₦airaland Forum

McDonald’s, citing “the needless human suffering unfolding in Ukraine,” announced Tuesday it will temporarily close 850 locations in Russia. The decision came nearly two weeks after Russian forces invaded its ex-Soviet neighbor.

CEO Chris Kempczinski wrote in a letter to franchisees and employees that the chain will pause all operations in Russia. However, it will continue to pay its 62,000 Russian employees, and its Ronald McDonald House Charities will continue to operate.

In recent days, the fast-food giant has drawn criticism for staying silent on the war, given its relatively large Russian footprint. McDonald’s restaurants in Russia and Ukraine account for 2% of its systemwide sales, roughly 9% of its revenue and 3% of its operating income.

McDonald’s has long played a symbolic role in Russia as well. The chain opened its first location in the Soviet Union 32 years ago in Moscow, months before the state collapsed.

“In the thirty-plus years that McDonald’s has operated in Russia, we’ve become an essential part of the 850 communities in which we operate,” Kempczinski wrote in his letter. “At the same time, our values mean we cannot ignore the needless human suffering unfolding in Ukraine.”

About 84% of McDonald’s Russian locations are owned by the company, while the rest are operated by franchisees. Owning more of its restaurants generates greater revenue for the company, but opens it up to greater risk in times of turmoil or economic downturn.

Kempczinski said it is impossible to predict when McDonald’s would be able to open its Russian restaurants. The company is experiencing supply chain disruptions and other operational challenges.

He also said McDonald’s is paying full salaries for Ukrainian employees and has donated $5 million to its employee assistance fund. The company is monitoring the humanitarian situation as well.

McDonald’s announcement comes after Yum Brands said it would suspend restaurant development and investment in Russia. The KFC owner has more than 1,000 restaurants in Russia that account for roughly 2% of its systemwide sales.

Starbucks hasn’t yet paused any of its Russian operations, where all of its cafes are run by franchisees. The coffee chain has about 130 locations across Ukraine and Russia. However, CEO Kevin Johnson condemned the Russian attack on Ukraine and vowed to donate royalties from its Russian business to humanitarian causes in Ukraine.

Officialgarri:
Giving rise to the indigenous Russian owned food business.
Nice one Mc comedians

Officialgarri:
Giving rise to the indigenous Russian owned food business.
Nice one Mc comedians

Officialgarri:
Giving rise to the indigenous Russian owned food business.
Nice one Mc comedians

Officialgarri:
Giving rise to the indigenous Russian owned food business.
Nice one Mc comedians

Officialgarri:
Giving rise to the indigenous Russian owned food business.
Nice one Mc comedians

HigherEd:
Lool you think it's as simple as that. 'Indigenous owned' when lending is in the mud, foreign capital is also in chaos. I wish them Goodluck.

Comradewhy:
Not again.

Armaggedon:
it won't be easy but once an alternative comes, these western brands shutting down in Russia would have shut themselves out of the country forever.

MangekyoAlt:
What is Macdonalds doing in Russia?
To make more money through selling their useless products or to entertain russians?
If a food seller closes his shop, no be himself him dey do? You wey dey buy food from an before you go find other alternatives.
Macdonalds should be chased out self.
The Chinese will replace them with the speed of light
But russia doesn't really realize how lucky they are right now to have China. China is the only major power that hasn't criticized them openly. They still trade with them and are even looking to trade more.
If USA had meted these sanctions on Russia 15 years ago, Russia wouldve crumbled already. But by God's grace, they won't, with the help of China. USA and Britain claimed they will crumble Russian economy. Na them go shame last last.

I stand with Putin!

Comradewhy:
Did you just say what is MacDonald doing in Russia?
Ooh no.

MangekyoAlt:
They're in Russia to make money by selling products you little shit. If they choose to pack their products and return back to their country, its their business. Alternatives are there.

Comradewhy:
Exactly,you just answered yourself not the gibberish you was uttering up there.
It's called business.

MangekyoAlt:
Did I say I didn't know the answer before asking the question?
My question meant.
What is MacDonald doing in Russia?
That shutting down will be a blow to Russia?
Apparently it would be them that is shooting themselves in the foot since they are the one shutting their services in a country. Others alternatives will push in their products instead which will without any doubt be accepted by russians since MacDonald is no longer available

Officialgarri:
Giving rise to the indigenous Russian owned food business.
Nice one Mc comedians

Emmajn1:
US is not wise. Trump cannot make such silly economic mistakes. All these useless attitude of US owned company is simply what it means to shoot yourself in the foot. They are not looking at the big picture. Negotiation and persuading Ukraine to stand down and recognise those new cities as independent countries, should have been the best way to go.