The American fast food giant McDonald’s announced in May that it would leave Russia after the invasion of Ukraine by Moscow.
The American fast food giant McDonald’s announced on May 16 that it would leave the Russian market following the invasion of Ukraine by Moscow.
On Sunday, McDonald’s restaurants reopened in Moscow with a new Russian property and a new name, “Vkusno-i tochka,” which translates to “tasty and that’s it.”
Here’s what we know:
The new logo:
The famous Golden Bows have been removed and replaced with a new logo, similar to the letter “M” and consisting of symbols depicting two French fries and a burger on a green background.
CEO Oleg Paroev, the former Russian head of McDonald’s, said the new company had decided on the new name, a well-kept secret, just the day before the launch on Sunday.
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, although another suggestion was, “Tasty. Point or point.”
Branches:
“Vkusno-i 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 it used to be. three decades.
The chain will retain its former McDonald’s interior, but will remove any traces of its previous name.
Initially, 15 rebranded restaurants will open in and around the Russian capital and another 200 restaurants in late June and 850 in late summer, executives said.
The new owner said that this year up to 7 billion rubles ($ 121 million) will be invested in the business, which employs more than 50,000 people.
Menu:
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.
A double cheeseburger cost 129 rubles ($ 2.24) compared to about 160 rubles at McDonald’s and a fish burger for 169 rubles, compared to about 190 before.
Paroev said the chain would keep prices “affordable.” They would probably rise due to inflation, but no more than competitor prices, 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, the company has to find a new soft drink supplier after Coca-Cola suspended business in Russia due to the war in Ukraine.
Property:
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.
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 percent, or $ 2 billion, of McDonald’s revenue last year.
Address / staff:
Until the acquisition, Paroev 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.
Govor will retain tens of thousands of employees at the chain for at least two years, the U.S. company said.