McDonald’s restaurants reopened in Moscow on Sunday with a new Russian property and a new name, “Vkusno & tochka,” which translates to “tasty and ready.”
Here’s what we know:
The famous Golden Bows have been removed and replaced with a new “M” -like logo, which includes two French fries and a burger on a green background.
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Executive director Oleg Paroev said the new company had decided on the new name, a well-kept secret, just the day before the launch.
There has been some speculation on social media about how best to translate the new name into English. “Tasty and That’s It” was widely adopted, though another suggestion was, “Tasty.” Point.’
Read more: McDonald’s, Pepsi and Uniqlo continue to operate in Russia despite invasion of Ukraine
“Vkusno & tochka” reopened on Sunday in Pushkin Square in what was the first McDonald’s restaurant in Soviet Moscow in 1990, when it sold up to 30,000 burgers, but the queue outside the restaurant was much smaller than three years ago. decades.
The chain will retain its former McDonald’s interior, but will remove any traces of its previous name.
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They will initially open 15 rebranded restaurants in and around the capital and another 200 restaurants in late June and 850 in late summer, executives said Sunday.
The new owner said that this year up to 7 billion rubles ($ 126 million) will be invested in the business, which employs more than 50,000 people.
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McDonald’s flagship Big Mac and other burgers and desserts such as McFlurry are missing, but other popular items are on a smaller menu that are sold at slightly lower prices.
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A double cheeseburger cost 129 rubles ($ 2.31) compared to about 160 at McDonald’s and a fish burger for 169 rubles, compared to about 190 earlier.
Paroev said the chain would keep prices “affordable.” They would probably rise because of inflation, but no more than their competitors, he said.
Most of the ingredients come from Russia, but some items were not immediately available due to logistical difficulties and because some suppliers have left Russia. For example, you need to find a new soft drink supplier after Coca Cola suspended business there.
Read more: McDonalds will leave Russia after more than 30 years in the middle of the Ukrainian war
Siberian businessman Alexander Govor has taken over the operation of the franchise through his company GiD LLC. He has been licensed by McDonald’s since 2015 and had helped the chain expand into remote Siberia, where it operated 25 restaurants.
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McDonald’s will have the option to buy its restaurants in Russia in 15 years, Russian authorities said.
Govor told reporters on Sunday that the price he paid was “much lower than the market price” and had been a “symbolic” figure. The US network set aside a $ 1.4 billion charge for the deal. McDonald’s did not respond to a request for comment on pricing.
Russia and Ukraine accounted for about 9%, or $ 2 billion, of McDonald’s revenue last year.
Paroev, the former Russian head of McDonald’s, runs the business. Until his inauguration, he had worked for McDonald’s for seven years, including as chief financial officer of the Russian business for 6 1/2 years until November 2021, according to his LinkedIn profile.
He was appointed general manager of McDonald’s in Russia in February, weeks before Moscow sent tens of thousands of troops to Ukraine on February 24.
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Govor will retain tens of thousands of employees at the chain for at least two years, the U.S. company said.
($ 1 = $ 55,7500)
Reuters report Compiled by Josephine Mason Edited by Pravin Char and Frances Kerry