McDonald’s global sales. In Ukraine, all 108 McDonald’s stores remain closed, but the company continues to pay the salaries of its employees.
Some Western companies have also claimed that they cannot leave the Russian market due to complicated franchise agreements.